ThanksFRAUD Day
The Market Ticker - Commentary on The Capital Markets
2017-11-22 13:48 by Karl Denninger
in Editorial , 623 references Ignore this thread
ThanksFRAUD Day
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I often write on the plethora of US-based frauds and scams, both political and business-oriented.

Fraud is the most-profitable business model today, and has been for close to two decades.  It is why I'm out of the business world and will not re-enter it.  It is why despite having what I believe is a ground-breaking home automation, security and control application that runs on $35 computers (which means there's a hell of an opportunity to bundle the software with those and sell 'em hella-cheap, undercutting all the other guys plus having a nice installation business to go with it) I am only willing to do so on a "buy it all and you do it" basis.

Companies like Amazon exist with the sort of "valuation" they have only because of these schemes and scams.  Cost-shifting (otherwise known as cross-subsidization) for the purpose of destroying competitors is a felony and has been for over 100 years (15 USC Chapter 1) whether you succeed or not.  That is, the very attempt is a criminal act.  Yet despite continual evidence in the form of quarterly filings that document the company does not make money (on an all-cost-in basis) on their product sales along with near-daily professions of the "next" company being "Amazoned" (that is, put out of business or severely harmed by this practice) in the major business media on television and in print, along with open cheering on of such conduct by same not one single indictment has ever issued.

Facebook, it appears from my work, to be deliberately detecting the use of ad blockers and then gaming their software so as to just meet the so-called "deliverable" standard for ads to people who have blocked them.  That is, since I have a blocker on my desktop I would not normally generate any revenue for Facebook from advertisers.  But I have observed, in a 100% repeatable manner, that a "display" ad will remain visible until the minimum pixel count and time is met (1 second, etc) and then disappear and a video ad will do so for 2 seconds with 100% pixels -- and then likewise disappear.  In other words the company is billing the advertisers for content they know damn well I blocked and never see.  What do you call billing someone for something they don't get on purpose, because that's what it looks like to me. Oh, and how many billions have been taken from advertisers this way?  Nobody but Zuckerpig knows but I bet it's not a small number.

And now we get another example of it with Uber.  Uber intentionally concealed, including with a bribe, a security breach that disclosed essentially all of their customer and driver data -- email addresses, phone numbers and for drivers, their Driver License numbers.

Note that Equifax had a similar breach which they also concealed and nobody went to jail for that either.

Next up is Google.  Their Android operating system "pushed" a change early this year that started uploading cell site data on your location even if you have location turned off.  The company got caught, admitted it, and claimed it was to "improve push-notifications."  That's a damnable lie since there are no cell carriers in the US that allow you to target data streams at specific cell towers.  Google also claims it never did and won't keep said data.  Do you believe them after they lied to you about your location tracking being "off" (when you shut it off) and nobody went to jail for the first lie?  Neither do I.

Never mind that Netflix has seen their stock go from $40 to nearly $200 in the time "net neutrality" has been imposed on the US.  May I remind you that the company has operated on a net negative cash flow basis for years and continues to on an ever-escalating basis today?  Why do they get away with it?  Because if you don't buy Netflix' service you are forced to pay part of your next door neighbor's bill, that's why.

That's all of the "FANG" stocks, incidentally.  Every one of them should be out of business and their executives in prison instead of being "Wall Street Darlings."




Tesla?  Same deal.  Every car is sold at a loss yet the company steals billions from the US Federal Government and exists in a world where it has never made a profit only on the premise that it will continue to be able to steal.  Nobody in their right mind would "invest" or "loan" a company money that has never demonstrated it can sell a single product at a profit, ever, nor that it has any ability to do so in the future -- unless it can steal.

Of course we also have Congress which has paid out millions of your money to cover up sexual harassment and even assault by members of Congress.  Passed during the middle of the Clinton years and right after he was diddling Monica with a cigar by unanimous vote it remains on the books today.  Myriad members of Congress on both sides of the aisle have used it to hide harassment and assault allegations against staff members.  I note that there has not been one Congressperson who has introduced a repeal of said legislation nor has the President demanded it be repealed or he will not sign a single bill until it is.  Remember that two Republican Presidents and two Democrat Presidents have each held the White House during and since this was signed, so don't start about how this was a "Republican" or "Democrat" bill, never mind the zero opposing votes from either party when it was originally passed.

Finally, the grand-daddy of it all is the medical scam.  Tell me again about that one, which steals from every household a middle-class house payment every single month.  May I again remind you that the health firms have twice tried to claim their conduct was exempt from anti-trust and lost both times at the US Supreme Court?

Will I be "thankful" today?


I am instead praying for an asteroid strike on every single one of these jackass firms' executives and board members along with every member of Congress and every member of the Executive that has sat idly by while you've been robbed for the last 30+ years.

**** giving thanks -- with a rusty chainsaw -- until this **** stops.

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