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Michael Jordan's house on market for $16 million after failed auction

Written By limadu on Sabtu, 04 Januari 2014 | 04.32

michael jordan home

Jordan first put his 33,000-square-foot home near Chicago on sale in March 2012 for $29 million.

NEW YORK (CNNMoney)

The house is on seven-plus acres in Highland Park, Ill., about 25 miles north of Chicago.

The former NBA star first put it on the market in March 2012 for $29 million. The price was cut to $21 million nearly a year ago and then failed to sell at auction last month, when nobody made even the $13 million minimum bid.

The house was built in 1995 and has nine bedrooms, 15 baths, a cigar room, and a garage big enough to hold 14 cars. There's a huge home gym.

Katherine Malkin, the listing agent, said the most awesome home feature is the regulation sized basketball court.

Related: See inside Jordan's house

"There's nobody -- man, woman or child -- who walks on the court who is not stunned by it," she said. "The lighting, the floor, everything is so beautiful."

With the court and finished lower level of the house included, the compound totals about 56,000 square feet.

Outdoors is a chipping range and putting green, tennis courts, a lily pond and a huge flagstone patio. The front entrance gate sports a giant number 23 -- not for the address but, of course, for Jordan's former number.

Related: American Dream homes: What you'll pay in 10 cities

Malkin has had the listing for about a year and said there has been lots of interest in it, but few prospects qualify as serious buyers. Would-be purchasers must have enough liquidity to pay cash for the house in full before they can put in offers.

Last year, Jordan bought a house in his native North Carolina, one close to the home court of the Charlotte Bobcats, the NBA team of which he is now the majority owner.

Related: The $2 million home theater

The Illinois property is about three times larger than the new house and stands out in the neighborhood for its size and price.

"He was a very successful and sought-after personality and he built a compound to fit his lifestyle," said Malkin.

She said he has redone parts of the property over the years and it's in "perfect" condition. "Nobody kept a house better than he did," she said. To top of page

First Published: January 3, 2014: 12:37 PM ET


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Bernanke: Recovery 'remains incomplete'

PHILADELPHIA (CNNMoney)

"The recovery clearly remains incomplete," he said, in what sounded like a swan song speech at the American Economic Association's annual meeting in Philadelphia, Friday.

Bernanke's term officially ends on January 31, at which point Fed Vice-Chair Janet Yellen is expected to take the helm. (The Senate is scheduled to vote on her confirmation Monday evening).

Among the unfinished business that concerns Bernanke: the unemployment rate at 7% "still is elevated," he said. Meanwhile, participation in the labor market has continued to decline, partly because workers remain discouraged about their job prospects.

As of December, only 63% of Americans over age 16 participated in the job market -- meaning they either had a job or looked for one. Before the recession, it was around 66%.

Related: Yellen: Fed has more to do

That said, Bernanke was willing to cautiously defend the success of his most controversial policy. The Fed has kept its key interest rate near zero since December 2008, but when that effort wasn't enough to jumpstart a recovery, the Fed started a three-part bond-buying spree, in an effort to lower longer-term interest rates as well.

That policy, known as quantitative easing, has more than quadrupled the size of the Fed's assets to over $4 trillion. Skeptics question both the impact (did it really help the job market much?) and the future risks (will pumping that much money into the economy eventually lead to rapid inflation?).

Speaking to those criticisms, Bernanke said, for the most part research backs up his view: The program "helped promote the recovery."

In December, the Fed decided to start gradually winding down that program. Whereas before, it had been buying $85 billion in bonds each month, the Fed will buy $75 billion this month. Over time, the central bank hopes to keep reducing the program, until it eventually gets down to zero.

Related: Fed finally tapers its stimulus

Bernanke said that decision reflected cumulative progress in the job market since the Fed started the $85-billion-a-month program in September 2012. Since then, the unemployment rate has fallen from 7.8% to 7%, and added about 2.7 million jobs.

Looking forward, Bernanke said he believes various headwinds to the economy are now starting to fade.

"The combination of financial healing, greater balance in the housing market, less fiscal restraint, and, of course, continued monetary policy accommodation bodes well for U.S. economic growth in coming quarters," he said.

But he was quick to add some caution: "Of course, if the experience of the past few years teaches us anything, it is that we should be cautious in our forecasts."

Bernanke is set to preside over one final Fed meeting, January 28-29, before Yellen's leadership transition is expected to take place. To top of page

First Published: January 3, 2014: 2:33 PM ET


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BlackBerry sues Ryan Seacrest startup Typo

ryan seacrest typo

BlackBerry's lawsuit alleges that the keyboard from Typo, Ryan Seacrest's startup, infringes on its patents.

NEW YORK (CNNMoney)

BlackBerry (BBRY) has filed a patent infringement lawsuit against Typo, a startup backed by "American Idol" host Seacrest that sells a $99 tactile keyboard which snaps on to Apple (AAPL, Fortune 500) iPhones. Seacrest and marketing executive Laurence Hallier co-founded Typo.

The Typo Keyboard has been available for pre-order since the company debuted in December. The device is slated to come out later this month -- but not if BlackBerry can help it.

In a press release about the lawsuit, Steve Zipperstein, BlackBerry's general counsel, called Typo "a blatant infringement against BlackBerry's iconic keyboard."

Related story: New BlackBerry CEO optimistic despite loss

Zipperstein didn't stop there.

"We are flattered by the desire to graft our keyboard onto other smartphones, but we will not tolerate such activity without fair compensation for using our intellectual property and our technological innovations," he added.

We're only three days into 2014, and the Seacrest/Typo lawsuit is already the second bit of news about BlackBerry and celebrities this year. BlackBerry announced on Thursday that it will part ways with Alicia Keys, who served as the company's "creative director" for just twelve months. To top of page

First Published: January 3, 2014: 3:08 PM ET


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Facebook faces suit over private messages

Written By limadu on Jumat, 03 Januari 2014 | 04.32

facebook

Facebook is facing a class action over its private messaging function.

HONG KONG (CNNMoney)

The lawsuit filed earlier this week alleges that Facebook (FB, Fortune 500) scans messages between users labeled "private" for links and other information that can be sold to advertisers, marketers and data aggregators.

According to the suit, this is done without proper disclosure or the consent of users.

The suit was filed by Matthew Campbell and Michael Hurley in a U.S. district court in Northern California. They want the suit to be made a class action, and suggest that as many as 166 million Facebook users in the U.S. would be eligible to join.

Campbell and Hurley claim that intercepting and using links included in private messages violates the Electronic Communications Privacy Act, as well as California privacy and unfair competition laws.

Facebook did not immediately respond to a request for comment on Friday. Other media reported that Facebook believes the allegations to be "without merit."

Related story: Online privacy is dead

The social network's business model depends in large part on its ability to pinpoint and target individuals sought by advertisers.

The suit argues Facebook has overstepped the mark.

"Facebook's desire to harness the myriad data points of its users has led to overreach and intrusion ... as it mines its account holders' private communications for monetary gain," the plaintiffs allege.

Other tech firms, including Google (GOOG, Fortune 500), have faced lawsuits over the collection of user information. Facebook previously settled a class action over targeted advertising for $20 million.

Frequent changes to Facebook's privacy settings have also angered some users. In addition, CEO Mark Zuckerberg has made controversial statements about how people shouldn't be doing the things they want to keep secret in the first place. To top of page

First Published: January 3, 2014: 6:29 AM ET


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Job search: One year and counting...

NEW YORK (CNNMoney)

It's a goal that was out of reach in 2013, despite her best efforts. After she was laid off from an IT analysis job at a regional bank, Rouse was unemployed all year long.

What's the problem? It certainly wasn't a lack of skills. She has two masters degrees (one in business and another in IT) and about 22 years of work experience.

"Hiring managers tell me I'm overqualified," she said.

It also wasn't a lack of trying. She sent out hundreds of job applications, and even told recruiters she would be willing to work for less than her previous salary.

And it wasn't the location either. Rouse lives in Columbus, Ohio -- the largest city in the state, home of five Fortune 500 companies, and one of few Midwestern cities which has gained back just about all the jobs it lost in the recession, according to the Labor Department.

Related: Help! My unemployment benefits just expired

Rouse is far from alone.

About 5.5 million Americans looked for jobs in 2012, but didn't work at all that year, according to the Bureau of Labor Statistics. The 2013 data won't be available until later this year, but it's safe to say the numbers remain elevated, even as the job market improves gradually.

Will 2014 finally be the year that the long-term unemployed get back to work?

The job market seems to be gaining momentum, and economists hope the long-term unemployed won't be left out in the cold. So far, the signs aren't very encouraging though.

In December, job growth continued at a solid pace, but the number of people who've been unemployed for more than six months simultaneously increased. It appeared that most of the jobs had gone to those who had been unemployed for shorter periods of time.

"I've heard from recruiters at larger companies, and they will absolutely tell you they don't like to hire long-term unemployed people," Rouse said. "They think our skills are less sharp."

As of December, 37% of the unemployed had been so for at least six months.

The good news is, Rouse is starting to sense a turning point in the job market. After almost nine months with no calls, she started getting interviews in the last three months of the year.

"At first, I couldn't have paid anyone to read my résumé," she said. "Now I have a lot of calls, a lot of interviews. I've also been working with multiple staffing agencies."

Still, a job cannot come fast enough. The long-term unemployment problem lingers just as Congress failed to extend its emergency federal unemployment benefits. As a result, 1.3 million Americans suddenly stopped receiving their benefits.

Rouse received her last check this week. After a year without a job, she's depleted much of her 401(k) and even sold some of her jewelry.

"Now I'm at that point where I'm waiting to hear back. If I don't get one of those two jobs I just applied for, I'm thinking I'll probably have to move in with my father," she said.

"Just because someone cannot find a job for a long period of time, doesn't mean there's something wrong with the worker -- there really are a lot of good qualified people looking for work." To top of page

First Published: January 3, 2014: 5:58 AM ET


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Stocks hesitant after New Year dip

sp 500 futures 650

Click on chart to track premarkets

NEW YORK (CNNMoney)

U.S. stock futures were mixed, bouncing around between small gains and losses ahead of the open Friday.

The Dow Jones industrial average fell more than 130 points, or nearly 1%, on Thursday. The S&P 500 and Nasdaq also declined by about 1% on the first trading day of 2014.

Some market experts say Thursday's fall was triggered by investors looking to lock in gains after the record-setting run in 2013.

"Market participants booked profits even in the face of decent economic data out of the U.S.," wrote ETX Capital market strategist Ishaq Siddiqi in a note.

Related: Fear & Greed Index, gets greedy

There is little in the way of U.S. economic and corporate reports scheduled for release Friday. The nation's automakers will announce their sales for December and all of 2013 throughout the day.

European markets were edging higher in morning trading. France's CAC 40 was up by roughly 0.5%.

Major Asian markets ended in the red, with Hong Kong's Hang Seng dropping by 2.2%.

Markets in Shanghai and Tokyo were closed for an extended new year break. To top of page

First Published: January 3, 2014: 5:10 AM ET


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Buy-and-rent investors get squeezed

Written By limadu on Kamis, 02 Januari 2014 | 04.32

chicago foreclosure

Profits on Chicago foreclosure have shrunk this year.

NEW YORK (CNNMoney)

The auction prices of homes climbed faster than rents in 2013, so returns on investment dropped, according to a report from CoreLogic.

That's a change from the past several years. In many cities where mortgage defaults spiked after the housing crash, investors were able to buy foreclosed homes at prices so low they were able to make big rental profits.

The practice is still profitable, but in many places not as much as it was.

"It's gotten so competitive that discounts at foreclosure are not where they were," said Daren Blomquist, spokesman for RealtyTrac. "It's harder for third party purchasers at auction to make a profit."

Related: Housing markets to watch in 2014

According to CoreLogic, return on investment fell in eight of the 10 best buy-and-rent cities.

In Tampa, which was the top city in 2012, returns declined to a yield of 9.7% in 2013 from 10.5%.

The reason for the decline: An influx of institutional investors with money to spend at Tampa's foreclosure auctions.

"It's much more difficult to get a return when prices have been pushed up," said Sean Galaris of financial services firm LM Funding, which is based in Tampa.

The yield represents an investor's rental profits divided by how much he spent to buy and rehabilitate the property.

Chicago was CoreLogic's top market for investors in 2013, but the yield dropped to 9.9% from 10.4% in 2012.

In Orlando, yields fell to 9.4% from 10.3%. Atlanta returns went to 9.3% from 10.2%.

Related: Real estate: Look for value in 2014

Only two cities of CoreLogic's top 10 recorded gains. Houston's average return rose to 8.8% from 8.5% and Charlotte's inched up to 7.9% from 7.8%.

Nationally, homes sold in foreclosure auctions now go for just 4% less than regular sales, down from 16% in 2012, according to RealtyTrac's Blomquist.

Home prices in general have soared this year, jumping nearly 14% annually through October, according to the latest S&P/Case-Shiller report.

Related: 5 biggest housing comebacks in 2013

And rents have lagged. Census Bureau numbers show that rents only grew an average of 2.2% during the first nine months of 2013, compared to the same period in 2012.

As profits on foreclosures drop, investors will cut back on purchases.

Glenn Plantone, a real estate investor in Las Vegas, said that there were only 208 properties sold there at auction to third party purchasers -- not lenders -- in October. That was the first time in six years that a month had fewer than 300 of such sales. To top of page

First Published: January 2, 2014: 7:15 AM ET


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"Duck Dynasty" launches its own line of guns

duck commander guns

Duck Commander is launching a line of Mossberg guns, including military-style rifles and pistols.

NEW YORK (CNNMoney)

The gunmaker Mossberg has teamed with Duck Commander, the company owned by "Duck Dynasty's" Robertson clan, to release nine different shotguns, as well as two semiautomatic rifles and a semiautomatic pistol.

Mossberg has begun shipping some of the shotguns to distributors, according to spokeswoman Linda Powell. She declined to name specific retailers that will carry them.

Duck Commander was founded 40 years ago by Phil Robertson, the family patriarch who was recently suspended -- and then reinstated -- by A&E after making controversial remarks about gay people and African-Americans. He and his sons are featured prominently in four video ads for the new guns on Mossberg's web site. Phil narrates one of the spots saying, "Do you know what makes me happy ladies and gentlemen? To blow a mallard drake's head smooth off."

"Duck Dynasty" is a wildly popular show that profiles the Robertson family business in Louisiana that sells duck calls as well as hunting DVDs and clothing through Wal-Mart (WMT, Fortune 500), Cabela's (CAB), Target (TGT, Fortune 500) and other retailers. The brand has already been affixed to everything from action figures and door mats to wine, (produced by the Trinchero Family Estates) as well as books about cooking and religion.

Related: Duck Commander is a retail powerhouse

A&E, the producer of the show, temporarily suspended Robertson after he made homophobic and racially insensitive comments in an interview with GQ. But A&E lifted its suspension after a few days.

Cracker Barrel (CBRL) also did an about-face after the controversy, first pulling Duck Commander merchandise from its restaurant gift stores following Robertson's comments, only to put them back a few days later.

Related: Legal rifle mimics rapid rifle

Mossberg says the Duck Commander guns will come in a "waterfowl pattern" camouflage design, though not all of them are intended for duck hunting.

The pistol and one of the rifles have military-style designs with large capacity magazines holding at least 25 rounds. The rifle has some of the features of an assault rifle, but with a relatively low .22 caliber.

Mossberg's Web site says its .22-caliber pistol is "perfect for small game, plinking, target shooting -- or clearing cottonmouths out of your duck blind."

Mossberg's Web site says the firearms will all come with an American flag bandana "like the one worn by Willie," a character on the show. To top of page

First Published: January 2, 2014: 7:14 AM ET


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The smart home is a pipe dream

future of smart homes

At CES, connected home technology will once again be on display. Don't expect it to take over your home anytime soon.

NEW YORK (CNNMoney)

The connected home is a mirage that has existed since the 1950's. It has yet to materialize and won't anytime soon.

That's not to say smart appliances, smart locks and smart plugs are dead on arrival. The connected home market is estimated to hit $10 billion dollars this year, growing to $44 billion by 2017, according to wireless industry group GSMA.

But are we going to have coffee makers which can talk to our sensor-equipped beds to know to start brewing as soon as we rise for the day? Will we have lighting that automatically turns itself off and on as we walk through the house?

Related: Your Hackable House

One particularly influential connected home entrepreneur doesn't think so. Tony Fadell, CEO of connected device maker Nest and a former Apple (AAPL, Fortune 500) executive, put forth the idea at Business Insider's Ignition conference in November that the fully-automated home controlled by a central brain is the pipe dream of bachelors.

As he explained, it's unrealistic to expect a family with kids to fill their home with a bunch of devices that are primed for breaking.

More realistically, he said, any smart devices people put in their homes will address specific needs and function autonomously.

This also makes sense because the tech industry hasn't yet adopted any single standard for home automation. Some devices are built around Wi-Fi, while others are gravitating towards Bluetooth. Some talk to your smartphone or tablet, others talk directly to one another.

The lack of a de facto platform has left the connected home space in relative chaos.

Related: Google wants to control your home

The tech industry has made a handful of attempts to create a home automation standard, but none have taken off. In 2011, Google (GOOG, Fortune 500) launched the Android@Home platform. When it launched the Xbox One in November, Microsoft (MSFT, Fortune 500) announced its Home 2.0 program, which promises to make the Xbox One a central hub in our connected homes. Apple, meanwhile, seems to support Fadell's vision of sandboxed iPhone apps for each device.

Without a universal home automation standard, consumers can't yet buy a central hub that will get all the components of their houses to respond to one another.

But there's another factor keeping the Jetsons' home from becoming a reality. Even if an automation standard does eventually emerge, how many people are going to completely upgrade their homes with all new devices and sensors necessary to make their houses truly smart and connected? The cost would be prohibitive.

We'll likely have to wait decades before these devices would be built into new and remodeled homes without a second thought, much like phone jacks and cable outlet are standard in today's homes.

So yes, expect to be in the market for some smart appliances in the future. But, for now, your whole house is going to be better off left dumb. To top of page

First Published: January 2, 2014: 7:18 AM ET


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Help for homeless college students

Written By limadu on Selasa, 31 Desember 2013 | 04.32

homeless college students

A handful of schools, aid organizations and advocates from across the country are taking steps to help homeless college students.

NEW YORK (CNNMoney)

Getting into college itself can be a major challenge for homeless teens. And even if they're determined, resourceful or lucky enough to receive the financial aid or scholarship money that makes attending college possible, new struggles often arise.

While they may live in dorms for the majority of the school year, some students have nowhere to go during breaks and are forced to pay fees to stay on campus -- which can be difficult or impossible to afford. Some of these students are too embarrassed to ask for help, while others are turned down when they ask to remain on campus, leading them to sleep outside, on friends' sofas or in shelters.

The issue has come into the spotlight recently: New legislation seeking to assist homeless college students was introduced last month, and a petition started by a student urging her college to allow homeless students to stay on campus during breaks has garnered more than 100,000 signatures.

After our recent article ran about this issue, CNNMoney received more than 60 emails from readers sharing their own stories of being homeless at college or asking how they can help.

Related: Homeless college students seek shelter during breaks

Here are some of the efforts being made.

Colleges and students step up: Kennesaw State in Georgia created a CARE Center this May, which helps students with needs like jobs, shelter and food. The school also hosts Homelessness Awareness Week, where students sleep outside for a night and can attend a full-day conference to learn more about the issue.

"Homelessness is affecting college students across the nation; yet it remains an underserved and/or unrecognized population," Kennesaw said in a statement. "KSU aspires to be a leader for social justice and change by eradicating homelessness on its campus."

After a survey of students two years ago revealed that nearly 7% had experienced or were currently experiencing homelessness while enrolled, the Community College of Denver decided to take action. It designated a housing expert in its student life department who helps homeless students with housing needs, and has established a food pantry and an emergency fund for those in need.

Related: Pay $2,000 to be homeless

Meanwhile, West Virginia University launched a food bank in 2010 called "the Rack," for homeless or financially struggling students.

"[It] went from a wire shelf with canned goods to a full-blown food bank with six freezers, as well as meat distribution days and much more," said alumni Ben Dotson, who helped start the program. "My best friend could barely cover the costs of college and if it wasn't for the Rack and that his fast food job allowed him to take home extra food I do not think he would have been able to make it."

Aquinas College, in Grand Rapids, Mich., is currently looking into ways it can help homeless students who don't have anywhere to go during breaks. This became a priority after Jessie McCormick, a homeless senior, launched a Change.org petition urging the school to do more to help homeless students like her.

Some are more entrepreneurial in their quest to help.

Aris Nance, a 23-year-old student at Dakota State University in Madison, S.D., who was homeless himself until a couple months ago, just launched a nonprofit called Sheo (Someone Helps Everyone) that creates survival kits for the homeless.

The kits include basics like a toothbrush, first-aid supplies, a list of emergency contacts and clean t-shirts. Nance wants to partner with schools and homeless organizations to provide them for free. But first he needs the funding to create the kits -- so far he has only done a few.

"I just gave two kits to [college students] I know who are going to be stuck on campus during Christmas break," said Nance.

Related: Student homelessness hits record high

How you can help: The National Association for the Education of Homeless Children and Youth offers a scholarship program that helps students with college costs and housing. It also has a higher education initiative that is urging colleges to change their policies to assist homeless students. Anyone who wants to support these efforts can donate money directly to NAEHCY.

Various organizations, like the Los Angeles Youth Network, also help runaway and homeless young adults apply for college and secure scholarships and financial aid.

The National Law Center on Homelessness & Poverty, meanwhile, has a program called Project Learn that helps students apply for college. It also ensures that homeless children are granted their legal rights, like receiving free transportation to and from school and getting free school meals. Donations can be made directly to the program here.

If you want to help out locally, you can contact your state homeless education coordinator. Find the coordinator closest to you here.

Related: North Dakota sees surge in homeless population

Some communities also have "Host Home" projects where you can open up your home to a student after you go through a background check. Runaway & Homeless Youth Act shelters and housing programs, which are scattered around the country, also provide free shelter for college students and need donations. You can look for a program near you by using this map.

Advocates recommend that you urge your local Congress member to support recent legislation introduced by Senator Patty Murray of Washington. Murray's bill would require colleges to secure housing for students during breaks, provide a point of contact for homeless students and mandate schools to ask questions about homelessness in college applications so they can help them access financial aid. To top of page

First Published: December 31, 2013: 4:24 AM ET


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