The Market Ticker
Commentary on The Capital Markets
Logging in or registering will improve your experience here
Main Navigation
Full-Text Search & Archives
Legal Disclaimer

The content on this site is provided without any warranty, express or implied. All opinions expressed on this site are those of the author and may contain errors or omissions.


The author may have a position in any company or security mentioned herein. Actions you undertake as a consequence of any analysis, opinion or advertisement on this site are your sole responsibility.

Market charts, when present, used with permission of TD Ameritrade/ThinkOrSwim Inc. Neither TD Ameritrade or ThinkOrSwim have reviewed, approved or disapproved any content herein.

The Market Ticker content may be sent unmodified to lawmakers via print or electronic means or excerpted online for non-commercial purposes provided full attribution is given and the original article source is linked to. Please contact Karl Denninger for reprint permission in other media, to republish full articles, or for any commercial use (which includes any site where advertising is displayed.)

Submissions or tips on matters of economic or political interest may be sent "over the transom" to The Editor at any time. To be considered for publication your submission must include full and correct contact information and be related to an economic or political matter of the day. All submissions become the property of The Market Ticker.

Considering sending spam? Read this first.

2021-05-12 16:51 by Karl Denninger
in Small Business , 109 references
[Comments enabled]  

Sarah has the leftovers from her van flooring project.

This is the real deal -- not the click-together vinyl stuff, although it is laminate (so not the stuff that $20+/square foot!)  Tongue-n-groove, glued together when installed.  20 full-length boards, 95" x 7.5, so 100 sq/ft, plus a half dozen smaller cut-offs suitable for edges, etc.  Enough to do a modest (10x10) room, entryway, etc.

Any offer considered -- email her directly at if you're interested.  It's in Ft. Walton Beach FL on a "come and get it" basis.  


View this entry with comments (opens new window)

2021-05-12 12:00 by Karl Denninger
in POTD , 92 references


View this entry with comments (opens new window)

Oh, we'll just turn off the unemployment benefits in certain states and it will all be ok.

You might turn them off.

It will not be ok.

Who remembers their first jobs?  I remember mine; carrying golf bags and then working at the local car wash.

8 hours a day most of the time, although the caddying was often a half-day, simply because the take rate (number of caddies out) went down in the afternoon, so the risk of being there in the shack and not getting a bag went up.  Of course you only got paid for rounds carried, so that time was on you and it was effectively 1099 so there was no "minimum wage."

Who remembers $2.30/hour?  I do -- I got paid that at the car wash.  And there was always something to do if the line wasn't very busy, which sometimes it was not.

Most young people today?  Tell them you want them to work a continual 8 hour shift and they freak out.  They simply can't keep their crap together long enough to do it.  Make them leave their phone in the car and they really freak out.  That's because they never carried golf bags or worked at said car wash for basically nothing, but still did the grind 8 hours a day, and learned real quick that this is the modern version of going out into the field and attempting to hunt or find enough food to be ok that evening for yourself and your family.

Oh by the way, while you may think this is "beneath humans" it beats scavenging.  By a lot. It's work that needs to be done too, and doing it means that as you gain experience and credentials through your life that car wash doesn't cost $20 and caddies aren't priced out of the market with everyone taking a battery-powered golf cart -- you know, that ugly thing called inflation?

Trump did this folks.  Don't kid yourself.  When the Coof came he urged governors and mayors to shut everything down and showered people with money.  He should have done neither; there is zero evidence that any of those measures did anything to save a single life.  And had he not done the second the first wouldn't have happened because people would refused to starve and thus refused to shut down.  He let the CDC put in place the eviction moratorium at the same time so those laid off could sit at home and smoke bongs instead of paying their rent with the unemployment check.  All of this was on him right up until January 20th of 2021 and those of you who are still performing fellatio on that clown, about half the nation, agreed with and went along with it both then and now.

Now everyone on the GOP side of course wants to blame Biden but the fact of the matter that Joe, Ho and Pelosuck are simply continuing what Mitchey-Poo and OrangeGroinHair had done for the previous year.  Let's keep everyone fat, drunk, stoned and happy.

What happens over a year when you take a huge part of the workforce and turn them into wasted XBox playing couch potatoes?  Besides gaining 25lbs from all the Doritos consumed along with the beer and weed what we've done is ruin the work ethic of a huge percentage of the population.  People say that this will all reverse when the unemployment runs out and the free-money tap is closed but we don't know that.  In pretty-much everywhere "unemployment" is now $15/hr or better and it's easier to sit on the couch than get off your ass and go to work so there's a premium that has to be paid to get people to work over the unemployment number.  What is that number?  $20/hour?  $25?

What restaurant or fast-food place can afford to pay everyone in the joint $50,000 a year, plus the imputed tax and regulatory expense that adds another $10,000 to that, plus another $5,000 or more for the Obamacare-mandated employer health policy?

Is there a single such place that can afford $60,000+ a year per employee?


How about retail establishments?  Can any of them afford it?  Nope.

Who thinks Amazon won't get around it, somehow, in their warehouses, or simply work people hard enough to break them and attempt to recover some of the expense that way, then throw the used-up humans out the door.  Which, I remind you, they've been doing for years.

Unemployment was always deliberately set well below the minimum wage including a deduction for the cost of travel, clothing, parking and similar so there was always a spread between being unemployed and even the most-unskilled, menial job.  That was intentional and it was wise.  Most people do not understand that traditional unemployment is actually an insurance policy which the employee pays into; the employer cannot itemize it or "deduct" it on your pay stub but the fact of the matter is that he or she deposits it on your behalf through the FUTA and SUTA taxes paid on every single person who works there.

This destruction of the work ethic is perverse and severe.  It will drive wage-push inflation, and even worse, the political response is strongly incented to not let those people starve and force them back into being productive as their only other alternative.

There are plenty of folks out there, including CroonerCramer, who think this is not a big deal and will self-correct on the inflationary side.  Oh really?  Why does he or anyone else believe that outcome will occur when both Trump and Biden, that is both "R" and "D" sides of the aisle, have zero interest in shedding votes by telling people to quit being a lard-ass, bong-smoking carpet slug?  It's not like making that pronouncement and letting people be thrown into the street if they won't go to work for $10/hour will get people to vote for you, right?

Inflation is already here.  Lumber anyone?  Food, other than high-carb processed garbage that will literally kill you?

Oh, the stock market is down a bit.

Yeah, a bit.  Let's see how "bit" that remains when it sinks into policy-makers heads that they slaughtered the work ethic in the bottom 50% of the wage-earning base and generated several million Karens who are still screaming in fear at the prospect of sitting around a conference table, demanding everyone take a dangerous shot and still wear masks.

Go ahead, show me the clamoring hordes lined up for all the jobs.

All I see is a crap-ton of Help Wanted signs and no productive workers including teachers unwilling to teach.

You didn't want those turning 18 this year to actually be educated so they can work productively, did you?  Because if you did then you should have BBQd the teacher's unions last year instead of coddling a bunch of fat-ass middle-aged carpet slugs.

Congratulations America -- you blew your own economic brains out.

View this entry with comments (opens new window)

2021-05-11 07:00 by Karl Denninger
in Stupidity , 1367 references
[Comments enabled]  

Let's start with the stupid: Yes, what they did, assuming the reports are accurate, was stupid.

You do not connect anything that has access to SCADA, that is, control systems, to the Internet.  Period.  I don't care how.  I don't why.  I don't care what.  You don't do it.  End of discussion.

Oh, but that means the employees can't work from home!  Correct.

Sit in office, work on machine, machine has zero external connectivity, no USB ports or instantly alarms if you plug something into one, etc.

Connections between facilities are encrypted over centrally-controlled infrastructure with regular audits. Nothing beyond the orbit of those devices connects to the sane and sanitary systems.  Period, end of discussion, no exceptions.

Next, there are rumors that Colonial had a leak in their line and it was spewing fuel into the environment.  It was allegedly supposed to be fixed by a given date.  More than one million gallons of gas spewed out of it.  Eight months later it was still not corrected.  That was on April 19th of this year.

So what's going on here?

I get it.  Things break.  We rely on "things" for our daily lives.  A certain amount of human error and trouble is expected.  I'm ok with this; many are not, but I am because I like to have fuel in my car and groceries on the shelves, and without said technology, which comes with risk, we won't have those things.

There are people who think we can avoid all that.  They're wrong.

But how many articles have I written over the last 13 years talking about cybersecurity and proper control over one's infrastructure when it comes to critical items.  You know, like pipeline pressures, delivery quantities, etc?  How is it that this sort of volume of gasoline managed to get out?  Is there not a set of flow meters on the inlet and outlet, and do they not match?  Are there not pressure transducers that detect a violation of the pipe's integrity?  Is not the characterization of the flow known; the pipe is "X" length, the pressure is "Y", the flow is "Z" and we know what it's made of so we should be able to reasonably compute what the frictional loss is over a given distance.  Further, as should be obvious, if 1,000 gallons go in one end then exactly 1,000 gallons have to come out the other end, right?  This isn't a damned garden spray-nozzle!

Why do people get a pass on this crap?

I've done plenty of coding and hardware integration for things that can kill people and break things if they go wrong.  Indeed, until I set up my Internet company that was a large part of my primary job description across multiple projects.  Don't **** up or property will get destroyed and people might die.

It's not that hard folks.

If Colonial was actually cryptojacked that's bad enough but it never, under any circumstances, should have extended in its operational impact beyond billing people.  That this event resulted in a shutdown of transport is simply unacceptable and this begs the question: Where are the alleged regulators and why isn't this firm immediately and permanently out of business, especially considering that they appear to have dumped a million gallons of gasoline on ground that isn't theirs.

We used to be a first-world nation.

Now we're rapidly becoming a turd-world one.

PS: Are the nuclear plants in this nation run by similarly "skilled" individuals?  Just asking, you know.

View this entry with comments (opens new window)

Well look what we have here...

The attack unfolded around 8:40 p.m. when the black suspect snapped at her 31-year-old victim, "Take off your mask!" in front of 411 W. 42nd St., cops said Monday.

The attacker swung a hammer at the victim, hitting her on the left side of the face, according to police.

Cops recovered the hammer, but the attacker is still in the wind. The incident is being investigated as a hate crime, authorities said.

No kidding?  You mean someone hated someone else when they decided to attack the victim with a hammer?  C'mon man, that had to be a crime of looooove!

Idiocy abounds, I see.

But I also see that for once we're calling racism what it is when it's not a white person doing it.

This may well be a first!

Can we catalog the percentages of suspected attackers by race when it comes to Asians?

And can we also look at the other crimes in relationship to perpetrator races compared with their percentage of the population?

The FBI does compile data like this, but nobody ever wants to talk about it.  I wonder why not?

I also wonder why Burn, Loot and Murder doesn't want to talk about it.

We not only should, widely, we must.

On to the next topic -- Gates' Divorce.

His adult offspring and he have asked for "privacy."

Well, no Bill and Melinda.  You won't get it because you have never left the rest of the world alone. Indeed you believe you have the right to do things like shade the sun, force vaccinations on people and that population growth is a "challenge."

Gee, what might come if the "challenge" isn't met the way he wants?

This is the basic problem with people who want it both ways; the answer must always be "NO!"  And while it's not fair to include very young children in the penance applied to their parents this is not true once said "kids" take to the stage on their own or remain within the orbit after adulthood.  No, you don't get to jet around the world and enjoy the billions of dollars without being accountable for how they were earned and how they are being spent.  Nor do you get to play Greta and open your mouth as a public figure yourself and then demand privacy.

Life doesn't work that way.  Take the risk, take the reward -- for good or bad.

Maybe -- just maybe -- there's something really bad that's headed out toward the public, eh?

View this entry with comments (opens new window)