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First Chrysler, now GM.

In February, “60 Minutes” reported on a multiyear project conducted by the University of Washington -- and demonstrated for the program with assistance from the Defense Advanced Research Projects Agency (DARPA) -- in which researchers were able to hack into the OnStar telematics system of a 2009 Chevrolet Impala. With CBS correspondent Lesley Stahl behind the wheel, they turned on the windshield washers, honked the horn and disabled the brakes.

Control over safety-critical system is very bad if you can corrupt it.

Consider how easy it would be to murder a family; start their car in the closed garage at 3:00 AM.

If they don't hear the engine start...... 

Never mind the theft potential; modern cars without physical ignitions don't lock the steering column, so if you can start it, you can drive it.  Isn't that special?

I wonder what the insurance premiums will be on these vehicles after this sort of problem gets out in the wild?

Manufacturers in general, whether it be cars, home "gateways" and other "Internet of things" devices tend to not give a crap about security or even good design principles -- as we keep having demonstrated for us.

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Apparently Bullion Direct, a relatively-popular place to buy and sell gold and silver, has gone under.

That's ok, people go bankrupt all the time.

But it appears this time there was a bit of a problem with people's transactions in-process, and perhaps with alleged metal being stored.

Folks, you need to get something through your heads, which I've tried to explain before: Nobody works for free.  If you think you can run a company off a 1% commission or some such, well, you can't.  What this means is that it's pretty common for various other forms of money-making to take place in a business where it appears that a tiny premium (if any) is being charged, and the easiest way to do it is for the dealer to be an actual speculator and either buy ahead or sell behind.

In other words they play on price movement, which is great right up until what they believe is going to happen doesn't, at which point they lose money -- and maybe lose a lot of it.

That, in turn has a nasty way of exposing whatever happened -- like, for instance, that the metal allegedly there isn't.

Note that a brokerage has no inventory and thus this problem doesn't arise.  They simply match buyers and sellers, and that you can do for a paltry commission.

If something looks too good to be true it nearly always is.

PS: Gold and silver are commodities; one of the reasons folks keep getting snared like this is they think it's "money."  Nope.

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This is arguably the most-amusing after-hours move I've seen in a couple of years.

LinkedIn spiked way up on its earnings release, burying anyone who was short (no, not I) with more than $30 move in seconds (about 15%.)

That has all now come back off as it appears the "beat" was financial engineering.


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This is quite-amusing.

Gartman is chattering about commodity prices (a big spike) being the only thing that would prompt the Fed to hike rates.

How'd that work out in 2007 when commodities did spike higher, yet The Fed did not tighten?

Now as it turns out The Fed was wrong both ways, but there you have it..... commodity prices, particularly energy and food, are unlikely to matter to The Fed at all.

That's what history says, and that's what you should expect.

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The Fed has never, in its history, managed to actually prevent a market collapse.

It did not do so in 1929.

It did not do so in 1987, despite it being evident that the market was going to blow up.

It did not do so in 2000, despite it being evident that the market was grossly overheated.

It did not do so in 2008, despite having more than a year worth of warning (the two Bear Stearns hedge funds) and in fact Bernanke testified under oath that "subprime was contained."

It will not do so this time either.

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