How Silk Road was reborn

NEW YORK (CNNMoney)

Not long after the bust, select users on the site received an email from a former active Silk Road user asking the community to help rebuild. The authenticity of the new forums was endorsed by former Silk Road user "Libertas."

Some users who wanted to be a part of the rebuilding gained access to "the Vendor Roundtable," a forum that outlined the details behind the launch of the new Silk Road. The administrator also called on users to volunteer for a "communication specialist" position in charge of organizing operations. "You will be assigned work to perform based on what needs to be done," read an email reviewed by CNNMoney.

Silk Road 2.0 emerged Wednesday alongside a number of other sites offering similar services.

The new Silk Road, like the original, offers everything from prescription medication to heroin.

"Silk Road is back up," a Twitter user who appears to be the owner of the new site tweeted. "Deja vu anyone? #weriseagain." The new Silk Road owner also took on the pseudonym of former leader Ross Ulbricht, Dread Pirate Roberts.

According to a former Silk Road user, the site was rebuilt by most of the major players who were heavily involved in day-to-day operations of the former site.

"Silk Road was something that had popularity," the user told CNNMoney on the condition of anonymity. "That made it easy for people to continue down that path. As long as you can convince the bulk of the biggest buyers and sellers to move over to the new platform, it doesn't matter what it's called."

Before the original Silk Road was seized by the Feds, it had become one of the most sophisticated and extensive criminal marketplaces on the Internet, according to FBI Special Agent Christopher Tarbell.

But it certainly wasn't the only one. Other sites, including BlackMarket Reloaded and the Sheep Marketplace, have also been looking to attract sellers and buyers.

"Later on, newer versions that have improved in some way will pop up and regain the trust," another former Silk Road user told CNNMoney.

A priority for the reborn Silk Road is information security. The people rebuilding it are baking security measures into the site's code.

First Published: November 6, 2013: 8:00 PM ET

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IRS to fast-track small business audits

Changes at the IRS will allow audited small businesses to fast-track their appeal process.

NEW YORK (CNNMoney)

Those being audited by the agency can now file for a fast-track settlement, just like large and midsize companies. This could shorten the process so that it's resolved within 60 days instead of years, according to the IRS.

The rule change could save small business owners time and the cost of a formal appeal. Now, instead of having to wait until the end of an audit process to appeal, they can do so during the preliminary stages.

The fast-track process has long been available to businesses that have more than $10 million in assets. But the process should be the same regardless of the size of the company, said John Lieberman, a CPA at Perelson Weiner LLP.

Lieberman said it's a great step forward in treating small businesses just like larger companies. But he estimated only 20% of audited small businesses -- mainly in industries like construction, film and software -- would be filing the type of appeal impacted by this rule change.

This could also mean fewer headaches for the IRS, which has been dealing with extensive budget cuts and furloughs over the past year. Audits have already been on the decline, dropping 5% last year.

First Published: November 6, 2013: 7:06 PM ET

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How Silk Road was reborn

NEW YORK (CNNMoney)

Not long after the bust, select users on the site received an email from a former active Silk Road user asking the community to help rebuild. The authenticity of the new forums was endorsed by former Silk Road user "Libertas."

Some users who wanted to be a part of the rebuilding gained access to "the Vendor Roundtable," a forum that outlined the details behind the launch of the new Silk Road. The administrator also called on users to volunteer for a "communication specialist" position in charge of organizing operations. "You will be assigned work to perform based on what needs to be done," read an email reviewed by CNNMoney.

Silk Road 2.0 emerged Wednesday alongside a number of other sites offering similar services.

The new Silk Road, like the original, offers everything from prescription medication to heroin.

"Silk Road is back up," a Twitter user who appears to be the owner of the new site tweeted. "Deja vu anyone? #weriseagain." The new Silk Road owner also took on the pseudonym of former leader Ross Ulbricht, Dread Pirate Roberts.

According to a former Silk Road user, the site was rebuilt by most of the major players who were heavily involved in day-to-day operations of the former site.

"Silk Road was something that had popularity," the user told CNNMoney on the condition of anonymity. "That made it easy for people to continue down that path. As long as you can convince the bulk of the biggest buyers and sellers to move over to the new platform, it doesn't matter what it's called."

Before the original Silk Road was seized by the Feds, it had become one of the most sophisticated and extensive criminal marketplaces on the Internet, according to FBI Special Agent Christopher Tarbell.

But it certainly wasn't the only one. Other sites, including BlackMarket Reloaded and the Sheep Marketplace, have also been looking to attract sellers and buyers.

"Later on, newer versions that have improved in some way will pop up and regain the trust," another former Silk Road user told CNNMoney.

A priority for the reborn Silk Road is information security. The people rebuilding it are baking security measures into the site's code.

First Published: November 6, 2013: 8:00 PM ET

10.20 | 0 komentar | Read More

Year of Abenomics delivers Japan revival

HONG KONG (CNNMoney)

By most accounts, Japan's bold -- some would say audacious -- strategy is working pretty well.

Prime Minister Abe has increased government spending and installed a central banker who is not afraid to use aggressive monetary policy. Abe has even raised Japan's sales tax in a nod to budget discipline.

The idea is that the measures -- known as Abenomics -- will end years of deflation, leading to more robust growth for the world's third largest economy.

In a global landscape dominated by slow growth and policy uncertainty, Japan is now an unlikely bright spot.

"Economic indicators would suggest the initial stages of Abenomics have been successful," analysts at Barclays wrote recently.

Perhaps the biggest single factor in Japan's change of direction has been the country's central bank, led by Haruhiko Kuroda. Once reluctant to engage in unconventional monetary policy, the Bank of Japan has embraced Abe's vision, launching a massive bond-buying program.

The purchases -- made at an annual pace of 60-70 trillion yen -- will double the bank's monetary base over two years.

"For the last six months, our endeavor on this front has been successful," Kuroda told business leaders this week.

The central bank has given no indication that it plans to back off.

Related: Japan debt tops 1 quadrillion yen

Markets have responded in a dramatic way, with the yen falling 20% against the dollar in the past year. The Nikkei index of leading shares has added 60% over the same period.

A falling currency lowers the price of a country's exports, making them more attractive to international buyers by undercutting competitors, and some of Japan's flagship brands are already reaping the rewards. Toyota (TM) raised its full year profit forecast by 12% on Wednesday, thanks to strong sales in the U.S. and the weaker yen. Other firms, including Honda and Hitachi, are also riding high on the weaker yen.

The effects of Abenomics are showing up in economic data, too. Gross domestic product is now growing again. Prices have started to rise, and households expect them to jump even higher.

Related story: Even Abenomics can't ignore Japan debt

Still, it is too early to call Abenomics a complete success. Wages have not gone up by much, and promised structural reforms have been difficult to implement.

Abe's government has proposed measures that would make the labor market more flexible, encourage immigration, bring nuclear power plants back online and draw more Japanese women into the workforce.

Most of those ideas have, so far, gone nowhere.

First Published: November 6, 2013: 9:09 PM ET

10.20 | 0 komentar | Read More

IRS to fast-track small business audits

Changes at the IRS will allow audited small businesses to fast-track their appeal process.

NEW YORK (CNNMoney)

Those being audited by the agency can now file for a fast-track settlement, just like large and midsize companies. This could shorten the process so that it's resolved within 60 days instead of years, according to the IRS.

The rule change could save small business owners time and the cost of a formal appeal. Now, instead of having to wait until the end of an audit process to appeal, they can do so during the preliminary stages.

The fast-track process has long been available to businesses that have more than $10 million in assets. But the process should be the same regardless of the size of the company, said John Lieberman, a CPA at Perelson Weiner LLP.

Lieberman said it's a great step forward in treating small businesses just like larger companies. But he estimated only 20% of audited small businesses -- mainly in industries like construction, film and software -- would be filing the type of appeal impacted by this rule change.

This could also mean fewer headaches for the IRS, which has been dealing with extensive budget cuts and furloughs over the past year. Audits have already been on the decline, dropping 5% last year.

First Published: November 6, 2013: 7:06 PM ET

10.20 | 0 komentar | Read More

Year of Abenomics delivers Japan revival

HONG KONG (CNNMoney)

By most accounts, Japan's bold -- some would say audacious -- strategy is working pretty well.

Prime Minister Abe has increased government spending and installed a central banker who is not afraid to use aggressive monetary policy. Abe has even raised Japan's sales tax in a nod to budget discipline.

The idea is that the measures -- known as Abenomics -- will end years of deflation, leading to more robust growth for the world's third largest economy.

In a global landscape dominated by slow growth and policy uncertainty, Japan is now an unlikely bright spot.

"Economic indicators would suggest the initial stages of Abenomics have been successful," analysts at Barclays wrote recently.

Perhaps the biggest single factor in Japan's change of direction has been the country's central bank, led by Haruhiko Kuroda. Once reluctant to engage in unconventional monetary policy, the Bank of Japan has embraced Abe's vision, launching a massive bond-buying program.

The purchases -- made at an annual pace of 60-70 trillion yen -- will double the bank's monetary base over two years.

"For the last six months, our endeavor on this front has been successful," Kuroda told business leaders this week.

The central bank has given no indication that it plans to back off.

Related: Japan debt tops 1 quadrillion yen

Markets have responded in a dramatic way, with the yen falling 20% against the dollar in the past year. The Nikkei index of leading shares has added 60% over the same period.

A falling currency lowers the price of a country's exports, making them more attractive to international buyers by undercutting competitors, and some of Japan's flagship brands are already reaping the rewards. Toyota (TM) raised its full year profit forecast by 12% on Wednesday, thanks to strong sales in the U.S. and the weaker yen. Other firms, including Honda and Hitachi, are also riding high on the weaker yen.

The effects of Abenomics are showing up in economic data, too. Gross domestic product is now growing again. Prices have started to rise, and households expect them to jump even higher.

Related story: Even Abenomics can't ignore Japan debt

Still, it is too early to call Abenomics a complete success. Wages have not gone up by much, and promised structural reforms have been difficult to implement.

Abe's government has proposed measures that would make the labor market more flexible, encourage immigration, bring nuclear power plants back online and draw more Japanese women into the workforce.

Most of those ideas have, so far, gone nowhere.

First Published: November 6, 2013: 9:09 PM ET

10.20 | 0 komentar | Read More

Berkshire Hathaway's higher earnings miss estimates

NEW YORK (CNNMoney)

After the closing bell on Friday, the firm reported $5.05 billion in profits for the third quarter -- up from $3.92 billion a year ago. Much of the boost came from $1.2 billion in investment gains.

Berkshire Hathaway (BRKA, Fortune 500)'s operating earnings, which exclude certain investment gains, were $3.66 billion, up from roughly $3.4 billion a year ago.

Related: Warren Buffett and Charlie Munger's best advice

Operating earnings translated to $2,228 per class A share, which missed projections of $2,402 per share from analysts surveyed by Thomson Reuters.

Berkshire shares had inched higher during the trading day and then dipped after hours, following the news.

Berkshire is a broad-based investment conglomerate whose holdings include everything from Geico insurance to Burlington Northern Santa Fe railroad to Dairy Queen. It also has stakes in a variety of other large firms.

Earlier this year, Berkshire was part of a consortium along with private equity firm 3G Capital that purchased ketchup maker H.J. Heinz Co for $28 billion.

First Published: November 1, 2013: 6:54 PM ET

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Stocks: How much juice does the market have?

Markets ended the week and month up. Click the chart for more markets data.

NEW YORK (CNNMoney)

Stocks are poised for yet more gains in November after a strong October in a strong year. Markets ended last month up and have posted significant gains this year: the Dow has added 19%, the S&P 500 has gained 23% and the Nasdaq has put on 29%.

The upward momentum could continue. John Butters, senior earnings analyst with FactSet (FDS), wrote in a report that while analysts have dialed back earlier expectations, they "still expect a significant improvement in earnings growth in the fourth quarter of 2013 relative to recent quarters."

Fueling the gains has been the Fed's bond-buying stimulus program -- and that doesn't appear to be tapering off anytime soon. The central bank declined to begin winding down the program at its late October meeting and next gathers in mid-December. Federal Reserve Chairman Ben Bernanke's term expires soon after that, meaning the stimulus could be in the hands of his expected successor Janet Yellen, who has been nominated by President Barack Obama but not yet confirmed by the Senate.

Related: Who is Janet Yellen?

Government shutdown threat could hurt GDP: The two-week government shutdown last month likely held back the U.S. economy, but did the threat of a shutdown slow the economy, too? The Commerce Department initial report on third-quarter gross domestic product is set to be released Thursday. Economists surveyed by Briefing.com expect 1.9% growth, down from 2.5% in the second quarter.

Jobs Friday: Investors will get a look at October employment when the delayed monthly jobs report is released. It was held up by last month's government shutdown.

The unemployment rate is expected to tick up slightly to 7.3% from 7.2%, according to a Briefing.com survey. They expect employers to have added 100,000 jobs, down from 148,000 in September.

A private sector jobs report released last week showed that the shutdown held back hiring. Private employers added only 130,000 jobs in October, the least number added since April, according to the ADP report.

Related: Related: CNNMoney's Fear & Greed Index

Earnings season begins to fade: Many of the market's big fish have already reported, but several high-profile companies are expected to report this week.

Tesla (TSLA) stock has posted huge gains this year -- it's up 378% -- but had a rough October, dropping over 10%. The electric car maker reports earnings after the closing bell on Tuesday.

Also reporting this week are Kellogg (K, Fortune 500) on Monday morning; AOL (AOL), CVS (CVS, Fortune 500) and DirecTV (DTV, Fortune 500) on Tuesday morning; 21st Century Fox (FOXA) late Tuesday; Whole Foods (WFM, Fortune 500) late Wednesday; and Priceline (PCLN, Fortune 500) late Thursday. Time Warner (TWC, Fortune 500), the parent company of CNNMoney, reports before the opening bell on Wednesday.

#IPO: The year's most highly-anticipated initial public offering could come this week. Twitter, which set a preliminary price range for its offering that would value it as high as $11 billion, is expected to debut on the NYSE this week.

It arrives at a good time for IPOs: companies entering the market are up 50% this year, according to research from Renaissance Capital. The Container Store (TCS) entered the market Friday and ended the day double its offering value.

Other social media companies have had a strong year. Facebook's (FB, Fortune 500) third quarter performance beat Wall Street expectations and the tech giant is up 86% this year. LinkedIn (LNKD) is up 92% this year.

First Published: November 3, 2013: 11:56 AM ET

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Honda recalls minivans over brake issue

NEW YORK (CNNMoney)

A calibration error can cause "heavy and unexpected braking without the driver pressing on the brake pedal and without illumination of the brake lamps," the company said.

Honda said the recall includes minivans from the 2007 and 2008 model years. The issue has not led to any crashes or injuries, the company said.

Related: Consumer Reports drops Camry recommendation

The fix involves installing a new sensor. But those sensors won't be available until the spring of 2014.

In the meantime, Honda said customers should start their minivans with the wheels facing straight ahead, allowing the system to properly calibrate. Customers who experience the unexpected braking should stop and restart the minivan. Tapping on the brake pedal "will immediately stop the self-braking action," Honda said.

Related: Honda gets its mojo back

The National Highway Traffic Safety Administration launched an investigation in June and received 22 reports of the issue. The NHTSA said the problem could cause "the vehicle speed to drop by as much as 30 mph in a very brief amount of time."

Honda recalled vehicles of other models and model years earlier this year for seemingly unrelated brake issues.

First Published: November 3, 2013: 1:22 PM ET

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Medicare paid $23 million to dead people

Medicare paid $23 million to dead people in 2011, a new audit finds.

NEW YORK (CNNMoney)

The Centers for Medicare and Medicaid Services doled out $23 million in benefits to 17,403 deceased beneficiaries in 2011, a new inspector general's audit. The audit was done by cross-referencing Medicare recipients with Social Security death records from 2009 to 2011.

The agency has been in the crossfire recently for its central role administering healthcare.gov, the Obamacare website.

The improper Medicare payments are often the result of fraudsters submitting false claims and assuming the identities of people who are deceased. Just last year, a man was arrested for submitting $2.1 million in bogus Medicare claims -- including 10 claims for beneficiaries who were dead, according to the report.

Other times, a deceased beneficiary's file doesn't include a date of death, leading the agency to continue issuing payments.

Related: Medicare docs face 24% pay cut ... again

While 58% of the improper Medicare payments were under $1,000, 12 were more than $50,000 each. Two payments, for recipients who had died more than a year earlier, exceeded $100,000 each.

The $23 million in improper payments is a tiny sliver of the more than $500 billion the agency paid out in 2011, according to the report.

The inspector general made several recommendations to the agency: improve systems for preventing fraud, find better ways to flag health care providers that submit Medicare claims with a date of service after a person's date of death, and take action to recoup improper payments.

In the report, the agency said it agreed with the recommendations.

Another $29 million in Medicare benefits went to recipients who were living in the United States illegally, according to a separate audit from 2009 to 2011, also issued this week.

And it's not just Medicare payments that are being made to the deceased. The Social Security Administration has also come under fire for this. As of May 2012, approximately 1,546 deceased beneficiaries had received Social Security benefits for months or even years after their deaths -- totaling $31 million in improper payments, according to the most recent audit.

First Published: November 1, 2013: 5:20 PM ET

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