Ever Seen A Bubble Slowly Hiss Away?

Ever Seen A Bubble Slowly Hiss Away? By Karl Denninger.

Back in the 1990s, during the dot-com bubble, the global economy depended on the US stock market and the US stock market depended on about ten Internet stocks with negative aggregate earnings. It all fell over in the tech-wreck of 2000.

Today, a similar situation exists. Markets index gains have a huge reliance on the so-called FANG stocks — Facebook, Amazon, Netflix, and Google — and the other six stocks in the so-called FANG+ stock index — which includes Tesla, Alibaba, and Microsoft. For instance, to March 12, Facebook, Amazon, Apple, Microsoft and Alphabet  accounted for 45% of the S&P 500’s year-to-date gain.

None of the so-called “growth” in those stocks has been real.

Tesla, for example, has never turned a profit, even on paper.

Amazon has never turned a material profit and only exists due to what looks like blatantly-illegal (under anti-trust law) cross-subsidization.

Netflix has negative free cash flow, which means that while on a GAAP basis they have made a “profit” they do so by assuming their “shows” have recurring residual value post-release, which anyone who has ever sold anything on a royalty basis knows is total and complete crap; nearly all of your money is made in the first cycle (for a book in the months after release, for a TV series the first showing of same, etc.)

And finally, Facebook and other “social media” companies only “make money” by radically invading your privacy including in places you cannot give consent such as every single web page anywhere that has one of their “like” or “sign-on” buttons. Without such data their so-called “enterprise” is worth zero as the cost of operating it exceeds the ad revenue they can gain from doing so.

So what we have is an outrageous bubble — exactly as we did in 1999. The market callers all say it’s different this time because these firms that lead have “real earnings” or can “crank up earnings any time they want (Amazon).” This is a damnable lie; not only are the earnings not real in that they’re taken through gross deception and accounting tricks.

Amazon, in particular, has been said to be “able” to crank those earnings “at any time” and yet over the last decade it never has — not even once. Why not? Because it can’t, that’s why. The day it does is the day its pricing is no longer supported by acts that anti-trust explicitly banned over 100 years ago and what remains makes a loss on every product sold net-net and thus the company collapses.

Note that I’m not saying these firms have “less value” should they cut that crap out, either voluntarily or by government force.

I’m saying they’re all functionally bankrupt immediately and soon will be factually as they cannot make an actual profit from operations without the schemes that no law-abiding society should permit and no matter how much cash you start with if you spend more than you make eventually you run out of said cash.

That is, the NPV of these enterprises under any rational accounting basis is negative and thus the equity is worth zero.

Time will tell, but I would guess there will be some resolution of this anomaly by the end of the year. Mr Trump has stopped boasting about stock price gains.

Oxford men guilty of sexual exploitation ‘on a massive scale’

Oxford men guilty of sexual exploitation ‘on a massive scale’, by the BBC.

(Top L-R) Khalid Hussain, Alladitta Yousaf, Kameer Iqbal, Assad Hussain (Bottom L-R) Raheem Ahmed, Moinul Islam, Kamran Khan. Photo from Thames Valley Police, via the BBC.

Seven men have been found guilty of grooming and sexually abusing teenage girls “on a massive scale” in Oxford.

The gang was convicted of more than 20 offences including rape and indecent assault between 1998 and 2005.

Prosecutor Oliver Saxby QC said they carried out the “routine, cynical and predatory sexual exploitation” of vulnerable girls who were groomed with alcohol and drugs. …

[Mr Saxby] said the girls would be made to have sex at parties, in cars or parks, with other men around, and sometimes after being subjected to threats and violence.

One girl was taken to a B&B in Iffley Road and told to have sex with older men, who one of the defendants described as “uncles”, he said.

Mr Saxby added: “She says she has lost count of the number of ‘uncles’ she had sex with… After sex she would sit in the shower and scrub herself.”

Rotherham, Telford, Rochedale, Peterborough, Newcastle, Newham, Oxford, …

A civilization that does not protect its young women will die.

Easy Meat – Inside Britain’s Grooming Gang Scandal, by Peter McLoughlin, is a recent book of meticulous research on the Islamic gangs in Britain that groomed and raped young girls for decades. It found that 100,000 to 1 million girl’s lives have been shattered.

It bears repeating: Surely the worst scandal ever in the UK. Who invited millions of adherents of seventh century Arabic ideology to the UK from the backwoods of Pakistan, housed and fed them, then allowed them to ravage the UK’s young women unchecked for decades? Why isn’t the media all over this?

Because this crime was committed by the politically correct, for the politically correct:

The huge increases in migrants over the last decade were partly due to a politically motivated attempt by ministers to radically change the country and “rub the Right’s nose in diversity”, according to Andrew Neather, a former adviser to Tony Blair, Jack Straw and David Blunkett.

Former PM Tony Blair, July 21 2007

He said Labour’s relaxation of controls was a deliberate plan to “open up the UK to mass migration” but that ministers were nervous and reluctant to discuss such a move publicly for fear it would alienate its “core working class vote”.

Robert Spencer:

It was the same story all over Britain: police and other authorities wouldn’t take action against the Muslim rape gangs because they feared being tarred as “racist” and “Islamophobic.” Those who did dare to speak out were demonized in the same way. Labour Shadow Minister Sarah Champion had to apologize and resign after she pointed out, correctly, that the rape gangs were made up of Pakistani men and their victims were all young British girls.

No one at all in Britain dares to discuss the fact that the rape gangs are made up of Muslims whose preying on non-Muslim girls is in accord with Qur’anic teaching regarding the permissibility of taking non-Muslim women as sex slaves.

The BBC’s shameful silence on the Telford sex scandal

The BBC’s shameful silence on the Telford sex scandal, by Douglas Murray.

The front page of yesterday’s Sunday Mirror read ‘Britain’s ‘worst ever’ child grooming scandal exposed: Hundreds of young girls raped, beaten, sold for sex and some even KILLED.’ Like the scandals in Rotherham, Rochdale, Oxfordshire and a growing list of other places, it seems that the victims are, once again, white British girls and the perpetrators men of ‘Asian’ background. Of course while in most other situations the word ‘Asian’ means ‘Asian’, for these purposes ‘Asian’ means ‘men of Muslim background, mainly Pakistani’. …

We once again learn how, over the course of four decades, every arm of the state – including council staff, social workers and the police – allowed the mass gang-rape of children to go on in their town. …

When the story broke yesterday it was covered across a range of other papers, including in all of the Mirror’s competitors. But the story clearly sent the BBC into a panic. As Ed West pointed out on Twitter, this morning the story was not even on the front page of the BBC’s website …

You might look at that and think ‘Well, there’s a hell of a lot going on in the world at the moment that may take priority’. Like that disturbance at the final of the Crufts dog-show. And that story about an ex-footballer spitting at a woman in her car. What chance does the rape of 1,000 young girls have beside such competition? …

In fact, the mass gang-rape of underage girls in Shropshire didn’t even make it to the homepage of BBC Shropshire. Only after a fair amount of comment about this online did the BBC manage, this afternoon, to squeeze the rape of the area’s kids into their round-up of Shropshire news. …

That ‘My Telford’ could have been a really interesting and important video. Or it would have been if every single arm of the state plus the official state broadcaster hadn’t already decided that the children of Telford being gang-raped on an industrial scale (Telford is a town of just 170,000 people) is one big yawn-fest. Or that they basically agree with the very basic Labour MP Naz Shah who last year revealed her own opinions about all this when she re-Tweeted a (satirical) Tweet suggesting that the victims of the Rotherham sex abuse scandal should ‘shut their mouths. For the good of #diversity.’

‘I will never be able to have sex again. Ever’

‘I will never be able to have sex again. Ever’, by Jill Stark.

HE WILL never forget the noise. Lying on the hospital trolley being pushed towards the operating theatre, he heard nothing but a primal wail. He looked back to see his younger sister sobbing, traumatised by the enormity of what he was about to do.

Andrew*, born male, was minutes away from an operation that would make him a woman. Psychiatrists said he had a female brain in a male body. Gender reassignment surgery was the only way to ease the mental torment he’d endured since adolescence.

But as the wheels squeaked towards the operating table he was struck by an unshakeable thought: “It’s not right.” He remembers telling the surgeon: “I think I’m doing the wrong thing, it’s not right, I think we’ve got to stop it.”

The surgeon stroked Andrew’s face, telling him it was natural to feel frightened before an operation. He protested again, insisting it felt wrong. Then it went black. When he woke up he was sure the surgery had been cancelled. The romantic tales he’d read of transsexuals who awoke post-surgery feeling “reborn” convinced Andrew the operation had been halted, because he felt no different.

“Then I remember lifting up the sheets and putting my hand down and feeling it all bandaged and packed. I just started bawling my eyes out and screaming ? I remember saying to myself, you f–king idiot, Andrew, how could you be so bloody stupid?”

Twenty years after surgery that left him feeling like a “desexed dog”, the grief can still overwhelm him. Now 42, Andrew tells The Sunday Age the operation he had as a confused 21-year-old has shattered him. …

Silent tears fall as he describes the anger he felt towards the doctors who led him down this path. But most of all at himself for believing them.

Cambridge Analytica Whistleblower: Facebook Able to Listen to You at Home and Work

Cambridge Analytica Whistleblower: Facebook Able to Listen to You at Home and Work, by Paula Bolyard.

Cambridge Analytica whistleblower Christoper Wylie, appearing before a committee of British MPs on Tuesday, said that Facebook has the ability to spy on users in their homes and offices. …

“On a comment about using audio and processing audio, you can use it for, my understanding generally of how companies use it… not just Facebook, but generally other apps that pull audio, is for environmental context,” Wylie said. “So if, for example, you have a television playing versus if you’re in a busy place with a lot of people talking versus a work environment.” He clarified, “It’s not to say they’re listening to what you’re saying. It’s not natural language processing. That would be hard to scale. But to understand the environmental context of where you are to improve the contextual value of the ad itself” is possible.

Wylie continued: “There’s audio that could be useful just in terms of are you in an office environment, are you outside, are you watching TV?”

Facebook has long denied allegations that its app listens in on users in order to customize ads.

White South African estate agent jailed for racist abuse

White South African estate agent jailed for racist abuse, by the BBC.

A former estate agent in South Africa has been jailed for racist abuse in what has been called a landmark ruling.

A court jailed Vicky Momberg for three years, with one year suspended, for using a derogatory word against a black police officer 48 times.

Her lawyer said she was not in a normal state at the time, as she had just been the victim of a smash-and-grab robbery.

Handing down her ruling, magistrate Pravina Raghoonandan said some may think the sentence was harsh but it was intended to signal that racism will not be tolerated in South Africa.

What a joke. Malema talks of ‘Cutting the Throat of Whiteness’ and the possibility of genocide of whites. Former President Zuma sings of ‘Kill the Boer, kill the farmer’. Oppression of white Africans is well advanced. It’s all one-way traffic as tribalism wins out.

It’s Global Hypocrisy. It’s rising everywhere. Civilization is being washed away by a tsunami of cant. We must have a hypocrisy tax to save us.

hat-tip Stephen Neil,  Philip Barton

Asking U.S. Residents If They’re American Citizens Is a ‘White Supremacist Agenda’

Asking U.S. Residents If They’re American Citizens Is a ‘White Supremacist Agenda’. By John Binder.

The Council on American-Islamic Relations (CAIR) is the latest left-wing organization to lambast the Commerce Department’s decision to begin asking United States residents on the 2020 Census if they are American citizens.

This week, President Trump’s administration announced in a historic decision that it would put the citizenship question back on the U.S. Census — a question that has not been included since 1950 — a move that will provide Americans with more accurate data on unemployment, the number of citizens in the country, and a better look into the foreign-born population.

If not, does citizenship mean anything? Oh, it’s about votes for the left:

The open borders lobby, though, is blasting the decision, as it threatens states with large illegal alien populations like California, New York, and Florida. Those states are at risk of losing congressional seats if redistricting is based upon counting citizens rather than the current model, which counts all residents, including illegal aliens.

hat-tip Stephen Neil

Australia Ready on ‘Brexit Day One’ to Begin Work on New UK Trade Deal

Australia Ready on ‘Brexit Day One’ to Begin Work on New UK Trade Deal, by Simon Kent.

Australia wants to begin negotiating a new trade deal with the UK on “day one” of Brexit next year and put it into effect on January 1, 2021.

Australia’s Trade Minister Steve Ciobo gave that assurance during a speech delivered in London as he called for Britain to start formal trade talks with Australia on March 30, 2019 — the same day Brexit officially starts.

Mr. Ciabo paid tribute to the enduring bonds between Australia and the UK while applauding the fact that Brexit would enable the UK to do business as a “sovereign, open and free” nation.

“The Australia-UK trading relationship took a big hit when the UK joined the European Community — especially our agricultural exports,” the trade chief said.

hat-tip Scott of the Pacific

Man legally changes his gender to identify as a woman ‘so he can retire five years earlier’ in Argentina

Man legally changes his gender to identify as a woman ‘so he can retire five years earlier’ in Argentina, by Chris Pleasance.

An Argentinian tax worker who changed his gender on official documents after claiming to identify as female actually did it in order to retire earlier, a relative says. …

The relative told Informate Salta: ‘His conviction is that it is unfair that, because he is a man, he has to work five years more than a woman. …

Argentinian law allows any person to change their gender on identity documents to match their self-perception, without having to provide evidence of hormone treatment or gender reassignment surgery. …

Sergia has been in multiple heterosexual relationships including with the mother of her two children to whom she was married for 25 years.

She has never expressed an interest in men, and continued dating women even after registering for the change, the relative said.

Confronted by the statement, Sergia accused newspapers of printing lies and said the decision to change genders was personal.

‘The motivations are mine and I do not have to explain anything to anyone,’ he told the El Tribuno newspaper.

Ha ha ha. Sexist retirement rules anyway.

hat-tip byrmol