GM: Recall death toll may be more than 13

Warren, Mich. (CNNMoney)

That's notable considering that the automaker has been holding firm on that number, as recently as a Thursday morning press conference.

GM counts crash victims using a fairly narrow definition as to how deaths can be connected to the problem. The flaw can turn the car's engine off while driving, disabling its airbags, anti-lock brakes and power steering.

GM only counted drivers and front seat passengers who were killed in head-on accidents in which the air bag did not deploy. Passengers who died in side-impact accidents weren't counted because airbags aren't designed to deploy in side crashes. Fatalities of back seat passengers were also excluded from the total, because there are no rear airbags.

Related: GM's botched recall shows "a pattern of incompetence and neglect"

But by midday Thursday GM said that it is prepared to raise the death toll tied to the ignition switch, based on the criteria that will be set by independent compensation expert Kenneth Feinberg. GM hired Feinberg to administer a program to compensate those killed or injured in accidents.

"Once Ken Feinberg determines the criteria and administers the program, GM will release the number of fatalities and serious physical injuries," said a GM spokesperson.

Feinberg told CNNMoney Thursday that he doesn't know whether the families of side-impact crash victims or those in the back seat will be compensated by GM.

"I don't want to say anything until I get input from GM, the lawyers and public interest groups," he said. He expects to send preliminary criteria to the interested parties next week, and to have a final formula within several weeks.

David Friedman, the acting administrator of the National Highway Traffic Safety Administration, has said that he thinks GM's count of 13 fatalities will climb. GM's tally also sparked objections from plaintiff attorneys, auto safety advocates and families of some of those killed in the recalled cars.

All of them argue that the ignition flaw could cause an accident on its own, regardless of whether airbags and power steering were working.

Related: Mary Barra's 7 most significant quotes on the recall

"They're playing with numbers," said Beth Melton. whose daughter Brooke was killed in a side-impact accident in 2010 when the ignition switch turned off the Cobalt she was driving. The car went into a skid on rain-slicked roads.

"They don't count Brooke's death, and she's dead because of that ignition switch," said Melton.

Natasha Weigel is another ignition switch fatality that isn't included on GM's list because she was in the back seat of a car. Her friend, Amy Rademaker, who was killed in the same accident while riding in the front seat, is on the list.

"I don't understand how Amy can be on that list and not Natasha," said Ken Rimer, Weigel's stepfather. "Had the ignition switch not failed, they'd both be alive."

-- CNNMoney's Jennifer Liberto contributed to this report.

First Published: June 5, 2014: 2:08 PM ET

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Stephen Colbert gets nasty with Amazon

NEW YORK (CNNMoney)

Colbert took time Wednesday night on his Comedy Central show to say he was angry at Amazon for "deterring customers" from buying his books.

The comedian offered viewers stickers saying "I didn't buy it on Amazon" that they can download from his site.

Related: Amazon-Hachette feud: No end in sight

Colbert, whose publisher is Hachette, took Amazon (AMZN, Tech30) to task for what Hachette has said is Amazon's slow restocking of some of its books. Hachette says it's causing "available in 2-4 weeks" messages to appear on titles by Colbert, Malcolm Gladwell, novelist James Patterson, and others.

Some of Hachette's books have been listed as "out of stock", and recently Amazon removed preorder capabilities for some books, according to Hachette.

Amazon has reportedly been pressuring Hachette to let it lower prices for e-books and ultimately pay Hachette less for them. Hachette has resisted.

In statement last week about the apparent log-jam Amazon said, "Unfortunately, despite much work from both sides, we have been unable to reach mutually-acceptable agreement on terms."

Related: 8 books Amazon is making it hard to buy

And it doesn't seem like there's an end in sight to the tiff.

Amazon raised eyebrows last week saying that if customers are inconvenienced by its battle with the book publisher, they should buy Hachette's books elsewhere.

Related: The future of media with Brian Stelter

Amazon is the biggest name in book selling and sets the tone for book sales and publishers. Since Amazon is so powerful, publishers often have little choice but to accept Amazon's terms.

First Published: June 5, 2014: 1:46 PM ET

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It's expensive being rich

Living the rich life can cost you. And the more you have, the more you'll spend. Click on the image above to see what a super rich lifestyle can cost.

NEW YORK (CNNMoney)

But the reality is that having a lot of money costs a lot of money, and living a wealthy lifestyle doesn't come cheap. Not only do bigger houses, luxury cars and better schools cost more, but the everyday cost of maintaining fancier things can really add up.

Infographic: The cost of being super rich

Household help

While maid service may seem like a luxury, bigger houses are much harder to keep clean, especially if you're working long hours to pay the huge mortgage. Chances are, you're going to need a housekeeper to tidy up and be home once your children return from private school.

Having a housekeeper for just a few hours each week day can add up to more than $20,000 a year, according to Quintessentially People, a group that helps wealthy clients find household staff.

Add on a few thousand bucks for someone to tend to your yard every week or so. Standard landscaping maintenance for yards from a half acre up to three acres can cost $1,500 to $3,000 per month, Keith Williams, a landscape architect in Palm Beach, Florida, told CNNMoney.

Schools

Many wealthy families feel it necessary to forgo public schools -- with their larger classes and more limited resources -- in favor of private schools with smaller classes, olympic-sized pools and highly-educated teachers who speak Mandarin.

Related: Rich, really rich, and ultra rich

But that choice costs a pretty penny -- the average nationwide cost of private school tuition is nearly $11,000, according to the National Center for Education Statistics.

In some of the pricier areas like New York, it can cost up to $40,000 per year for each kid -- or about the cost of a year of college, according to Amanda Uhry, founder of Manhattan Private School Advisors.

Utilities

Everyone has to pay to keep the lights and heat on. But the more rooms you have to light and heat, the more sinks and showers you have to keep water running, the more expensive your bill.

Sonja Morgan, the famed Real Housewife of New York City, said she pays $1,400 in utilities per month for her 4,800 square foot townhouse on New York's Upper East Side.

"Is that a lot?," she asked in an interview at her dining room table.

In comparison, utilities for a 425 square foot studio apartment would cost just under $50.

Related: No 99%ers allowed

Driving

Most wealthy people can afford to drive nicer cars than the rest of us. But if you have a luxury car, you'll usually end up paying more for premium gas, repairs and maintenance.

Just getting your car serviced can cost as much as $400 for a Mercedes S Class, vs. $60 for a Honda Civic, according to estimates from U.S. News and World Report.

And if you own a car in a major city like New York, you're likely paying more than $30,000 annually just to park it in a garage.

The really rich life

The operating costs of being rich get even higher the more money you have. Those who have enough change to have a second home, a driver, a private plane or even a yacht, pay more than most people make in a year, just to maintain those things.

Related: Crazy requests for the luxury concierge

For example, the super rich may need a personal assistant for about $90,000 per year, and a chef to cook for their busy family, at about $100,000, according to Quintessentially People.

The pilot on your private plane will run you about $300,000, and the flight attendant another $150,000. For just a couple months on your yacht, you're shelling out $44,000 for the crew alone.

"These people are essential to our wealthy clients," said Samuel Martin, co-founder of Quintessentially People. "These people require this kind of support."

First Published: June 5, 2014: 3:52 PM ET

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America's homes are bigger than ever

NEW YORK (CNNMoney)

The average size of homes built last year hit 2,600 square feet, an all-time high that surpassed even the housing bubble years, when homes averaged around 2,400 square feet, according to the Census Bureau.

But there is a clear difference between the days when everyone was building McMansions and what's happening post-housing crash.

First of all, the rich have gotten richer.

"If you had a lot of money in the stock market, it has doubled since 2009," said Stephen Melman, director of Economic Services for the National Association of Home Builders.

And many have used those riches to buy even bigger places, he said.

At the same time, relatively few first-time homebuyers -- the biggest market for smaller homes -- are able to buy homes, said Melman. Many young buyers are having trouble getting mortgages or are heavily in debt with student loans.

Related: Priced out: 'I can't afford a home in my town'

As a result, the market for smaller homes, of 1,400 square-feet and less, has shrunk to just 4% of homes built. That compares with 9% in 2005.

Meanwhile, extremely large houses -- 4,000 square feet and up -- have been making up a much larger slice of the new homes built.

Last year, these mega homes accounted for more than 9% of new homes. In 2005, they represented 6.6% of homes built.

Houses that are a little smaller but still verging on mansion territory, those between 3,000 and 4,000 square feet, made up 21.7% of new homes in 2013, up from 15.6% in 2005.

Related: America's growing affordability gap

Not only are the homes bigger, they have more rooms as well. There's the obligatory playroom, the home office, the den and the FROG, or family room over the garage.

And, of course, few children have to bunk up in an older siblings' room these days. Only 59,000 homes built last year came with less than two bedrooms, compared with more than a quarter million with four bedrooms or more.

"It's like growth is accelerating," said Melman.

First Published: June 4, 2014: 6:16 PM ET

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Amazon's 3D smartphone may finally be set for release

NEW YORK (CNNMoney)

In the tradition of breathless tech-industry hype, the company released a YouTube video on Wednesday teasing an unidentified device scheduled to be unveiled June 18 by CEO Jeff Bezos.

The video features people gazing down in wonderment at a product outside the frame. "It moved with me!" one exclaims.

The teaser immediately prompted speculation that Amazon is poised to release a high-end smartphone, opening up a new front in its battle with fellow tech giants Apple (AAPL) and Google (GOOG).

The Wall Street Journal reported last year that Amazon was developing a smartphone with a screen that displays 3D images without users having to wear special glasses.

"Using retina-tracking technology, images on the smartphone would seem to float above the screen like a hologram and appear three-dimensional at all angles," the Journal said, citing anonymous sources.

The mobile technology website BGR reported last month that the rumored device will respond to the movements of users, changing the information it displays if it's tilted from side to side.

Asked for additional details about the June 18 event, an Amazon spokeswoman said only: "You'll have to wait and see."

First Published: June 4, 2014: 5:23 PM ET

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Lara Logan returns to CBS' '60 Minutes'

Lara Logan, pictured reporting from Iraq in 2006, is back at CBS after a leave of absence, the network said.

NEW YORK (CNNMoney)

"Lara Logan has returned to work," a CBS News spokeswoman said in response to reporter inquiries.

Logan had been on leave since last November, when her "60 Minutes" report about the 2012 consulate attack in Benghazi, Libya was widely discredited and essentially retracted. So had her producer Max McClellan. CBS did not comment on McClellan's status on Wednesday, but he is expected to return to the newsmagazine, too.

"60 Minutes" is on a summer hiatus, but Logan is expected to appear on other CBS newscasts in the meantime.

Related: Brian Stelter on the future of media

Logan's return to work has been the subject of deliberations between the correspondent, her agents and her bosses at CBS -- and ample speculation within the network. New questions cropped up in early May when New York magazine published a lengthy story about Logan that said her "return appears less and less certain." (Here's what I said on "Reliable Sources" at that time.)

CBS declined to share any details about what stories she will be pursuing. Her title is chief foreign affairs correspondent.

First Published: June 4, 2014: 8:33 PM ET

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Google testing super-secure email

End-to-End encryption will soon be available Google Chrome, and it's the best encryption available.

NEW YORK (CNNMoney)

It's called "End-to-End" encryption, and it's the best way to stop anyone from snooping on your emails. Google would turn your emails into jumbled code, and the only person who can see the email in plain text is the trusted person on the other end.

Hackers don't stand a chance. In fact, neither does the National Security Agency. It's the kind of encryption ex-NSA contractor Edward Snowden used to communicate with journalists before he went public last year with damning documents proving the extent of U.S. government surveillance. It's what spies use -- it's that good.

But End-to-End is not available just yet. In a blog post, Google said the program is in a public testing phase. After that, you'll be able to download the app and add it to your Google Chrome Web browser. If you use the browser, it'll work with any Web-based email provider.

"We recognize that this sort of encryption will probably only be used for very sensitive messages or by those who need added protection," wrote Stephan Somogyi, a Google product manager who oversees security and privacy, in the blog. "But we hope that the End-to-End extension will make it quicker and easier for people to get that extra layer of security should they need it."

Here's how Google's super encryption would work: Imagine you want to send a sensitive letter by mail. You can't just lick the envelope shut. Postal workers might open it. But they can't open a lock.

Your friend buys a padlock, opens it and sends it to you. He keeps the key. You receive his lock, place your letter inside a box and close it with your friend's lock. You send it. Now only he can open it with his private key, which never left his possession.

Google will let you share locks -- but never keys. So far, End-to-End encryption has proven tamper-proof.

Related story: Google encrypts emails with HTTPS

This is only the latest move by Silicon Valley giants to beef up their security since last year's revelations that the U.S. government is gathering our emails and phone calls without warrants. In December, executives at the world's largest technology firms called on the U.S. government to respect Internet privacy rights, dial back its intelligence gathering and make spying programs more transparent.

Since then, Microsoft (MSFT) and Yahoo (YHOO) have been working on encrypting the information they house and transmit. Facebook CEO Mark Zuckerberg called President Obama directly to complain about the NSA. And they've all shed light on the scope of secret data requests.

First Published: June 3, 2014: 5:02 PM ET

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Coping with a $15 minimum wage in Seattle

Seattle's minimum wage hike will drive up the price of a burger from Dick's Drive In Restaurant.

NEW YORK (CNNMoney)

The city council unanimously approved an increase to $15 an hour, which will be phased in over several years.

It's a significant hike, raising the rate more than $5 over what minimum wage workers currently make in the state of Washington. It's also well above the federal minimum wage rate of $7.25.

As other cities, states and Congress continue to fight over raising the minimum wage by even smaller amounts, Seattle business owners will already be learning how to survive while paying workers top dollar.

Washington business owner David Jones planned to open an additional location of Blazing Onion Burger in Seattle, but now he's going to wait to see how the new law plays out.

"I would love to come to Seattle, but I have to do it responsibly and wait until I have more information," Jones said.

Related: Washington state defies minimum wage logic

One point of controversy prompted the International Franchise Association to threaten to sue the city within hours of the bill's passage.

Under the law, businesses with fewer than 500 workers are given more time to comply. That would be fine with the franchisees, if they were considered one of those smaller businesses.

Instead, the law states that a business owner has to count all employees in the U.S., likely putting those affiliated with a national franchisor in the large-business category.

Franchises are independently owned even though they use a brand name, said Steve Caldeira, the IFA president. But under the new law, a Subway shop that has eight workers will have to pay a $15 wage years before a non-franchised sandwich shop with the same amount of workers.

Some small business owners are embracing the change.

"Anytime the workers in a city get a raise, they're going to have more money in their pockets, and they're going to eat more ice cream," said Molly Moon Neitzel, the owner of Molly Moon's six ice cream stores in Seattle.

Neitzel said her payroll costs will increase, but expects an increase in demand. She said she would rather her bottom line take a hit than raise prices.

That's not true for Dick's Drive-In Restaurant.

"We're all for higher wages," said Jasmine Donovan, vice president at the local burger joint that now has five Seattle locations and 200 workers.

The chain already pays starting employees $10.25 an hour, but it will have to start paying more by 2016. Plus, Donovan expects to raise the wage of other employees to preserve the existing wage structure and retain good workers.

She expects to absorb the hike by raising prices.

"Seattle wanted a higher minimum wage and hopefully our customers will be willing to pay for it in higher prices," Donovan said.

First Published: June 3, 2014: 6:53 PM ET

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Elon Musk staying at Tesla another 4-5 years

Tesla CEO Elon Musk says he will stay at the company for at least another four or five years.

NEW YORK (CNNMoney)

Those were three takeaways from Elon Musk's Q&A session at the company's annual shareholder meeting in Mountain View, Calif., Tuesday.

Tesla's stock has been on a wild ride of late. Since hitting a record high earlier this year, it has fallen about 20% and shareholders were eager to hear the CEO's plans.

Musk said he is committed to staying at the electric car company until it can ramp up production of its third-generation vehicle -- the much anticipated affordable Tesla (TSLA), which would sell for about $35,000 and have a range of about 200 miles.

That's a feat that Musk said could be achieved "somewhere in a 4- or 5-year time frame."

"Nobody is CEO of a company forever. Eventually they carry you out. In my case, it is quite difficult to be CEO of two companies," Musk said referring to his other job as CEO of SpaceX, the rocket manufacturer.

Related: Costs add up for Tesla

As for the company's so called "gigafactory", the $5 billion battery pack facility that will allow Tesla to ramp up production of the "affordable Tesla," Musk said that final site selection will not be made until the end of the year. A company spokesperson said that this had not been disclosed before.

In response to a question about Tesla's apparently abandoned trademark for the Model E, the previously expected name of the third-generation vehicle, Musk took the discussion into somewhat risque territory.

"A friend asked me at a party what are you going to name the third-generation car? Well we have the S and the X," Musk said, "so we might as well make it the E."

Finally, Musk said Ford called him saying it would sue Tesla for using the Model E trademark. Musk continued the story, "And we're like, Ford's killing sex... that's terrible. So, OK fine we won't use the model E."

A spokesperson for Ford (F) was not immediately available for comment.

Related: Tesla's U.S. sales may be cooling off

Tuesday's meeting ended in an unexpectedly touching way. An eleven-year-old shareholder who said Tesla was his first stock asked Musk if he would give him a tour of the factory floor. Musk, who has five sons of his own said, "Absolutely."

First Published: June 3, 2014: 7:59 PM ET

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Elizabeth Warren: 'Wealth trickles up'

NEW YORK (CNNMoney)

The senior Massachusetts lawmaker had some choice words for the rich in an online dialogue Monday with French economist Thomas Piketty on economic inequality. The forum, hosted by The Huffington Post's Ryan Grim, was organized by MoveOn, a liberal political action group.

Warren and Piketty have each just written best-selling books on income inequality. Warren authored a memoir called "A Fighting Chance," which also discusses what Washington can do to help the middle class. Piketty analyzed data from 20 countries in his tome on income inequality and the concentration of wealth, entitled "Capital in the Twenty-First Century."

Here is a list of choice quotes from Warren on how the rich have rigged the system.

On Piketty's findings: Wealth does not trickle down. It trickles up. It trickles from everyone else to those who are rich.

On taxes: When people feel like we're not all in this together, we're not all sharing, we're not all paying a fair share of our income or our wealth, then I think what you get is it all comes all unraveled. Everyone moves towards I will pay the least because he's paying the least.

Related: Rich, really rich, and ultra rich

On small businesses: Small business owners pay and pay and pay on taxes because the loopholes aren't as available to them. You look at Fortune 500 companies, companies that are profitable and end up paying zero in taxes.

On rewriting the rules: Those who are rich have managed to help rewrite the rules so they get more and more. So they get breaks in taxes and get to keep more. So the regulations tilt in their favor. So they have better business opportunities. So they have better ability to earn than everyone else who's out there working. When that starts to happen, we get a country that's headed in the wrong direction.

On the system: The game right now in America is rigged. It is rigged so that those at the top keep doing better and better, and everyone else is under increasing pressure, is under increasing economic strain. The rules don't get better for America's middle class. The rules are getting better for those who are a thin slice at the top. And that is the profound danger that we see from great inequality.

On unions: Unions helped build America's great middle class. They did that two ways. They did it by getting out and getting workers organized so there were better working conditions, better pay. They ended up raising wages for union and non-union workers. They ended up getting health benefits for union and non-union workers. But here's the key: The second thing unions did is they were out there as a force to be able to argue for things that were in the interest of working people generally.

On estate taxes: There's a fundamental question in this country. Which do we think deserves reward: Is it those who work hard and who are smart, who get out there and make something happen? Or those were born into the right families and who are protected by a tax code that says generation after generation, they don't even have to work? We have prided ourselves as a country being built by a country of people who get out there and work. Our tax system has to reflect that same value. It has to reflect the importance of work and people who achieve and people who accomplish over being born into wealth.

First Published: June 2, 2014: 7:50 PM ET

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