The Market Ticker
Commentary on The Capital Markets- Category [Editorial]
Logging in or registering will improve your experience here
Main Navigation
MUST-READ Selection(s):
There Can Be NO Compromise On Data

Display list of topics

Sarah's Resources You Should See
Sarah's Blog Buy Sarah's Pictures
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.

2018-10-19 21:15 by Karl Denninger
in Editorial , 201 references
[Comments enabled]  

Read this and cry folks....

Thermostats know the temperature of your house, and smart cameras and sensors know when someone’s walking around your home. Smart assistants know what you’re asking for, and smart doorbells know who’s coming and going. And thanks to the cloud, that data is available to you from anywhere — you can check in on your pets from your phone or make sure your robot vacuum cleaned the house.

Because the data is stored or accessible by the smart home tech makers, law enforcement and government agencies have increasingly sought data from the companies to solve crimes.

And device makers won’t say if your smart home gadgets have been used to spy on you.

So why do you buy them when there is an alternative?

Because there is.

Let's say you as an entrepreneur (or larger firm) acquire HomeDaemon-MCP and retail it, either directly or via distributors and installers -- or both.

Then let's say for the sake of argument the government comes banging on your door with a subpoena for one of your customers and wants to know when people came and went to and from their house.

Tough ****.


Because you don't and never did have the data.

You can't provide what you don't have.

The state of the user's house, what happens in the house, when motion was last seen in the living room, when the thermostat was last changed, what it was set to, why it was set there, who did it, when the garage was last opened and closed, what video was seen by the camera(s) in the house at whatever time, when the smart front door was opened and with what (key, code, etc) -- none of that data ever goes anywhere except to the user's handheld device or PC signed in via the web interface.

There is no notification channel through the cloud, so there's nothing to intercept.

There is no data stored in the cloud or on the company's devices, and thus nothing can be subpoenaed.

The only thing present is the client's license certificate data.  Ok, so the government can learn you bought a copy of the software and it's on a subscription model that runs for the next year.  Whoopie-de-doo-dah.

Oh, one of the devices noted in the referenced article, August, is a smart-lock that HomeDaemon will talk to.  I strongly recommend that once you set it up you delete the app from your phone, because the unit needs the phone to talk to the cloud since it has Bluetooth in it but not WiFi and thus can't "get out" to tattle on you once you kill the app.  Nevermind that I specifically don't recommend the unit in the first place for other reasons, including most-seriously crappy supervision of manual operations compared against even the lowliest Kwikset comparable deadbolt.  Yeah, in my view you're better off with the Kwikset (never mind it has no built-in spying capabilities.)

Two years ago, former U.S. director of national intelligence James Clapper said the government was looking at smart home devices as a new foothold for intelligence agencies to conduct surveillance. And it’s only going to become more common as the number of internet-connected devices spread. Gartner said more than 20 billion devices will be connected to the internet by 2020.

That which is not collected can't be subpoenaed and I built HomeDaemon-MCP specifically to not need or use, everany sort of cloud or other outside resource.  It runs entirely autonomously and communicates over SSL using PFS when possible on the user's device, encrypting all data flows using high-security public keying.  All data flows only to and from the owner of the installation in question and never to anyone else except as he or she directs.  The only data the company would ever have on its customers is who licensed the software from them and whether it's operational because it's checking renewal of its license -- and that's the beginning and end of it.  Further if there is reason to suspect the keying has been compromised the customer (or firm) can request that the certificate be revoked and reissued and thus rekeying can be done in minutes if not seconds on demand.

So who wants to make a billion dollars disrupting this industry by being the company that CANNOT comply with such a demand for perfectly-legal reasons whether the government likes it or not because you don't have the data being demanded!

Look to the right and email me.

View this entry with comments (opens new window)

2018-10-19 10:03 by Karl Denninger
in Editorial , 151 references
[Comments enabled]  

It's happening again.

The MegaMillions jackpot has reached nearly a billion dollars.  Well, sort of.

Of course the real figure isn't the published one, because that's the "25 year annuity" value -- not the cash price.  Like virtually everything these days fraud is part of the model and since it's government committing the fraud nobody cares.  Neither you or I would get away with claiming $600 million was nearly a billion, but government will -- and does.

Yes, the real cash amount is still a hell of a lot of money -- don't get me wrong.

But the odds of winning are roughly 1 in 300 million, and what's worse is that with taxes out the game just became more-positive on an investment basis in the last few days. Not positive mind you, since the ticket is $2 instead of $1.

Or did it?

No, because the odds of multiple winners go up too and without knowing how many tickets have been sold, which is not disclosed before you buy a ticket you cannot quantify that risk.

In fact the game is designed to never become cash-investment positive as half the money received goes to the states participating and not into the pot; ergo you would have to have an extraordinarily improbable run of no-winners beyond where the cumulative odds of a sold winning ticket are well beyond 1.0 in order for that to happen -- a set of improbabilities that exceed that of you being personally hit by an asteroid in your lifetime. 

The Lottery is often called a "stupidity tax" but that's really a misnomer.  Instead it's just another example of people selling hope to those who have none.

There are rational people who do occasionally (or even regularly) play with money they can afford to lose.  They recognize that the odds suck, they're almost-certain not to win and indeed even when it looks like the money odds are ok they're in fact not and yet they don't care.  That's fine.

But for those of less means it's a different story.  Many of them play with money they cannot afford to lose and they are suckered into the game by a dream and the lack of full, fair disclosure.

In a rational world we would call this what it is -- fraud -- and jail the people involved.

View this entry with comments (opens new window)

2018-10-18 07:49 by Karl Denninger
in Editorial , 311 references
[Comments enabled]  

Well well look what we have here...


They are not "undocumented workers" or "refugees."

A person who wishes to work or immigrate asks permission before coming and complies with the law.  If told "no" for whatever reason the abide that decision as they recognize reality -- they have no right of entry, they are guests and they are requesting a privilege.

If you do not do that -- if you instead choose to break the law, to demand something you're not entitled to and when refused you take it anyway you're an invader and those invading another nation are subject to being -- and should be -- shot.

And by the way -- the Constitution requires the President to do this (Article 4 Section 4.)  It's not optional and if the President will not do so he must be removed and replaced by whatever means are necessary or we no longer have a Constitutional Republic.

View this entry with comments (opens new window)

2018-10-16 09:36 by Karl Denninger
in Editorial , 176 references
[Comments enabled]  

People like Creepy Porn Layer (yes, that's what I call him because he's not good enough to be called a "lawyer") are dangerous to their clients.

A federal judge in Los Angeles on Monday threw out adult-film actress Stormy Daniel’s defamation lawsuit against President Trump on free-speech grounds.

“The court agrees with Mr. Trump’s argument because the tweet in question constitutes ‘rhetorical hyperbole’ normally associated with politics and public discourse in the U.S.,” U.S. District Judge S. James Otero in Los Angeles said in a ruling Monday, as Bloomberg reported. “The First Amendment protects this type of rhetorical statement.”


“The ruling also states that the President is entitled to an award of his attorneys’ fees against Stormy Daniels,” Trump attorney Charles Harder said in a statement to Fox News. “No amount of spin or commentary by Stormy Daniels or her lawyer, Mr. (Michael) Avenatti, can truthfully characterize today’s ruling in any way other than total victory for President Trump and total defeat for Stormy Daniels.  The amount of the award for President Trump’s attorneys’ fees will be determined at a later date.”

It is very unusual to have fees awarded when you lose a defamation lawsuit.  In fact pretty-much the only way that ever happens is when the judge finds that your complaint was either frivolous or motivated by animus of some sort rather than being a legitimate controversy.

But then again the substance of this alleged "defamation" is rather insane to begin with.  Remember that Daniels' "claim to fame" is that she's a stripper -- that is, she takes her clothes off for money.  Occasionally said people get rather friendly with their customers.  Sometimes money is involved in that too (although in most states that's illegal) but other times its motivated by fame or just plain old-fashioned attraction.  It's not like working intentionally in a sexually-charged atmosphere won't lead to people being aroused -- right?

So here's a warning to all of you "MeeeeowTwo" fakers -- baseless allegations are not free.  If you are actually insane enough to try to sue someone or if you try to ruin them they can come after you, they can go to the courts and you can not only lose but potentially be bankrupted by being forced to pay their costs of defense, even if (and especially if) you hire some sleazebag "layer."

Now where are Judge Moore and Kavanaugh's lawsuits?

It's well past the time when people making false allegations of this sort wind up living under a freeway overpass in a refrigerator box as those they accuse wind up with everything they own and a money judgment for anything they might earn for the rest of their miserable lives.

View this entry with comments (opens new window)

2018-10-16 07:00 by Karl Denninger
in Editorial , 150 references
[Comments enabled]  

You see, women's stories are always credible.

They never lie.

They never smear people, especially people on the right.

A New York woman has been arrested after police say she made up a story claiming to be the victim of a hate crime.

She claimed four teens (boys, I presume) shouted "Trump 2016!" and when she parked slashed her tires and left a note saying "Go home."

The cops determined it never happened and she wrote the note herself.

Careful what you wish for folks..... it only takes one of these incidents that goes real bad and you're going to wish you never made any of these false allegations.

View this entry with comments (opens new window)