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Commentary on The Capital Markets- Category [Company Specific]

Facebook has once again been caught cooking the books.

Let me remind you that under Sarbanes-Oxley all material aspects of one's quarterly and annual reports must be attested to as true and correct by the corporate officers.  Lies are punishable with prison terms, not fines.


Facebook told advertisers that the platform can potentially “reach” 41 million young adults between 18 and 24 in the US. Brian Wieser of Pivotal Research Group countered by pointing out that 2016 census data shows there were only 31 million people in that age range in the US. Similarly, Facebook claims it can reach 60 million people in the US between 25 and 34 years old. The census reports 45 million in that age group.

Of course Facebook claims that "reach" doesn't mean what it says.

Then again Bill Clinton didn't have sex with "that woman" either.... depending on how you define "sex", of course.

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2017-08-31 09:12 by Karl Denninger
in Company Specific , 296 references
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So the latest on the unauthorized account scandal at Wells is that a "third party review" has now increased the size of the scam by 67% -- more than a million additional instances of screwing customers.

Management has said there will be "no further job actions" as a result.

Folks, where are the prosecutors?  Why is this institution still in business?  You can screw 3.5 million American customers, ripping them off on a systematic basis, and still remain in business?

Exactly how and why?

There's no legitimacy left in the Federal Reserve (which I remind you is supposed to have effective regulatory controls to prevent this crap among their member banks) and none in the OCC either (which is the direct federal agency with authority and which can pull banking licenses.)

Nor is Jeff Sessions, as Attorney General, worth a **** either -- he both could and long ago should have indicted everyone involved in management as well as the firm itself.

Yes, that would put them out of business.  So what?

Yeah, I get it -- that would "hurt the economy."  So what?

What is stealing from 3.5 million people?  That doesn't hurt the economy?

What stops the next firm from doing it?

Nothing, if this one is not put out of business.

**** you Janet Yellen.

**** you Jeff Sessions.

**** you everyone in the OCC, SEC and Fed generally.

And finally, **** you sideways Mr. President for refusing to insist that a firm that appears to have engaged in Racketeering and screwed over 3 million customers is still in business and has a stock price of over $50/share.

Come talk to me about actually bothering to do entrepreneurial things when large firms that systematically bilk customers are put out of business exactly as I, if I ran a small business, would be.

Until that time I cannot compete against a large company that can rip people off with impunity.  It's impossible, and thus I refuse to make the attempt.

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2017-08-28 09:47 by Karl Denninger
in Company Specific , 243 references
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Let's cut the crap eh? Prices for "regular" stuff are still equal or higher than local grocers in this area.  In other words there's exactly zero reason to shop there on a price basis, just as there was before.  Eggs are just over a buck-a-dozen virtually everywhere right now, so cutting the price from $4.29 to $3.99 means zippo; they're still three times as expensive.  Further, on other actual staples (e.g. butter) their prices remain sky-high.

But what the price cuts do is destroy one of the arguments for shopping there: Snobbery.

Don't underestimate how that gets people to buy things when they have more money than brains.  It works, repeatedly, and is an extremely successful business strategy.  There's no difference between a handbag from one vendor or another other than the label on the front and yet prices can and do vary by a factor of 10 or more.  All you're buying at the higher priced location is bragging rights.

That's now evaporating like a fart in a Church when it comes to ***** Paycheck, or at least the perception is, which is what Bezos is actually targeting.  The "reductions" are both modest and limited, but they'll get a lot of press.  His intent is to drive business but IMHO what he's likely to do is instead destroy it because the yuppies and ****-for-brains millennials will lose their feeling of "exclusivity" and "betterness" they get by shopping there.  Once that goes away there's no reason not to head across the street to Publix -- or Kroger.

The $1,500 handbag doesn't sell because it's 10x better than the $150 one.

It sells because you can "advertise" that you can blow $1,500 on a handbag.

While ***** Paycheck didn't actually lose the reality of that this morning, it lost the perception.

That's a problem.

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2017-07-20 15:38 by Karl Denninger
in Company Specific , 242 references
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How do you stop Zuckerpig's privacy invasions?

Boycott anyone who advertises on those sites -- do not buy and do not do business with in any other way.  How do you know they're advertising?  You see "Sponsored" or any sort of video ad from a given entity.

This post is exempt and will never go away.  I will add to it as I see new companies, and if you do and can confirm it to me I'll add them.  Here's my pledge: If I see an ad from your firm on any of Zuckerpig's properties or sufficient confirmation (e.g. seeing such an ad on someone else's device in the app) I will never buy anything from you.

You choose -- you advertise and pay that company to do so, you lose my business.  To get it back you must permanently pledge to never again advertise on any Facebook-owned property, in public, via a formal press release or other similarly-verifiable and public method.

Oh and you get one second chance, never more.

Advertising is legal.  So is refusing to do business with you because you are the primary and in fact nearly the sole source of funds for a company that does things I consider detestable.

So here is the start of it folks, and yes, it will grow.... check back often!

  • Best Buy (Oh well; I've bought plenty there)
  • REI (this one hurts; I like them.... but no more!)
  • Big Green Egg (Sorry *******s, I was interested but NOT NOW!)
  • Southwest Airlines (all airlines SUCK, but now these ****ers are on my blackball list)
  • Consumer Reports
  • Inked Magazine
  • Runner's World (oh well!)
  • 30A clothing company (oops -- that one's local)
  • The Heritage Foundation (oops again!)
  • Huffington Post (no loss there)
  • A&E TV
  • We Are The Mighty (Military-oriented news org)
  • Orbitz
  • LinkedIN (be a paying customer and you're blackballed - as employer or employee!)
  • iHeartDogs.Com
  • Pensacola Runners Association (ouch; they sponsor races I'd run in...)
  • National Geographic (oh well)
  • CNet (Bleh)
  • 22 Words (Clickbait garbage, but heh)
  • (oops again; and I have bought quite a lot from gearup...)
  • 12 Tomatoes
  • The Penny Hoarder (yeah, another clickbait garbage site, but..)
  • SoWal (oops -- bye-bye Walton County beach businesses..)
  • Innermost House (San Fran Non-profit... good for some west coasters)
  • NTD Television
  • The New York Times (shock - NOT!)
  • Conservative Tribune (news)
  • Netgear (Router/ipCam/etc manufacturer)
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