America's dual economy

NEW YORK (CNNMoney)

If you're a glass half-full type, it's easy to point to the fact that the economy is expanding again and unemployment is at a six year low. Gas is back under $3 a gallon, the stock market is at an all-time high and this year's job gains are on track to be the best since 1999.

America is certainly better off than it was during the financial crisis, and the nation looks a lot stronger economically than Japan and Europe.

America has added 2.3 million jobs in 2014

But there's a glass half-empty side of this economy, too.

Wages aren't rising for most Americans. A middle class family is actually bringing home the same income as it did in 1995, and millions of people want full-time jobs but are stuck in part-time positions.

There's no denying the rich are getting richer and the rest are stagnating.

The fact is there is truth in both sides -- the result of a slow-burn recovery from the worst financial crisis in generations.

Why voters hate the Obama economy

Here are the three key stats to that drive home America's dual economy:

1. Lucky to be employed.

On Friday the government reported another strong month of job gains. The unemployment rate is 5.8%, not far from what most economists think is typical rate of around 5% when the economy is humming along.

But the improving number masks the fact that the U.S. has 2.9 million people who have been out of work for half a year or more. That's double the number of long-term unemployed than before the recession.

Even more troubling is that the U.S. has over 7 million people who are working part-time but want full-time employment.

2. Wages aren't growing.

Americans are spenders. We like to buy things and that powers our economy. But people can't make purchases if they don't have money. That's why it's so worrying that U.S. wages aren't getting any bigger.

Wages today are about the same as they were just before the recession.

In the past year, wages went up about 2%, but that is just ahead of how fast costs have been rising so the gains are basically canceled out.

The complete list of companies that are open and closed on Thanksgiving

3. More gains went to Wall Street than Main Street.

The one area that has bounced back since the end of the recession is the stock market. It bottomed out in March 2009 and has been on an incredible tear ever since.

The S&P 500 -- the benchmark index that has a lot of funds that mimic or track it -- is up nearly 200% since that 2009 low point.

But the catch is that only half of Americans have any money in the stock market. So all those gains have only exacerbated the "have versus have not" economy.

Wealthy whites are the most likely to own stocks. And since the rich own more stocks, they benefited more.

First Published: November 7, 2014: 4:43 PM ET

12.08 | 0 komentar | Read More

Madonna's 'Material Girl' look hits the auction block

NEW YORK (CNNMoney)

Several iconic pieces from Madonna's career and personal life are on the auction block, including the Marilyn Monroe-inspired dress, stole and jewelry featured in the 1984 "Material Girl" music video.

The dress is expected to go for $40,000-$60,000 and $4,000-$6,000 for the stole when the items go up for auction starting Friday in Beverly Hills.

Julien's annual Icons & Idols: Rock 'n' Roll auction has 700 items up for bid, including John Lennon's glasses, a T-shirt worn by Kurt Cobain, a guitar from David Bowie and belongings from Elvis Presley, Lady Gaga and more.

Remember 'Easy Rider'? That bike just sold for $1.35 million

But Madge is a top attraction of the auction, with 140 of her items up for sale, including a personal day planner, the inauguration dress she wore when she played Eva Peron in the movie "Evita" and her wedding dress and shoes from her marriage to Sean Penn. You can also get her signed, expired American Express credit card and the baseball uniform she wore in 1992's "A League of Their Own."

The deep pink satin gown had a starting bid of $20,000

"Very little of her stuff comes to auction now," said Martin Nolan, executive director of the auction house.

He said Julien's is looking to set records with the two-day auction that allows people to bid in-person, over the phone and online.

Bids come from all over the world, according to Nolan, but the face of bidders have changed significantly since 2005. "Back then, it was what we call fanatical people, the huge fans that would bid on items. Now, you still see some fans, but they don't have the big dollars that are needed. Museums are big buyers."

Men are buying up these $1,200 sneakers

The starting bid for Madonna's day planner circa 1988 was $1,000

A large portion of the items from The Queen of Pop up came from a private investment firm in the U.K. "They got together and pooled their money in 2007 and chose her as their blue chip icon," said Nolan. "They've now decided to liquidate their Madonna portfolio."

So how strong of a return on investment are celebrity-worn collectibles? In 2005, Julien's held a 200-lot auction of Marilyn Monroe's items that brought in $1 million. Today, Nolan said it would have sold for $10 million. "And that's being conservative." A skirt purchased in that auction for $1,500 sold for $50,000 two years ago.

First Published: November 7, 2014: 5:11 PM ET

12.08 | 0 komentar | Read More

Berkshire earnings take a hit on Tesco losses

NEW YORK (CNNMoney)

That's because the investment company took a massive $678 million charge for its investment in Tesco (TESO), a British grocery chain that has seen its shares plunge this year. The grocer has been struggling amid increased competition and an accounting scandal in which it admitted to overstating its profit forecasts.

Berkshire is one of Tesco's largest shareholders.

Related: Warren Buffett's huge grocery bill

Despite the individual investment losses, Berkshire's portfolio is still ahead for the year.

The company said it earned $4.6 billion, or $2,811 per Class A share during the third quarter. That's better than Wall Street was expecting, but still down 8.6%, from the same period last year. Profits for the first nine months of the year, however, are doing better than they were this far into 2013.

The company's Class A shares closed Friday at $214,970 a piece. Berkshire's more accessible B-shares, which are worth 1/1500th of their pricier counterparts were flat in after-hours trading.

Next quarter might be a rough one as well. Berkshire lost big money late last month on shares of Coca-Cola (KO) and IBM (IBM, Tech30) after both companies delivered disappointing earnings. Coca-Cola, which is one Berkshire's largest investments, subsequently cut executive pay following some Buffett grumbling.

Warren Buffett loses $2 billion, but there's good news

First Published: November 7, 2014: 8:05 PM ET

12.08 | 0 komentar | Read More

America's dual economy

NEW YORK (CNNMoney)

If you're a glass half-full type, it's easy to point to the fact that the economy is expanding again and unemployment is at a six year low. Gas is back under $3 a gallon, the stock market is at an all-time high and this year's job gains are on track to be the best since 1999.

America is certainly better off than it was during the financial crisis, and the nation looks a lot stronger economically than Japan and Europe.

America has added 2.3 million jobs in 2014

But there's a glass half-empty side of this economy, too.

Wages aren't rising for most Americans. A middle class family is actually bringing home the same income as it did in 1995, and millions of people want full-time jobs but are stuck in part-time positions.

There's no denying the rich are getting richer and the rest are stagnating.

The fact is there is truth in both sides -- the result of a slow-burn recovery from the worst financial crisis in generations.

Why voters hate the Obama economy

Here are the three key stats to that drive home America's dual economy:

1. Lucky to be employed.

On Friday the government reported another strong month of job gains. The unemployment rate is 5.8%, not far from what most economists think is typical rate of around 5% when the economy is humming along.

But the improving number masks the fact that the U.S. has 2.9 million people who have been out of work for half a year or more. That's double the number of long-term unemployed than before the recession.

Even more troubling is that the U.S. has over 7 million people who are working part-time but want full-time employment.

2. Wages aren't growing.

Americans are spenders. We like to buy things and that powers our economy. But people can't make purchases if they don't have money. That's why it's so worrying that U.S. wages aren't getting any bigger.

Wages today are about the same as they were just before the recession.

In the past year, wages went up about 2%, but that is just ahead of how fast costs have been rising so the gains are basically canceled out.

The complete list of companies that are open and closed on Thanksgiving

3. More gains went to Wall Street than Main Street.

The one area that has bounced back since the end of the recession is the stock market. It bottomed out in March 2009 and has been on an incredible tear ever since.

The S&P 500 -- the benchmark index that has a lot of funds that mimic or track it -- is up nearly 200% since that 2009 low point.

But the catch is that only half of Americans have any money in the stock market. So all those gains have only exacerbated the "have versus have not" economy.

Wealthy whites are the most likely to own stocks. And since the rich own more stocks, they benefited more.

First Published: November 7, 2014: 4:43 PM ET

12.08 | 0 komentar | Read More

Madonna's 'Material Girl' look hits the auction block

NEW YORK (CNNMoney)

Several iconic pieces from Madonna's career and personal life are on the auction block, including the Marilyn Monroe-inspired dress, stole and jewelry featured in the 1984 "Material Girl" music video.

The dress is expected to go for $40,000-$60,000 and $4,000-$6,000 for the stole when the items go up for auction starting Friday in Beverly Hills.

Julien's annual Icons & Idols: Rock 'n' Roll auction has 700 items up for bid, including John Lennon's glasses, a T-shirt worn by Kurt Cobain, a guitar from David Bowie and belongings from Elvis Presley, Lady Gaga and more.

Remember 'Easy Rider'? That bike just sold for $1.35 million

But Madge is a top attraction of the auction, with 140 of her items up for sale, including a personal day planner, the inauguration dress she wore when she played Eva Peron in the movie "Evita" and her wedding dress and shoes from her marriage to Sean Penn. You can also get her signed, expired American Express credit card and the baseball uniform she wore in 1992's "A League of Their Own."

The deep pink satin gown had a starting bid of $20,000

"Very little of her stuff comes to auction now," said Martin Nolan, executive director of the auction house.

He said Julien's is looking to set records with the two-day auction that allows people to bid in-person, over the phone and online.

Bids come from all over the world, according to Nolan, but the face of bidders have changed significantly since 2005. "Back then, it was what we call fanatical people, the huge fans that would bid on items. Now, you still see some fans, but they don't have the big dollars that are needed. Museums are big buyers."

Men are buying up these $1,200 sneakers

The starting bid for Madonna's day planner circa 1988 was $1,000

A large portion of the items from The Queen of Pop up came from a private investment firm in the U.K. "They got together and pooled their money in 2007 and chose her as their blue chip icon," said Nolan. "They've now decided to liquidate their Madonna portfolio."

So how strong of a return on investment are celebrity-worn collectibles? In 2005, Julien's held a 200-lot auction of Marilyn Monroe's items that brought in $1 million. Today, Nolan said it would have sold for $10 million. "And that's being conservative." A skirt purchased in that auction for $1,500 sold for $50,000 two years ago.

First Published: November 7, 2014: 5:11 PM ET

12.08 | 0 komentar | Read More

Berkshire earnings take a hit on Tesco losses

NEW YORK (CNNMoney)

That's because the investment company took a massive $678 million charge for its investment in Tesco (TESO), a British grocery chain that has seen its shares plunge this year. The grocer has been struggling amid increased competition and an accounting scandal in which it admitted to overstating its profit forecasts.

Berkshire is one of Tesco's largest shareholders.

Related: Warren Buffett's huge grocery bill

Despite the individual investment losses, Berkshire's portfolio is still ahead for the year.

The company said it earned $4.6 billion, or $2,811 per Class A share during the third quarter. That's better than Wall Street was expecting, but still down 8.6%, from the same period last year. Profits for the first nine months of the year, however, are doing better than they were this far into 2013.

The company's Class A shares closed Friday at $214,970 a piece. Berkshire's more accessible B-shares, which are worth 1/1500th of their pricier counterparts were flat in after-hours trading.

Next quarter might be a rough one as well. Berkshire lost big money late last month on shares of Coca-Cola (KO) and IBM (IBM, Tech30) after both companies delivered disappointing earnings. Coca-Cola, which is one Berkshire's largest investments, subsequently cut executive pay following some Buffett grumbling.

Warren Buffett loses $2 billion, but there's good news

First Published: November 7, 2014: 8:05 PM ET

12.08 | 0 komentar | Read More

Hong Kong's growing wealth gap fuels protests

Hong Kong's ongoing pro-democracy protests are also driven by worries over income inequality.

HONG KONG (CNNMoney)

The gap between the rich and poor in the city is among the widest in the world, and the problem is only getting worse.

Complaints over income inequality have bubbled to the surface during the pro-democracy "Occupy" protests, a movement dominated by students who worry they may not be able to afford a home or support a family.

The city has a sky-high Gini coefficient -- a measure in which zero means perfect income equality and 1.0 means one fat cat takes home everything. Hong Kong scores a 0.537, well ahead of the U.S. at 0.41.

Although raising Hong Kong's minimum wages from HK$28 per hour ($3.61) to HK$30 ($3.87) in May was one step in the right direction, more still needs to be done, said Paul Yip, a professor at Hong Kong University. The city has only had a minimum wage since 2011, and it's only been raised once.

Even though income taxes are very low compared to the U.S., minimum wage earners still only end up with around $600 a month.

Overall, monthly median earnings have only increased by 30% over the last 10 years, while Hong Kong's GDP has jumped 60%. Although the city's economy has grown, such "economic improvement doesn't benefit the majority of the people," Yip said.

For those in the 16 to 24 crowd, monthly median wages haven't budged an inch since 2001, and are still hovering at HK$8,000 ($1,031), said Chung Kim-wah, director of Hong Kong Polytechnic University's Centre for Social Policy Studies.

At the pro-democracy protests -- where student-led groups are calling for free elections -- complaints over housing costs are frequent.

"We cannot afford [an apartment], we could not have a shelter [even though] we work all the time," said protester Kaley Lau, 25, who works as a nurse.

In fact, housing prices have more than doubled over the last decade, according to CLSA.

Buying an apartment on Hong Kong island of less than 400 square feet now costs on average HK$5.23 million ($675,000), and average monthly rent for a place that size is HK$16,560 ($2,136). Homes on the outskirts of the city aren't much cheaper -- places under 400 square feet in the New Territories still average HK$3.68 million ($476,000).

Owning or renting takes a big chunk out of your paycheck, meaning far less disposable income and lower qualify of life, Yip said. And low-income earners who qualify for public housing still have to wait for up to seven years before getting an apartment, he said.

The property sector is dominated by tycoons, who also control a number of other industries from supermarkets to utilities. Three companies account for 72% of the residential property market in Hong Kong -- without greater market competition, the tycoons are seen as gaming an unfair system in their favor.

"Hong Kong people are frustrated because there is a structural inequality," Yip said. "These housing developers bid for land ... and make [property] so unaffordable for the people."

Related: Hong Kong has a tycoon problem

Read next: The poor pose election risk, says Hong Kong's leader

First Published: November 6, 2014: 9:46 PM ET

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America's most expensive home for sale: $195 million

The most expensive home for sale in the United States right now lies on a 25-acre site of Beverly Hills.

NEW YORK (CNNMoney)

That makes it the most expensive home listing in the United States, according to Coldwell Banker.

Called the Palazzo di Amore (or "Palace of Love"), the estate is enormous with 53,000 square feet of living space, 12 bedrooms and 23 bathrooms. The master suite alone -- at 5,000 square feet -- is bigger than most McMansions.

On the 25-acre property, there's a vineyard that produces 400 to 500 cases of syrah, cabernet, sauvignon blanc and other wines each year. There's also a guest house, formal gardens, a spa and a 128-foot long reflecting pool.

Related: $25 million homes from around the world

The estate is owned by real estate mogul, Jeff Greene, who bought the place as an investment and rents it out for $475,000 a month. In fact, Greene barely spends any time at the Beverly Hills estate, instead preferring to spend time at his home in Palm Beach, Fla., or at his summer house in the Hamptons.

Visitors arrive through one of three sets of double gates and drive a quarter mile to the front entrance, where they encounter an Italian-made fountain carved of Carrara marble.

They can park pretty much anywhere. The estate has a 27-car garage and 150 additional parking spaces.

The house design is rather informal, except for the stunning entryway.

The main residence is more than 35,000 square feet with a front entryway that is a grandiose display of statue niches, inlaid marble floors, classical revival pilasters and a double staircase of marble and ornamental metalwork.

Don't feel like climbing the stairs? Take the elevator.

There's a hand-painted night sky ceiling in the media room.

The Palazzo di Amore was made for entertaining. Not only can it accommodate 1,000 guests, but it also boasts a 50-seat theater, a bowling alley and a game room. There's also space to host a seated dinner for 250 guests.

The disco/ballroom has it all, including a turntable dance floor.

The ballroom is outfitted with laser lights, a DJ booth and a revolving dance floor. It also features a trompe l'oiel, sky-dome ceiling with more clouds painted on it than the typical Southern Californian sees in a day. There are expansive views of West Side of Los Angeles, Century City and the ocean beyond.

The family room features a carved white marble fireplace.

The family room, with its parquet floor, built-in cabinets, fireplace and comparatively modest dimensions, is perhaps the coziest room in the house.

This is the small wine room. It holds a mere 3,500 bottles.

And any vineyard must have its own wine cellar and tasting room. This one has space for 3,500 bottles. If that's not enough space, there's a more utilitarian wine vault downstairs that holds 10,000 more bottles.

Without a doubt the Palazzo di Amore has a lot to offer, but can it bring in the full asking price?

Exact comparable sales are hard to come by but a similarly sized mansion in nearby Holmby Hills sold for $102 million in March, according to the record for Los Angeles County. The property, however, was on the market for years and sold for $23 million below the asking price.

And it was only on five acres of land. "This property is five times the size of that," said Stacy Gottula, the Coldwell Banker Previews International real estate agent who, along with colleague Joyce Rey, is showing the estate.

Related: 27 new billionaires on richest Americans list

Several other similarly sized mansions have sold over the past few years in the Los Angeles area but none for more than $100 million, according to Jonathan Miller, an appraiser with Miller Samuel in New York. So asking for nearly twice that amount may be a stretch, he said.

"What's unusual is the estate size," he said. "Still, $195 million is a huge number."

Gottula said that several people have inquired about buying the Palazzo di Amore over the past few years while it was being rented out.

First Published: November 6, 2014: 7:41 PM ET

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Takata hid results of secret airbag tests - report

HONG KONG (CNNMoney)

The report, published by the New York Times, alleges that Takata engineers carried out secret tests on discarded airbags in 2004, after becoming concerned over an incident in Alabama in which one of the company's airbags ruptured.

The Japanese company's engineers were alarmed by what they found. But instead of alerting regulators, the report says that Takata executives "ordered the lab technicians to delete the testing data from their computers and dispose of the airbag inflaters in the trash."

The first airbag recall would not be issued until November 2008.

"All the testing was hush-hush," one former employee told the Times. "Then one day, it was, 'Pack it all up, shut the whole thing down.' It was not standard procedure."

Shares in Takata, which had been trading higher in Tokyo, plunged more than 4% after the report was published. Hideyuki Matsumoto, a Takata spokesperson, said the company had no comment.

In total, 10 different automakers have recalled vehicles due to flawed airbags that can explode and hit passengers with shrapnel. There have been four deaths and dozens of serious injuries tied to the faulty airbags, according to the Center for Auto Safety.

Related: The fix for exploding airbags may be more deadly than the problem

Last week, Takata and Honda Motor (HMC), one of the affected brands, were hit by a U.S. federal lawsuit. The suit seeks class action status on behalf of the owners of all five million Hondas affected by the recall, alleging that they've suffered inconvenience and financial losses.

Other automakers including Toyota (TM), BMW, Mazda (MZDAF), Mitsubishi (MBFJF), Subaru, Nissan, Ford (F) and General Motors (GM) have also issued recalls.

This has been a record year for car recalls affecting more than 52 million vehicles. About one in every five cars on the road has been recalled.

First Published: November 6, 2014: 11:33 PM ET

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The latest trend in housing? Roommates

NEW YORK (CNNMoney)

The percentage of adults living with someone other than a spouse or partner hit 32% nationwide in 2012, up from 26% in 2000, according to Zillow's analysis of the latest Census Bureau data.

And, judging by the ongoing decline in homeownership rates and tightened supply of rental vacancies, the trend appears to be gaining momentum.

People start pairing up when rents are climbing and incomes aren't keeping up -- and in recent years, rents have really been on a tear. They rose 6.5% over the 12 months ended in September, according to Trulia. Meanwhile, wages have remained more or less flat.

Related: Why I have a roommate at my age

The numbers make the case for sharing space.

In Brooklyn, N.Y., for example, the average one-bedroom apartment rents for more than $2,600 a month, according to Jonathan Miller, president of appraisal firm Miller Samuel. Renters willing to live together, however, pay an average of $3,200 for a two bedroom, each saving $1,000 a month. Those living in three bedrooms, which average $4,200 a month, save even more at $1,200 per person.

Related: Most innovative cities

Working adults in doubled up households tend to earn less, according to Zillow. So sharing a place enables them to afford and compete for more attractive housing.

Writer Dina Wilcox and executive coach, Ann Fry, live in Manhattan, one of the nation's most expensive housing markets. Both in their late 60s, most of Wilcox's and Fry's peers live with significant others or by themselves.

But these two have found life more enjoyable and affordable by splitting things like the utility bills and food costs in their Harlem apartment. Fry, for example, pays just $1,500 a month for her share of housing expenses.

"Financially, it's terrific. It meant I could pay what I was paying in my old sublet," said Fry.

There's also the added bonus of companionship: The two often entertain and cook together, she said.

Dina Wilcox and Ann Fry live together in an apartment in Harlem.

Thikshan Arulampalam, 46, said he has had a roommate for almost the entire 18 years he's lived in New York City. He's been thankful for the savings. Money got very tight after he was laid off last year and started his own IT company.

"My friends think I am crazy and should move to a suburb and live on low rent on my own," he said.

Related: Colleges with the highest paid grads

Not surprisingly, the metro areas with the largest percentage of doubled (or tripled or quadrupled) up households are the priciest ones. Among the cities where 42% or more of households include roommates: Honolulu, Los Angeles, Riverside, Calif., Miami, and New York, according to Zillow's analysis of Census data.

Cities where roommates are few and far between are mainly small affordable places in the Midwest, where slow growth means little pressure on housing stocks and rents and home prices are reasonable. These are places like Sheboygan, Oshkosh and Wausau, Wisc. as well as Ithaca, N.Y.

First Published: November 5, 2014: 6:52 PM ET

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Whole Foods shares pop on best-ever sales

NEW YORK (CNNMoney)

The company made $128 million in the fourth quarter on top of a record $3.3 billion in sales. Both figures were 9% higher than they were the same time last year. Its earnings beat Wall Street's expectations.

Related: Whole Foods debuts environmental ratings for veggies, fruits and flowers

The grocer also told investors that sales would continue to grow, just 10% slower than they did in 2014. That's good news for the supermarket chain which has been battling brands like Kroger (KR) and Trader Joe's for control of the organic food market.

Its shares were up more than 7% in after-hours trading, though they're still down nearly 31% for the year.

Related: It wasn't too long that Whole Foods stock was rotting away

First Published: November 5, 2014: 6:42 PM ET

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This suit will give you superhuman strength

NEW YORK (CNNMoney)

Lockheed Martin (LMT) has developed Fortis, an exoskeleton that can shoulder the first 36 pounds of whatever its user is holding. The company is beginning to test the technology in factories around the country, starting with the C-130 plant in Marietta, Ga.

Putting on Fortis looks a bit like attaching robot parts to your own appendages, with metal rods and braces outlining the body of the suit. While wearing it, a large tool feels light enough to swing around.

A 30-plus pound riveter felt "pretty much weightless" to Jim Medley, an assembly line worker at the cargo plane factory.

He was more graceful with his tools than on his feet, however: walking in Fortis is closer to a waddle. Still, Medley found that the equipment substantially lightened his load while drilling and riveting a section of a C-130J wing.

The benefit of this newfound strength (aside from feeling like a superhero) is that it enables workers to go for long periods without needing a break. The suit minimizes muscle fatigue, which increases productivity.

"It's actually holding the weight ... I just have to balance it and maneuver it to where it needs to go, " Medley said.

Fortis works by transferring weight from the arm of the exoskeleton through a series of joints and ultimately to the ground. It has counterweights on the back so users don't fall over.

The technology was under development for six years. Lockheed has developed four units so far, with more on the way. Two were sent to the Navy in mid-October for testing and evaluation at their shipyards.

Related: Shopping? The robot will help you now

"Workers there were experiencing fatigue from holding grinders up on the sides of ships for long periods of time," Lockheed's exoskeleton technology manager Patricia Aelker said.

The other two are traveling to Lockheed facilities around the country as the company tests different applications. At the C-130 plant, Fortis was put to work for riveting, grinding and overhead drilling.

"Iron Man is a fictional character that breaks the laws of physics, but Fortis is a real product for real people," Aelker said.

First Published: November 5, 2014: 11:53 PM ET

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GM offering $25 gift cards to people who fix recalled cars

NEW YORK (CNNMoney)

The company has been sending letters to owners of recalled GM (GM) cars, including Buicks, Cadillacs, Chevys, Oldsmobiles, Pontiacs and Saturns to say a $25 gift card awaits them if they get needed repairs by December 1 -- or at least get the car to the dealer by then.

Owners can choose between cards for Amazon (AMZN, Tech30), AMC (AMC) movie theaters, Applebee's, Bass Pro Shops, Red Robin (RRGB), Starbucks (SBUX) and Walmart (WMT), Automotive News first reported.

Related: Catch up on the latest GM recall updates

The recall, which was initially announced in February, impacted 2.6 million cars and involves a faulty ignition switch. The company warned that keys for the car might pop out of the ignition and shut off important functions like brakes, steering and airbags while the car is running.

Although the defect has been tied to the deaths of at least 29 people, only about half the affected cars have been brought in for repairs. If all the remaining drivers bring their cars in, it's estimated it will cost GM north of $70 million.

Related: GM victim accepts payout, but wants vindication

Ryndee Carney, a GM spokeswoman, said the company has tried reaching out to the owners through every channel -- from direct mail and phone calls to social media. On Twitter (TWTR, Tech30), for instance, the company has "pinned" a tweet about recall steps to the top of its page.

Earlier in the recall process, GM ran out of the needed parts for repairs and instead told owners to remove things from their key rings in order to ease the strain on the ignition. This might have confused some drivers or made them complacent, she said. But she said the company now has more than enough parts to get the job done.

Related: One in five cars have been recalled

"We're concerned about your safety, and you should put this at the top of your to-do list," she said.

First Published: November 4, 2014: 8:16 PM ET

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Doing business in India: Bureaucrats and bribes. New leader vows to change all that

NEW DELHI (CNNMoney)

The New Delhi-based fashion designer and manufacturer is buying into the story of India's economic rebirth, as told by the country's Prime Minister Narendra Modi.

Six months ago, Modi swept to power in a landslide on the promise of getting India's fast-growth model back on track.

The country has experienced less than 5% GDP growth in the past two years, yet the prime minister is targeting 7% to 8% within the next three.

Modi hopes people like Sehgal will drive that growth as he focuses on unshackling small and medium-size companies.

Related: India's $74 million Mars mission cost less than 'Gravity'

Manufacturing makes up only about 14% of the country's economic activity. Compare that with China's 34% of GDP and it's easy to see why Modi is pushing a "Make In India" campaign.

Small business has always been neglected by the Indian government. Many of the rules and regulations governing them are nothing short of "archaic," said R. Narayan, an official with the Federation of Indian Chambers of Commerce and Industry.

For proof, look no further than a recent World Bank report on best countries to do business in. India's ranking fell two places to a dismal 142 out of 189 countries.

To start a business in India takes an average 28 days. In virtually all developed economies it's less than a week.

"It's a bad place to do business, because of the amount of time it takes to do a little change," said fashion designer Sehgal. "For a small project like ours you have to manage everything on your own. You don't expect help from anyone, anywhere."

On top of that he has to deal with daily power outages at his three factories -- due to India's creaking and underfunded infrastructure -- and the "eyes of greedy people," meaning those he has to pay off.

Modi is promising to change all that. "Cut the red tape and roll out the red carpet" is one of the administration's many slogans.

As a marketing campaign it's been successful. A new poll shows Modi's personal approval rating among urban Indians --- almost half the population -- is an astonishing 92%.

Related: India looks for love on Tinder

But change may be less revolutionary than evolutionary. He wants members of the country's vast bureaucracy to be more accountable and more efficient -- basically to do their jobs better. And he is turning to experts, rather than ministers, to advise on what changes to make.

Sehgal, for one, said his expectations have risen dramatically. "I think it's going to change soon."

And Narayan said that Modi will he helped by the nation's pent-up demand for reform.

What Modi has that none of his predecessors have had for the past 30 years is a sweeping mandate as a result of his crushing electoral victory. The voters have put their faith in him, and now it's his turn to repay that trust.

But at the moment there's little in the way of actual improvement. Modi now has to show this boisterous democracy of 1.25 billion people that things really are different.

First Published: November 4, 2014: 8:29 PM ET

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Nintendo wants to watch you sleep

HONG KONG (CNNMoney)

Nintendo has unveiled new details about its "QOL" platform, which stands for "quality of life" and includes a line of health-focused devices. The first will be a bedside sensor that tracks your sleep, sends the data up to the cloud for analysis, and produces suggestions to help you get more rest.

It's a strange move for the legendary gaming company. But seemingly strange moves have paid off for Nintendo in the past.

The most famous recent example is the Wii. While Microsoft and Sony pushed technology's limits to produce consoles with high-definition graphics and robust online features, Nintendo built an underpowered machine with a quirky name.

Related: This 3-D scanner-printer is a flop. But the future is promising

Microsoft and Sony designed their consoles to serve their core audience of gamers. But Nintendo's sights were set on a larger market: Everybody else. The Wii's approachable controller made it the system of choice for many who had never played video games before.

It's this spirit which seems to inspire Nintendo's health focus. Nintendo President Satoru Iwata has told shareholders that he wants to redefine the company's definition of entertainment.

The question is whether people will turn to a company known for the Game Boy to help them sleep better. Nintendo says it has consulted with experts in sleep and fatigue, and the QOL sleep sensor includes technology from the medical firm ResMed.

Plenty of tech companies are investing in health, but most seem to be focusing on activity tracking. There are more fitness trackers than you can count, but few devices that focus on how well you sleep. That could give Nintendo an edge in an increasingly-crowded market.

Related: Why I put World of Warcraft on my resume

Another advantage could come from Nintendo's gaming background. More and more fitness devices and apps are using elements commonly found in video games, like leaderboards and challenges, to incentive users. And who knows about fun better than the company behind Mario and Zelda?

Of course, Nintendo's gambles haven't always worked out.

The ill-fated Wii U continues to struggle. Nintendo's decision to stick with expensive plastic cartridges instead of CDs for the N64 helped Sony become the dominant player in gaming over the past two decades. And then there's the Virtual Boy, a system so utterly disastrous that it doesn't even merit an entry in Nintendo's list of system sales.

Changing the scope of Nintendo's business would be surprising, but again, it wouldn't be unprecedented.

After all, this tech company is over 100 years old: Nintendo was founded in 1889 as a manufacturer of Japanese playing cards.

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

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Highwire Nik Wallenda's act falls in ratings

Nik Wallenda's skywalk went off without a hitch for Discovery, even though the ratings weren't as good as 2013's original.

NEW YORK (CNNMoney)

The network's special "Skyscraper Live" had to compete with zombies and the NFL for ratings.

The live event -- where the daredevil walked between two Chicago skyscrapers on a tightrope (once while blindfolded) -- drew good ratings for the cable network averaging 5.8 million viewers for the whole telecast, and 6.7 million during the blindfolded portion.

These were big enough numbers to be Discovery Channel's most-watched telecast of the year.

However, they were just half of Wallenda's 2013 audience for his Grand Canyon tightrope walk. That broadcast brought in 10.6 million viewers.

Related: Wallenda: 'This is what i was made for'

November is a much more competitive month in terms of programming than June (when the 2013 special was telecast).

The special had to compete with two of TV's biggest rating machines: the NFL and AMC's "The Walking Dead."

NBC's Sunday Night football game between the Pittsburgh Steelers and Baltimore Ravens brought in 17 million viewers while the zombie-filled hour of "The Walking Dead" pulled in 14.5 million.

The tightrope walk itself went off without a hitch with Wallenda seamlessly gilding between the Windy City's notable buildings.

The event was promoted by Discovery as a must-see live event in an ever growing world of delayed viewing.

It was also a very social broadcast with many on Twitter (TWTR, Tech30) following #SkyscraperLive.

Related: 'Charlie Brown' still a ratings treat for ABC

First Published: November 3, 2014: 5:35 PM ET

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AMC warns about a 'Walking Dead' blackout

AMC says a possible "Walking Dead" blackout looms.

NEW YORK (CNNMoney)

Yes, it's yet another fight over subscriber fees, but this one is threatening a show that 15 million people love to watch every week, and the channel is being pretty explicit about the behind-the-scenes tension.

AMC is using the "Dead" as leverage: on Sunday night it ran an ad during the show warning about a possible blackout later in the season.

DirecTV ran a rebuttal ad of sorts, disputing what AMC said and suggesting that if there is a blackout, it'll be AMC's fault. The satellite company provides a bundle of channels to 20 million households, making it the country's second-biggest provider, behind Comcast.

With the ad and a statement to the media, AMC seemed to be trying to rally viewers to its side. Subscriber fees are the critical source of revenue for companies like AMC's parent, AMC Networks.

(These sorts of skirmishes happen from time to time. Turner, the parent of CNN, which owns this web site, is currently in a carriage dispute with another satellite provider, Dish Network (DISH).)

AMC said in a statement Sunday night that "DirecTV's agreement to carry AMC expires mid-way through the current season of 'The Walking Dead.'"

Related: "Walking Dead" rises again with record-high ratings

DirecTV (DTV), on the other hand, said that the agreement is in effect for "several more months."

What can be deduced from that? Well, that the carriage deal expires sometime between the end of the first half of the zombie drama's season, at the end of this month, and the beginning of the second half of the season, in early February.

DirecTV said "we intend to renew our AMC partnership at a price that's fair to our customers" -- trying to rally viewers to its side instead of AMC's.

Related: The weapons of the "Walking Dead"

AMC's statement asserted that "DirecTV has not engaged in meaningful negotiations with us, which leaves us to doubt whether a timely renewal is possible."

Perhaps the public comment and commercial was a way to get "meaningful negotiations" started.

These public tiffs usually don't result in outright blackouts -- but they do from time to time. CNN and several other Turner channels are currently unavailable on Dish.

First Published: November 3, 2014: 5:00 PM ET

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Chinese courts are selling seized assets on Alibaba's Taobao

HONG KONG (CNNMoney)

Chinese courts are auctioning off some goods seized in the government's anti-corruption campaign on Taobao.com, a popular online shopping site owned by Chinese tech giant Alibaba (BABA, Tech30). More than 500 courts have joined the auction platform, creating new storefronts dedicated to selling off impounded items, according to Alibaba.

And there's no shortage of goods to sell -- China has confiscated plenty of assets over the past two years as its anti-corruption campaign has widened. The crackdown has ensnared tens of thousands of government officials, state-owned company executives and even top employees of foreign companies.

The courts are selling just about everything: BMW cars, glittering jewelry, plots of undeveloped land, entire hotels, consumer electronics, renovated apartments, office buildings, shopping plazas and more.

Related: China targets executive pay at state-owned firms

Prices run the gamut from old cell phones for $7 to a couple hundred thousand dollars for tracts of land. A villa even went on the auction block back in April with a starting price of $3.4 million.

Interested buyers can browse items that are currently up for sale or will hit the auction block over the next few days. Users can sort by location, price, or category to find cars, land plots, homes and more. For those looking for something specific, it's even possible to search for items by court.

Customers looking for assets previously owned by specific individuals are out of luck -- auction listings don't specify product history or past owners.

A court in Henan province has said that moving auctions online ensures greater transparency. Ironically, court auctions of impounded goods have been criticized for corrupt practices -- rigged auctions, under-the-table deals and attempts to win commission fees.

Related: China's anti-corruption drive eats into growth

Although Alibaba declined to comment, the company has said before that online auctions are an area of focus. The priciest item ever put up for auction was a factory in Jiangsu province worth about $74.7 million.

Alibaba posted its $25 billion record-breaking IPO in New York in September, supported by the massive popularity of its Taobao site. The company is slated to report Tuesday its first earnings since the IPO.

Related: Alibaba now worth more than Wal-Mart

First Published: November 3, 2014: 10:24 PM ET

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Hong Kong has a tycoon problem

HONG KONG (CNNMoney)

Take Asia's richest man, Li Ka-shing, 86, with an estimated net worth of $33 billion. Li controls vast tracts of property, and owns some of the city's biggest supermarket chains, telecoms, major ports and shipping firms, and even energy and utilities companies.

Other tycoons such as Lui Che-woo, 85, and Cheng Yu-tung, 89, also dominate a variety of industries -- construction, casinos, luxury retail, infrastructure, and local transport, from buses to ferries.

Nearly every expense in a Hong Konger's daily life -- picking up groceries, turning on the lights or riding a bus -- ends up lining the pockets of these tycoons.

While they were once revered for their rags to riches success stories, the political and economic influence wielded by the tycoons is now a flashpoint in the ongoing pro-democracy protests that have swept Hong Kong. On the streets, there is little love for the 1%, who many blame for sky-high home prices and the widening wealth gap.

Related: Why I'm protesting in Hong Kong

"Hong Kong is one of the most unequal societies in the world," said Willy Lam, a professor at the Chinese University of Hong Kong. "Apart from the political motivation -- pursuit of real Western-style elections -- the students are also venting their frustration at the income inequality ... and less opportunities for upward mobility for a college graduate."

Tycoons are seen as making these issues worse with their grip on industry.

"The dozen or so tycoons at the top are seen as having monopolistic power in the market," Lam said. "Competition is really not free in Hong Kong -- there is a lack of a [level] playing field."

Without any antitrust laws in Hong Kong, many of these multi-billionaire tycoons are believed to game the system in their favor.

The lack of competition is perhaps most evident in the city's real estate sector, where three companies account for 72% of the residential property market, according to CLSA. Home prices have doubled over the last decade, while wage growth has largely remained stagnant.

Related: This is why Hong Kong matters

Adding to frustration is a seeming lack of interest in reform by city leaders, many of whom are influenced by pro-business interests.

As it stands, the business sector controls roughly 700 votes of a 1,200-member electoral committee in charge of selecting Hong Kong's city leader, called the chief executive, said Ma Ngok, a professor at the Chinese University of Hong Kong.

Mainland China prefers to keep it this way -- the central government can exert influence on Hong Kong through the tycoons, because they all have multi-billion dollar investments in China to protect, Ma said.

The clock is ticking on how things are run in Hong Kong -- many of the richest tycoons are now in their 80s, and how their successors operate could change circumstances.

But for now, they will remain "part of the fabric of Hong Kong culture," said Ben Cavender of China Market Research. "You can't ignore them, because they're always there -- in the news, or you're dealing with one of their brands."

Read next: $547,000 for a parking space in Hong Kong

First Published: November 2, 2014: 9:10 PM ET

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Fox cancels experimental reality show 'Utopia'

The cast of Fox's "Utopia" with network executives.

NEW YORK (CNNMoney)

The show -- which was supposed to document the lives of 15 strangers over a full year as they tried to build a perfect society -- was Fox's attempt at TV experimentation.

However, the series was a ratings dystopia for the network, so it's ending 10 months shy of its expected conclusion.

The show opened decently enough on Sept. 7 with 4.6 million viewers, but couldn't gain momentum and went steadily downhill from there.

It was originally shown on Tuesday and Fridays, but the series was sidelined to just Friday, a tough night for TV. Its audience dwindled to fewer than two million viewers on some nights.

Last Friday's episode brought in just 1.5 million viewers.

Fox's head of reality Simon Andreae originally described "Utopia" as "the largest, most ambitious social experiment on television," but the show proved to be a costly gamble that couldn't pay off for the network.

Reports had the series costing Fox upwards of $50 million.

"Utopia" is just one of the struggles that Fox has faced this TV season.

Its Steven Spielberg-produced dramedy "Red Band Society" has rated poorly and the network recently cut the number of episodes of its new comedy "Mulaney."

For the time being, "Utopia" Friday time slot will be filled by repeats of the Gordon Ramsay-led cooking competition "Masterchef Junior."

While a big cancellation for Fox, "Utopia" is not the first casualty of the new season. ABC pulled the plug on the comedy "Manhattan Love Story" last week.

First Published: November 2, 2014: 6:13 PM ET

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Faster Internet to the middle of the ocean

This would make for a great Instagram photo.

NEW YORK (CNNMoney)

Carnival Cruise Lines (CCL) unveiled a long-range broadband system Monday designed to jumpstart Internet connections on its 101 ships.

Passengers have had access to spotty satellite-based Internet for years, but Carnival says the new system will offer smoother connections and the ability to engage in bandwidth-intensive activities like streaming video.

Related: The best time to book your holiday flight is...

Ramon Millan, chief information officer for the company, said Carnival faced a technical challenge similar to that of the airline industry, which has been gradually increasing the in-flight Wi-Fi speeds available to passengers.

"It's a ship, and it's moving in the middle of the ocean where there's no infrastructure, so we have to be creative," he said.

The new system works by toggling between port-based Wi-Fi, satellite Internet, and "long-range" Wi-Fi that uses land-based antennas to establish a connection when ships are within 40 miles of shore. The resulting speeds are 10 times faster than what the cruise line could previously offer.

Related: How much should you tip housekeeping? A travel tipping guide

Millan said Carnival developed the system in part to appeal to younger travelers "who have made connectivity and social media an everyday part of their lives."

"Our guests are looking for different experiences when they cruise -- some are interested in disconnecting, and others are interested in staying in touch with their world back home," he said.

First Published: November 3, 2014: 12:06 AM ET

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Branson: The dream of space tourism lives on

NEW YORK (CNNMoney)

"We are determined to know what went wrong and are working closely with authorities to get that information," Branson said Saturday at a press conference in the Mojave Desert, near the site of the accident.

From CNN: 1 dead, 1 injured in SpaceShipTwo test flight failure

Branson continued to express sorrow for the loss of life. But he also addressed a question on many people's mind: Will Virgin continue its space tourism business?

"We're going to learn what went wrong, discover how we can improve safety and performance and then move forward together," Branson said. "Four hundred engineers who work here and most people in the world would love to see the dream living on."

Commercial flights were set to start in 2015.

The Virgin Galactic spaceship that exploded Friday cost nearly $500 million to develop.

Virgin has sold more than 700 tickets to space already, each costing more than $250,000, for future flights. Several celebrities have already signed up, including Justin Bieber, Ashton Kutcher, Leonardo DiCaprio and Stephen Hawking.

Anyone who has bought a ticket and is now nervous about space flight will be able to get a full refund, Branson assured. The company has received more than $80 million from bookings.

The special plane is called SpaceShipTwo, and it was designed to carry six passengers.

Virgin Galactic has planned for years to sell trips to transport passengers about 62 miles above Earth -- the beginning of outer space -- and let them experience a few minutes of weightlessness before returning.

Friday's mission was SpaceShipTwo's solo flight number 35, according to the company. A specialized jet carried it into the air and then the crafts separated at 50,000 feet.

They disconnected normally, but within minutes, the spaceship experienced "an in-flight anomaly," Virgin Galactic said.

The plane was designed and built by Mojave-based Scaled Composites, a subsidiary of defense contractor Northrop Grumman (NOC).

The project operates under the wing of The Spaceship Company, a venture that's jointly owned by Branson and Abu Dhabi's Aabar Investments PJS.

"Space is hard and today was a rough day," Virgin Galactic CEO George Whitesides said Friday.

The deadly accident marked the second time in a week that a private U.S. space company suffered a major loss. On Tuesday, a NASA contractor -- the Orbital Sciences Corporation (ORB) -- blew up its own unmanned Antares rocket when it started to malfunction. It was bound for the International Space Station with 5,000 pounds of supplies and experiments.

The space community showed signs of solidarity after Friday's explosion.

Elon Musk, CEO of SpaceX, sent his sympathies over Twitter to the families of the pilots and the Virgin Galactic team.

NASA Administrator Charles Bolden also offered condolences.

"Space flight is incredibly difficult, and we commend the passion of all in the space community who take on risk to push the boundaries of human achievement," he said.

--CNN's Jason Hanna and CNNMoney's Octavio Blanco, Katie Lobosco and Jose Pagliery contributed to this report.

First Published: November 1, 2014: 2:38 PM ET

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NBC is developing a reality show with Virgin Galactic

NEW YORK (CNNMoney)

The network declined to comment. But according to Deadline, NBC is now "gathering information on the situation" regarding the reality series.

During a test flight, a "serious anomaly" caused Virgin's commercial space craft to explode over the Mojave Desert, killing one and seriously injuring another.

The show -- which was announced last year -- is an exclusive series between NBC, Virgin founder Richard Branson and reality TV super-producer Mark Burnett.

NBC described the show as an elimination competition in which normal people would compete with one another for "the ultimate prize" -- a flight into space on Virgin Galactic's SpaceShipTwo.

The series would also have "unprecedented access" to Virgin Galactic's Spaceport America facilities in New Mexico, where contestants would train for their winning flight, according to a press release issued last year.

Related: Virgin Galactic spaceship explodes

Virgin Galactic's plan for the $500 million spaceship is to transport passengers 62 miles above Earth where the planet meets the onset of space.

The flight reportedly would cost guests upward of $250,000 and celebrities like Leonardo DiCaprio and Stephen Hawking have signed up for tickets.

For Burnett -- the producer behind reality hits like "Survivor" -- "Space Race" is another attempt to accomplish his dream of using a TV show to send everyday people into space.

"I am thrilled to be part of a series that will give the everyday person a chance to see space," Burnett said last year. "NBC has come on board ... so that viewers at home will have a first class seat."

First Published: October 31, 2014: 6:40 PM ET

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How I taught my kids to invest

The Ellerbroek family.

NEW YORK (CNNMoney)

That's the message Angie Ellerbroek is instilling in her three children. They are all under 12-years-old, but they already own stock.

"We're middle class of the middle class," Angie, who lives in the Midwest, told CNNMoney. "We live within our means. We don't buy new vehicles."

Angie and her husband were frustrated that their childrens' saving accounts were making a mere 0.17% a year in the bank. In other words, nothing.

They had worked hard to save up a bit of money for their kids -- about $1,500 for each child. In the fall of 2011, Angie had an epiphany: It was time to put the savings in the stock market.

"I explained everything to the kids before investing their savings, and they were on board," she said.

Related: Who's getting rich off the stock market?

Each child started by putting money into one stock -- something they had a connection to.

"I bought Apple (AAPL, Tech30) for my son because he loves computers. I bought Disney (DIS) for one daughter because she loves Disney movies. And for my youngest I bought Honeywell (HON)because she was sick and taking spoons of honey for her cough, and we have a Honeywell thermometer," she explained.

Angie also got into the action, purchasing shares of Toyota (TM) since she believed it was a strong brand in 2011 and the recall crisis seemed to be behind it.

Related: Is Apple the perfect stock?

Investing is now dinner table conversation -- and a fun game as the entire family follows the market. While the Ellerbroeks have a friendly competition going to see who has gained the most each week, the reality is everyone is doing very well -- certainly better than they would have if they kept their money in the bank.

The daughter invested in Disney has the most bragging rights. She is up over 140%. The son in Apple is up 85% and even got to experience a stock split earlier this year. The youngest daughter is up close to 70% -- roughly on par with the S&P 500 return since her initial investment.

Bringing up the rear is mom, although Angie isn't complaining about her 67% return either.

"Regardless of our unrealized gains, it's been a good lesson for the kids to watch their investments," Angie said.

The family has since diversified the investment portfolios somewhat, although they don't see the kids' funds as particularly risky since the plan is to keep the money in the market for a long time.

Angie knows the benefits only too well. An aunt who worked hard for UPS (UPS) and didn't have any children of her own would occasionally gift her nieces and nephews stocks. Angie received her first one when she around age 10 or 12.

"When I grew up and used it, I had about $80,000 that had accrued and split so many times. That helped us buy our first house," Angie said.

It was a better lesson about money -- and the power of investing over time -- than any she has learned in the classroom. Now her kids are learning too.

First Published: November 1, 2014: 8:08 AM ET

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Chipotle gives costumed customers $3 burritos

NEW YORK (CNNMoney)

The chain is giving $3 burritos, tacos, salads and bowls to anyone who comes to one of its stores wearing a costume this Halloween.

Related: Treat not trick for stock market with record close

Chipotle is also giving $2,500 to three customers it deems to have the best costumes on its #chipotlebooritocontest Twitter (TWTR, Tech30) and Instagram hashtags. The next five best costumes get free catering from Chipotle for 20 people apiece.

Related: 'Frozen' costumes are this year's most popular

This isn't the first year that Chipotle has had a Halloween costume deal. In the past the food was free for those who dressed up, but not even fun giveaways are immune from rising food prices. Instead, wrote a company spokesman in an email, the occasion has become a fundraiser.

Related: Charlie Brown and the Great Pumpkin is still a hit

The first $1 million the company raises is going to its Chipotle Cultivate Foundation, which focuses on developing sustainable farming practices. Anything after that goes to the company to offset the promotion's costs.

First Published: October 31, 2014: 4:56 PM ET

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Americans pay more for slower Internet

South Koreans benefit from the world's most cost-effective high-speed Internet.

NEW YORK (CNNMoney)

That's one of the conclusions from a new report by the Open Technology Institute at the New America Foundation, which looked at the cost and speed of Internet access in two dozen cities around the world.

Clocking in at the top of the list was Seoul, South Korea, where Internet users can get ultra-fast connections of roughly 1000 megabits per second for just $30 a month. The same speeds can be found in Hong Kong and Tokyo for $37 and $39 per month, respectively.

Related: Has Verizon's new tech site banned controversial topics?

For comparison's sake, the average U.S. connection speed stood at 9.8 megabits per second as of late last year, according to Akamai Technologies.

Residents of New York, Los Angeles and Washington, D.C. can get 500-megabit connections thanks to Verizon (VZ, Tech30), though they come at a cost of $300 a month.

There are a few cities in the U.S. where you can find 1000-megabit connections. Chattanooga, Tenn., and Lafayette, La. have community-owned fiber networks, and Google (GOOGL, Tech30) has deployed a fiber network in Kansas City. High-speed Internet users in Chattanooga and Kansas City pay $70, while in Lafayette, it's $110.

The problem with fiber networks is that they're hugely expensive to install and maintain, requiring operators to lay new wiring underground and link it to individual homes. Many smaller countries with higher population density have faster average speeds than the United States.

"[E]specially in the U.S., many of the improved plans are at the higher speed tiers, which generally are the most expensive plans available," the report says. "The lower speed packages---which are often more affordable for the average consumer---have not seen as much of an improvement."

Google is exploring plans to bring high-speed fiber networks to a handful of other cities, and AT&T (T, Tech30) has also built them out in a few places, but it will be a long time before 1000-megabit speeds are an option for most Americans.

Related: FCC calls timeout on Comcast-Time Warner Cable merger

First Published: October 31, 2014: 5:52 PM ET

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NBC is developing a reality show with Virgin Galactic

NEW YORK (CNNMoney)

The network declined to comment. But according to Deadline, NBC is now "gathering information on the situation" regarding the reality series.

During a test flight, a "serious anomaly" caused Virgin's commercial space craft to explode over the Mojave Desert, killing one and seriously injuring another.

The show -- which was announced last year -- is an exclusive series between NBC, Virgin founder Richard Branson and reality TV super-producer Mark Burnett.

NBC described the show as an elimination competition in which normal people would compete with one another for "the ultimate prize" -- a flight into space on Virgin Galactic's SpaceShipTwo.

The series would also have "unprecedented access" to Virgin Galactic's Spaceport America facilities in New Mexico, where contestants would train for their winning flight, according to a press release issued last year.

Related: Virgin Galactic spaceship explodes

Virgin Galactic's plan for the $500 million spaceship is to transport passengers 62 miles above Earth where the planet meets the onset of space.

The flight reportedly would cost guests upward of $250,000 and celebrities like Leonardo DiCaprio and Stephen Hawking have signed up for tickets.

For Burnett -- the producer behind reality hits like "Survivor" -- "Space Race" is another attempt to accomplish his dream of using a TV show to send everyday people into space.

"I am thrilled to be part of a series that will give the everyday person a chance to see space," Burnett said last year. "NBC has come on board ... so that viewers at home will have a first class seat."

First Published: October 31, 2014: 6:40 PM ET

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