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Friday Links

Written By limadu on Minggu, 31 Agustus 2014 | 08.36

082914 - friday links

NEW YORK (CNNMoney)

A weekly collection of design, data and interactive links.

Design/Data viz
Forms of color | Vintage illustrations exploring color systems
Police Punishment: CCRB vs NYPD | Interactive analyzing NYPD complaint data
Futuristic UI | Video and stills from the short SIMIAN

Photo/video
Serendipity | Every second, a few people hit "play" on the same track at the same time
Zaha Hadid | Zaha Hadid's Wangjing Soho complex nears completion in Beijing
Instagram programming | A look at what goes on behind the scenes at Instagram

See last week's links

Have a nice weekend!
@dubly and @talyellin

First Published: August 29, 2014: 7:08 PM ET


08.36 | 0 komentar | Read More

The Coolest Kickstarter ever raises over $13 million

NEW YORK (CNNMoney)

The Coolest Cooler (yes, a cooler) raised $13.3 million in its 52-day run. The previous record holder, the Pebble smartwatch raised $10.2 million in 2012.

Why have more than 60,000 people contributed to a cooler campaign?

Well, this cooler includes a blender, waterproof bluetooth speaker, USB charger, cutting board and bottle opener -- a "portable party," according to founder Ryan Grepper of Portland, Ore.

And those who pledged enough ($165 or more) will save at least $130 on the cooler, which will retail for $299.

Related: The 13 most WTF gadgets

Those who contributed less can still get in on a piece of Kickstarter history: A $25 contribution earned a Coolest-branded reusable party cup and a drink guide; for $55, backers receive the party cup plus a "Keep Calm and Blend On" tee.

And for the first eight backers who contributed $2,000, Grepper will fly out and help them host a tailgate party with the Coolest (before its available to backers in February 2015).The record is impressive by any measure, but the last couple days have been a whirlwind: Backers contributed over $2 million in 24 hours.

The rush to contribute in the final days isn't all that shocking to Jason Greenberg, PhD and assistant professor at New York University's business school.

"This is something we tend to see in cultural settings where the 'rich get increasingly richer,'" said Greenberg. "A firm end date and time can precipitate this."

But it adds more pressure to satisfy consumer expectations.

"Bigger capital raises entail bigger expectations and scrutiny," said Greenberg.

Grepper is acutely aware of this obligation.

"I feel personal responsibility to each backer that has supported me and am committed making the Coolest live up to its name," said Grepper.

Related: Water balloon lovers pledge $645,000 on Kickstarter

The success of the Coolest is perhaps all the more surprising because this isn't its first time around the Kickstarter block.

Grepper unsuccessfully tried to raise $125,000 for similar model In November 2013 (he only earned $100,000),

"My confidence was pretty low because of the first campaign," said Grepper.

But a combination of seasonality (launching the campaign in July vs. November), more supporters and an improved design helped him get far more than his $50,000 goal this time around.

Setting the bar so low -- and meeting it within 36 hours of launching -- has helped him get ahead on production. He's currently in the process of locking in a final design and securing a factory to produce the coolers (which will be available in three colors: Margarita, Blue Moon and Coolest Orange).

Related: These startup ideas are money magnets

So, are the millions raised any indication of how it'll fare post-crowdfunding?

They could be.

"We've seen more and more angels and investors using [Kickstarter] as a minor league in terms of [gauging] customer demands," said Greenberg.

Grepper said he's already been contacted by "many" retailers who are interested in working with him to sell the product.

According to PrivCo, a financial data provider on privately-held companies, U.S. cooler sales totaled $635 million in 2013.

Igloo Products Corp "dominates" the market, according to Matt Turlip, senior analyst at PrivCo. The company, which ACON Investments bought from J.H. Whitney & Co. earlier this year, owns 53% of the full-size cooler market.

"Maybe in a year or two, the Coolest can hope to compete," said Turlip.

First Published: August 29, 2014: 9:19 PM ET


08.36 | 0 komentar | Read More

A&E deal would price Vice at $2.5 billion

vice shane smith Vice's co-founder Shane Smith has said he wants Vice to be the "next CNN" and "next MTV."

NEW YORK (CNNMoney)

Vice Media is in talks with A&E about a deal that would value it at more than $2.5 billion, according to a Vice spokesman.

A&E would buy a 10% stake in the company.

Vice would also create content for the A&E cable networks, according to a person with knowledge of the negotiations.

Its online content, magazine and HBO series, called Vice, specifically targets millennials.

On YouTube, the Vice channel has nearly 5 million subscribers. Its most popular video, "First Animal to Survive in Space," has 12.1 million views, followed by "The Biggest Ass in Brazil," which has been viewed 10.6 million times.

A&E, which also owns the Lifetime and History channels, is buying the stake to gain digital exposure.

Flipboard: Future of Media

A&E is jointly owned by Disney (DIS) and the Hearst Corporation. An A&E spokesman declined to comment.

Time Warner (TWC) was also interested in buying a stake in Vice, but those discussions are now over, according to a person familiar with the negotiations. (Time Warner owns CNN.)

This isn't the first time Vice has attracted investment from an established media company. Rupert Murdoch's 21st Century Fox paid $70 million for a 5% stake last year.

Vice's other minority shareholders include marketing services firm WPP, The Raine Group and former Viacom (VIA) chief executive Tom Freston.

The company's co-founder Shane Smith has said he wants Vice to be the "next CNN" and "next MTV."

First Published: August 29, 2014: 8:41 PM ET


08.36 | 0 komentar | Read More

Friday Links

Written By limadu on Sabtu, 30 Agustus 2014 | 08.36

082914 - friday links

NEW YORK (CNNMoney)

A weekly collection of design, data and interactive links.

Design/Data viz
Forms of color | Vintage illustrations exploring color systems
Police Punishment: CCRB vs NYPD | Interactive analyzing NYPD complaint data
Futuristic UI | Video and stills from the short SIMIAN

Photo/video
Serendipity | Every second, a few people hit "play" on the same track at the same time
Zaha Hadid | Zaha Hadid's Wangjing Soho complex nears completion in Beijing
Instagram programming | A look at what goes on behind the scenes at Instagram

See last week's links

Have a nice weekend!
@dubly and @talyellin

First Published: August 29, 2014: 7:08 PM ET


08.36 | 0 komentar | Read More

The Coolest Kickstarter ever raises over $13 million

NEW YORK (CNNMoney)

The Coolest Cooler (yes, a cooler) raised $13.3 million in its 52-day run. The previous record holder, the Pebble smartwatch raised $10.2 million in 2012.

Why have more than 60,000 people contributed to a cooler campaign?

Well, this cooler includes a blender, waterproof bluetooth speaker, USB charger, cutting board and bottle opener -- a "portable party," according to founder Ryan Grepper of Portland, Ore.

And those who pledged enough ($165 or more) will save at least $130 on the cooler, which will retail for $299.

Those who contributed less can still get in on a piece of Kickstarter history: A $25 contribution earned a Coolest-branded reusable party cup and a drink guide; for $55, backers receive the party cup plus a "Keep Calm and Blend On" tee.

And for the first eight backers who contributed $2,000, Grepper will fly out and help them host a tailgate party with the Coolest (before its available to backers in February 2015).

Related: The 13 most WTF gadgets

The record is impressive by any measure, but the last couple days have been a whirlwind: Backers contributed over $2 million in 24 hours.

The rush to contribute in the final days isn't all that shocking to Jason Greenberg, PhD and assistant professor at New York University's business school.

"This is something we tend to see in cultural settings where the 'rich get increasingly richer,'" said Greenberg. "A firm end date and time can precipitate this."

But it adds more pressure to satisfy consumer expectations.

"Bigger capital raises entail bigger expectations and scrutiny," said Greenberg.

Grepper is acutely aware of this obligation.

"I feel personal responsibility to each backer that has supported me and am committed making the Coolest live up to its name," said Grepper.

Related: Water balloon lovers pledge $645,000 on Kickstarter

The success of the Coolest is perhaps all the more surprising because this isn't its first time around the Kickstarter block.

Grepper unsuccessfully tried to raise $125,000 for similar model In November 2013 (he only earned $100,000),

"My confidence was pretty low because of the first campaign," said Grepper.

But a combination of seasonality (launching the campaign in July vs. November), more supporters and an improved design helped him get far more than his $50,000 goal this time around.

Setting the bar so low -- and meeting it within 36 hours of launching -- has helped him get ahead on production. He's currently in the process of locking in a final design and securing a factory to produce the coolers (which will be available in three colors: Margarita, Blue Moon and Coolest Orange).

Related: These startup ideas are money magnets

So, are the millions raised any indication of how it'll fare post-crowdfunding?

They could be.

"We've seen more and more angels and investors using [Kickstarter] as a minor league in terms of [gauging] customer demands," said Greenberg.

Grepper said he's already been contacted by "many" retailers who are interested in working with him to sell the product.

According to PrivCo, a financial data provider on privately-held companies, U.S. cooler sales totaled $635 million in 2013.

Igloo Products Corp "dominates" the market, according to Matt Turlip, senior analyst at PrivCo. The company, which ACON Investments bought from J.H. Whitney & Co. earlier this year, owns 53% of the full-size cooler market.

"Maybe in a year or two, the Coolest can hope to compete," said Turlip.

First Published: August 29, 2014: 9:19 PM ET


08.36 | 0 komentar | Read More

A&E deal would price Vice at $2.5 billion

vice shane smith Vice's co-founder Shane Smith has said he wants Vice to be the "next CNN" and "next MTV."

NEW YORK (CNNMoney)

Vice Media is in talks with A&E about a deal that would value it at more than $2.5 billion, according to a Vice spokesman.

A&E would buy a 10% stake in the company.

Vice would also create content for the A&E cable networks, according to a person with knowledge of the negotiations.

Its online content, magazine and HBO series, called Vice, specifically targets millennials.

On YouTube, the Vice channel has nearly 5 million subscribers. Its most popular video, "First Animal to Survive in Space," has 12.1 million views, followed by "The Biggest Ass in Brazil," which has been viewed 10.6 million times.

A&E, which also owns the Lifetime and History channels, is buying the stake to gain digital exposure.

Flipboard: Future of Media

A&E is jointly owned by Disney (DIS) and the Hearst Corporation. An A&E spokesman declined to comment.

Time Warner (TWC) was also interested in buying a stake in Vice, but those discussions are now over, according to a person familiar with the negotiations. (Time Warner owns CNN.)

This isn't the first time Vice has attracted investment from an established media company. Rupert Murdoch's 21st Century Fox paid $70 million for a 5% stake last year.

Vice's other minority shareholders include marketing services firm WPP, The Raine Group and former Viacom (VIA) chief executive Tom Freston.

The company's co-founder Shane Smith has said he wants Vice to be the "next CNN" and "next MTV."

First Published: August 29, 2014: 8:41 PM ET


08.36 | 0 komentar | Read More

Massive bank hack: What you need to know

Written By limadu on Jumat, 29 Agustus 2014 | 08.36

NEW YORK (CNNMoney)

Here's what you need to know.

What happened?

Some of the biggest banks -- including JPMorgan Chase (JPM) -- were recently hacked. The attackers used never-before-seen malware to break into the banks' computer systems, according to someone with direct knowledge of the investigation. And the hackers got in deep enough to delete or manipulate bank records.

Does this affect me?

As a consumer, not yet. Customer bank accounts are often insured by the bank in the event of a cyberattack. Check with your bank.

But business bank accounts are another matter. They're not typically protected from theft. Small businesses could be on their own.

Related: FBI investigating hacking attack on JPMorgan

What's the damage?

Hackers burrowed themselves deep into these computer systems and got access to sensitive internal records.

With that kind of access, they might be able to steal from customer accounts. Customer privacy is also at stake. Plus, criminals could have the banks' investment playbooks. Hackers could also wipe out a bank's entire computer network, according to Tom Kellermann, chief cybersecurity officer of Trend Micro (TMICY).

Who did it?

That's still unknown.

Some are quick to point to hackers in Russia. Trend Micro has spotted a spike in attacks on U.S. and European banks from computers located in former Soviet bloc countries in Eastern Europe. The massive surge started July 24, amid souring U.S.-Russia relations and economic sanctions imposed by Western nations upon Russia.

Related: Hackers attack Sony PlayStation Network

But it's easy for hackers to spoof evidence. They can bounce signals from computers in other countries. So far, the evidence pointing to Russian hackers or even the Russian government is circumstantial.

Why did this happen?

FBI investigators and independent cybersecurity specialists are trying to figure that out.

What now?

Just sit back and keep an eye on your bank statements. Wait to hear from your bank for any instructions.

But if you do, be careful and make sure it's actually your bank. If you get an email or letter, look up the bank's phone number on its official website and call directly. And if you get a phone call, hang up (politely) and call back the real number.

Related: 'Secret' app didn't actually keep you anonymous

Related: Hospital network's failure led to massive hack

First Published: August 28, 2014: 1:43 PM ET


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Outgoing AIG CEO given terminal cancer diagnosis

bob benmosche

NEW YORK (CNNMoney)

Robert Benmosche, 70, said in an interview with Bloomberg that doctors told him in May he had between nine and 12 months to live.

That sped up his plans, set earlier in the spring, to retire at the end of this year, when a new CEO would be installed and make structural changes at the insurance firm.

"I said, 'You know what? I'm not going to play the odds and I think the changes have to be made now, not later, and so let's accelerate my retirement,'" he said. "And the board was happy to do that."

AIG (AIG) announced in June that Peter Hancock, who has led its property casualty unit, will take over on September 1, with Benmosche in a consulting role.

Benmosche emerged from retirement in 2009 to lead AIG through the fallout from the financial crisis. The firm had to take a massive $182 billion government rescue, which it has repaid plus a $23 billion profit.

In the interview, Benmosche said an experimental treatment set back his battle with the undisclosed type of cancer.

"They say I'm stable," he said, "which is a big word because it wasn't stable for the last six months."

"We'll know in another month or two if we're making progress or not," he said.

First Published: August 28, 2014: 4:14 PM ET


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Twitter suspends fake @JPMorganCEO account

Jamie Dimon JPMorgan twitter The first tweet from @JPMorganCEO on August 27.

NEW YORK (CNNMoney)

The account popped up Wednesday afternoon under the Twitter handle @JPMorganCEO.

"We are excited to announce that our CEO Jamie Dimon has joined Twitter. This account is managed by the Global Media Relations Department," the first tweet said.

Another tweet from the account a few minutes later read, "My name is Jose and I work here in Global Relations. I made this account for Jamie, he will be using it today."

The account followed a number of media professionals and generated buzz and criticism in its initial hours. It used a photo of Dimon from his congressional testimony in 2012 over the bank's $2 billion trading loss that spring.

The Wire wrote about Dimon's "momentous embrace of social media" and had to amend its article once it became apparent the account was fake.

By Thursday morning, the Twitter bio for @JPMorganCEO included the disclaimer, "This is a parody account."

By Thursday afternoon, the account had been suspended. Twitter declined to comment on why.

JPMorgan has had a rough week. The bank is in the headlines for a large scale data breach that the FBI is investigating.

Jamie Dimon is undergoing treatment for a curable throat cancer this summer, although he continues to work.

First Published: August 28, 2014: 4:48 PM ET


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Top employees to see big bonuses this year and next

Written By limadu on Kamis, 28 Agustus 2014 | 08.36

company bonus

NEW YORK (CNNMoney)

Companies are setting aside a record high level of payroll (12.7%) for variable, performance-based pay, according to a new survey by Aon Hewitt.

The reason: to attract and retain talent.

As the job market has gotten stronger, lots of companies are competing for the best workers, and that's pushed more firms to offer bonuses related to performance, according to Ken Abosch, leader of Aon Hewitt's compensation practice.

A full 91% of companies surveyed this year said they have a variable pay program. Back in 2005, only 78% did.

So what does a bigger bonus budget at a company mean for the average person? Not nearly as much as it means for the very best employees.

Related: Unlimited vacation days and other perks you don't get

Abosch estimates that average salaried performers might expect to see bonuses worth between 10% and 20% of their base pay. The top performers, however, are more likely to see between 15% and 40%.

Raises are also likely to be higher for the best of the best.

Aon Hewitt's survey found that companies are giving average performers a 2.7% bump in base pay this year, while top performers will see a 4.4% increase. Overall, companies said they're giving workers an average raise of 2.9% in 2014 and plan to give 3% in 2015, the survey found.

Beyond performance, raises are also determined by where workers live and the industry they work in.

For instance, those who live in Denver, Houston and Los Angeles are likely to see higher average pay increases -- north of 3.2% - while those in New York, Minneapolis/St. Paul and Milwaukee will see pay bumps of around 2.8%.

Related: What about a three-day workweek?

Meanwhile, workers in the oil and gas industries can expect to receive some of the biggest raises (3.8%), while those in education (2.7%), government (2.6%) and paper products (2.6%) might see some of the lowest nationwide.

Of the 1,064 companies surveyed by Aon Hewitt, 38% were in manufacturing, 61% in service industries and the rest were in other industries.

First Published: August 27, 2014: 6:34 PM ET


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Diane Sawyer's no-fuss sign off from ABC's 'World News'

NEW YORK (CNNMoney)

Sawyer signed off on Wednesday night, a few days before her successor David Muir will officially take the helm.

"With gratitude for these years, I thank you," Sawyer said at the end of her broadcast, "and I'll see you right back here on ABC News very soon."

ABC and Sawyer have made almost no fuss about her sign-off, seemingly employing the same strategy that worked when she took over for Charles Gibson just a few days before Christmas in 2009. There was no prime time retrospective or farewell tour -- merely a tribute segment at the end of Wednesday's newscast.

Even the date of her last nightly broadcast was a semi-secret until she tweeted about it on Wednesday afternoon.

"See you tonight for my last night anchoring @ABCWorldNews -- great adventures ahead," she wrote.

As Sawyer alluded to with the tweet, she will be staying at ABC News, as a special correspondent of sorts, appearing on TV for big interviews and in-depth stories. She will still have an anchor title.

And it's not exactly fair to say she's leaving quietly, since "World News" has emerged victorious in the weekly ratings race after years in second place behind the "NBC Nightly News," anchored by Brian Williams.

Sawyer has "done very well for ABC News -- she's beat Brian Williams in the all-important 25 to 54 age demo on which advertising is sold," Lloyd Grove of the Daily Beast, a longtime media reporter, said on CNN's "Reliable Sources" earlier this summer.

The weekly "World News" wins started this spring, though, and "Nightly News" is still ahead for the full season.

Of the speculation about her departure, Grove said, "If they brought it up first, I'm sure she agreed, and if she agreed, I'm sure it was with a lot of sweeteners and her new gig is going to be pretty wonderful for her, I would suspect."

Now, all three nightly news anchors are once again white men. Muir's publicized start date is next Tuesday, though he's expected to anchor on Labor Day as well.

Amy Robach will fill in on Thursday and Friday of this week.

Only a few fellow anchors can truly relate to Sawyer's position atop network news. One of them is Williams, who, while not a friend of Sawyer, knows her socially.

On the day in June when Sawyer announced her plan to step down from "World News," Williams placed a call to Sawyer before their respective 6:30 p.m. shows. Neither anchor has divulged what was said.

First Published: August 27, 2014: 6:19 PM ET


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7 companies that keep more than $50 billion offshore

50 billion offshore Companies like Apple that do business abroad can delay paying U.S. taxes on the billions of dollars they keep offshore, indefinitely.

NEW YORK (CNNMoney)

But for some, a merger,known as an inversion, isn't the method of choice for paring a tax bill. There's another way to pay less in U.S. taxes, without relocating headquarters.

Plenty of companies that do business abroad delay paying big bucks to Uncle Sam by leaving foreign profits abroad, indefinitely. As long as they don't bring that money back home and reinvest it in the business, they don't have to pay U.S. tax on it.

Microsoft, for example, said that it lowered its tax bill by $29.6 billion last year by keeping $92.9 billion abroad, according to a regulatory filing by the company.

Related: How companies are shrinking their taxes

Why are so many U.S. firms reluctant to bring their profits home? Most experts say the problem is America's corporate tax rate, which is 35% on most corporate income. That's the highest rate among developed economies.

Companies typically reveal how much cash they're holding abroad in annual regulatory filings, but unlike Microsoft, don't often say how much in U.S. taxes they haven't paid yet.

Here are just seven companies that are keeping more than $50 billion offshore as of their most recent filings:

Apple (AAPL, Tech30): $111.3 billion

General Electric (GE): $110 billion

Microsoft (MSFT, Tech30): $92.9 billion

Pfizer (PFE): $69 billion

Merck (MKGAF): $57.1 billion

IBM (IBM, Tech30): $52.3 billion

Johnson & Johnson (JNJ): $50.9 billion

First Published: August 27, 2014: 7:42 PM ET


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Want a great 401(k)? Work for an oil company

Written By limadu on Rabu, 27 Agustus 2014 | 08.36

401k balance These five 401(k)s are among the top employer plans offered to workers in the tech, utility, legal, airline and oil and gas industries.

NEW YORK (CNNMoney)

Lawyers, oil and gas workers and airline employees have some of the best 401(k) plans in the country, typically boasting generous employer matches, high participation rates and low fees, according to a BrightScope report that analyzed some 3,500 company 401(k) plans with at least $100 million in assets.

Employees at many tech firms and utilities fare pretty well too, the report found.

The average balance for participants in Saudi Arabian Oil Company's 401(k) plan, for example, is $490,000 -- nearly 30 times Wal-Mart's (WMT) average balance of $18,000.

Wal-Mart said more than a million of its workers take part in its plan, including some part-time associates. The company said it matches employee contributions dollar-for-dollar up to 6% of its workers salaries.

Yet, since many of Wal-Mart's workers earn low hourly wages, they may not be able to afford to contribute much.

Calculator: Will you have enough to retire?

BrightScope's analysis looked at 2012 data and took into account hundreds of factors, including fees and participation rates, investment options and the level of employer and employee contributions. The higher the score, the more likely savers are to accumulate large enough nest eggs to live their retirement "in dignity," said Brooks Herman, head of data and research at BrightScope.

Southwest Airlines (LUV)' plan for pilots was one of the very top performers. It carries some of the lowest fees around, offers plenty of investment options and a generous employer contribution. As a result, participants have saved an average of $350,000.

The best performing plans also typically offer generous employer contributions, whether it's a traditional match or profit-sharing, something that is especially common in the legal sector.

Workers also tend to earn higher salaries, which allow them to sock away more of their own pay each year.

"These are going to be people who often have advanced degrees, and they are going to understand the importance of 401(k) savings," Herman said.

Related: 5 big retirement mistakes

The retail and hospitality industries, on the other hand, offer some of the country's worst 401(k) plans, BrightScope found.

Workers in these sectors tend to earn lower wages and have higher turnover, making it harder to save. And many workers don't choose to participate at all, BrightScope found.

The differences are stark: Lawyers receive average employer 401(k) contributions of more than $10,000 a year, compared to an average of $1,403 for savers in the hospitality industry.

First Published: August 26, 2014: 7:25 PM ET


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Smith & Wesson shares plunge 15%

smith wesson rifle Rifles are a tough sell for Smith & Wesson.

NEW YORK (CNNMoney)

The gun maker said Tuesday that quarterly sales were down by $39.2 million, pulled down by a shrinking demand for rifles. It made a $14.6 million profit, falling 45% from the prior year.

Shares plunged as much as 15% in after-hours trading.

Summer is typically a slow time for the industry, said CEO James Debney on a call with investors, and sales actually met the company's expectations.

Related: Smith & Wesson hit for overseas bribes

Still, Smith and Wesson (SWHC) lowered overall guidance for the year. Executives now expect sales to come in between $530 million and $540 million. In June, they predicted sales would be between $585 million and $600 million at the end of the fiscal year, which ends in April.

In the past couple of years, the gun industry saw an intense run-up in demand, fueled by concerns of more rigorous gun restriction. But President Obama has failed to get a bill through Congress that increases regulation and Americans are buying fewer guns.

Shares of rival gun maker Sturm Ruger (RGR) also fell Tuesday, but its drop was less dramatic.

First Published: August 26, 2014: 6:01 PM ET


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HP recalls 6 million computer cords for fire risk

hp recall laptop power cord The government said the recalled chargers look like this and are stamped with the code "LS-15."

NEW YORK (CNNMoney)

Hewlett-Packard (HPQ, Tech30) and federal regulators on Tuesday recalled 6 million power cords sold between September 2010 and June 2012 with some HP and Compaq notebook computers, as well as certain docking stations.

They warned the cords could overheat and catch fire. Of the 29 reported cases, two involved burns and there were 13 claims of property damage.

Related: The best deals in tech

The Consumer Product Safety Commission warned the recalled power cords should be unplugged immediately.

HP provided an online tool for customers to determine if their cord is recalled.

First Published: August 26, 2014: 8:27 PM ET


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Facebook to display less "click-bait"

Written By limadu on Selasa, 26 Agustus 2014 | 08.37

facebook clickbait Don't click on that "cutest thing ever" link! Facebook wants to discourage "click-bait"

NEW YORK (CNNMoney)

As a result, you'll probably see fewer stories on the Web that proclaim "You won't believe what happens in this video!" or promise that "This story will blow your mind."

These sorts of headlines have proliferated in the past couple of years because Internet publishers have found that they help boost page views and, consequently, revenues from advertising. But critics of the style -- and there are a lot of them -- say it's cheap and fundamentally unsatisfying to users.

Facebook (FB, Tech30) apparently agrees.

Related: Facebook makes games quit inflating 'likes'

Facebook says "click-baiting" happens when "a publisher posts a link with a headline that encourages people to click to see more, without telling them much information about what they will see."

There is a whole ecosystem of bottom-feeder Web sites that specialize in these kinds of stories.

Facebook's algorithm currently rewards these links when they're posted onto the social networking site because the links "tend to get a lot of clicks."

But "when we asked people in an initial survey what type of content they preferred to see in their News Feeds, 80% of the time people preferred headlines that helped them decide if they wanted to read the full article before they had to click through," the Web site said in an announcement on Monday.

So "click-bait" is unsatisfying -- and it may also hurt Facebook's business model, which entails getting people to spend more time on Facebook.

"Over time, stories with "click-bait" headlines can drown out content from friends and pages that people really care about," making Facebook less useful, the announcement added.

Related: Why Facebook stockpiles Blu-ray discs

Facebook said it would try to curtail the "click-bait" plague by showing "fewer of these types of stories."

The site said it would be careful not to ensnare other Internet publishers.

Facebook has become a crucial source of traffic for news and entertainment sites, so every perceived change to Facebook's algorithm is obsessively scrutinized.

And because Facebook has more than one billion monthly users, its choices and preferences ripple across the whole web.

Another change it announced on Monday will, in some cases, discourage publishers from attaching photos to their promotional posts -- so users will probably see somewhat fewer photos and more straight links in the future.

First Published: August 25, 2014: 3:48 PM ET


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3 reasons why Californians shun quake insurance

NEW YORK (CNNMoney)

Here are three reasons why many quake-prone Californians shun insurance:

1) Quake damage rarely exceeds deductibles.

Some argue the insurance is not worth the money for homeowners. Earthquake insurance generally comes with a deductible of 15% of the home's value, according to John Rundle, a professor of physics at the University of California, Davis.

"Most homeowners will never exceed the deductible even if they do get damage," he said.

Related: Natural disaster -- the riskiest spots in the USA

Most policies are purchased from the California Earthquake Authority, a privately funded, publicly managed organization that was created by the state legislature after severe losses in the Northridge quake threatened to send private insurers packing.

Glenn Pomeroy, CEO of CEA, said he would love to have a zero deductible, but that would make the premiums unaffordable for homeowners. Check out what you would pay on the CEA calculator.

The big deductibles mean money that would have gone to paying insurance premiums might be better spent being invested in temblor resistant home retrofits, according to Rundle. Homeowners could get their houses bolted to bedrock, for example, or braced and reinforced to prevent them from shaking apart.

Related: The 10 most expensive U.S. earthquakes

earthquake damage napa

2) Californians were slammed by the housing bust.

Many Californians were hurt by the real estate crisis and have little or no home equity -- or are underwater on their mortgages.

Jason Simpson, a computer programmer in Sherman Oaks, Calif., outside Los Angeles, bought his $690,000 home with a 3% down mortgage in 2008. The housing bust pushed him underwater -- he soon owed more on his loan than his home was worth.

Related: Mansion that measures earthquakes

"With no equity, there was no reason to drop $1,200 a year," he said.

If the big one had hit, he would have simply walked away from his mortgage. Now, however, as home prices have rebounded and he has added on to the house, he's preparing to buy insurance.

3) Mistrust of the California Earthquake Authority's support.

Another factor discouraging homeowners from buying coverage is that the CEA would stop paying claims if catastrophic earthquake losses exceed the the Authority's reserves.

Pomeroy said that homeowners shouldn't worry. Even though, just like any insurer, CEA would stop paying claims once its ability to pay was exceeded, it won't happen. CEA is very well capitalized, he said.

"We could handle two Northridges," he said, about the costliest earthquake in U.S. history.

"I don't lose sleep worrying whether we have enough money to pay claims, I worry because so many people don't have coverage."

First Published: August 25, 2014: 5:30 PM ET


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GM's compensation fund gets 100th death claim

feinberg 100 death claims Ken Feinberg has received 100 death claims so far.

NEW YORK (CNNMoney)

GM received 100 death claims and 184 injury claims as of Friday, according to a spokeswoman for Ken Feinberg, a consultant hired to administer GM's compensation fund. He began receiving claims on Aug. 1 and will continue to do so until Dec. 31, 2014.

GM has pledged to pay victims who were injured or killed as a result of a defect affecting 2.6 million cars that can cause the vehicle to shut off unexpectedly, disabling airbags. Officials have admitted that the company made mistakes, leading to a decade-long delay in issuing a recall for the affected vehicles.

Related: GM offers victims more than $1 million

Not everyone who submits a claim will receive compensation. Claimants must prove that the defect is to blame for the accident. Feinberg, who was tasked to give out compensation to victims after the 9/11 terrorist attacks and other high-profile tragedies, will evaluate all the claims and respond within three to four months.

GM (GM) is offering at least $1 million to the families of those who died. The automaker will give another $300,000 for each surviving spouse and dependent, in addition to a sum of money that will be determined by the victims' earning potential.

Compensation for those who were injured will be based on the severity of the injury. Victims give up their right to sue GM if they take the money.

The automaker expects to pay between $400 million to $600 million to compensate victims. No claims have been paid out yet, according to the spokeswoman.

First Published: August 25, 2014: 5:52 PM ET


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Retirees' Social Security checks garnished for student loans

Written By limadu on Senin, 25 Agustus 2014 | 08.36

josh cohen Consumer attorney Joshua Cohen works with an increasing number of older Americans whose Social Security benefits are being taken by the government to pay for old student loans.

NEW YORK (CNNMoney)

What's surprised Cohen lately is the increasing number of gray-haired people walking in his doors with a problem: A portion of their meager Social Security benefits are being taken by the government to pay for old student loans they had mostly forgotten about.

It's a growing national trend. Last year, 156,000 Americans had their Social Security checks garnished because of student loans they had defaulted on. It's tripled in number from 47,500 in 2006, before the Great Recession. That's according to analysis done by the U.S. Treasury for CNNMoney.

More from Ozy: Mom, dad, grandma and grandpa all under one roof

Like Cohen, other groups have noticed the increase too. A leading nonprofit group that works with students on repaying loans, American Student Assistance, has worked this past year with over 1,000 Americans who have had their social security payments garnished to repay outstanding student loans. That's a sharp increase from 200 people in the previous year.

chart social security garnished

For retirees, any cuts to their Social Security benefits really hurts.

"Social Security means survival. It means food, shelter, medication," said Cohen, a Connecticut attorney, who works with people on debt collection harassment and student loan repayments.

What's worse is that even if the unpaid student loan was small, the amount they owe now is usually a lot larger because of compounding interest rates.

Older Americans are hit

Retired Americans can start collecting Social Security benefits at 62. However, the folks that Cohen has worked with are in their 70's and 80's.

It's a substantial amount

The amount taken from these checks isn't small. The average Social Security monthly check is $1200, the typical amount taken is $180.

Refinancing not possible for most

Very few student loans can be refinanced and many people have outstanding loans with interest rates locked at over 7%, even though rates have fallen in recent years to below 3%.

Repayment terms on student loans are extremely rigid. They are rarely forgiven even in bankruptcy and people can have their wages garnished if they default.

Elizabeth Warren

The issue caught the attention of Senator Elizabeth Warren, who introduced a bill earlier this year to allow millions of people like Anderson to refinance their student loans. However, the bill was blocked in June.

Disabled not spared

Social workers are also seeing an increase in the number of people with mental and health issues having their Social Security disability checks garnished.

"I had a Korean War veteran in his 80's who had taken out a student loan for his son and then began having health problems. The government took money from his Social Security disability checks - money that he needed to buy medications," said Deanne Loonin, a director at the National Consumer Law Center, which works to provide economic security to low income and disadvantaged people, including the elderly.

According to the government data, the total amount garnished from social security checks last year came to $150 million.

Read more content from our partners at Ozy:

Crime that pays well unless you're a woman

Come to the U.S.: Buy a sports arena

Extreme food at state fairs

First Published: August 24, 2014: 12:32 PM ET


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Despite risk, most Californians don't have earthquake insurance

napa earthquake Northern California was awakened by a 6.0 earthquake early Sunday morning.

NEW YORK (CNNMoney)

The 6.1 magnitude earthquake that rattled Northern California early Sunday morning shocked a populated area, damaging buildings, sparking fires, rupturing utility lines and injuring at least 176 people.

Experts say it is too early to fully put a dollar figure on the damage, and the U.S. Geological Survey said the earthquake's economic impact is likely more than $1 billion.

Only about one in ten Californians have insurance to cover the damage to their homes and property, according to the California Earthquake Authority. It estimated the numbers are even lower in some of the areas that were affected Sunday, such as Napa, where as few as 6% have coverage.

Surveys show the percentage of homeowners who have earthquake insurance is declining across the country.

The Insurance Information Institute in May found that 10% of homeowners in the western United States have coverage, down from 22% a year ago. Nationwide, just 7% carry coverage, a drop of 3 percentage points in the last year.

People with higher incomes are more likely to buy coverage than those who make less, the surveys reported.

California does not require homeowners, renters or building owners to buy such insurance, and earthquake damage is usually excluded from other homeowner insurance policies.

The cost of coverage varies, including by location and what the home is made of, but on average it costs California homeowners about $860 per year.

More people would carry earthquake coverage if not for misperceptions about what policies do and do not cover, said California Earthquake Authority CEO Glenn Pomeroy. The length of time between major earthquakes may also "lull people into a false sense of security." His group is a nonprofit insurer created by the state legislature after the 1994 Northridge earthquake, ranked the most expensive in U.S. history.

Earthquake insurance generally covers the home itself and personal property inside it. Some plans offer cash for emergency repairs and fund temporary living arrangements if a home is badly damaged or destroyed.

Those who do have coverage "should call their agent immediately and get the process going," Pomeroy said.

Have you decided against buying earthquake insurance? Please tell us your story in an email to gregory.wallace@cnn.com.

First Published: August 24, 2014: 4:08 PM ET


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The 10 most expensive U.S. earthquakes

napa earthquake building Sunday morning's earthquake jolted Northern California, leaving extensive and widespread damage.

NEW YORK (CNNMoney)

That would rank the 6.1 magnitude quake, which left extensive and widespread damage, among the most expensive in terms of damage to homes and other infrastructure.

Nearly all of the 10 most expensive earthquakes in U.S. history have hit California.

Here is the list, with cost figures not adjusted for inflation, according to the Insurance Information Institute and USGS:

1. January 17, 1994: The 6.7 quake that hit California's San Fernando Valley has come to be known as the Northridge quake. It caused $44 billion in damage, about $15 billion of which was covered by insurance policies. It killed 60 people and injured more than 7,000, the USGS says.

northridge earthquake Buildings crumbled in the 1994 Northridge earthquake, rated the most expensive in U.S. history.

2. October 17, 1989: The last time the San Francisco Bay region shook like it did on Sunday was the 6.9 magnitude Loma Prieta earthquake. It was responsible for $10 billion in damage.

3. February 28, 2001: The magnitude 6.8 earthquake that rattled Seattle and Tacoma, Washington, was felt as far away as Montana. It caused about $2 billion in damage.

4. March 27-28, 1964: The Great Alaska Earthquake was the second-strongest earthquake ever recorded and lasted about three minutes, according to the USGS. It leveled buildings and caused landslides, then was followed by a tsunami that pummeled coastal towns. The damage totaled about $570 million.

Related: Most Californians don't have earthquake insurance

5. February 9, 1971: It took just 60 seconds of shaking for highway overpasses in the San Fernando Valley to collapse. The magnitude 6.6 earthquake caused about $553 million in damage. Only $35 million was covered by insurance policies.

6. April 18, 1906: The legacy of the Great 1906 San Francisco Earthquake isn't the trembling ground, but the fires it caused. All told, the damage amounted to $524 million. The official death toll was 700, although the USGS said that figure "underestimate(d) the total loss of life by a factor of 3 or 4."

7. October 1, 1987: Two dozen bridges in the Los Angeles area were damaged by the 5.9 magnitude Whittier Narrows earthquake. It caused about $360 million in damage.

8. April 4, 2010: The so-called Easter Earthquake was a magnitude 7.2 and shook San Diego, Los Angeles and parts of Arizona. It caused $150 million in damage.

9. June 28, 1992: Two earthquakes, rated at 7.6 and 6.7, about 17 miles apart, shook Southern California and caused about $100 million in damage.

10. September 3, 2000: This magnitude 5.0 earthquake in the Napa area caused "considerable damage," according to the USGS. The insurance institute tallied the cost at $80 million.

--CNN's Taylor Ward contributed to this report.

First Published: August 24, 2014: 8:11 PM ET


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The Coolest Kickstarter tops $9 million

Written By limadu on Minggu, 24 Agustus 2014 | 08.36

kickstarter cooler

NEW YORK (CNNMoney)

More than 46,000 people think so. The Coolest Cooler has raised over $9.2 million on Kickstarter -- and it still has a week to go.

It's described as a "portable party" and includes features like a blender, waterproof bluetooth speaker, USB charger, cutting board and bottle opener.

It's the second highest grossing campaign ever, ranking just behind the Pebble (the smartwatch that raised a record $10 million in 2012).

"There's a point where products derive much more attention than any rational expectation would suggest," said Jason Greenberg, PhD and assistant professor at New York University's business school, "In a market where potato salad can raise $55,000, it's not that surprising."

What's more surprising is that this isn't Coolest's first time around the Kickstarter block.

Related: The 13 most WTF gadgets

Ryan Grepper of Portland, Ore., unsuccessfully tried to raise $125,000 for similar model of The Coolest In November 2013. He only raised about $100,000.

On Kickstarter, Grepper detailed the biggest changes this time around: Seasonality (July vs. November), more supporters and an improved design.

It's certainly worked -- but are the millions any indication of how it'll fare post-crowdfunding?

They could be.

"We've seen more and more angels and investors using [Kickstarter] as a minor league in terms of [gauging] customer demands," said Greenberg.

Related: Water balloon lovers pledge $645,000 on Kickstarter

According to PrivCo, a financial data provider on privately-held companies, U.S. cooler sales totaled $635 million in 2013.

Igloo Products Corp "dominates" the market, according to Matt Turlip, senior analyst at PrivCo. The company, which was acquired by VC firm J.H. Whitney & Co. earlier this year, owns 53% of the full-size cooler market.

"Maybe in a year or two, with $9 million in funding, The Coolest can hope to compete," said Turlip.

Those who pledged enough for the cooler ($165 or more) will have to wait until February 2015 to get the product (which will come in Margarita, Blue Moon and Coolest Orange).

But they will have saved a cool $130 -- it'll retail for $299.

First Published: August 22, 2014: 5:22 PM ET


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10 Western companies getting slammed in Russia

LONDON (CNNMoney)

Many are reporting slower Russian sales and, in some cases, store closures as the Ukraine-Russia conflict drags on. Some have seen their share price get pummeled since the start of the year.

Cold War-style tensions and escalating sanctions are slamming these companies, as American and European leaders blame Russian President Vladimir Putin for the unfolding crisis and violence in Ukraine.

Here are 10 of the highest profile, worst hit companies:

1.McDonald's: Russian officials and regulators have been cracking down on the restaurant chain. Officials shut a handful of popular McDonald's (MCD) restaurants in Moscow this week, and state media report that Russia's consumer watchdog will be conducting checks on outlets as part of a food standards investigation.

Meanwhile, Wendy's (WEN) was recently forced to exit Russia due to what it said was a change in management at its local partner Wenrus. Wendy's had been in Russia since 2011.

2. Coca-Cola: The drinks giant said this week that quarterly sales declined by about 5% in Russia, Ukraine and Belarus. Coca-Cola (KO) blamed "economic instability in the region," but global sales increased by 3%.

3. Carlsberg: The Danish brewer warned this week its annual results will be weaker than expected, as Russian demand dries up. Carlsberg (CABGY) estimated that industry-wide Russian beer sales fell by as much as 7% in the first six months of 2014 due an uncertain economic environment, leading it to also lose market share. Carlsberg beer is the most popular beer in Russia by a wide margin. The company's stock has fallen 15% since the start of the year.

4. Adidas: In late July, the German sportswear company announced it was shutting stores and scaling back expansion plans in Russia. It said that "tensions in the region" had hurt consumer spending, and that the decline in the Russian ruble hurt profitability. Adidas (ADDYY) slashed its 2014 earnings forecast by 20% to 30%, partly because of Russia. Shares have plunged 37% since the start of 2014.

5. Volkswagen: The German automaker blamed an 8% drop in its Russia car sales during the first six months of the year on political tensions, and it said it believes i sales industry wide fell about 25% in July. Volkswagen (VLKAY) shares are down 13% since the start of the year.

6. Ford: A weakening ruble and slower sales in Russia have hurt Ford's (F) bottom line.

7. Renault: The French car maker has warned investors about a sharp slowdown in Russia and other emerging markets. Russia is Renault's (RNSDF) third largest market in terms of sales.

8. BP: The British oil giant BP (BP) owns a large stake in Rosneft, Russia's biggest oil company, and warned that unit will suffer from tougher U.S. sanctions. Investors are also worried about other energy companies, including Total (TOT) and Exxon Mobil (XOM), which have significant ties with Russia.

9. Societe Generale: Profits at the French bank's Russian unit fell 36% in the second quarter.

10. Danone: The French food multinational said first-half results were hurt by a decline in the ruble, and that it was forced to hike prices for some products in Russia due to strong inflation.

-- CNN's Olga Pavlova contributed to this report.

First Published: August 23, 2014: 10:12 AM ET


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Glenn Beck sought out CNN deal, but talks died fast

NEW YORK (CNNMoney)

But the idea fizzled fast and talks aren't expected to resume, according to several people with direct knowledge of the exchange. "The talks were never serious," one of the people said.

Still, Beck's interest -- first reported Friday night by the Wall Street Journal -- is a sign that he is seeking partnerships to help his two-year-old cable channel, called The Blaze.

The Blaze has had a hard time gaining distribution on cable and satellite systems. It is not alone: Many fledgling channels are in similar positions, particularly channels that are not backed by major media companies.

Time Warner (TWX), owner of CNNMoney and CNN, is one of those major media companies. It also owns HBO, TNT, TBS, and other channels, so it has significant leverage in negotiations with distributors like Comcast (CMCSA) and DirecTV (DTV).

That's one of the reasons why Beck's representatives from his media company, Mercury Radio Arts, reached out.

One of the sources compared the proposal to the joint venture between Oprah Winfrey and Discovery Communications for the channel that became OWN. Discovery provided the shelf space on cable systems and Winfrey provided the bulk of the programming for that channel.

Related: Future of media

Another source said Beck's company proposed that it buy a block of time on HLN, a smaller television sibling of CNN. That would have been a homecoming of sorts for Beck, who hosted a nightly show on HLN from 2006 to 2008. But CNN signaled that it was not interested.

The contact from Mercury Radio Arts came after media reports about talks between Time Warner and Vice Media. Those talks, first reported in late June, have also involved HLN. They are believed to be ongoing, though neither of the companies have commented publicly.

Spokespeople for Beck and CNN declined to comment.

When I interviewed Beck for CNN's "Reliable Sources" last month at his headquarters in Irving, Texas, he acknowledged the challenges that independent channel owners face. At the time, I didn't know about his company's outreach to CNN, and he didn't mention any possible partnerships with major media companies.

Related: Glenn Beck's challenge: Getting into your TV

But he spoke at length about his interest in making sure Mercury Radio Arts reaches audiences through television, radio, the Internet, in-person events, and other means.

"I am interested in delivering an experience for people," he said. "And I want to be in every -- in every possible venue."

Beck's channel is arguably the biggest opportunity he has. It originated on the Internet and was picked up by the country's second-biggest satellite television provider, Dish Network (DISH), in 2012. At the time, that was a big coup for Beck.

Since then, The Blaze has struck distribution deals with about 70 smaller TV providers. But the industry is top-heavy, and only two of the ten biggest providers, Dish and Cablevision (CVC), have supported The Blaze so far.

Beck's representatives have declined to say how many of the country's 100 million homes with pay-TV currently have access to The Blaze, which helps to explain his apparent interest in partnerships.

First Published: August 23, 2014: 8:17 PM ET


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Hypoallergenic nuts to solve nut allergies

Written By limadu on Sabtu, 23 Agustus 2014 | 08.36

ozy-nuts

NEW YORK (CNNMoney)

Gus had suffered — but luckily survived — anaphylaxis, a potentially fatal reaction. Tests later revealed he had allergies to peanuts and tree nuts, like almonds and hazelnuts, the mere scent of which makes his eyes and throat itch. Now 5 years old, Gus politely refuses his friends' high fives, lest they bear traces of M&M's or other nut-containing products. Hass carries baby wipes everywhere, cleaning every surface within his reach. Yet Gus still suffers a reaction roughly once a month, and he's experienced around 20 anaphylactic episodes besides.

More from Ozy: How does money smell?

Gus knows his allergies can kill him. "He asks tough questions," Hass says. " 'What happens to kids who die from food allergies? Are there food allergies in heaven?' "

At present, no treatment exists for nut allergies. An EpiPen can quell severe reactions, but the only widely accepted preventive measure is vigilant avoidance. It's rarely vigilant enough.

That's why researchers at the U.S. Department of Agriculture have shifted their focus. Instead of treating people who suffer from nut allergies, they're trying to treat the nut. That means "disrupting [the] structure" of nut proteins, says Christopher Mattison, a molecular biologist at the USDA's Agricultural Research Service.

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Understanding how this works requires a bit of biology. Nut allergies typically flare when an antibody in the immune system, immunoglobulin E (IgE), binds to the nut's protein, triggering a reaction. So scientists have devised a clever tactic to trick IgE: modifying the shape of the proteins so the antibody can't recognize them.

To that end, Mattison and his colleagues treated proteins from cashew nut extract — proteins similar to those found in many other nuts — with a combination of heat and sodium sulfite, a chemical often used as a food preservative. Both disrupt crucial chemical bonds that help hold nut proteins intact, basically dicing them into smaller pieces. The researchers then mixed modified and unmodified cashew proteins with IgE from people allergic to cashews.

More from Ozy: Extreme food at state fairs

Sure enough, roughly 50 percent less IgE latched on to the altered proteins, as described in the Journal of Agricultural and Food Chemistry in June — indicating that the modified cashew proteins might at least dampen the severity of an allergic reaction.

But "there's plenty of work to be done before we can extend [this] into ... a practical solution," says Mattison. So far, scientists have only extracts, not whole nuts; at this stage, it's hard to know what a modified nut would taste like. And while the scientists have reduced IgE binding, they haven't eliminated it altogether — which doesn't help patients sensitive to even the tiniest amounts of nut protein.

Still, the possibility excites Hass and others. Peanut and tree nut allergies plague an estimated 19 million kids and adults in the U.S., and the number of children with peanut allergies in the U.S. has tripled in just over a decade.

More from Ozy: Me, mom, dad, grandparents all under one roof

Earlier studies have used similar treatments, but with harsh, laboratory-grade chemicals. The new study is the first to use a compound — sodium sulfite — that falls under the Food and Drug Administration's "generally regarded as safe" category, bringing modified nuts a step closer to being made as a food product.

Still, hypoallergenic nuts probably won't appear in supermarket aisles for several years. First, Mattison and his team want to tweak the treatment process so they can use a smaller amount of sodium sulfite, or an even milder alternative. They also want to explore whether the process can be applied to other nut proteins. So far, preliminary tests have revealed that it significantly alters the the structure of some peanut, pistachio and pecan allergens.

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They're also working to modify whole cashews, not just cashew extract — and to ensure that modified nuts taste the same as their unaltered counterparts. They'll also eventually need to test the method in a living system, such as mice and actual cells.

Mattison's approach, treating the allergen instead of the patient, is the opposite of oral immunotherapy — gradually scaling up consumption of allergy-triggering foods to dull the immune system's sensitivity to them. Oral immunotherapy has shown promise, but building tolerance can take months.

In a clinical trial, 84 percent of children tolerated the equivalent of about five peanuts, but only after 26 weeks of therapy, as described in The Lancet in January. And patients could still suffer severe allergic reactions as their immune systems learn to tolerate the offending food. In contrast, nut allergy sufferers could theoretically eat however many allergy-free nuts they want, whenever they want.

Even if researchers do successfully manufacture hypoallergenic nuts, some view them as the second-best solution. "My preference ... would be to actually decrease the allergic response of the individual," says Jessica Martin, a food allergy blogger whose son is allergic to pistachios, cashews, a host of other tree nuts and about 15 other foods. Oral immunotherapy "is the holy grail in my mind. I want a cure."

But other parents, like Hass, would embrace even a quasi-fix. "Anything helps."

First Published: August 22, 2014: 3:10 PM ET


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Coming soon: The Maxwell House K-Cup

keurig kraft

NEW YORK (CNNMoney)

Starting this fall, Keurig (GMCR) will partner with Kraft (KRFT) to offer Maxwell House, Yuban and Gevalia K-Cups.

Kraft has been selling a "single serve" coffee product for awhile that works in Keurig machines, but this will be the first time the companies are collaborating on branding and distribution.

Call it the morning beverage friendship. It's already caffeinating returns, at least for Keurig Green Mountain. The company's stock soared 13% Friday, sending the stock to its highest price ever -- over $135 a share.

To put it another way, you can buy roughly 220 K-Cups at the grocery store for the same price as one share of Keurig stock.

The deal hasn't done much for Kraft, however. Its stock was flat after the announcement.

Related: Should Coke buy Keurig Green Mountain?

Keurig Green Mountain Keurig Green Mountain stock popped another 13% after its deal with Kraft

Keurig already has dozens of K-cup partnerships, including ones with Dunkin' Donuts (DNKN), Starbucks (SBUX) and Snapple (DPS). This latest deal also adds McCafe, the McDonald's (MCD) coffee that is sold in stores, to the K-Cup offerings, since Kraft helps promote and distribute McCafe.

"They have all these partner brands. This really gives the consumer what they want," says Marc Riddick, a senior analyst at Williams Capital who covers the stock. "Keurig doesn't need to dictate to a consumer what they should chose."

Keurig's stock is up an incredible 77% since the start of the year, as the home coffee and tea brewing machine gains in popularity. The company joined forces with Coca-Cola (KO) in February, and there are plans for a cold beverage Keurig machine.

Related: Green Mountain soars on Coke partnership

"I am positive on the management team, but the bigger issue is the growth that is available in this beverage space," says Riddick. He notes that consumers are voting with their dollars and shifting more to coffee and tea and away from carbonated soft drinks.

The Kraft deal makes Keurig's device even more integral to a typical home. In some ways, Keurig has managed to do what smartphone makers have done -- the coffeemaker is now the focal point device for consumers to access a wide variety of beverages, much like apps on smartphones.

Investors are sensing there could be even more partnerships in the works.

First Published: August 22, 2014: 2:50 PM ET


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The Coolest Kickstarter tops $9 million

kickstarter cooler

NEW YORK (CNNMoney)

More than 46,000 people think so. The Coolest Cooler has raised over $9.2 million on Kickstarter -- and it still has a week to go.

It's described as a "portable party" and includes features like a blender, waterproof bluetooth speaker, USB charger, cutting board and bottle opener.

It's the second highest grossing campaign ever, ranking just behind the Pebble (the smartwatch that raised a record $10 million in 2012).

"There's a point where products derive much more attention than any rational expectation would suggest," said Jason Greenberg, PhD and assistant professor at New York University's business school, "In a market where potato salad can raise $55,000, it's not that surprising."

What's more surprising is that this isn't Coolest's first time around the Kickstarter block.

Related: The 13 most WTF gadgets

Ryan Grepper of Portland, Ore., unsuccessfully tried to raise $125,000 for similar model of The Coolest In November 2013. He only raised about $100,000.

On Kickstarter, Grepper detailed the biggest changes this time around: Seasonality (July vs. November), more supporters and an improved design.

It's certainly worked -- but are the millions any indication of how it'll fare post-crowdfunding?

They could be.

"We've seen more and more angels and investors using [Kickstarter] as a minor league in terms of [gauging] customer demands," said Greenberg.

Related: Water balloon lovers pledge $645,000 on Kickstarter

According to PrivCo, a financial data provider on privately-held companies, U.S. cooler sales totaled $635 million in 2013.

Igloo Products Corp "dominates" the market, according to Matt Turlip, senior analyst at PrivCo. The company, which was acquired by VC firm J.H. Whitney & Co. earlier this year, owns 53% of the full-size cooler market.

"Maybe in a year or two, with $9 million in funding, The Coolest can hope to compete," said Turlip.

Those who pledged enough for the cooler ($165 or more) will have to wait until February 2015 to get the product (which will come in Margarita, Blue Moon and Coolest Orange).

But they will have saved a cool $130 -- it'll retail for $299.

First Published: August 22, 2014: 5:22 PM ET


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Reselling old jeans on eBay is a great professional move

Written By limadu on Jumat, 22 Agustus 2014 | 08.36

NEW YORK (CNNMoney)

But even if we're to accept that experience as a community activist might make you a better business leader — or time spent as an actor or a doctor might prepare you for politics — we tend to be blind to these examples in our own lives. Just last year, I saw something like this hitting close to home: I learned a good friend had been repeatedly buying and then re-selling used clothes on eBay -- a habit curated over a decade. She'd purchase a dress for $80, wear it for a month or two and then sell it for $200. When she did it for fun, it was just so she could "pay Wal-Mart prices for Neiman Marcus clothes." But then she started doing it deliberately: buying at or under value and selling for more -- and she made margins between 15 and 200 percent, every time.

This struck me for two reasons:

First: Her confidence and intuitive sense of what products are worth. She was seeing a picture of cost and value that others missed — and profiting time after time.

Second: It seemed pretty damn familiar. In fact it reminded me of the skill set used by Wall Street proprietary ("prop") traders and investors — the people who power a large segment of the global economy, only they're fiddling with a lot more zeroes. Every day, Wall Street traders do roughly the same thing as my friend: They buy undervalued things and sell them later for higher prices. Only instead of designer bags and shoes, they buy and sell Apple stock, oil, gold or silver and other commodities. And they get paid $5 million, $10 million, even $1 billion a year.

But the underlying skills (save the cheats) are close.

The idea of transferable skills sometimes sounds too good, too optimistic, too outlandish. But I disagree — and so did my friend Edie Hunt, a longtime partner at Goldman Sachs and a former trader, who for years oversaw most of the hiring of traders at the firm. When I floated the idea past her, she said I was completely correct. In fact, she added, she'd spent years trying to point out this very notion to potential new hires, many of whom were women with a knack for at-home trading, assessing value and making smart cash.

This isn't to say that trading is easy — it's not. And it's not considered a midlife career switch for a reason: It takes time to develop cunning, and thick skin to withstand the constant barrage of accountability that comes on trading floors. But if you've been building those muscles of judgment, of valuation, of cost cunning, for some time — and you've got the hunger to think big — this could be game-changing for your future.

Add to that the reality and old wisdom that women day-trade more (and better) than men — and it's a groundbreaking idea. Especially for trading — still a male-dominated corner of the historically testosterone-fueled Wall Street — where women make up no more than 5 percent of employees.

Edie said the idea didn't always carry, but when women were reluctant to step into the jungle on the trading floor, she'd insist they shouldn't pass on trading altogether — indeed, she'd urge them to "put down eBay and opt for e-Trade."

Turns out a number of studies back up my hypothesis — and reinforce Edie's position. Online day-trading has huge potential as a cash cow, but studies in the 1990s out of Yale's economics department suggest that many people who do it aren't successful. Except those who already have a record of success. Which is to say that plenty of people who are day-trading all day aren't very good at it, but if you are good at it, there are huge potential margins of return. And eBay might be a brilliant place to get good at it — or at least to find out if you've got the knack.

It's not clear if any of the big banks have picked up on this phenomenon — other than a few folks on the inside, like Edie, who've noticed the correlation. But they should: not least because one of the fastest-growing retailers in the country, fashion store Nasty Gal, started that way; and, as my enterprising friend points out, there are thousands of Nasty Gals out there. Which means eBay could be a rich talent pool for recruiters -- or any smart entrepreneur -- to consider hiring from or looking to for inspiration. And even more importantly: These high-performing eBay traders may not recognize the mad skills they've got — and how valuable they could be if taken to a far more lucrative venue.

Which is funny because trading — at home on eBay or on the floor of a stock exchange — is an exercise in creative entrepreneurship. Or to put it differently: It's all about confidence, about seeing what other people don't dare to. It's not unlike the culture of eBay when it first started. And for anyone who doesn't believe me, they should believe the CEO of eBay, John Donahoe. I talked to him about this very idea at a dinner party, and he, too, confirmed what I'd been guessing at — that eBay traders are doing real work, making real money and building skills that play outside the game they might know best.

People will often say no to you before they say yes. Joe Montana was dismissed as a baseball player before becoming America's great quarterback. Not to mention a former Chicago-community activist and freshman senator — whom plenty doubted before his meteoric rise. But here's the exciting takeaway from the story of my eBay-savvy friends: You just might be sitting on a gold mine, literally and figuratively, if you've got the confidence to, well, take your skills and trade up.

First Published: August 21, 2014: 4:48 PM ET


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Hospital network's failure led to massive hack

heartbleed hospital

NEW YORK (CNNMoney)

The hackers took advantage of Heartbleed, the infamous defect in the way computers communicate securely with websites.

Community Health Systems' massive data breach could have been avoided.

There were widespread media reports and repeated warnings from cybersecurity professionals earlier in the year. But security researchers at TrustedSec say the hospital network did not update its systems to patch the bug soon enough.

TrustedSec CEO David Kennedy said a person involved in the investigation of the hack has confirmed that Heartbleed was the culprit.

Read up: Heartbleed 101

Juniper Network (JNPR) -- the hospital group's secure network provider, according to TrustedSec -- quickly patched its software for the Heartbleed bug. But it was up to the hospitals to patch their own systems.

"It's not surprising that Heartbleed was present in [the hospital network's] infrastructure," said Sam King, who oversees Veracode security products. "The question is: Why didn't they know about it or do something about it?"

Community Health Systems (CYH) declined to address the report to CNNMoney.

Related story: Why hospitals can't protect patient data

When you see a lock icon in your address bar, that's supposed to indicate that the conversation taking place between your computer and the Web server is secure. But the Heartbleed bug allowed attackers to bypass that encryption and spy on Internet traffic in real time.

That's what happened here, TrustedSec claims.

Medical personnel working from home logged into Community Health Systems' computers using a secure Virtual Private Network. But hackers attacked computer servers managing that network. The hackers gathered the medical professionals' usernames and passwords, later using them to log in and steal patient names, Social Security numbers and more from network-affiliated doctors' offices.

CNNMoney quiz: What hackers know about you

It's the first example of a major Heartbleed attack -- and it's unlikely to be the last. Heartbleed continues to affect gadgets everywhere: computer servers, network switches, even office phones. This makes Heartbleed a long-lasting problem.

Major companies are typically slow to update their systems -- even in critical situations -- because they lose track of their hardware.

"The problem with corporations is that they don't know where all their stuff is," said cybersecurity expert Robert Graham. "On any network, there's a lot of old devices, and as long as they're working, no one's touched them for years."

Still, the report that Heartbleed was at fault is aggravating, because it's an easy bug to catch. Free software like Masscan reviews entire networks for instances of the Heartbleed bug. And network monitoring services would spot if a hospital-affiliated doctor who usually works from home in Alabama suddenly connects from China -- where Community Health Systems said the hack emanated.

CNNMoney's cybersecurity Flipboard magazine: How safe are you?

"An organization like that should be watching what's leaving their network," said FlowTraq CEO Vincent Berk. "What doctor or nurse or administrative department needs access to 4.5 million records in a short period of time?"

First Published: August 21, 2014: 5:14 PM ET


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Comcast's latest location: on campus

comcast college streaming

NEW YORK (CNNMoney)

That's one of the theories behind Comcast (CCV)'s introduction of a streaming TV service on five college campuses this fall. The service supplements the old-fashioned way students who live in on-campus housing watch TV: by plugging a TV set into the dorm room cable pipe.

Comcast promoted the new option, which it calls "Xfinity On Campus," in a news release on Thursday, ahead of the fall semester. It will be included with resident students' room and board, just like traditional TV hook-ups have been, and will initially be available at the University of Delaware, Drexel University, Bridgewater College, Emerson College, and Lasell College.

Executives say they can rapidly expand the service to other campuses -- there are hundreds of colleges and universities in regions of the country where Comcast operates.

Comcast and other companies that provide cable TV on college campuses know they have to adapt to young peoples' changing media habits. In campus settings, especially, young people want to be able to watch TV shows on laptops and smartphones.

That's why "Xfinity On Campus" is partially seen as a response to subscription services from Netflix (NFLX, Tech30), Amazon (AMZN, Tech30) and Hulu. Those only let people watch on-demand TV, while Comcast's service includes an on-demand library plus a bundle of live TV channels, including ESPN, CNN, Comedy Central, MTV, and AMC.

Related: The future of media

Crucially, the Comcast service also extends at least partially off-campus: according to Comcast, students "can use their university credentials to authenticate and access online programming that's part of their subscription via TV Everywhere websites and apps such as WatchESPN and FXNOW."

Comcast's service might also be a response to password-sharing, which has been a concern for the owners of channels like ESPN that have popular apps.

Down the line, Comcast will add a recording function to the on-campus streaming service, so users can record live TV and watch it later via the cloud.

A few years ago a startup called Tivli -- now called Philo -- started to test a streaming TV service at Harvard and a handful of other campuses. Its product works on top of a university's existing cable provider.

First Published: August 21, 2014: 5:26 PM ET


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Bank of America nears record settlement

Written By limadu on Kamis, 21 Agustus 2014 | 08.36

bofa bank fines

NEW YORK (CNNMoney)

The agreement, to be announced as soon as Thursday, would settle a probe by the Justice Department and a group of states related to banking practices dating to the financial crisis, according to a person familiar with the deal.

The government accused the bank of misleading the buyers of mortgage-backed securities about the quality of the loans.

The settlement includes payments by the bank for penalties as well as relief for homeowners.

It's a large sum, even for the large bank: it made just over $17 billion in profits from 2011 to 2013 -- and about $2 billion more in the past six months.

Bank of America representatives declined to comment Wednesday.

Related: Settlements bite into BofA profits

Attorney General Eric Holder and Bank of America (BAC) CEO Brian Moynihan reached the main terms of the agreement in a telephone call in late July.

To move along the negotiations, the Justice Department had threatened to file a lawsuit against the bank. Paul Fishman, the U.S. Attorney in New Jersey, has led a civil probe of the mortgage business of Merrill Lynch, which Bank of America acquired in 2009.

Bank of America assumed Merrill's obligations in the merger but recently argued it shouldn't have to pay for shoddy practices before it became a unit of BofA.

The settlement comes after the bank agreed to pay $6.3 billion to settle four mortgage-related suits filed by the Federal Housing Finance Authority. The FHFA has overseen Fannie Mae (FNMA)and Freddie Mac (FMCC), the government-backed housing finance firms.

The deal would eclipse the $13 billion settlement stemming from a similar probe by the Justice Department and states against JP Morgan (JPM) last year.

--CNNMoney's Melvin Backman contributed to this report.

First Published: August 20, 2014: 5:14 PM ET


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Argentina has had it with U.S. bond laws

NEW YORK (CNNMoney)

The country is in default again on some of its debt. Negotiations with several hedge funds over debt repayments broke down so badly in July that Argentina is actually trying to change the laws overseeing its bond contracts.

President Cristina Kirchner submitted a bill Tuesday to Argentina's congress that would take the bonds in contention and put them under the Argentine judicial system. At the moment, many of the bonds fall under the U.S. legal code, where various court orders have hamstrung Argentina's options.

It's uncertain whether the jurisdiction switch is feasible, but Argentina continues to fight the hedge funds.

Related: Get caught up on Argentina's debt crisis

The ordeal all goes back to 2001 when Argentina initially defaulted. Many of its bondholders (92%), fearing they wouldn't get much, if anything, accepted a lower repayment. But a small group of other bondholders, led by hedge funds Elliott Management and Aurelius Capital Management, held out for full payment.

Until this year, Argentina refused to pay or even talk to the "holdouts."

The holdouts sued Argentina more than a decade ago and won a federal court ruling in 2012 that said Argentina had to pay up. Argentina then took the case to the Supreme Court, which decided in June to agree with the earlier ruling and effectively force negotiations with the holdouts.

Complicating matters, the 92% of bondholders who took the low pay deal have a clause in their contracts that say the holdouts can't get a better deal than them until the clause expires next year.

Argentina's talks with the holdouts went nowhere, breaking down again last week. Capital Economics predicts things are struck, possibly until President Kirchner's term expires. In 2016.

Related: At least one hedge fund is betting Argentina will be just fine

The South American nation has slipped into recession.

"If local government and corporate bond yields drop back as a result of the government's bond swap, damage to the real economy -- which is already very weak -- may be limited," wrote research firm Capital Economics in a note to clients.

The country's volatile Merval stock market index, though off nearly 1.4% today, is still up 62% for the year. Bond prices for debt due in 2033, however, have fallen.

First Published: August 20, 2014: 5:40 PM ET


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Die in this state and your heirs get your online accounts

inherited social media In Delaware, heirs can now inherit the online accounts of someone who passes away.

NEW YORK (CNNMoney)

But this month, Delaware became the first state to pass a broad law giving heirs the right to access online accounts and digital assets of someone who has passed away.

Under the new law, which went into effect last week, the executor of the estate has access to their "digital assets such as email, cloud storage, social media accounts, health records, content licenses, databases and more," according to a statement from the Delaware House Democrats.

Related: Grieving parents hit with $200,000 in student loans

While this statewide mandate is the first of its kind, several other states have been taking steps in this direction as well, introducing limited laws. Connecticut and Rhode Island give executors access to email accounts of the deceased, for example.

Some national companies, like Google (GOOG), already offer the option of a beneficiary to all users -- no matter where they live. With Google's Gmail, users can assign a beneficiary, and if the account is inactive for a pre-determined period, they will be contacted by Google.

If there's no response, the beneficiary will be able to log into the account -- whether to dig up important emails or just to shut down the account. Users can even set an auto-reply message that will be sent out to friends after their death.

Without a beneficiary, heirs could be in for a long and complicated battle to retrieve the accounts -- and in many cases may never gain access to them.

Related: Can you inherit your dead parent's debts?

"If you need access to the Gmail account content of an individual who has passed away, in rare cases we may be able to provide the contents of the Gmail account to an authorized representative of the deceased person," Google says on its support page.

The process, which could take months, involves sending personal information about the deceased person and a death certificate, among other things.

Twitter (TWTR, Tech30), meanwhile, allows an executor or someone who can be verified as an immediate family member to deactivate an account -- but a death certificate, along with other information, must also be sent.

But if other states follow in Delaware's footsteps, more family members and friends no longer have to navigate the patchwork of corporate rules in the wake of a loved one's death.

"As we conduct more of our professional and personal business online, we must also change our laws to match the reality of how people live in the 21st Century," Delaware Governor Jack Markell said in a statement.

Not everyone agrees, however. Jim Halpert, who works at law firm DLA Piper and is general counsel to State Privacy and Security Coalition, which represents companies like Google, Facebook (FB, Tech30) and Yahoo (YAHOF), said Delaware's new law goes too far.

He said it violates the privacy of both the deceased and any third parties whose personal information could be revealed through inherited online accounts.

"There could be pretty confidential information in those accounts," said Halpert. "The law provides maximum convenience to the executor to an estate without regard to the privacy interests of people who communicated with the person who passes away."

First Published: August 20, 2014: 5:33 PM ET


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The babysitter costs HOW much?

Written By limadu on Rabu, 20 Agustus 2014 | 08.36

NEW YORK (CNNMoney)

This dream can be a reality thanks to high-end babysitting services in New York City, but it comes at a price -- up to $33 an hour.

That's more than twice the rate NYC parents typically shell out for sitters. And it's a far cry from the paid-in-pizza, put-the-kids-in-front-of-a-TV approach many suburban families are used to.

Sitters Studio, a network of more than 100 caretakers in New York and Chicago, charges about $25 for one child, and the rate goes up depending on how many kids are at home. There's also a $20 booking fee each time a parent reserves a sitter and a four-hour minimum.

That means for one night out, a one-child family would pay $120.

Kristina Wilson, Sitters Studio's CEO, said that while the cost is high, parents are getting a lot for their money. All their sitters are required to show up ten minutes early with a tote bag filled with "artistic toys," abide by a no-TV policy, and they are required to make sure all homework and household tasks are complete.

Plus, because the company doesn't pay sitters in cash, the service is able to provide families with full documentation of what they paid. This means they can apply for Child and Dependent Care credit on federal tax returns.

Related: 'The most surprising cost of raising my kid'

"On top of the picking children up from school and mealtime, the kids will get a unique artistic experience every time," she said. "If our sitter works with a child to come up with a ballet or a piece of art made out of recycled materials, at the end of the night, they will fill out a report card to let the parent know what they created and how it helped with self-esteem and general creative thinking."

A number of babysitting services have cropped up to capitalize on the high price parents are willing to pay.

Hamptons Babysitters, established to cater to vacationing families in the famed, ritzy beach towns on New York's Long Island, sets parents up with CPR-certified sitters who are 18 and over, have passed background checks, and are guaranteed to show up on time.

"We usually get families who maybe don't have their nannies or usual sitters out at the beach, but want to be able to go out and leave their children with a sitter they can trust," said Chloe Laundrie, a 22-year-old Hamptons Babysitter who just graduated college with a degree in elementary education. She is now running the service's business end as well.

There's a three-hour minimum, and the service charges $25 an hour for one child, and $33 for three. On top of this, there's a $25 booking fee.

Related: Kumbay-OMG! A $16,000 price tag for summer camp

These rates are shockingly high, even given the fact that babysitters in New York are ranked the most expensive in the country.

The average hourly rate for one child in New York is $15.34, according to a survey of 7,500 families conducted by UrbanSitter. That's $1.21 more per hour than the national average, and even beats out babysitter rates in other big cities like San Francisco, Los Angeles. D.C. and Boston.

By comparison, the national average hourly pay for preschool teachers is $15.11, according to the Bureau of Labor Statistics -- and that's for teaching a whole class. And of course, the federal minimum wage is $7.25 an hour.

Related: How much will it cost to raise your child?

Laundrie said that parents don't seem to mind the cost.

"I hear moms say they can't put a price on childcare," she said. "Even though the [rates] are a little bit higher, they understand most of the time."

First Published: August 19, 2014: 6:05 PM ET


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Stylist gives free haircuts to the homeless

homeless haircuts Mark Bustos spends his free time giving haircuts to the homeless.

NEW YORK (CNNMoney)

Bustos works six days a week at the Three Squares Studio in the New York City neighborhood of Chelsea, where prices for his services start at $150 and can run as high as $800 for certain straightening or color treatments.

But whenever he can, he packs up his scissors, combs, styling products and rechargeable buzzer and goes out on the streets of New York to give free haircuts to homeless men and women.

On Sunday he started out on the Bowery in lower Manhattan where he found "Red," an older man whose nickname comes from the bright red gloves he wears in the winter. Red is a fixture in the area, always sitting on the same wooden stool, and Bustos has cut his hair several times.

Related: America's homeless - the rise of Tent City, USA

After the two chatted a bit, Red sat down on his stool and Bustos got to work. A line of other men formed as Bustos whittled Red's wispy, white hair and trimmed his eyebrows. When Bustos finished, Red smiled, dragged his wooden stool back to its original spot and began feeding stale crusts of bread to a flock of pigeons. Red said he doesn't care about his looks anymore, but the haircuts make him feel "cleaner."

Next up was 56-year-old Ray, who has been homeless for eight years as a result of a drug addiction. Ray said he was seeing his 11-year-old daughter that evening, and wanted to look put together for the visit. He carried over a milk crate to sit on, and after Bustos finished buzzing his head and grooming his goatee, Ray gave high fives to his friends. He then gave Bustos a big hug, calling him his "angel."

"When someone comes along and gives you something you never get, it's just nice," said Ray. "It makes me wanna cry."

Third in line was James. After getting his hair shaved, he said he finally felt confident enough to go out and apply for jobs.

Passersby stopped to ask questions, snap pictures and commend Bustos. One person was a barber who said he'd be interested in helping the homeless, too. And that's exactly why Bustos sets up in such public spaces -- to inspire people to use their own passions to help those in need.

Related: Hungry, tired and stressed out: The stresses of the poor

For Bustos, now 30, it all started in 2012. While visiting family in the Philippines, he decided to host an event where he gave free haircuts to needy children at a local barbershop.

"It made such a strong positive impact on me that I decided to bring it back home to NYC," said Bustos.

Since then, Bustos estimates he's cut the hair of more than 50 homeless people -- not just in New York, but also in places like Costa Rica, Jamaica and Los Angeles.

Most homeless people prefer simple buzz cuts because they don't know when they'll be able to get a haircut again and are often trying to get jobs. A more edgy cut, like a Mohawk, won't necessarily help the job search -- and would be much harder to maintain.

Bustos looks for homeless people living on the streets rather than in shelters, because they are often need an extra "jump start." People in shelters, he says, have at least taken the initial step of getting a roof over their heads.

"I approach individuals on the street or parks and tell them the purpose of what I do," he says. "Cutting their hair becomes a lot like a therapy session and not just a haircut."

Related: 'Illegal to be homeless' in growing number of cities

The first homeless person in New York that he gave a haircut to looked in the mirror after Bustos was finished and said, "Do you know anyone who is hiring?" Other people are so shocked after looking in the mirror they can't even speak.

"I make a point to ask every person how the haircut makes them feel, and 90% say it gives them more confidence," Bustos said.

Another time he found a man in Long Beach, Calif., sitting under a tree. The man told Bustos he had just gotten out of prison, where he had spent 10 years.

"I asked him what he was sent to prison for, and he said 'kidnapping and robbery.' Then there was just this awkward silence. It was the longest 10 seconds of my life, because what do you say to that?" said Bustos. "But everyone deserves a second chance."

He sees many of the same people over and over again, and hasn't heard any success stories yet. But that doesn't stop him from being optimistic. "A lot of them are still on the streets, but I have hope for them -- like James, I have hope that James will find a job tomorrow," he said.

First Published: August 19, 2014: 8:17 PM ET


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