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2018-08-15 14:53 by Karl Denninger
in Stupidity , 36 references
[Comments enabled]  

Just saw a clip on CNsmiley with a local/regional news organization whining about aggregators (e.g. Google, etc) "taking content without paying for it."

There's a simple solution to that -- only allow the first paragraph or whatever tease you wish to be grabbed by their robots without being signed on.  This prevents the "Googlebot" (and others) from grabbing the full article.

Now if someone wants the entire article they go through your system and either are exposed to your advertising (and thus you get paid) or your paywall (and thus you get paid.)

If the coders who do your site can't handle this they're terminally stupid and utterly incompetent; in either case your alleged "injury" is self-inflicted, in that you're literally giving the material away.  That's a choice, and one you can choose not to make.

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2018-08-15 14:06 by Karl Denninger
in Market Musings , 96 references
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Elizabeth Warren wants to pass a law to "regulate" any company over $1 billion in revenue.

As usual she's out of her mind.

There is a much easier way to make a real impact on the issue, and it requires just one simple change: Ban stock buybacks by declaring them inherent frauds; you need no new law as fraud is already illegal.  We already do this with Ponzi schemes; buybacks are no different in point of fact.

Inevitably executives and other valuable employees have part of their compensation structure include either restricted stock or options with an exercise price.  The problem is that the value of same is inherently tied to the divisor -- that is, the number of shares outstanding when they are issued.

If you allow a firm to buy back shares then all such grants are inherent frauds upon the public investor because the value of such grants mathematically rises if the divisor goes down.

Yet the investor is told what the value allegedly is, and that the future value of the grants will track company value which in turn depends on the performance of the people who received the grants.  The latter claim (the enterprise value of the firm) is true but the value of the stock granted is no longer tied to the value of the firm as it mathematically increases with a buyback irrespective of corporate performance.  This makes the alleged stated value of said compensation an intentional lie that harms others -- the name for that in the law is "fraud."

Further, the executives who hold said options or stock are the ones who put forward, vote on in board meetings and execute said buybacks which is the very definition of insider dealing.  That is also supposed to be illegal.

So let's cut it out -- ban buybacks entirely.  If the stock price goes up with a constant divisor then actual value was accrued.  Nothing wrong with that.  If the company wants to pay out capital then it can do so on a completely-ratable basis via dividends, which does not change the divisor.

It's time to put a stop to the rampant market fraud called "stock buybacks."

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So if you like spiders.....


Email to hang this unique piece on your wall today!

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There is a reason that anti-trust law was put in place.  It makes unlawful, under ruinous monetary penalties and hard prison time, any attempt to monopolize a market or restrain trade.  You can read that law at 15 USC Chapter 1; the first two sections are particularly germane.

It does not require that prices rise for consumers for there to be a violation.

It does not require that you be able to discern at the point in time the event happens what the specifics of outcome will be or that they will be "damaging".

It declares the conduct a felony -- the mere attempt to monopolize a market or restrain trade -- because it was known at the time, more than 100 years ago, that those who do this sort of thing are sneaky, conniving jackasses who will make all sorts of arguments, and many will believe them, that these acts will "help" the common man, lead to "innovation" and be of "social benefit."

Our "Just-US" system in the US has willfully and intentionally ignored, along with unlawfully re-writing this body of law from the bench, over the last 100 and especially the last 30 years.

Specifically it is no longer considered "anti-trust" unless you can prove user-paid prices rose -- and often not even then.  But the law was never changed; it never has required any such event, nor does it today.  This act by the judiciary and prosecutors (the executive) is open sedition in that it is the deliberate overthrow of a republican form of government by subversion and literal deadly force, since such "agencies" issue firearms and use the ability to imprison those with whom they disagree.  Sedition is a specific federal felony and all in the alleged executive and judiciary who have practiced it in this regard must be thrown from office and jailed now while we are in the process of lawfully dismantling and jailing every single one of these corporate executives.

I will here focus on Facebook and the specific, actionable statements they are alleged to have made that if true proves their intent and apparent felony violation of the law.

A senior Facebook executive has privately admitted Mark Zuckerberg “doesn’t care” about publishers and warned that if they did not work with the social media giant, “I’ll be holding your hands with your dying business like in a ­hospice”.

In extraordinary comments, Campbell Brown, Facebook’s global head of news partnerships, indicated to publishers and broad­casters in a four-hour meeting last week that despite Mr Zuckerberg’s view, she would help publishers build sustainable business models through Facebook.

Note that this is in direct contravention to what Zuckerberg said to US Congress under oath, which makes it an act of perjury as well.

15 USC Chapter 1 exists for this exact reason; these firms believe they are entirely beyond the reach of the law and may do as they wish with their own motive being profit, irrespective of their legal obligations.  The law says otherwise but thus far nobody within the US Federal or State governments will take them on, just as they will not take on the medical monopolists who do the same damn thing.

Every one of these firms (not just Facesucker) must be destroyed using existing law that has been on the books for more than 100 years.  Imprisoning all of their executives for 10 years for each attempt and fining them $100 million for each such attempt will destroy all of them.

That is exactly what the law provides and what must take place right here, right now.

If the government will not enforce the law as written then we, as citizens are no longer bound by the alleged "laws" of said government as a contractual agreement to which one is bound requires consideration by both sides.  If one side (the government) repeatedly, continually and maliciously acts in bad faith and fails to uphold their end of the bargain the other has no further obligation toward same.


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2018-08-15 07:00 by Karl Denninger
in Corruption , 157 references
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Several hundred Roman Catholic priests in Pennsylvania were accused of sexually abusing more than a thousand children, a grand jury report on Tuesday said, in an alleged “cover-up” described as “sophisticated” by the state’s attorney general.

Hundreds of priests in one state abused well north of a thousand kids.

Three hundred priests.

The Church not only knew about it they kept records of it and covered it up.

Multiply by 50.  How many priests and how many kids?  Uh huh.

Now go back and read this Ticker again, which I released just a few days ago.

Once you have, go get some coffee or a beer.

Consume it.

Now come back and read both articles again.

Repeat as many times as you need to until it sinks in what's been going on here and you understand that this is not limited to the Catholic Church; it in fact is the case throughout the entire government and not just in the US either.

It is why despite 100+ year old law making it a felony to in any way try to restrain trade or monopolize a business not one single medical provider has been indicted.

It is why despite virtually every large financial institution committing repeated felony level criminal acts -- in fact I wrote an article years ago documenting that essentially every large bank would have violated the "three strikes" laws in most states -- not one has been shut down nor has one executive gone to prison for life, as you would for theft at the same scale.

It is why despite multiple, repeated felony violations by pharma manufacturers, some taking place while being prosecuted for previous acts, not one executive from those firms has gone to prison nor have any of those firms been shut down.

It is why despite repeated apparent felony violations of 15 USC Chapter 1 among tech firms there have been zero prosecutions nor have any of those firms been shut down (nor have any of those executives gone to prison.)

It is why Elon Musk thinks he can get away with buying stock while holding material inside information on discussions with the Saudi Sovereign Wealth Fund, which, if he really did hold such discussions constitute a slam dunk insider trading case and, I remind you, they just busted a sitting Congressman for the very same thing.  Incidentally that act carries a 20 year felony prison sentence.

All of the above and more is why the Federal Government is running huge deficits and has for the last 20 years.  It is why you are getting screwed.  It is why jobs have been offshored relentlessly, illegal invaders pick all your strawberries yet not one farm executive or farmer has gone to prison either and middle-class America has been destroyed.

It is all illegal, it has all been covered up and the victims are not just a bunch of kids being sodomized by priests.

The victims are virtually every person in the United States except those who are rich and powerful enough to be able to do these things and not face decades in prison.

Were you or I was to do the same thing, we'd be behind bars right now.

Yes, the entire Catholic Church in the United States must be criminally prosecuted, due to the actual knowledge and cover-up of these acts all the way up to the Vatican.

The entire set of assets held by same in the US must be seized and everyone personally involved must be prosecuted and imprisoned.

But we must not stop there.

We MUST apply the same sanction to every single one of the above lines of business where any such acts occurred and ALL of their executives.

You either put a stop to all of this crap America -- not just the pedophile priests -- or sit down and shut up for you like fascism, you like being screwed, you like being bankrupted and you don't give a good damn about people breaking the law -- and thus when your family is personally victimized -- past, present or future -- I do not want to hear about it.

Are you ready to call and honor a general strike yet?

If not why not?

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