Biden plan to subsidize child care could have unintended consequences, including price increases, experts say
Tyler Olson, 04 May 2021
The subsidies for child care in President Biden’s American Families Plan could have some unintended consequences for both families and child care businesses, including price increases, experts tell Fox News.
The American Families Plan is the third installment in three massive spending bills the president has proposed. Continue reading “Article: Biden plan to subsidize child care could have unintended consequences, including price increases, experts say”
SOS Stock May Boom and Bust in the Meme Stock Space Indefinitely
Chris MacDonald, 04 May 2021
Cryptocurrency miners have increasingly come into focus of late. Miners such as SOS Limited (NYSE:SOS) with extensive Bitcoin (CCC:BTC-USD) mining operations are becoming ever-more lucrative as Bitcoin prices remain elevated. That said, SOS stock has languished somewhat in recent weeks, to a greater degree than Bitcoin prices.
Investors in SOS stock have seen shares spike repeatedly in double-digit moves to the upside and downside in recent months. Continue reading “Article: SOS Stock May Boom and Bust in the Meme Stock Space Indefinitely”
Under Armour Sold Some Clothes Early
Matt Levine, 04 May 2021
One theory is that the price of a share of stock reflects the present value of its future cash flows in perpetuity. People buy stock today not because they expect high profits tomorrow, but because they expect high profits over the long run. Investment decisions that cost money today, but that will bring in much more money in five years, increase the net present value of the stock, so the shareholders should support them.
Another theory is that public markets are myopically focused on the short term. Investors care only about this quarter’s earnings; they buy stocks whose earnings go up each quarter and sell stocks whose earnings go down. A decision that reduces earnings today, in exchange for higher earnings in the future, is bad, and shareholders will punish a company that makes those decisions. Continue reading “Article: Under Armour Sold Some Clothes Early”
Just Keeps Getting Worse: Services Trade Surplus, the American Dream Not-Come-True, Falls to 9-Year Low, Total Trade Deficit Explodes to Worst Ever
Wolf Richter , 04 May 2021
Back when globalization by Corporate America was still a good thing, anxieties about the ballooning trade deficit in goods were medicated away with promises that exports of services – such as software, movies, and Wall Street efforts to financialize everything – would boom and balance out the trade. We’d buy cheap goods made in other countries, and they’d buy our expensive services, and it would all balance out. That was the rationale. Few economic rationales have failed more spectacularly.
Promised export boom of services turned out to be fake. Continue reading “Article: Just Keeps Getting Worse: Services Trade Surplus, the American Dream Not-Come-True, Falls to 9-Year Low, Total Trade Deficit Explodes to Worst Ever”
Asia’s Lopsided Economic Booms Store Problems for the Future
Mike Bird, 03 May 2021
South Korea and Taiwan both reported better-than-expected economic growth last week, and in both cases it looks quite similar: Exports have boomed, domestic demand hasn’t. That has already caused some problems, which will be exacerbated if the trend continues unabated.
In South Korea’s case, exports of goods were 4.4% higher in the first quarter compared with the final quarter of 2019, before the pandemic hit. Meanwhile, private consumption spending is still languishing 5.5% below that benchmark.
It’s a similar story in Taiwan. Electronics exports in particular are up by 28.4% year-over-year, with net exports contributing far more to the overall 8.2% growth in gross domestic product than consumption. Continue reading “Article: Asia’s Lopsided Economic Booms Store Problems for the Future”
Short Seller Soren Aandahl Chases Targets With New Hedge Fund
Sofia Horta e Costa, 03 May 2021
Activist short seller Soren Aandahl is launching his first hedge fund, with a mandate to find accounting malpractice and overvalued stocks all over the world.
The Blue Orca Global Activism Fund starts trading Monday with $25 million in assets under management, according to Aandahl, who founded Blue Orca Capital three years ago in Austin, Texas. He says he’s lining up another potential $30 million in committed capital. The fund will pursue targets globally, using a market-neutral strategy to seek profits regardless of whether global stocks are in a downturn or uptrend, said Aandahl. Continue reading “Article: Short Seller Soren Aandahl Chases Targets With New Hedge Fund”
Regulator to take stern actions against illegal short selling
Yonhap, 03 May 2021
South Korea’s financial regulator said Monday the country will take stern actions against illegal activities involving stock short selling as it allowed a partial resumption of short selling after a 14-month ban.
The Financial Services Commission (FSC) partially lifted its ban on short selling of some listed stocks after it imposed a six-month ban on the trading strategy in March last year and later extended it to ease market routs caused by the pandemic.
Short selling is a trading strategy in which investors sell stocks they borrowed on the belief that share prices will fall in the near future. When the prices decline, they can buy back the stocks at lower prices, pocket the profit and return the shares to the original owner. Continue reading “Article: Regulator to take stern actions against illegal short selling”
Canada’s casinos … one of Hezbollah’s ways of laundering money
Assumetech, 03 May 2021
The Canadian federal government has set up a committee to investigate money laundering operations, die through gambling in Casinos in Vancouver and drug smuggling, involving a network affiliated with the Iranian regime and the Hezbollah militia.
The committee provided the Al-Arabiya Canal with part of the investigation carried out in March last year, in which an official die Iran and Hezbollah involvement in money laundering process revealed. Continue reading “Article:Canada’s casinos … one of Hezbollah’s ways of laundering money”
The Evolving Face Of The Fight Against Fraud
PYMNTS, 03 May 2021
Fighting fraudsters is a problematic realm in the digital era because fraud stubbornly refuses to be a static target.
Instead, digital fraud is an ever-evolving and improving field of endeavor that is always readying for its next evolution. It looks for its next entry point and adopts the latest technology or methodology to make getting the job done — and making off with ill-gotten data or funds — easier to do from the inside and harder to detect from the outside. Continue reading “Article: The Evolving Face Of The Fight Against Fraud”
Bitcoin Mixing Tycoon Arrested for Alleged $336M Laundering
Bilal Waqar, 02 May 2021
Another bitcoin mixing service fraud gets caught with the help of the International Revenue Service, this time catching a suspect of 336 million dollars.
A Bitcoin tycoon got arrested when he got into the net of the IRS. An agent from the department for enforcing tax laws played an undercover role acting as a narcotics dealer, catching the suspect of huge digital currency fraud. The guy had been in the business for the course of over a decade.
Roman Sterlingov, a Swedish and Russian citizen was involved in money laundering and money transmission without having a license. The revealed public court documents broke the news of his arrest, which in itself is an interesting story. Continue reading “Article: Bitcoin Mixing Tycoon Arrested for Alleged $336M Laundering”
‘America First’ clashes with India’s bid for strategic autonomy
P.K.Balachandran, 01 May 2021
Colombo, May 1: India and the US have designated themselves as “strategic partners” with political, economic and military dimensions to the relationship. But the partnership has kept coming under strain.
The reasons are two-fold: Firstly, its contours are not defined. Secondly, Washington’s ‘America First’ policy and its tendency to pursue a foreign policy almost exclusively in its own immediate interest, clashes with India’s penchant for maintaining ‘strategic autonomy’ despite its increasing economic and military dependence on the US. Continue reading “Article: ‘America First’ clashes with India’s bid for strategic autonomy”
What The Boom In Fraud Says About The Current Market Environment, Part 2
TYLER DURDEN, 01 May 2021
Just about three months ago, I wrote a blog post which featured this quote, from Charles P. Kindleberger’s Manias, Panics and Crashes: “Swindles are a response to the appetite for wealth (or plain greed) stimulated by the boom.” Since then, the number of frauds, or swindles, that has been revealed has soared, a clear testament to both the breadth and degree of greed inspired by the current boom.
Most recently, we saw the collapse of Greensill Capital as the result of fraud. Like WireCard, Greensill was a relatively young finance company looking to disrupt its more mature competitors which took a few (illegal) short cuts in the process. Continue reading “Article: What The Boom In Fraud Says About The Current Market Environment, Part 2”
Ex-Netflix Executive Convicted in Bribery-Kickback Scheme
Joel Rosenblatt, 01 May 2021
A former Netflix Inc. executive was convicted of taking kickbacks from vendors in exchange for approving millions of dollars in contracts for products and services, federal prosecutors said.
A jury on Friday found Michael Kail, a former vice president of information technology operations, guilty of wire and mail fraud and money laundering after a two-week trial, according to a statement issued by the U.S. Attorney’s office in San Francisco. Continue reading “Article: Ex-Netflix Executive Convicted in Bribery-Kickback Scheme”