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They're getting cash, free products, and YouTube-famous

Written By limadu on Sabtu, 28 Februari 2015 | 22.48

jelly and day youtube DayLynn Contreras and Angelica Perez have a channel called "Jelly and Day" which uses FameBit to make money with their videos.

Since December 2014, Contreras has been using a service called FameBit to make that a financial possibility.

FameBit is a marketplace for brands and YouTube creators to form business deals. Brands post products they want used in YouTube videos. Video creators bid how much they'll do the job for, and brands select the best candidates.

"The biggest [YouTube] stars are quite visible, but anyone in the mid-scale can be hard to find." said FameBit co-founder Agnes Kozera.

Kozera said that while some of the top YouTube sensations might have 10 million subscribers, brands can achieve that same reach by working with several lesser known YouTube creators..

"You hit that same reach and you have a lot more content," said Kozera, who said users can get paid anywhere from a minimum of $100 to upwards of $20,000. "[While] it's awesome to have that one viral video with a giant star -- it can be a hit or miss."

The Santa Monica-based FameBit, which launched to the public in May 2014, now works with over 1,000 brands, some as big as Adidas and L'Oreal or as small as DogVacay.

"We focus on the 90% that no one else focuses on," said FameBit co-founder David Kierzkowski. (Another startup, MiTu, offers a similar service for Latino creators.)

FameBit says 8,000 YouTube creators, with a combined audience of 300 million viewers, are using their service.

Contreras, 22, runs a a channel called "Jelly and Day" with her fiance Angelica Perez, 23. The channel has just over 100,000 subscribers, but hadn't made any significant amount of money until recently. They were getting paid a minor amount each month through a partnership with YouTube network, Full Screen. Contreras said it was "definitely not enough to live on."

Since joining FameBit, "Our whole world has turned upside down," Contreras said.

Among their light hearted videos on their Jelly and Day channel is a monthly "favorites" video which incorporates up to 15 products from brands paying them via FameBit. Each advertiser pays them an amount which typically ranges from $200 to $2,000 depending on their bid.

"We only apply to brands that we'd actually use," Contreras said, which helps make the brands look less like an advertisement and more authentically integrated into the videos.

There's a lot of competition to win a bid -- which Contreras said they've had a lot of success with because they tend to low-ball a lot of brand, something they're able to do if they're incorporating many brands into one video.

"It's like a game," she said. "I saw the Selfie Stick on FameBit. I just wanted it, so I said $50 and I got the stick."

Together, the two have earned roughly $4,000 a month. Plus, they get to keep the products. Though they're new to the service, that monthly rate was enough for Perez to quit her full-time job as an executive assistant this week.

Contreras hopes to follow suit in the coming months and she closely monitors her FameBit account for new postings while at her day job.

"I refresh [the webpage] every hour," she added. "Literally."

Its users aren't the only ones profiting.

Kierzkowski said FameBit -- which has raised $1.5 million in funding from investors like Science and 500 Startups -- is already profitable. The startup takes a 20% commission on all deals, plus offers a VIP service, which offers additional support for larger brands.

Kierzkowski declined to disclose specifics on financials but confirmed that the firm, which has a team of 13, grossed over $3 million in 2014.

Related: It's Magic! Send a text, get anything you need

Related: 15 startups. One Silicon Valley bed and breakfast.

Related: Is this Richard Branson's next investment

CNNMoney (New York) February 27, 2015: 4:05 PM ET


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Identity theft tops list of consumer complaints

consumer complaints

There's no doubt it's a scary situation when it happens. If a criminal gets his hands on some personal information, it can wreak havoc on your life. You might find mysterious charges on your credit card. Or a thief could file a tax return in your name, getting a bogus refund before you even know it.

None of this is a surprise. Massive data breaches that could lead to identity theft keep coming and, most recently, hackers hit insurance giant Anthem, stealing information on tens of millions of customers.

Related: Debt collection nightmares

But while identity theft is a huge issue, there's a growing threat from a different kind of scam: fraudsters pretending to be someone they're not as a way to get money from you.

While con artists sometimes impersonate a friend or family member asking for money, more complaints are about fraudsters claiming to be a government official, like an IRS agent.

Last year, the FTC got nearly 160,000 such complaints, or 100,000 more than in 2013.

The bad guys may call to say taxes are owed, getting the unknowing consumer to send them money.

The con may know the last four digits of your Social Security number and threaten arrest if you don't pay up, but consumers should be suspicious if this ever happens.

If you do in fact owe taxes, the IRS will first notify you via snail mail. And it won't ask you to wire money or pay with a debit card.

Rounding out the top five complaints of 2014 were problems with debt collectors, phone and cable companies, and banks.

Related: Hackers are stealing your tax refund

CNNMoney (New York) February 27, 2015: 5:20 PM ET


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'House of Cards' fans that already finished season 3

That's 13 episodes. Each episode is about 50 minutes long.

@TanjaBumbar said on twitter (TWTR, Tech30) it was a "Really good season, it was amazing having all 13 episode [sic] available at the same time."

@MurphyOReilly thought it was a great season too. "Fantastic end to an enthralling season," he tweeted.

Sebastian, or @challi1337, said he has "extremely mixed feelings about the ending and a few other scenes."

None gave away any secrets, respectfully. Well, except for this mysterious comment from @TanjaBumbar: "Mrs Underwood you finally made the right decision."

All four Twitter users appear to live in Europe. This makes sense considering Netflix unloaded all the new episodes at 12.pm. PT/3 a.m. ET Friday morning, making it hard for US fans to complete the task. One woman, Olivia Armstrong, however did. Armstrong says she lives in Brooklyn and finished the show in 13 hours and 15 minutes. She even live-blogged her experience. Her latest tweet? "Sleeping forever byeeeee."

It was 8 a.m. in the U.K. when @MurphyOReilly says he started. He didn't go outside ("fresh air is so overrated!") and bought American snacks to keep him in the mood.

He survived on Mike and Ike's, Oreo's and Doritos during his "12 hour 5 mins" binge session.

"House of Cards" is one of Netflix's original shows. The streaming media company has been heavily investing in the production of its own content over the past few years. The shows are also getting praise from critics. Kevin Spacey just won the best actor Golden Globe for his role as Frank Underwood on "House of Cards."

Netflix is also planning to release movies starring Adam Sandler and the sequel for "Crouching Tiger, Hidden Dragon" later this year.

Netflix has not yet responded to requests for comment.

Related: Nothing stops Frank Underwood...or Netflix

CNNMoney (New York) February 27, 2015: 5:46 PM ET


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Iran hacked an American casino, U.S. says

For the first time, Director of National Intelligence James Clapper said the Iranian government was behind a damaging cyberattack on the Sands Las Vegas Corporation (LVS) in 2014. He mentioned it while testifying before the Senate Armed Services Committee this week.

Sands owns several well-known properties, including The Venetian and Palazzo in Las Vegas and two other resorts in Macao and Singapore.

The attack made headlines, because Las Vegas Sands is a large publicly-traded company. In February 2014, it said unidentified hackers broke into its computer network and stole customer data: credit card data, Social Security numbers and driver's licenses numbers.

las vegas sands casino The U.S. government accuses Iran of hacking the Las Vegas Sands Casino Corporation, which owns The Palazzo and several other resort-hotel-casinos around the world.

At the time, it sounded like just another digital break-in. But the nation's leading intelligence official says it was much worse than that.

On Thursday, Clapper described it as a "destructive cyberattack" on par with North Korea's hack of Sony. In that case, hackers wiped computers, destroyed data and froze the company to a halt.

It's unknown what damage Iranian hackers did to the casino company. Las Vegas Sands declined to comment for this story.

However, the company thinks hackers broke into its casino in Bethlehem, Pennsylvania and "certain company data may have been destroyed," according to documents it filed Friday with the Securities and Exchange Commission.

Of all targets, why Adelson's company? The businessman is a major donor to Republican politicians. He's staunchly pro-Israel, the ultimate foe of the current Iranian regime. And in the past, Adelson has casually suggested that the U.S. drop nuclear bombs on Iran.

If Clapper's assertion is true, this is the latest example of a frightening trend: governments are hacking private companies.

Chinese hacker spies have stolen business plans from U.S. power plants. Russian hackers have broken into American and European oil and gas companies. And most recently, leaked documents show American and British spies hacked a phone SIM card maker in the Netherlands.

Computer security experts widely agree that companies aren't prepared to handle this threat. It comes down to resources. A government is a predator with billions of dollars at its disposal to amass a formidable cyber army. Its prey is a lean, for-profit company with a small security team.

Clapper told senators that hackers in Iran and North Korea pose less of a threat than China and Russia. But they're still a serious foe.

"These destructive attacks demonstrate that Iran and North Korea are motivated and unpredictable cyber actors," Clapper told senators on Thursday.

Related: Anthem probe looking at China as possible source of hack

Related: NSA tied to super-sneaky malware found in companies worldwide

Related: The NSA failed to hack your phone

CNNMoney (New York) February 27, 2015: 5:54 PM ET


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Marriage hurts a hedge fund manager more than divorce

hedge fund marriage The happiest day of a hedge fund manager's life is a sad day for his investors.

A fund's alpha -- the measure of how much it beats the market -- falls by an annualized 8.5% around the time of a manager's marriage, according to a study released this month by University of Florida economists. The alpha dips 7.4% during a divorce.

It's surprising that marriage actually does more damage to a fund manager's performance, according Dr. Sugata Ray, one of the paper's authors.

Divorce has always been a red flag for savvy investors. Hedge fund manager Paul Tudor Jones II, said he withdraws his money from a fund when a manager's marriage breaks up.

"You can automatically subtract 10% to 20% from any manager when he is going through a divorce," he told a conference in 2013.

(Jones also famously noted at that same conference that women who have children can't be great traders, so perhaps we'll take his opinion with a grain of salt.)

Related: This billionaire's wife wants $1 million a month after divorce

Marriage is most detrimental to older managers who use a strategy of trading frequently. Performance among those above the median age of 49 years old fell 14.3% around their weddings, while marriages barely affected young managers.

Younger fund managers tend to have more performance problems around a divorce. The annualized alpha of younger fund managers fell by 15.7% when they got divorced, while older managers only lost 4.1%.

One hedge fund titan who hasn't been affected (yet) by marital strife is Citadel's manager Ken Griffin, who is in the middle of one of the most public and nasty divorces in recent memory. Despite that, his company's three big funds have continued to outperform the market.

Related: How Ken Griffin made his fortune

"It depends on how much of the secret sauce is actually coming from him," said Dr. Ray.

Another big factor is whether a fund manager has partners to help steer the ship during a crisis.

Managers that work alone "get clobbered when they go through marriages and divorces," said Ray. "They start to fall prey to behavioral biases, like selling their gains and holding on to their losses longer than they should."

The findings were based on data collected from 1994 to 2012, tracking 786 managers who went through 857 marriages and 251 divorces.

Related: Oil tycoon Harold Hamm sells company for $3 billion

Related: Why I choose non-monogamy

CNNMoney (New York) February 27, 2015: 4:09 PM ET


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Stocks crushed records in February

february stock market surge

The S&P 500 had its best month since October 2011 -- gaining nearly 5.5%. Not to be outdone, the Nasdaq soared just over 7%, and the Dow rose 5.6%.

The good news just starts there.

Markets in Germany, the United Kingdom and Sweden hit all-time highs. Japan, the poster child of deflation, saw its stock index reach its highest point in 15 years. Even Greece -- Greece! -- saw its stock market tick up.

You can toast central banks for the "fortunate February."

Related: Stock markets all around the world broke records

Central banks for the win: Europe announced a stimulus plan in mid-January, and investors are giving it two thumbs up. It's a much needed cure for the Euro zone economy, which has suffered from deflation woes and slowing growth.

Beyond that, the black cloud of uncertainty surrounding Greece's debt dilemma cleared this week once the European Union agreed to shore up Greece for a few more months. The drama certainly isn't over, but we've seen similar workout deals before.

In the U.S., Federal Reserve Chair Janet Yellen spoke confidently about the economy's progress before Congress this week. Her hearings were another sign that the Fed could raise interest rates this year, perhaps as early as June. A rate hike would be a big vote of confidence about the economy's health from the Fed.

"There is reason to feel good about the economic outlook," Yellen summed up for Congress. The Fed predicts stronger economic growth in 2015.

s&p 500 february

Even oil may have finally hit its floor. After months of falling oil making headlines, crude posted its first monthly gain since June.

Related: Why this tech party isn't like 1999

Dot-com concerns: Of course, any time that stocks hit new highs, there's legit concern that they are too pricey. The bull market is nearly six years old -- one of the longest stock market expansions in history -- and the stock market hasn't had a 10% correction since 2011.

We're overdue for a pullback, and the red flags are going up. Yale professor and Nobel prize winner Robert Shiller's measure for stock values -- the Shiller P/E -- is at levels last seen before the financial crisis.

Consider also that 71% of IPOs had no earnings the day the company went public, a level last seen in the Dot-com bubble. That's a lot of investing in stocks that only have promises and projections.

But the big name tech stocks offer reassurance that companies look better than they did before the Dot-com crash. Apple (AAPL, Tech30), Microsoft (MSFT, Tech30) and others have tons of cash to weather a rainy day this year. That wasn't the case 15 years ago.

Although investors are anticipating a correction, they're not forecasting a massive crash. In fact, many experts still expect U.S. stocks to end the year with gains, albeit modest ones.

Related: Worried about a stock market crash? Read this

The Ides of March: Big events still loom ahead for global markets. The mess with Greece still isn't figured out. If the Fed poorly times the rate hike, it could jolt markets in the wrong direction. And China's growth is slowing down, which will trigger ripple effects across the world. Some argue the country's past double-digit growth wasn't sustainable and its slowdown is a good thing. On top of all that, geo-political threats continue with ISIS.

Volatility took a nosedive in February -- falling 35% to the calm levels that dominated much of last year. But all that could change quickly. For now, celebrate the highs.

CNNMoney (New York) February 27, 2015: 4:29 PM ET


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Benmosche, controversial former AIG CEO, dies

robert benmosche

Benmosche, 70, had undergone treatment for cancer since 2010, according to a statement from AIG. He died at a New York hospital Friday morning with his family at his side, according to the statement. He had left the company in August due to his terminal cancer diagnosis. A statement from his family referred to his "streetwise self-confidence."

AIG was bailed out by the federal government in September 2008 due to fears that its bankruptcy would bring down many major Wall Street banks that were already struggling in the financial meltdown at the time. It was one of the most expensive bailouts of the financial crisis. A total of $152 billion in taxpayer money was used to save the company.

Benmosche was a brash and often controversial figure during his time in charge of AIG. A former CEO of MetLife (MET), he was recruited out of retirement to run the then government-owned insurer in August 2009, about a year after the bailout. He negotiated a $10.5 million a year pay package, but still complained about government limits on executive pay. At one point Benmosche threatened to quit due to the pay limits. One of his first moves in the job was to take a two-week vacation to his summer house in Croatia.

His actions and statements prompted members of Congress to call for his removal. He was referred to as America's most tone-deaf CEO in the media, including by CNNMoney. But he did help turn around the company to make it profitable once again and oversaw the sale of some of its assets that eventually netted taxpayers a nearly $23 billion profit on the rescue.

But even after the government sold off the last of its shares, Benmosche remained a controversial and polarizing figure. In 2013, he said that public criticism of AIG's bonuses in the wake of the financial crisis was "just as bad" as lynchings during the battle over civil rights. He subsequently apologized for that remark.

-- CNNMoney's David Goldman contributed to this report

CNNMoney (New York) February 27, 2015: 2:40 PM ET


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Rick Perry: 'Unemployment rate is a sham'

The nation's unemployment rate has fallen to 5.7% in January, from 10% in October 2009, 10 months after Obama took office.

But Perry told the Conservative Political Action Conference that it's a sham because it "leaves millions of American workers uncounted."

Other conservatives have attacked the figure too. Most famously Jack Welch, the former CEO of General Electric (GE), accused the Labor Department of deliberately manipulating the figure just before the 2012 presidential vote.

"These Chicago guys will do anything ... can't debate, so change numbers," tweeted Welch in October 2012, soon after President Obama was widely acknowledged to have lost the first debate to Mitt Romney.

Related: Hiring still going strong

The Labor Department uses the same methods to measure the American workforce as it did during Republican administrations. In the wake of the controversy over Welch's remarks, officials with the Labor Department denied that the White House or any political appointee has an influence in the way that the unemployment rate is calculated.

Related: 3 things Rick Perry should know about income inequality

While it is true that hiring has grown in the past few years, Perry isn't completely wrong in pointing out that the unemployment rate doesn't count all unemployed workers.

The Labor Department stops counting unemployed workers who have stopped looking for work. Some say it makes the unemployment rate look rosier than it actually is.

However, the number might be less skewed now because in recent months the number of discouraged job seekers who have begun looking for work has also gone up as the labor market has improved.

Related: Texas - America's jobs boom and bust capital

CNNMoney (New York) February 27, 2015: 4:37 PM ET


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Kelly Osbourne quits E!'s 'Fashion Police'

zendaya rancic osbourne Kelly Osbourne (center) has quit E!'s 'Fashion Police.'

E! announced on Friday that Kelly Osbourne will be departing the network's style and red carpet show to "pursue other opportunities."

"We would like to thank her for her many contributions to the series over the past five years during which time the show became a hit with viewers," the network said in a statement.

The departure comes as "Fashion Police" is facing scrutiny over one of its hosts comments.

On Monday's telecast, co-host Giuliana Rancic made a comment about the dreadlocks of actress-singer Zendaya Coleman, saying the hair probably smelled like "weed" or "patchouli oil." Some felt the comment was racially insensitive.

The backlash from Rancic's comment fell onto Osbourne who took to Twitter to convey her displeasure over the situation.

"I DID NOT MAKE THE WEED COMENT [sic]", Osborne tweeted on Tuesday." I DOT NOT CONDONE RACISM SO AS A RSULT [sic] OF THIS IM SEREIOUSLY [sic] QUESTIONONIG [sic] STAYING ON THE SHOW!"

Giuliana Rancic has since apologized for her comments.

E! said that the show would return as scheduled on Friday, March 30 and that no decisions have yet been made on Osbourne's replacement.

The woman who broke into the BBQ 'boys club'

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'House of Cards' fans that already finished season 3

CNNMoney (New York) February 27, 2015: 7:32 PM ET


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Warren Buffett knows who next Berkshire CEO is

He also said that he knows who will one day replace him. Of course, Buffett did not share that name with the rest of us.

"The board and I believe we now have the right person to succeed me as CEO -- a successor ready to assume the job the day after I die or step down," he wrote in his latest annual letter to investors.

Buffett added that the next Berkshire CEO would be someone that already works at Berkshire and is "relatively young."

And while Buffett chose to be coy, Berkshire's vice chairman and long-time Buffett friend Charlie Munger seemed to suggest that it's a two-man race to succeed Buffett.

Munger, in his own remarks in Buffett's letter, specifically named Berkshire reinsurance head Ajit Jain and Berkshire Energy CEO Greg Abel as "proven performers who would probably be under-described as 'world-class.'"

Munger added that he doubted either Jain or Abel would ever leave Berkshire or seek to change how the company is run.

This is Buffett's 50th annual shareholder letter since he took control of Berkshire Hathaway (BRKA) in 1964. So it's only natural that it's time for Buffett to prepare Berkshire investors for life without him.

Throughout the past five decades, Buffett has had a lot to say about the financial markets, economy and society.

Last year, he even gave travel tips, urging people to consider flying to Kansas City, and then drive a rental to Nebraska, since airlines often have "jacked up prices" on flights to Omaha. This year, he even endorsed Airbnb as a way to save on lodging -- though it's hard to imagine Buffett endorsing the young tech company as an investment.

Related: How good is Warren Buffett? Very

But most Buffett fans read the letters for his advice on stocks -- even though Buffett has conceded that the portfolios run by his two investing lieutenants Todd Combs and Ted Weschler have outperformed his own lately.

Buffett is a classic buy and hold investor who has largely shunned pricey technology stocks in favor of blue chips in the financial, industrial and consumer sectors. He has often urged investors to not panic and dump stocks due to fear.

In this year's letter, Buffett stressed that investors should not confuse volatility and risk. He said that stocks "will always be far more volatile" than cash and other investments.

But the bigger risk is not being in the market.

Buffett said that "for the great majority of investors, however, who can -- and should -- invest with a multi-decade horizon ... their focus should remain fixed on attaining significant gains in purchasing power over their investing lifetime."

The proof is in the returns. Berkshire's market value per share has increased by a jaw-dropping 1,826,163% in the past 50 years.

To put that in perspective, the compounded annual gain is 21.6%, compared to 9.9% for the S&P 500.

Another constant Buffett refrain: Don't bet against America. Better times lie ahead.

That optimistic spirit was once again present in this year's letter. Buffett was particularly confident about the chances of continued success for Berkshire.

He said that "the chance of permanent capital loss for patient Berkshire shareholders is as low as can be found among single-company investments" and added that the there is "essentially zero" risk of Berkshire being hit by any major financial problems.

Related: Berkshire is one of Motley Fool's best stocks to buy

Buffett even joked that Berkshire would "always be prepared for the thousand-year flood" and "will be selling life jackets to the unprepared." That's a reference to some of the big investments Berkshire made in financial firms in the wake of the 2008 credit crisis.

But he added that Berkshire is now so big, it will be tough to match the performance of the past 50 years.

Buffett also stressed that the company is much more than an investing and insurance giant -- and he hinted at more deals to come.

Berkshire bought railroad Burlington Northern Santa Fe in 2009 and teamed up with private equity firm 3G Capital to purchase Heinz in 2013.

"Berkshire is now a sprawling conglomerate, constantly trying to sprawl further," he wrote, adding that it expected to partner even more with 3G.

Still, some investors have questioned whether Buffett has lost his mojo. Big Berkshire investments IBM (IBM, Tech30), Coca-Cola (KO) and American Express (AXP) have lagged the market lately.

Related: Warren Buffett ditched Big Oil. Dumb move?

However, other Berkshire stocks -- most notably top holding Wells Fargo (WFC) -- have done extremely well.

Buffett refers to Wells, IBM, Coke and AmEx as Berkshire's "Big Four" investments. And he does not seem to be too concerned by the recent problems at the latter three.

He said that all four "possess excellent businesses and are run by managers who are both talented and shareholder-oriented."

And Berkshire's own stock has outperformed the S&P 500 over the past five years. The company is now the fourth most valuable in America, trailing only Apple (AAPL, Tech30), Google (GOOGL, Tech30) and Exxon Mobil (XOM).

But Buffett did concede that he made one huge blunder last year. Its investment in British supermarket chain Tesco (TESO) turned out to be a flop due to an accounting problem at the retailer.

Related: Berkshire buys stake in Rupert Murdoch's 21st Century Fox

Berkshire sold some of its Tesco stake in 2013 but didn't unload the rest until after the stock had plunged last year. Buffett took full responsibility for "the leisurely pace in making sales."

"I made a big mistake with this investment by dawdling," he wrote. But even that error didn't wind up hurting Berkshire too badly.

Buffett said that after-tax loss on Tesco was $444 million -- about 1/5 of 1% of Berkshire's net worth.

One of the nice things about being so big is that you don't have to hit a home run every time you step up to the plate.

CNNMoney (New York) February 28, 2015: 10:27 AM ET


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F1: Button says 100 laps felt like 1000

By Ben Anderson Friday, February 27th 2015, 20:24 GMT

Jenson Button says completing over 100 laps for McLaren-Honda in Friday's Formula 1 test at Barcelona felt "like 1000 laps", because of the repeated troubles it has endured so far

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F1: Mercedes still the benchmark - Massa

Written By limadu on Jumat, 27 Februari 2015 | 09.29

By Ben Anderson and Jonathan Noble Thursday, February 26th 2015, 19:57 GMT

Felipe Massa believes that Mercedes still has the edge in Formula 1 - despite the Williams driver setting the fastest time of pre-season testing at Barcelona on Thursday

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F1: Ferrari to try aero upgrades on Friday

By Mitchell Adam Thursday, February 26th 2015, 19:00 GMT

Ferrari is set to introduce new aerodynamic components on Friday, as it gradually upgrades its aero package during Barcelona's final pre-season test

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F1: Grosjean: Lateral impacts a "problem"

By Lawrence Barretto Thursday, February 26th 2015, 19:55 GMT

Romain Grosjean believes the safety of drivers who are involved in crashes with a lateral impact needs to be improved following Fernando Alonso's accident last week

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F1: FIA launches Alonso crash probe

Written By limadu on Kamis, 26 Februari 2015 | 09.29

By Jonathan Noble Wednesday, February 25th 2015, 16:26 GMT

The FIA has confirmed that it is to investigate the circumstances surrounding McLaren driver Fernando Alonso's Barcelona Formula 1 testing accident to find out if lessons can be learned

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F1: Small F1 teams push for 'core car' plan

By Dieter Rencken and Jonathan Noble Wednesday, February 25th 2015, 16:50 GMT

Formula 1's smaller outfits are pushing to be allowed to share more car parts in the future in a bid to help lower costs

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F3: Fittpaldi gets European F3 deal

By Marcus Simmons Wednesday, February 25th 2015, 18:16 GMT

Pietro Fittipaldi, the grandson of Brazilian racing legend Emerson Fittipaldi, is to contest the Formula 3 European Championship with Fortec Motorsport

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NASCAR: Atlanta to make safety changes

Written By limadu on Rabu, 25 Februari 2015 | 09.29

By Mark Glendenning Tuesday, February 24th 2015, 20:29 GMT

Atlanta Motor Speedway will make additions to its barrier system for this weekend's NASCAR Sprint Cup race following Kyle Busch's heavy accident at Daytona last weekend

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F3: BRDC star Maini steps up to Euro F3

By Marcus Simmons Tuesday, February 24th 2015, 17:42 GMT

BRDC Formula 4 Championship runner-up Arjun Maini has taken the final seat with Van Amersfoort Racing for this season's Formula 3 European Championship

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F1: F1 design legend Ducarouge dies

Wednesday, February 25th 2015, 01:11 GMT

Gerard Ducarouge and Ayrton Senna

Gerard Ducarouge, the legendary Formula 1 designer who produced winning cars for Jackie Stewart and Ayrton Senna, has died. He was 73.

The Frenchman's career in motor racing began in the 1960s with Matra in junior categories, before he helped design the MS80 that Stewart used on the way to winning the 1969 F1 world championship. Ducarouge subsequently guided Matra to success at Le Mans in the following decade, as the marque took three straight 24 Hours wins from 1972-74.

Leaving Matra to join the new Ligier team, again proved his design genius as he helped guide the team to its maiden F1 win in the 1977 Swedish Grand Prix.

After being dropped by Ligier mid-season in 1979, and having a brief foray with Alfa Romeo, Ducarouge was snapped up by Lotus in mid-1983 for perhaps the most memorable spell of his career.

As the team was kept steady by Peter Warr following the death of Colin Chapman, Ducarouge was drafted in and again delivered all that was asked of him.

Martin Brundle, Ligier, 1993 French GP, Magny-Cours

A push towards the front of the grid, helped by the arrival of Ayrton Senna as lead driver in 1985, produced some memorable race victories - including the Brazilian's famous maiden triumph at Estoril.

Another world championship title would elude him though and, as Lotus's fortunes faded in the 1990s, Ducarouge returned to France - first with Larrousse and then with Ligier, where he would remain until 1994.

Martin Brundle, who worked with Ducarouge in his final spell at Ligier, was one of the first to offer his condolences.

"That's sad, reading that F1 designer Gerard Ducarouge has died," he wrote on Twitter. "Worked with him at Ligier. Stylish, fun and clever man. RIP and condolences."


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FE: FE picks new powertrain manufacturers

Written By limadu on Selasa, 24 Februari 2015 | 09.29

By Mitchell Adam Monday, February 23rd 2015, 16:26 GMT

Renault Sport and five of the teams currently contesting the maiden FIA Formula E Championship are among the eight new manufacturers accredited to produce powertrains from 2015/2016

You have viewed over 15 free stories this month. Why stop there? Click here to find out how to continue reading.


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RALLYX: Foust to contest four World RX rounds

By Hal Ridge Monday, February 23rd 2015, 17:00 GMT

American star Tanner Foust will compete at four rounds of the World Rallycross Championship this season, as part his diverse programme of events for 2015

You have viewed over 15 free stories this month. Why stop there? Click here to find out how to continue reading.


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F3: Carlin completes six-car F3 line-up

By Marcus Simmons Monday, February 23rd 2015, 19:12 GMT

Colombian Tatiana Calderon has taken the sixth and final full-time seat in Carlin's line-up for the Formula 3 European championship

You have viewed over 15 free stories this month. Why stop there? Click here to find out how to continue reading.


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F1: Tost unhappy with testing in Europe

Written By limadu on Senin, 23 Februari 2015 | 09.29

By Matt Beer and Jonathan Noble Sunday, February 22nd 2015, 19:32 GMT

Toro Rosso team principal Franz Tost believes the decision to restrict testing to Europe this year is hurting preparations for the new Formula 1 season

You have viewed over 15 free stories this month. Why stop there? Click here to find out how to continue reading.


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F1: 'Too many problems' held Sauber back

By Scott Mitchell Sunday, February 22nd 2015, 19:45 GMT

New Sauber Formula 1 driver Felipe Nasr says the team had "too many" problems after missing almost the entire morning of the final day of the second pre-season test

You have viewed over 15 free stories this month. Why stop there? Click here to find out how to continue reading.


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NASCAR: Logano takes first Daytona 500 win

Sunday, February 22nd 2015, 22:20 GMT

Joey Logano claimed his first Daytona 500 victory on Sunday, crossing the line to win under yellow flags after a multi-car crash on the back straight

You have viewed over 15 free stories this month. Why stop there? Click here to find out how to continue reading.


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What Bill O'Reilly has said about his time during the Falklands War

Written By limadu on Sabtu, 21 Februari 2015 | 22.48

That's the central question raised by Mother Jones in a report published Thursday, and the answer appears to be both yes and no.

The Fox News host insists he never said he was in the Falkland Islands during the conflict. As a reporter for CBS News at the time, O'Reilly and his colleagues were based in Buenos Aires, far from the war zone in and around the islands.

Some of O'Reilly's accounts stem from a protest that occurred in Buenos Aires at the time, though that wouldn't qualify as a war zone.

As longtime CBS News correspondent Bob Schieffer told Mother Jones, "Nobody from CBS got to the Falklands... For us, you were a thousand miles from where the fighting was."

Here is the public record of what O'Reilly has said:

2001: O'Reilly wrote in his book, "The No Spin Zone: Confrontations With the Powerful and Famous in America," that his time covering war made him ready for anything. "You know that I am not easily shocked," he wrote. "I've reported on the ground in active war zones from El Salvador to the Falkland Islands, and in chaotic situations like the collapse of the Berlin Wall and the Rodney King riots in Los Angeles."

2004: In his syndicated column, O'Reilly recalled how he had "survived a combat situation in Argentina during the Falklands War." He was presumably referring to a protest he covered in Buenos Aires, but his reference to a "combat situation" could reasonably be interpreted as a "war zone."

2008: Seven years ago on the "O'Reilly Factor," the host invoked his experience "in the war zones" to taunt Bill Moyers, the veteran journalist with whom he's feuded for years. "By the way, I missed Moyers in the war zones of the Falkland conflict in Argentina, the Middle East and Northern Ireland," O'Reilly said. "I looked for Bill, but I didn't see him."

2013: During an interview on his Fox News show, O'Reilly once again described the protest but said it took place "in a war zone in Argentina, in the Falklands."

"Because I was in a situation one time, in a war zone in Argentina, in the Falklands, where my photographer got run down and then hit his head and was bleeding from the ear on the concrete," O'Reilly told his guest.

falklands war The Falklands War 1982: Very few journalists made it inside the war zone to cover the conflict.

Some of O'Reilly's statements seem much less questionable.

2009: During an on-air segment with Bernard Goldberg, himself a former CBS News journalist, O'Reilly said that the network "sent me to El Salvador and to cover the Falkland Islands war in Argentina.

2011: After reading an email from a viewer who was honeymooning down in Argentina, O'Reilly noted his history with the region.

"Tell everybody down there I covered the Falklands War," he told the viewer. "They'll remember."

2012: O'Reilly read an email from a viewer based in the Falkland Islands and said he had "a little soft spot" for the region, given that he "covered the Falklands War."

2015: After Mother Jones dogged him all day Thursday for a response, O'Reilly casually -- and carefully -- invoked his assignment in Argentina.

"When I was at the network news, when there was a conflict, a war, any kind of really violent crime spree, whatever, they're all over it," O'Reilly told Goldberg. "I mean, even minor wars, like the Falklands War -- you know, I was down there in Argentina and Uruguay. The Salvadoran War, I was there. When Grenada hit, there was big coverage of Grenada. All of that."

A little later in the segment, perhaps anticipating the Mother Jones report, O'Reilly clarified his earlier comments.

"I didn't go to Grenada. I want to make that clear to everybody," O'Reilly said, while laughing. "I don't want to get in trouble. But I was in Salvador and Argentina."

Related: Bill O'Reilly rips Mother Jones again: 'Bottom rung of journalism'

Related: Mother Jones demands apology

CNNMoney (New York) February 20, 2015: 6:46 PM ET


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Stocks zoom to record highs on Greek deal

After a challenging start to the year, the stock market appears to have gotten back on track.

The latest evidence came on Friday as U.S. stocks zoomed to all-time highs in response to a deal to keep Greece in the eurozone, at least for the next four months.

The Dow popped 155 points and notched its first closing high of 2015. The S&P 500 also landed in record territory and both indexes are now up about 2% on the year.

The party also extended to the tech world as the Nasdaq notched its first eight-day win streak in a year. The index is now less than 1% from the 5,000 level and is quickly approaching its own all-time highs.

S&P 500 bull market

Related: Europe gives Greece another four months

Greek party: Investors can thank Europe for Friday's strong performance. Stocks gathered momentum midday as signs emerged that Greece was finally on the verge of reaching a compromise that would prevent a calamitous exit from the eurozone.

While Wall Street didn't appear to be overly concerned about a Greek exit, the prolonged political situation did not inspire confidence among investors. Fears about how Greece would stay in the currency bloc resurfaced after the anti-austerity Syriza party gained power in late January.

But after weeks of haggling and public posturing, Greece's creditors confirmed late Friday the two sides reached a four-month extension of the bailout. That's great news for Greece because the country was quickly running out of money and risked a collapse of its banking system.

European stocks were closed when the deal was reached, but an exchange-traded fund tracking Greek stocks -- the Global X FTSE Greece 20 ETF (GREK) -- soared 11%.

"This deal temporarily eases tensions and gives Greece breathing room to negotiate long term-debt relief," said Jay Jacobs, a research analyst at Global X Funds.

Related: Why this tech party isn't like 1999

Now what? However, the compromise requires Athens to submit details on certain reform and budget moves it plans to take by Monday.

And it's important to remember this is only a four-month deal. That means it could merely set the stage for another crisis in June.

For now, U.S. investors can turn their attention to matters far closer to home. Next week Janet Yellen will be in the hot seat as the Federal Reserve chief testifies on Capitol Hill on Tuesday and Wednesday. Investors will comb through Yellen's comments for signs on when the Fed may pull the trigger on its first rate hike since 2006.

Related: Robert Shiller is buying stocks in Europe

CNNMoney (New York) February 20, 2015: 4:32 PM ET


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MSNBC says 'prime time lineup is solid'

chris hayes msnbc

Maybe, but the channel is pushing back against a report that Rachel Maddow is about to replace one of her proteges, Chris Hayes.

However, change is definitely afoot at the network, as demonstrated by Thursday's twin cancellations of "Ronan Farrow Daily" and "The Reid Report."

MSNBC is searching for solutions to a ratings deficit that seems to worsen with each passing month. Lately the channel has been averaging just 60,000 to 80,000 viewers ages 25 to 54 on weekdays. CNN, the parent of this web site, usually averages more than twice as many viewers in that demographic; Fox News often times averages four times as many.

So what's MSNBC going to do? Among staffers, there is rampant uncertainty.

On Friday, representatives for the channel reiterated that it will continue to "Lean Forward" -- its slogan that sums up its progressive point of view -- while trying to broaden its coverage beyond politics.

An MSNBC spokesperson refuted that the goal is to "move away from left-wing TV," a claim made by an "MSNBC source" to The Daily Beast.

That Daily Beast report also said "two well-placed sources" predicted that Maddow would take Hayes' slot, and that a search is underway for a new 9 p.m. host.

The report sent a shiver through MSNBC on Thursday night, given how close Hayes and Maddow are. The two hosts share an agent -- and a cerebral liberal sensibility.

"Contrary to the rumors from unnamed sources, we have no plans to take Chris Hayes' show off the air, or move Rachel Maddow's show," an MSNBC spokesperson said Friday. "Our prime time lineup is solid."

Staffers at the 8 p.m. show do not feel they're on solid ground, however. It is possible the show will be shifted to some other time slot.

Hayes' show, "All In," is the most recent addition to MSNBC's prime time lineup -- it was launched in the spring of 2013 after Hayes had a successful run on weekend mornings.

In the press, "All In" has been portrayed as faltering, and several staffers involved with the show, speaking on condition of anonymity, said they've felt unfairly targeted, considering the channel's across-the-board ratings struggles.

On Thursday, for instance, Chris Matthews drew 104,000 viewers ages 25 to 54 at 7 p.m., Hayes had 109,000 at 8 p.m., Maddow had 116,000 at 9 p.m., and Lawrence O'Donnell had 90,000 at 10 p.m.

Some nights are worse for Hayes; he generally loses a bit of the prior hour's audience. Then again, he's been in the job for about two years, while Matthews has been a fixture on MSNBC for well over a decade.

One MSNBC staffer who has worked with Hayes bemoaned "the 8 o'clock time slot problem -- nobody's ever been able to draw the ratings that I think [MSNBC president] Phil Griffin wants to see."

The ultimate calculation, about Hayes and about every other cable news host, is this: Does management think another host could reliably attract a bigger audience?

No more talent changes are believed to be imminent, but there will be more. Ronan Farrow and Joy Reid, two of the channel's lowest-rated hosts, will be replaced by news anchor Thomas Roberts next month, the channel confirmed on Thursday.

The replacement of two strong progressive voices for Roberts was interpreted by some as a step away from liberal politics, at least during the workday.

On the other hand, this week's appointment of Bravo TV star Tom Colicchio as MSNBC's "food correspondent" might be a signal of what's to come. The channel called it part of a "larger strategy to cover a broader set of stories that move and inspire Americans through its progressive lens."

Ultimately, MSNBC may be trying to pull off something quite tricky -- encouraging its loyal and mostly liberal fans to stick around while welcoming new viewers who aren't as fervent about politics, policy or President Obama.

Hayes, who has declined to comment on the speculation about the fate of his show, did tweet a nod to The Daily Beast report on Friday afternoon. He wrote: "Tonight we'll probably talk about why going to war in Iraq again is a bad idea," and he added the hashtag "#leftwingTV."

More Media: Bill O'Reilly rips Mother Jones again: 'Bottom rung of journalism'

CNNMoney (New York) February 20, 2015: 7:16 PM ET


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Why this tech party isn't like 1999

tech stocks party

The Nasdaq is rapidly approaching the 5,000 level and is less than 4% away from all-time highs that were set 15 years ago.

These landmark levels are bringing back bad memories of the late 1990s, when people went crazy over money-losing tech stocks (and bad pop songs). The good times ended when the bubble popped in March 2000, causing huge losses for investors and making many tech companies to disappear.

All of this begs the question: Does the fact that Nasdaq has joined peers like the Dow in record territory signal another bubble is brewing in tech stocks?

No, this tech party doesn't appear destined to end in tears. That's because today's tech stocks look all grown up. They're more fundamentally sound than their 1999 peers, and their valuations are based on something the dotcom stocks of the past never had: real earnings.

"There's no bubble when it comes to technology stocks," said Scott Kessler, head of technology equity research at S&P Capital IQ.

Kessler should know. He was covering the industry back when the last bubble was inflating.

Related: Tech bubble 2.0? Nasdaq nears 5K again

Eyeballs vs. earnings: Back then companies like Pets.com and Internet delivery services Webvan and Kozmo.com raced into the public markets at huge valuations, despite the fact they generated no profits and often little to no revenue.

Investors basically had to invent their own performance metrics like "eyeballs" -- how many users were looking at these websites -- to justify those lofty price tags.

"The debate boiled down to the question of whether earnings or eyeballs were the most important metric, and Wall Street guessed wrong," David Joy, chief market strategist at Ameriprise Financial, wrote in a note to clients this week.

Investors failed to realize how important it was to translate those website visits into real profits.

nasdaq 5000

Related: Tech stocks are on fire. How high can they go?

Ridiculous price tags: The exuberance for tech stocks caused valuations to skyrocket far beyond what, in hindsight, was reasonable.

At the peak of the mania, the Nasdaq was valued at more than 100 times forward earnings, compared with a far more sensible 20 times today, according to FactSet data. That's not much above the S&P 500's forward price-to-earnings ratio of 17.5.

The biggest companies in the index today include household names that are making money hand over fist like Apple (AAPL, Tech30), Google (GOOGL, Tech30), Facebook (FB, Tech30) and Intel (INTC, Tech30). Just last month, Apple alone hauled in a record-breaking $18 billion during a single quarter.

Related: 16 tech firms worth billions despite losing money

Fortress balance sheets: Today's tech titans are also sitting on lots of cash. It's not just Apple with its mind-boggling treasure chest of $178 billion, but other companies like Microsoft (MSFT, Tech30), Google, Cisco Systems and Oracle literally have more cash than they know what to do with.

That wasn't the case during the dotcom bubble when tech companies had little money other than what they raised during their IPOs.

"When they were faced with calamity, they had no wherewithal to ride out the storm," said Kessler.

All of this explains why investors shouldn't fear the Nasdaq's new milestones.

"We should welcome a new high in the Nasdaq, as it will indicate that it, and we, have matured in our understanding of the Internet and its possibilities," Joy said.

Related: Profitless IPOs are all the rage. Bubble alert?

Shadow bubble? Of course, that doesn't mean a bubble won't eventually form in tech stocks, or that one isn't already being inflated elsewhere in world of technology.

Just look at the eye-popping valuations venture-backed companies like SnapChat, Pinterest, Uber and even Shazam are reported to have landed in recent weeks.

"If anything, it seems like there could be a bubble forming in the private markets," Kessler said.

CNNMoney (New York) February 20, 2015: 1:07 PM ET


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Bill O'Reilly rips Mother Jones again: 'Bottom rung of journalism'

The Fox News host devoted the top of his talk show on Friday to blast the liberal magazine once again for a report alleging that he had exaggerated his accounts from the Falklands War in 1982.

"Mother Jones, which has low circulation, considered by many the bottom rung of journalism in America," O'Reilly said in his opening monologue, according to a rough transcript published online by Fox News. The host released the transcript early "in order to address the Internet guttersnipes," according to a tweet from the "O'Reilly Factor" Twitter account.

With that, O'Reilly picked up where he left off a day earlier.

On Thursday, after Mother Jones published the report, O'Reilly mounted a furious rebuttal, making his case in interviews with several reporters. He also made several disparaging remarks about David Corn, the Mother Jones Washington bureau chief who co-authored the report with Daniel Schulman.

O'Reilly kept it up with his monologue on Friday's broadcast, dismissing Corn as a "liar" and the report as a "political hit job." The host also reiterated that he never said that he was on the Falkland Islands during the conflict between Argentina and Britain.

"I said I covered the Falklands War, which I did," he said.

The Mother Jones report highlighted several examples of O'Reilly saying he had been in a "war zone" during his coverage of the conflict for CBS News.

In fact, everyone with CBS was based in Buenos Aires, far from the actual war zone.

O'Reilly did not address his references to the "war zone" on his show Friday. He described his encounter with "angry mobs in Buenos Aires," recalling that he had witnessed "horrific" violence during a protest.

O'Reilly also highlighted an internal memo from CBS News praising his coverage of the protest.

In previous references to the protest, O'Reilly has given the impression that he was in a war zone. He wrote in 2004 that he had "survived a combat situation in Argentina during the Falklands War."

O'Reilly told TVNewser on Thursday that he expects to be exonerated and for Corn to wind up "in the kill zone" -- a phrase for which Mother Jones demanded an apology.

In his monologue on Friday, O'Reilly also directed his criticism at CNN: "At this point ... TV coverage has been scant, but CNN tried to exploit the situation because a guy over there named Brian Stelter ... is another far left zealot ... masquerading as a journalist. CNN can do a lot better than this guy."

As for Corn, O'Reilly expressed doubt that he will suffer consequences. "And you know what? Nothing is gonning (sic) to happen to David Corn," he said. "Mother Jones and the far left websites couldn't care about the truth."

CNNMoney (New York) February 20, 2015: 6:20 PM ET


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Five reasons why Venezuela may be the world's worst economy

With 68% inflation, the highest across the globe, Venezuela comes in just ahead of war-torn Sudan and heavily-sanctioned Iran.

U.S. companies like Ford (F) and Pepsi (PEP)are quickly losing profits there due to inflation. U.S. airlines have drastically reduced their flights to the capital, Caracas. Some European airlines have already stopped flying there altogether.

Related: Venezuela is causing havoc on U.S. companies

Here are five reasons why Venezuela's economy is spiraling down.

Political instability: The Venezuelan government, led by Nicolas Maduro, who succeeded Hugo Chavez after his death, has become increasingly authoritarian.

In February his government has taken over a supermarket chain, and arrested the mayor of Caracas, Antonio Ledezma. Maduro alleges that Ledezma was trying to overthrow him. Ledezma, a vocal critic of the government, joins Leopoldo López, another incarcerated opposition leader in Venezuela.

A food crisis: Venezuelans wait for hours in lines outside supermarkets to buy milk, sugar and flour. There are food shortages at grocery stores across the country because the government can't pay to import food. Sugar, flour and other basic imports, account for 70% of Venezuela's consumer goods, according to the Brookings Institution. McDonalds (MCD) in Venezuela ran out of french fries in January and offered yucca fries instead.

Maduro's government took over the supermarket chain Dia Dia two weeks ago after the president accused the chain's owner of hoarding food to hurt the economy. The owner, Jose Vicente Aguerrevere, denied the accusations.

Related: Venezuela lacks a lot more than McDonald's French fries

Oil: From riches to rags: Venezuela is getting crushed by low oil prices. A barrel of oil now costs about $51 on the global market, losing about half its value from just six months ago. That's exacerbating the economy's acute problems. Venezuela has the largest oil reserves in the world, and once flourished on its treasure chest of crude.

Now Maduro appears to be hitting the panic button. He recently visited China, Russia and several OPEC nations, asking for funds to shore up his government.

Maduro said on Venezuela's state-owned television that China has offered aid. But in return, Venezuela is giving China free oil. Experts say that Venezuela isn't selling enough of its oil for profit, given these agreements. Plus, Venezuelans pay next to nothing for gas. One U.S. penny now pays for about five gallons of gas in Venezuela.

Dead money: Venezuela's currency is losing value faster than any other in the world. Most Venezuelans now exchange money on the unofficial black market. One U.S. dollar equaled about 88 bolivars a year ago. Today, one dollar is worth 190 bolivars, according to dolartoday.com, a website that tracks the black market exchange rate.

The process of simply exchanging money is very confusing. Venezuela has four exchange rates: two that the government uses to pay for its imports, the unofficial (black market) rate and a new one Maduro introduced Thursday.

The latest exchange rate allows Venezuelans to legally buy U.S. dollar for the first time in over a decade. But there's a limit: Venezuelans can only buy $2,000 dollars a month.

Default: The country owes $11 billion in debt payment this year. Some experts see Venezuela defaulting in October, when the country must pay $5 billion.

Related: The 2015 bargain: emerging market stocks

CNNMoney (New York) February 20, 2015: 1:38 PM ET


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Mother Jones calls for Fox apology over Bill O'Reilly 'kill zone' comment

The original report, co-authored by David Corn, suggested that O'Reilly has exaggerated his experience in a "combat situation" amid the 1982 Falkland Islands war.

O'Reilly responded ferociously, ignoring co-author Daniel Schulman while calling Corn a "guttersnipe," a "disgusting piece of garbage," and a "left-wing assassin," among other titles.

He also told TVNewser that, once the truth came out, Corn would be "in the kill zone."

Corn told CNNMoney on Thursday night that he thought O'Reilly's choice of "kill zone" was intended to be threatening.

On Friday morning, his editors Monika Bauerlein and Clara Jeffery, wrote "with alarm" to Fox News executive Bill Shine and a spokeswoman for the network.

"We welcome criticism, but calling for our reporter 'to be in the kill zone' crosses a line," the editors wrote.

"Like everyone in media today, we are concerned about the safety of our staff. We'd have hoped that statements with this kind of violent tone would not come from a fellow media professional," they wrote.

The editors said O'Reilly should renounce and apologize for the comment on his show Friday night.

"If he does not, he should issue a separate statement renouncing the remark and apologize," they wrote.

Fox News did not immediately respond to a request for comment.

Related: Bill O'Reilly's 'war zone' stories questioned

CNNMoney (New York) February 20, 2015: 2:26 PM ET


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The Apple car: What we know

It could be an actual Apple car, or perhaps just a sleek operating system for another company's car.

Nobody knows yet. Apple (AAPL, Tech30) has declined to comment on "rumors and speculation." But here's a roundup of what we do know so far.

Apple is poaching car battery engineers

In the last month, Apple has hired so many engineers from electric car battery maker A123 Systems that A123 has sued. It claims that Apple is playing dirty and on the verge of gutting the company completely.

A123's lithium ion batteries are currently found in several hybrid cars, including the BMW ActiveHybrid series and Chevy Spark.

apple car battery

Sightings of Apple's mysterious sensor-filled van

There's an unmarked van loaded with cameras and sensors that's been driving around Brooklyn. Another one just like it was just spotted in the San Francisco suburb of Concord.

As it turns out, California's Department of Motor Vehicles has the one in Concord as registered and leased to Apple, according to the CBS affiliate there.

There was someone behind the wheel in both cases. But the sensors all over the van indicate that it was doing more than just Google-style street mapping, according to engineers familiar with self-driving cars.

apple car self driving

Apple hired a Mercedes-Benz executive

For nearly six years, Johann Jungwirth led research and development for Mercedes-Benz in North America. In September, he jumped ship to Apple, where he's now director of Mac systems engineering.

Jungwirth's resume shows he specializes in building Internet-connected cars and autonomous driving.

apple car johann jungwirth Johann Jungwirth.

Apple is assembling an auto team

Apple has scooped up dozens of executives and engineers from auto companies in recent years, according to publicly available employment records. It's also hired a number of recruiters from the leading electric car manufacturer, Tesla (TSLA).

For example, one longtime engineer at Autoliv, a maker of car-safety systems, just started working on a "special projects group" at Apple last month, records show.

The New York Times and Bloomberg say Apple is assembling an auto team, citing anonymous sources.

apple car mechanic

Apple's talks with Tesla

Tesla CEO Elon Musk acknowledged that he did met with Apple's acquisitions chief last year, following a San Francisco Chronicle report. But he wouldn't say what for.

"We had conversations with Apple. I can't comment on whether those revolved around any acquisition," Musk recently told Bloomberg news anchor Betty Liu.

apple car elon musk Tesla's Elon Musk.

Apple design guru Jony Ive is obsessed with cars

A recent profile in The New Yorker was heavy on references to Ive's tastes in cars. He owns a black Bentley Mulsanne and Aston Martin DB4. Every summer, he attends the Goodwood Festival of Speed vintage sports car exhibition in southern England. And he seethes at the sight of a Toyota.

Keep in mind, this is the guy behind the design of the iMac, iPad, iPhone, iPod and MacBook.

apple car jonathan ive Apple's Jonathan Ive.

Related: America's most successful stock

Related: Apple accused of stealing employees from battery maker

Related: Nokia is paving the way for driverless cars

CNNMoney (New York) February 20, 2015: 3:56 PM ET


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Did 'Orange is the new Black' just get hosed by the Emmys?

orange is the new black The Emmys new rule changes may have hurt "Orange is the New Black."

The Television Academy announced new rule changes Friday that expand the category field for dramas and comedies and redefine what programs fall under each category. That means one more comedy and one more drama will get to compete for TVs biggest prize at this year's Primetime Emmys.

According to the Academy, due to the "dramatic increase in series production," the field for "Comedy" and "Drama" will expand from six nominees to seven.

Also, TV shows with episodes longer than 30 minutes will now be "presumed to be a 'Drama.'"

This means last year's "Outstanding Comedy Series" nominee, Netflix's "Orange is the New Black," will have to compete in the drama category.

"If anything, Emmys changes push OITNB further away from a win, and likely ensure Modern Family's dominance (ugh)," tweeted Erin Whitney, an associate entertainment editor at Huffington Post.

The Academy also announced other rule changes such as changing "Mini-Series" to "Limited Series" for programs that have two or more episodes that have total running time of more than 150 minutes and don't have "an ongoing storyline and/or main character in subsequent seasons."

These rule changes may affect a series like HBO's "True Detective," which was nominated at last year's event as a drama -- a move that FX Networks CEO John Landgraf called "unfair."

The Emmys will also now split the "Variety Series" category into "Outstanding Variety Talk" and "Outstanding Variety Sketch."

This would seemingly give "Saturday Night Live" a better shot at winning at an Emmy since it will no longer have to go up against the likes of "The Daily Show."

The 67th Annual Primetime Emmy Awards will take place September 20th on Fox.

CNNMoney (New York) February 20, 2015: 4:28 PM ET


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No dogs allowed: San Francisco's pet housing crisis

san fransisco pet housing boxer

According to San Francisco animal welfare nonprofit SF SPCA, there's been a surge in owners abandoning their pets due to an inability to find pet-friendly housing.

Over the last year, one in four people who left pets with the organization cited problems finding pet-friendly housing. The organization started tracking the numbers this year after staff noticed that housing issues were becoming an increasingly common problem, according to spokesperson Krista Maloney.

An influx of highly-paid tech workers in recent years have pushed out many low- and middle-income renters and driven rents higher. With limited space to build on and tight regulations, the short supply of housing in the city has only made matters worse.

Competition for each apartment is so fierce that landlords can afford to be more selective about tenants, said Mark Campana, president of Anchor Realty, which does not allow pets in any of its roughly 1,000 units.

Related: 10 least affordable rental markets

"Now with the market moving with great speed and with vacant units in high demand, an owner doesn't have the incentive to be pet-friendly," said Campana.

Michael Harrington, president of Pacific Union Property Management, said that while some landlords may be flexible about allowing small dogs, they know they can always find another tenant without an animal.

"We're definitely in what I would call a landlord's market," said Harrington.

san fransisco pet housing chihuahua Sam the chihuahua was left at the SPCA by an owner who couldn't find pet-friendly housing.

Just because a unit is advertised as pet-friendly doesn't mean it will go to a pet owner, said Dr. Emily Weiss, vice president of research and development at ASPCA.

That might explain why data from online rental listing company, Lovely, showed that the percentage of listings that said they allowed "some pets" actually grew from 34% to 39% between 2012 and 2014.

Pet-friendly options also tend to be more out of reach for low-income renters, said Weiss. According to a recent analysis of listings by HotPads, pet-friendly units in San Francisco cost an average of 12% more than those that don't allow pets. That's compared to a national average of 3.5% in major metro areas, the company found. And that doesn't include pet deposits or additional "pet rent," which may be required on top of normal rent.

San Francisco even lags behind New York City, where the share of dog-friendly apartments is almost three times higher and just over half of all landlords allow "some pets," according to Lovely. Yet, pet ownership in the city has long faced the same challenges that the SPCA is seeing in San Francisco, said Sandra DeFeo, executive director of the Humane Society of New York.

"People with more means tend to find places that will accept them with pets," she said.

Jackie Tom, president of leasing company RentalsinSF, said it was hard enough finding an apartment that would accept her Great Dane 15 years ago. Today, the market is even more stressful and more expensive for pet owners, she said.

"There are a lot of wonderful pet owners and not enough affordable housing for them," said Tom, who manages 35 pet-friendly units in the city. "They can keep their pets, but there is a price."

Related: 'Why I have a roommate at my age'

Eric Andresen, president of the San Francisco Apartment Association and Viking Services Corp., which manages about 2,300 housing units in the area, said he would be surprised if the housing crunch really made the city less pet-friendly overall.

He notes that many residents have learned to skirt landlords' pet restrictions by claiming their pets as assistance animals, abusing laws meant to help people with disabilities. The problem has become so widespread in recent years that Andresen recommends landlords simply allow pets so they have some control over the animals in their buildings.

"Then at least you can protect yourself with a pet deposit," said Andresen. "And it certainly puts your relationship with your tenant in a more cooperative place."

CNNMoney (New York) February 20, 2015: 7:54 PM ET


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F1: Rosberg: Ferrari has made biggest step

By Scott Mitchell and Lawrence Barretto Friday, February 20th 2015, 19:01 GMT

Mercedes driver Nico Rosberg says he is wary of the threat being by Ferrari based on its form so far in Formula 1 pre-season testing

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F1: Force India focused on 2015 tyres

By Scott Mitchell and Jonathan Noble Friday, February 20th 2015, 18:32 GMT

Sergio Perez insists Force India is still gaining plenty from this week's Formula 1 test in Barcelona, despite only having its 2014 car

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F1: Alonso not sure McLaren can be ready

By Ben Anderson Friday, February 20th 2015, 19:59 GMT

Fernando Alonso is unsure whether the McLaren-Honda Formula 1 team will be "completely ready" for the first race of 2015, because of reliability dramas that have blighted its pre-season testing

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F1: Wolff and Nasr dispute 'stupid' crash

Written By limadu on Jumat, 20 Februari 2015 | 09.29

By Scott Mitchell and Matt Beer Thursday, February 19th 2015, 19:22 GMT

Susie Wolff declared her collision with Felipe Nasr in Barcelona Formula 1 testing a "stupid" incident, as the two drivers blamed each other for the tangle on Thursday

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F1: Renault not where Red Bull wants it

By Ben Anderson and Jonathan Noble Thursday, February 19th 2015, 18:43 GMT

Daniel Ricciardo has admitted that Red Bull engine supplier Renault is still not where it needs to be at the second pre-season Formula 1 test at Barcelona

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BTCC: Priaulx makes WSR test debut

By Edd Straw Thursday, February 19th 2015, 19:39 GMT

Andy Priaulx has completed his first test with the WSR BMW British Touring Car Championship squad ahead of his return to the series

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GP2: Lynn carries out DRS test for GP2

Written By limadu on Kamis, 19 Februari 2015 | 09.29

Wednesday, February 18th 2015, 16:56 GMT

Williams Formula 1 reserve driver Alex Lynn carried out a GP2 test session focused on the category's new DRS in Bahrain on Wednesday

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F1: What to look for at Barcelona test

By Craig Scarborough Wednesday, February 18th 2015, 18:52 GMT

As we head into the second test of Formula 1's pre-season we shouldn't expect to see dramatic differences in car design or team performance but changes will be visible

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OTHER: Albuquerque stays with Jota for ELMS

By Gary Watkins Wednesday, February 18th 2015, 21:00 GMT

Audi factory driver Filipe Albuquerque will remain with the Jota Sport LMP2 team for an assault on this year's European Le Mans Series.

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INDY: Chevrolet reveals IndyCar aero kit

Written By limadu on Rabu, 18 Februari 2015 | 09.29

By Mark Glendenning Tuesday, February 17th 2015, 16:57 GMT

Chevrolet has released the first images of the aero kit that it will use on road/street courses and short ovals in the upcoming IndyCar season

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INDY: Ganassi to field Karam in opener

By Mark Glendenning Tuesday, February 17th 2015, 17:42 GMT

Ganassi development driver Sage Karam will drive the fourth Chip Ganassi Racing entry at next month's IndyCar season-opener in St Petersburg

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BTCC: Turkington, Plato team up in BMR VWs

By Scott Mitchell Tuesday, February 17th 2015, 20:00 GMT

British Touring Car champion Colin Turkington and record race winner Jason Plato will race as team-mates in Team BMR Volkswagens in 2015.

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GT: Ecurie Ecosse sticks with BES

Written By limadu on Selasa, 17 Februari 2015 | 09.29

By Gary Watkins Monday, February 16th 2015, 16:31 GMT

The Ecurie Ecosse team will return to the Blancpain Endurance Series in 2015 in a bid to improve on its third position in the Pro-Am class last year

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INDY: Jakes back to IndyCar with Schmidt

By Mark Glendenning Monday, February 16th 2015, 16:17 GMT

James Jakes will return to IndyCar in 2015 after securing a deal to replace Mikhail Aleshin at Schmidt Peterson Motorsport

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F1: F1 revolution faces Tuesday vote

By Jonathan Noble Monday, February 16th 2015, 18:14 GMT

Formula 1's move towards a rules revolution faces a key vote on Tuesday that should decide whether major changes to car design can happen in time for 2016

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WTCC: WTCC aims to exploit driver conflict

Written By limadu on Senin, 16 Februari 2015 | 09.29

By Stuart Codling Sunday, February 15th 2015, 16:59 GMT

The World Touring Car Championship will no longer keep driver conflict "just inside the teams", says series chief Francois Ribeiro

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WRC: VW retires Latvala's car before finish

Sunday, February 15th 2015, 17:19 GMT

Volkswagen retired Jari-Matti Latvala's Polo R WRC before the official finish of Rally Sweden to take advantage of a World Rally Championship rules quirk for the next round in Mexico

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NASCAR: Gordon tops crazy Daytona qualifying

Sunday, February 15th 2015, 19:48 GMT

Jeff Gordon claimed pole for what is likely to be his final Daytona 500, but only after a bad-tempered and controversial qualifying session for the 2015 NASCAR Sprint Cup opener

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WRC: Neuville grabs Rally Sweden lead

Written By limadu on Minggu, 15 Februari 2015 | 09.29

Saturday, February 14th 2015, 15:35 GMT

Thierry Neuville snatched the lead of Rally Sweden for Hyundai at the end of Saturday's leg, setting up a thrilling final-morning battle with Volkswagen's Andreas Mikkelsen and Sebastien Ogier

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WRC: VW seeks Ogier penalty clarification

By David Evans Saturday, February 14th 2015, 16:48 GMT

Volkswagen World Rally Championship team principal Jost Capito is seeking clarification from the Rally Sweden stewards regarding Sebastien Ogier's suspended penalty

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NASCAR: Stenhouse leads Daytona 500 practice

Saturday, February 14th 2015, 21:12 GMT

Ricky Stenhouse Jr and Michael McDowell led Daytona 500 practice on Saturday, while engine problems consigned 2014 NASCAR Sprint Cup title contender Ryan Newman to the back for his heat

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Europe is a mess. Should American investors buy now?

Written By limadu on Sabtu, 14 Februari 2015 | 22.48

europe on sale

Greece is back in drama mode. It has too much debt that it can't pay. Negotiations with Eurozone leaders this week have been tense, with no resolution yet. There's even talk of Greece leaving the euro, which would only embolden separatists in other parts of Europe.

On top of that, Europe's economy is sputtering. There are fears of deflation, too, which one hedge fund manager compared to the Death Star from Star Wars showing up.

Related: Alan Greenspan: The euro is doomed

The case to buy: The warning signs are plentiful, but from an investment standpoint, European stocks look very cheap, especially compared to the U.S. That, arguably, makes it a great time to buy.

"We are definitely of the opinion that this year Europe will outperform the U.S.," says Martin Schulz, manager of PNC Capital Advisors' International Equity Fund. "We think corporate margins and earnings growth is peaking in the U.S."

A European market rebound is already underway. The STOXX Europe 50 Index is up over 9% this year and the German DAX is up nearly 12%. Compare that to the Dow, which is up only 1% for the year.

Experts forecast European markets will outperform America this year. Many large European companies are still doing well, and Germany reported better-than-expected economic growth Friday, a fresh reminder that there's still money to be made.

Greek pickle: Most believe the Greece situation will be resolved without having to resort to Greece leaving the euro or another dramatic turn. It's in everyone's best interest to find a compromise.

"At the end of the day, Germany is very invested in the long-term health and existence of the European Union," Schulz says. If anything, the Greek drama could provide an opportunity for investors.

Beyond Greece, Europe's central bank is gearing up to stimulate the economy. The U.S. Federal Reserve did the same thing in recent years, which many credit as a key driver of the nearly six-year upswing in the American stock market.

"What quantitative easing did do in the U.S. is inflate asset prices," notes Lori Heinel, chief portfolio strategist at State Street Global Advisors. Europe could be next in line for a boost.

Related: European stocks love QE

The euro dilemma: But there's one big concern as an American investor: the U.S. dollar-to-euro exchange rate.

Schulz says it's quite possible European markets could finish the year 10% higher, but after the exchange rate, an American investor would only be looking at, say, a 4% gain in dollar terms.

"The whole concept is you want to be in Europe, but you don't want to own the currency," says Mary Ann Bartels, chief investment officer of portfolio strategies at Merrill Lynch.

There are two schools of thought on how to deal with it: Either try to hedge or just live with it. For long-term investors, currency effects typically wash out over time, Bartels says. But investors who are concerned about the one-to-three-year performance of their investments have to pay attention to the exchange rate.

Some funds that cater to retail clients will actually hedge out the currency effects for investors. They are harder to find, but they are there.

Related: Europe is on sale for American travelers

"What we are recommending as you invest in Europe is to stay with high-quality, large-cap companies and to keep in mind a lot of exporters will benefit from the depreciating euro," says Bartels.

But while investment strategists are mixed on whether to overweight or underweight Europe and other international equities, they largely agree that you should have some exposure if you don't have it already.

CNNMoney (New York) February 14, 2015: 9:29 AM ET


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Geico accused of discriminating against low-income drivers

geico homepage Geico is accused of failing to offer policies that offer the minimum amount of coverage legally required to good drivers.

Geico is accused of failing to offer policies that offer the minimum amount of coverage legally required to these drivers, which also happen to have the lowest premiums, according to the Consumer Federation of California.

In fact, insurance companies are required by state law to offer good drivers this option.

Geico is actually owned by Berkshire Hathaway (BRKA), which is run by Warren Buffett, a billionaire who often speaks up for the little guy.

An idea that's been dubbed the "Buffett Rule" is that billionaires like himself should never pay a smaller share of their income in taxes than a middle class family pays. Buffett has also advocated for a higher earned income tax credit, which helps low-income working families.

Related: The rich are 8 times likelier to graduate college than the poor

Insurance companies must offer good drivers plans with the minimum level of coverage OK'd by the state. In California the lowest coverage policy covers up to $15,000 for a single injury in an accident, $30,000 for injury to more than one person, and $5,000 for property damage.

But the Consumer Federation of California found that this policy was not being offered to some drivers in California who asked for quotes online. It charges that drivers who are single, lack a college degree, are currently uninsured, unemployed or not working an a professional job.

The group contends that it offers these individuals plan with higher limits and higher premiums.

It also claims that Geico still labels this option as a "lowest limit" coverage plan.

A majority of people already choose insurance plans that offer more than the minimum coverage, said Michael Barry at the Insurance Information Institute.

The Consumer Federation of California filed a complaint Thursday with the California Department of Insurance. Geico could not be reached for comment.

Related: Wealth gap between middle class and rich widest ever

CNNMoney (New York) February 13, 2015: 3:32 PM ET


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Is ending segregation key to ending poverty?

strong housing markets atlanta

She made sure to provide her three children with every opportunity she could, taking them to ballet lessons, after-school academic programs, plays and activities around the city, encouraging them to work hard at school and stay away from drugs. But the specter of violence and poverty was hard to escape.

Hard to escape, that is, until Harris got an opportunity to move out of the projects to a small village called Alsip, 40 minutes outside of Chicago's city center and 80% white. Harris moved to Alsip 14 years ago and since then has led a quiet, suburban life alongside neighbors who go to work each day and raise their children to go to college.

Harris and her children thrived in Alsip. One of her daughters just graduated from college with a double bachelor's degree in business administration and early childhood education, another is in a bachelor's program for nursing and is a manager at a McDonald's while she attends school. As for her friends who stayed in Altgeld Gardens, Harris told me, "their children have children. My children don't."

Related: The most innovative cities in America

There are hundreds of programs that seek to improve the outcomes of people who live in concentrated poverty. But as Harris and thousands of other mothers like her have demonstrated over the past half century, one of the most effective strategies for lifting families out of poverty is to plunk them down in a completely new neighborhood far away from their past lives.

The program that helped Harris move to Alsip was the result of a lawsuit originally filed in 1966, still being litigated today, referred to as Gautreaux for the original plaintiff, who died in 1968. Among other things, a consent decree related to Gautreaux required the Chicago Housing Authority to provide vouchers for black residents to move to white suburbs beginning in the 1970s. Many of the families who moved to the suburbs stayed there, and their children were more likely to stay out of trouble and go to college than families who stayed within the city.

Despite the strategy's success in Chicago, nationally there are few programs today that focus on helping African American families move from racially segregated, high-poverty neighborhoods to areas where their children will have access to good schools and less exposure to crime. Those that do exist are all results of lawsuits.

One in Baltimore seeks to move 4,400 families to better areas by 2018. Another, in Dallas, exists as a result of a lawsuit filed in 1985. And on Thursday, a Chicago judge approved a Gautreaux-related settlement that -- among other things -- will allow a new host of families to be relocated, with the help of a counselor, to low-poverty, higher-opportunity neighborhoods.

Related: Cleveland's plan to destroy 6,000 homes

Programs like these are small compared with the scale of the problem: Cities are still extremely segregated.

In Chicago, African Americans tend to live in areas where the riots of the 1960s took place, areas that are almost entirely African American today. There are still municipalities in the greater Chicago area with less than 1% African American population, according to a Fair Housing and Equity Assessment from 2013. There are no municipalities where Hispanics make up more than 90% of the population, something that's not true for African Americans, the report says.

The continued segregation, despite decades of anti-poverty programs, raises a question: Should housing authorities be making a more conscious effort to help people who live in segregated, low-income neighborhoods move to wealthier, more diverse areas?

Alex Polikoff, one of the attorneys who filed the Gautreaux case in 1966, says it's a no-brainer. He continues to work on legislation related to Gautreaux and is behind Thursday's agreement, which will require Chicago to move about 200 families in a Gautreaux-type program.

"We know so much about the harm of young kids growing up in severely-distressed neighborhoods. If we have a way to enable kids to escape to better life opportunities, it's immoral not to do that," he said.

* * *

It was while downing pizza on his birthday in January of 1966 that Polikoff was first presented with the idea that the way the Chicago Housing Authority was building new public housing violated the Constitution.

He was a volunteer attorney for the ACLU at the time, and over lunch a friend from the Urban League told him about complaints from a coalition of black organizations that the housing authority was only building new housing projects in black neighborhoods, he recounts in his book, Waiting for Gautreaux. The selection of public-housing sites was politically motivated: The housing authority couldn't buy land in white neighborhoods without the city council's approval. But keeping black people in black neighborhoods violated the equal-protection clause of the Constitution, Polikoff argued, and that argument formed the basis for the lawsuit he filed in August of 1966.

In 1969, a federal judge in Chicago issued an order preventing the housing authority from constructing new public housing in predominantly African American neighborhoods unless it also built public housing elsewhere. It also prohibited the city from constructing dense concentrations of public housing.

Not satisfied with this settlement, Polikoff argued that the U.S. Department of Housing and Urban Development (HUD) should be required to remedy its past errors, and in 1976, the Supreme Court agreed, ruling that the government could be required to use the entire region to do so. A consent decree led to HUD agreeing to fund a voucher program to move black families to the suburbs.

"We thought we were not going to prevail," he told me. "But I think when we amassed the evidence through discovery, the evidence was compelling—they were doing this because they felt they had to keep black people out of white neighborhoods."

Related: America's 10 most unequal cities

Between 1976 and 1998, more than 7,000 families received vouchers through Gautreaux, about half of whom moved to 115 suburbs around Chicago, with the assistance of placement counselors. Suburbs that were more than 30% black were excluded from the program. Families that had more than four children or bad credit did not qualify, nor did those who had been found to have damaged their rental housing.

The move was difficult at first for the families, as James Rosenbaum and Leonard S. Rubinowitz documented in their book about Gautreaux, Crossing the Class and Color Lines: From Public Housing to White Suburbia. In the racially-charged times of the 1970s, black families were sometimes harassed on the streets by whites, followed by teenagers in cars, or called racial slurs. One girl who entered a white school was so unaccustomed to seeing so many white faces that she turned around and ran home.

But many of the families said these threats were nothing compared to the violence they'd been subjected to in the inner cities.

"Here in the suburbs, I don't have to worry about people shooting at people, seeing people chase people, fighting," one woman told the researchers.

Such anecdotal accounts line up with the data: Scholars who have studied the program have found that families who moved to the suburbs were able to achieve more in school and work, not having to worry about violence.

Related: Part-time jobs put millions in poverty

"What I saw over and over again was that low-income kids had unseen potential that they could not see in the housing projects and that emerged when they moved," said James Rosenbaum, a professor of sociology at Northwestern who extensively studied the Gautreaux families.

A study of suburban Gautreaux mothers in the 1990s found that they were more likely to be employed than mothers who had received vouchers to move within the city. Gautreaux children in the suburbs were more likely to graduate from high school, attend four-year colleges, and to have jobs than their peers who had moved to other city neighborhoods. They also had higher pay and benefits than the other children. Even mothers who had not had jobs before were more likely to get jobs if they moved to the suburbs, Rosenbaum told me in an interview.

Later research showed that two-thirds of the families remained in the suburbs 15 years after their move. Long after the program ended, mothers who moved through Gautreaux continued to live in low-poverty areas and have higher household incomes.

Gautreaux isn't easy to empirically evaluate -- it didn't have a control group, and some scholars have questioned whether its effects are really significant, since the participants were screened. But Rosenbaum said some of the families who moved were just following someone else, and were sometimes not good parents at the outset.

"I don't think the 'self-starter' model really describes a large number of them," he said. "You had a thorough change in environment, and there were some high achievers, but even the average and below-average kids in the suburbs can expect good outcomes. That kind of kid in the city cannot."

* * *

Partially because of the success of the Gautreaux program, HUD decided to sponsor a randomized experiment to see whether such an approach could be scaled. Called Moving to Opportunity, the program, which began in 1994, selected families from some of the most distressed housing projects in Chicago, Baltimore, Boston, Los Angeles, and New York. Between 1994 and 1998, the program enrolled 4,604 families. Three-quarters were on welfare and fewer than half of the household heads had a high-school diploma.

Moving to Opportunity was a randomized experiment, and had a control group that did not receive access to any new services through the housing authorities. One group of families got a voucher to move to private-market housing in low-poverty areas and another group got a traditional Section 8 voucher, which they could use to move anywhere.

Related: 5 biggest threats to the housing market

Disappointingly, the results from this program were not as positive from those in Gautreaux, though some recent students show positive long-term health effects on families who received vouchers to move to better neighborhoods. Adults were generally not more self-sufficient after moving, and children did not achieve more in school than the non-movers. Girls who moved participated in fewer risky behaviors, but boys who moved actually participated in more.

That's because Moving to Opportunity differed from Gautreaux in a few key ways, Rosenbaum says. Families who moved were given the chance to move to a neighborhood with lower poverty, but unlike Gautreaux, families weren't encouraged to move to areas that were majority white. That meant many of the families ended up close by their old neighborhoods -- in some cases, kids attended the same schools they had before. Families often ended up in slightly better neighborhoods that were still segregated from the rest of the city's population.

With Gautreaux, about 90% of the families who went to the suburbs moved more than 10 miles away, Rosenbaum said; with MTO, 84% moved less than 10 miles away.

Moving to Opportunity also targeted families who lived in extremely high-poverty public housing, where mothers were often struggling with mental-health issues and might have had more difficulty with unfamiliar settings.

The results of Moving to Opportunity showed that race is still a factor in providing access to opportunity, said Ruby Mendenhall, a sociology and African American studies professor at the University of Illinois at Urbana-Champaign who wrote her dissertation on Gautreaux. After all, she said, many of the African American mothers who moved to the suburbs were able to benefit from nearby educational institutions to get ahead. They often found better-paying jobs and got off government assistance in part because of the relationships they made with their predominantly white neighborhoods.

"Unfortunately in our country, more white or integrated areas tend to have more resources, so when race isn't a factor, I think that some relationships aren't on the table," she said.

These results have led federal and state policymakers to largely abandon mobility programs, scholars say. But others argue that the results of MTO shouldn't undermine the success seen in Gautreaux -- Moving to Opportunity was a much weaker program than Gautreaux, even if it was a more scientifically accepted study.

"People have misread MTO, and said, 'Here, we did residential mobility, and it didn't work,'" Rosenbaum said. "That is the wrong message."

* * *

It's hard to imagine that housing-mobility programs wouldn't help residents of Chicago today, which is still one of the most segregated cities in America.

As my colleague Ta-Nehisi Coates outlined in his piece in June's magazine, "The Case for Reparations," discriminatory housing policies in Chicago, and much of the country, have systematically created areas of disadvantage where black residents have less access to opportunity than whites. North Lawndale, the neighborhood he visited, is 92% black. Its homicide rate is triple the rate of the city as a whole, and 43% of residents live below the poverty line -- that's double the rate of the city as a whole.

The city of Chicago has implemented policies seeking to remedy some of that segregation: As a result of a federal program, Chicago in 2000 began its Plan for Transformation, with the goal of dismantling most high-rise public housing complexes such as the infamous Cabrini Green. About 40% of the thousands of households received vouchers which they could use in the private market anywhere they wanted, whether it be in the suburbs, or outside of the state. But only 60 residents using those vouchers now live in the suburbs, and only 11 live out of state, according to a report from the Chicago Housing Authority.

Many of the families being located from the housing towers ended up in all-black neighborhoods where opportunities were only minimally better than they had been before.

Joel Hamernick, who runs a ministry in Woodlawn, an area on the South Side of Chicago, said that the area has seen an influx of families from Cabrini Green (his ministry, too, relocated from Cabrini Green, about a decade ago). That has caused some turf wars among gangs, and increased violence, and caused some families to leave the neighborhood.

"Towards this end, the neighborhood is getting worse," said Kelai Price, who has lived in Woodlawn her whole life, told me when I ran into her in a coffee shop in Chicago last month for a story about Woodlawn.

Many residents of Chicago's public-housing towers didn't want to move far because they had lived in the neighborhood their whole life, and didn't know anywhere else, said Susan Popkin, a scholar at the Urban Institute who has studied where the residents went. In fact, many of the residents who ended up in public housing or mixed-income housing had better experiences than those who received vouchers because they didn't have to deal with private landlords and the stresses of the rental market.

"When it came down to it, a lot of them had lived there for generations, and they wanted to go somewhere comfortable and familiar," she said. "Unless they had a connection, they weren't interested in going any further."

In fact, families who receive Section 8 vouchers rarely leave the neighborhoods that are familiar to them, said Stefanie DeLuca, a sociology professor at Johns Hopkins who studied Gautreaux and Moving to Opportunity with James Rosenbaum. Her research has found that families often get little notice that they're receiving a voucher, and then scramble to find a place before the 60-day window in which they have to use it runs out.

"Families settle for units that they know are subpar out of fear of losing the voucher," she wrote, in a study published in 2013 that looked at families in Mobile, Alabama, who received vouchers. Many also spent their whole lives in poverty and knew little about neighborhoods outside their immediate area.

With some counseling and guidance, though, families who receive vouchers can have much better outcomes, DeLuca said, especially if they're directed to homes in high-opportunity target areas.

Related: Where zombie foreclosures are making a comeback

She has now turned her attention to the ongoing Baltimore Mobility Program, which has provided vouchers for 2,600 families since 2003, and says it's an example of how a mobility program can succeed.

"This voucher gets them into the kinds of neighborhoods that have real opportunities for schools, and safety, and high-quality housing," she said. "There appears to be a durability of this program that's strikingly different from MTO, much more like Gautreaux."

The Baltimore program requires residents to live in areas that are less than 10% poor, less than 30% black, where no more than 5% of residents live in subsidized housing. Baltimore provides housing-search counseling to participants, as well as post-move counseling, and requires residents to remain in the area for at least two years. Families also get some assistance with security deposits, attend credit-repair workshops, and go on tours of outlying counties to familiarize themselves with the options.

In her field work, which examined 110 households in depth, DeLuca found that living in a different neighborhood helped the Baltimore families make better choices when it came to housing and their children's schooling. Families had higher expectations for the neighborhoods where they lived and showed "new appreciation" for racial and ethnic diversity and good schools, often becoming willing to make difficult trade-offs for the sake of their families.

Parents said it was a new world: One woman told researchers that she now goes to work, comes home, pays the bills and has fun with her children, whereas she used to go drinking with friends. Another said her kids appreciated not being woken in the middle of the night by sirens and gunshots. Another mother said her 12-year-old son now cried because he was so happy to go to school in the morning and do his homework.

Related: Buying a home is easier if you're white

For DeLuca, the successes of the Baltimore program indicates that it's not enough to just expect people with vouchers for housing or schools to pick the right places to live or to send their children. They aren't used to having good options to pick from, she said.

"Disadvantaged families have only been exposed to low-performing schools and unsafe neighborhoods, and have to come to expect the inevitability of those things," she said. "Experiences like the ones families had with Gautreaux and the Baltimore program -- it's eye-opening. It opens up a whole world of possibilities, and it's hard to understate the transformative power of that."

It's something that Seitia Harris knows all too well. When she moved to Alsip, she says, her family was at first unaccustomed to peace and quiet. There were no more people hanging out on the street corner or shots at night. Parenting plays a role in a child's development, she said, of course. But before she moved, she was a good parent in a bad environment, where there was too much exposure to drugs, negativity, and gangs.

"Seeing people getting up every day and working, wanting to get something out of life -- it taught them better values" than they were exposed to in the projects, she said.

* * *

Of course, moving some families to more affluent suburbs doesn't help the families left behind, and policymakers say there also need to be programs focusing on improving the lives of people in concentrated poverty.

"It needs to be a two-pronged approach -- you can't ignore what happens in these neighborhoods," said Mendenhall, the University of Illinois scholar.

That can be something as simple as improving the quality of the housing available to low-income families, said Popkin, the Urban Institute scholar. In her work studying the families moved out of Chicago's public-housing towers, Popkin found that even families who moved to the same neighborhood but better homes -- such as the mixed-income complexes -- said their lives had improved. Of course, those families saw no marked improvements in educational or employment outcomes, but their living situations were at least better than they had been.

"At its most basic level, for what it was supposed to accomplish, it actually came out better than I and a lot of other observers would have predicted," she said, about the relocations.

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Families who were given intensive case management to help with the move were even more successful, she said. Their employment prospects improved, as did their mental and physical health.

That's why it could be argued that spending money on counseling and mixed-income housing for a whole host of families is more worthwhile than spending it to move just a few families to a completely new neighborhood.

"Thats why theres an ongoing debate about these mobility programs," Popkin said. "Is it worth spending that much money on a handful of families?"

After all, suburbs are no longer the bastions of privilege they once were (though majority white suburbs still, for the most part, are). Since the recession, it's the exurbs in Chicago that have had job growth, while affordable housing near those jobs is often hard to find. Poverty is growing in suburbs across the country, including in Chicago, and moving families blindly out of the city may do more harm than good.

That's why Chicago's leaders are now focusing on helping low-income people live in mixed-income neighborhoods in both the suburbs and the city that have good access to transit and jobs, high homeownership rates, low commute times, walkable areas and a low percentage of people receiving public-housing assistance, said Robin Snyderman, a non-resident senior fellow at the Brookings Institution who also works as a consultant on housing policy in Chicago.

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Nine housing authorities now participate in a regional pool of resources that began more than a decade ago. They include authorities in counties such as DuPage, Lake, and McHenry, using the money to build nearly 30 mixed-income developments in "opportunity areas" that are near transit and job opportunities.

"Just getting rental housing into some of these communities was hard to do for many years," said Snyderman said.

A pilot program launched in 2011, the Chicago Region Housing Choice Initiative (CRHCI), encourages families to use vouchers to move to some of these locations, giving them counseling to help them do so.

Regional authorities and mayors have "adopted new tools for promoting inclusion and diversity, building on the lessons learned from Gautreaux," she said. "I feel more hopeful that the historic segregation in the Chicago region can be transformed -- because it's now not all on the shoulders of the public housing authority," she said.

Still, for Alex Polikoff and some other advocates, the progress that's been made in the past century is not enough. He understands why mobility programs aren't politically viable. After all, using a more expensive voucher to help one family move to the suburbs might mean that fewer families get off the very-long waiting lists for housing assistance. And wealthy neighborhoods often don't want low-income families moving in through government programs.

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But Polikoff strongly believes that housing authorities should make more effort to help some families move far away from the segregated inner city to suburbs where their lives will change, much in the way the lives of the original Gautreaux families changed decades ago. After all, voucher programs that allow residents to go to the private market haven't been effective in desegregating neighborhoods.

He's still battling the Chicago Housing Authority on the issue. The Thursday ruling made official a settlement between Polikoff's firm and the Chicago Housing Authority, allowing the city to extensively rehab Altgeld Gardens, the housing complex where Harris once lived. But in addition to the rehab, Polikoff extracted a promise from the city that it would also issue 218 vouchers to families with children on the CHA waiting list, enabling them to move to designated "Opportunity Areas" and receive pre and post-move counseling.

It's not just Chicago -- Polikoff has proposed a "national" Gautreaux program, making 50,000 housing-choice vouchers available to black families who live in segregated areas, which could be used only in census tracts with less than 10% poverty and fewer minorities. The number of families would be limited, to avoid "threatening" a receiving community, he wrote in a proposal in 2004 (Polikoff told me he still supports this proposal).

I asked Polikoff if this policy could be seen as "reparations" of sort. Not reparations, he said. But an apology to the African American community for centuries of discrimination.

"In a sense it's a very small part of playing makeup here," he said. "We owe it to them to remedy the discrimination of the past, among many other things we owe them."

This article originally appeared on The Next Economy, a joint project of The Atlantic and National Journal.

CNNMoney (New York) February 13, 2015: 7:21 PM ET


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