The Nation *Gets* It: The Real Problem in Today’s America is Ayn Rand Cult

Over
at Mediaite
, Andrew
Kirell
notes The Nation’s holiday season subscription pitch,
which slags Ayn Rand thusly.

Har har har.

Because lord knows the real problem these days is the outsized
influence of the authoress of Atlas Shrugged.

Because as we all know that Rand wanted federal spending (under
Republicans and Democrats) to double in nominal terms and to end up
staying above $3.5 trillion a year; she hoped that a liberal
progressive president would declare the right to unilaterally kill
anyone he says is a threat to the good ol’ U.S. of A.; she lobbied
for a conservative-majority Supreme Court to rule that the
government can’t just regulate whatever existing commere there is
but can force also force citizens to engage in commerce; and like
The Nation in a recent article, she fretted that the Communist
Chinese
are insidiously taking over the American university
system.

Yeah, Ayn Rand and good old Uncle Norm are the problem in
21st-century America!

Do yourself – and Reason – a favor and subscribe to the magazine of
Free Minds and Free Markets
. It’s less than $15 a year and it
goes to keep the lights burning bright here at Reason.com.

from Hit & Run http://reason.com/blog/2013/11/18/the-nation-gets-it-the-real-problem-in-t
via IFTTT

The Nation *Gets* It: The Real Problem in Today's America is Ayn Rand Cult

Over
at Mediaite
, Andrew
Kirell
notes The Nation’s holiday season subscription pitch,
which slags Ayn Rand thusly.

Har har har.

Because lord knows the real problem these days is the outsized
influence of the authoress of Atlas Shrugged.

Because as we all know that Rand wanted federal spending (under
Republicans and Democrats) to double in nominal terms and to end up
staying above $3.5 trillion a year; she hoped that a liberal
progressive president would declare the right to unilaterally kill
anyone he says is a threat to the good ol’ U.S. of A.; she lobbied
for a conservative-majority Supreme Court to rule that the
government can’t just regulate whatever existing commere there is
but can force also force citizens to engage in commerce; and like
The Nation in a recent article, she fretted that the Communist
Chinese
are insidiously taking over the American university
system.

Yeah, Ayn Rand and good old Uncle Norm are the problem in
21st-century America!

Do yourself – and Reason – a favor and subscribe to the magazine of
Free Minds and Free Markets
. It’s less than $15 a year and it
goes to keep the lights burning bright here at Reason.com.

from Hit & Run http://reason.com/blog/2013/11/18/the-nation-gets-it-the-real-problem-in-t
via IFTTT

Casino Magnate Openly Wants to Use Feds to Destroy Internet Competition

Why would you ever gamble online and give up the chance to ride in a boat across a wading pool in 100-degree temperatures?Imagine if McDonald’s, rather
than attempting to add
chicken wings
to their menu, instead tried to deal with their
fast food competitors by trying to outlaw KFC. Who knows – maybe
they’d try if they thought they could get away with it. They can’t,
but casino magnate Sheldon Adelson believes he can use his fortune
to keep Internet gambling from becoming legal. The Washington
Post
notes today the blatant, open corporate cronyism of a man
trying to cast a sinister light on Internet gambling in order to

protect himself
from competition:

Billionaire casino magnate Shel­don Adelson, whose
record-breaking campaign spending in 2012 made him an icon of the
new super-donor era, is leveraging that newfound status in an
escalating feud with industry rivals over the future of
gambling.

Adelson, best known for building upscale casino resorts in
Nevada and more recently in Asia, wants to persuade Congress to ban
Internet betting. He says the practice is a danger to society and
could tarnish the industry’s traditional business model.

Nearly all of his competitors, including Caesars Entertainment
and MGM Resorts, disagree. They say regulated Internet gambling can
be done safely and can boost the industry.

Really, imagine people online giving you money and you not
needing to pay overhead for housekeepers and buffets and drink
specials and the whole Las Vegas/Atlantic City “experience.”

But that’s not where Adelson is at. He’s going to launch an
advocacy group, the Coalition to Stop Internet Gambling, and create
an advertising campaign to paint Internet gambling as evil, using
the same fears of online child predators that your local news
station does, to try to lure in nannyish supporters. For the
children, folks! We mustn’t allow Internet casinos to take money
out of Adelson’s pocket for the sake of the children!

Nevada, Delaware and New Jersey have legalized online gambling
to a certain degree, so Adelson may be trying to fight the tide.
Those rival casinos who support Internet gambling point out that
Adelson’s efforts would backfire, even if he succeeds, by
entrenching an Internet gambling black market:

“Sheldon’s approach would endanger everything he professes he
wanted to protect,” said Jan Jones Blackhurst, executive vice
president for government relations at Caesars Entertainment.
Adelson argues that a strictly enforced federal ban would
effectively shut down black-market gambling.  

Sadly, The Washington Post neglects to press Adelson to
give an example of a “strictly enforced federal ban” that had
successfully shut down any black market, ever, in American
history.

Read the whole story
here
.

from Hit & Run http://reason.com/blog/2013/11/18/casino-magnate-openly-wants-to-use-feds
via IFTTT

U.S. Attorney Flouts New DOJ Pot Policy

On August 30, the day after Deputy Attorney
General James Cole
announced
a new policy of prosecutorial restraint for marijuana
growers and sellers who comply with state law, Melinda Haag, the
U.S. attorney for the Northern District of California,
said
it would not affect her work. She has been true to her
word. The East Bay Express notes
that Haag continues to pursue forfeitures aimed at shutting down
the Berkeley Patients Group and Oakland’s Harborside Health
Center. Haag argues that the Berkeley dispensary is too close to a
preschool, a claim the city’s mayor disputes. She cites the sheer
size of Harborside, the state’s biggest dispensary, as cause for
concern. As the Express points out, neither of those
rationales seems to fit any of the eight “enforcement priorities”
that Cole listed in his
August 29 memo
as reasons for federal intervention.  
  

The memo did mention preventing underage consumption, but that
does not really seem relevant, unless Haag thinks 4-year-olds are
scoring marijuana at the Berkeley Patients Group. As for
Harborside’s size, Cole explicitly said, in a departure from prior
Justice Department policy, that  “prosecutors should not
consider the size or commercial nature of a marijuana operation
alone” in deciding whether targeting it is an appropriate use of
their resources. The Express notes that both
dispensaries have the backing of city and state officials:

Neither BPG nor Harborside has broken state law, which is why
Governor Jerry Brown has denounced the federal court actions and
why the cities of Oakland and Berkeley have moved to block the
forfeitures. Oakland sued Haag in October of 2012, and Berkeley
moved to intervene in the BPG case in July of this year.

At an October 29 conference, BPG’s attorney reports, the “judge
questioned why this case was proceeding in light of the Cole memo,”
and “the U.S. attorney had a very difficult time articulating an
answer.” By contrast, André Birotte, the U.S. attorney
for the Central District of California,

dropped
several forfeiture cases against dispensary
landlords in Irvine, Santa Ana, and Los Angeles in the wake of the
Cole memo.

The Cole memo leaves
lots of leeway
for prosecutorial discretion, depending on how
the enforcement priorities are interpreted and whether new ones are
invented on the fly (a possibility the memo itself contemplates).
But if Haag’s continued crackdown is consistent with the new
policy, it clearly does not mean much in practice. Likewise if U.S.
attorneys feel free to flout it.

[Thanks to Richard Cowan for the link.]

from Hit & Run http://reason.com/blog/2013/11/18/us-attorney-flouts-new-doj-pot-policy
via IFTTT

Supreme Court Turns Back NSA Challenge, Washington Starts Accepting Pot Business Licenses, Feds Seem Accepting of Bitcoin’s Existence: P.M. Links

  • Not Stopping Anytime (Soon)The Supreme Court
    turned away
    a case from the Electronic Privacy Information
    Center to stop the National Security Agency’s mass collection of
    telephone call metadata. There are still other challenges heading
    through the federal courts.
  • A judge has ruled that prosecutors can use evidence from

    James Holmes’ apartment
    in his trial for the Aurora, Colo.,
    theater shootings, even though police didn’t have a warrant at the
    time of the search.
  • Washington State has started accepting license applications for
    those who want to
    legally sell marijuana
    in the state.
  • The Department of Justice and the Security Exchange Commission
    seem to be accepting that Bitcoins are
    “legitimate financial instruments”
    of currency in a hearing
    before a Senate subcommittee today.

  • George Zimmerman has been arrested again
    , this time on a
    domestic disturbance call in Central Florida.
  • The
    high tax rates in France
    are leading to social unrest that
    could blow up even worse than it already is, according to a secret
    report from country’s ministry of the interior.

Get Reason.com and Reason 24/7
content 
widgets for your
websites.

Follow us on Facebook
and Twitter,
and don’t forget to
sign
up
 for Reason’s daily updates for more
content.

from Hit & Run http://reason.com/blog/2013/11/18/supreme-court-turns-back-nsa-challenge-w
via IFTTT

Ira Stoll on Obama’s Kennedy-Style Free Trade Push

Back when President Obama was a senator, there
were high hopes for a return, of sorts, to the era that ended 50
years ago this week with the assassination of President Kennedy.
Obama, recall, came into office with members of the Kennedy family
and JFK’s White House counselor, Ted Sorenson, expressing hope that
he would follow in JFK’s footsteps. Ira Stoll says that if Obama
wants to be more like Kennedy, his best hope at this point is
probably a final push on free trade.

View this article.

from Hit & Run http://reason.com/blog/2013/11/18/ira-stoll-on-obamas-kennedy-style-free-t
via IFTTT

Ira Stoll on Obama's Kennedy-Style Free Trade Push

Back when President Obama was a senator, there
were high hopes for a return, of sorts, to the era that ended 50
years ago this week with the assassination of President Kennedy.
Obama, recall, came into office with members of the Kennedy family
and JFK’s White House counselor, Ted Sorenson, expressing hope that
he would follow in JFK’s footsteps. Ira Stoll says that if Obama
wants to be more like Kennedy, his best hope at this point is
probably a final push on free trade.

View this article.

from Hit & Run http://reason.com/blog/2013/11/18/ira-stoll-on-obamas-kennedy-style-free-t
via IFTTT

Markets Turmoiled By Icahn Truthiness

What Carl giveth, Carl can taketh away. We have warned for a month that credit markets have been decompressing (amid saturation) even as stocks went only one way. The S&P has hit almost its LABIA-based Fed fair-value and VIX/VXV hit extreme complacency levels so we were primed for a fall so it's ironic that Icahn pricked the bubble (at least for one day). More ironic still was CNBC's dismissal of his warning "as he is not a market timer" – when they wait with baited breath for his next 'buy AAPL' tweet. Bill Dudley's economic bullishness (and hawkish policy talk) also weighed on stocks. Credit was weak from the start – even as equities broke to new records; Treasury yields slid all day (with a small bounce higher after Europe closed). The USD's early weakness retraced to unch by teh close – rallying from the US open (but EURJPY was a big driver of weakness in stocks). Commodities did not bounce – all flushed lower around the European close and never recovered as stockd dumped.

 

No Dear today… but close… (as the NASDAQ test up towards 4000 – managing  3999.47 – before tumbling in its high-beta way…

 

Credit has been flashing warnings for a while that the game (in the short term at least) is up…

 

But of course, today's drop in the context of the last month is hardly death for equities – though given our context of a never-falling market, it is a shock…

 

Spot the difference – Icahn's honesty tanked EURJPY (carry) and thus stocks declined…

 

FX markets were a roundabot with Europe selling the USD and US buying it…

 

Treasuries were a one-way street lower in yield (with a bounce at the European close)

 

Commodities rallied into the US open and European close then tumbled and flatlined all afternoon (even as USD rose and stocks slid)…

 

VIX bounced notably back above 13%

 

Charts: Bloomberg


    



via Zero Hedge http://feedproxy.google.com/~r/zerohedge/feed/~3/CS6RyXNdPAo/story01.htm Tyler Durden

Cannabis Clubs Are Flourishing in the UK

The Guardian has an interesting
article out today on the growth of so-called “cannabis clubs” that
have sprung up in the U.K.

From
The Guardian
:

Over the past few years, local cannabis clubs have blossomed
over Britain. There are now 49 around the UK, which are united by
the UK Cannabis Social Club, an organisation founded in 2011 to
represent cannabis users. Operating primarily through Facebook,
(the LCC’s page has had 39,301 likesthe clubs bring cannabis users
together from all over Britain to discuss topics ranging from
fertiliser to self-medication and campaigning for the
decriminalisation of the drug. They also organise meetings, from a
recent 10,000 person smoke-out in Hyde Park to more intimate
evenings such as tonight’s soiree, allowing pensioners, students,
bricklayers and bankers to talk about one of their favourite
hobbies.

Clubs like the London Cannabis Club (LCC) continue despite the
possession of marijuana being illegal in the U.K. As the head of
the LCC points out, talking about pot is not against the law:

The fact that growing and possessing cannabis is illegal in
Britain does not deter many cannabis clubs across the UK from using
social media to publicise meetings – “It’s not illegal to talk
about cannabis,” says Boon – and the openness is part of the
campaign for normalisation. Members themselves usually keep their
involvement private: “Many of the people I’ve met have families,
high-profile jobs, mortgages and all sorts, and are terrified of
losing everything,” he adds.

LCC’s Facebook page (visit it here), includes not only a
collection of pot-related news from around the world, it also
features pictures of marijuana sent in by members (example
below):


The existence of clubs like the ones mentioned in The
Guardian
could be used by British drug warriors like Peter
Hitchens
 to back up their claim that the war on drugs
is a myth:

How is it that, in a country where drugs are supposedly illegal
— where ‘evil dealers’ are endlessly denounced — that drugs are so
common and that little or nothing happens to those who are caught
in possession of them? How did the ‘cannabis warning’, a gesture
without force or penalty, unsanctioned by Parliament, become the
preferred response of the police to the crime of possession? How
can Pete Doherty drop illegal drugs on the floor of a courthouse,
be caught by a security guard and yet walk free from the building,
if we are — as we are so often told — running a regime of stern
prohibition?

The answer is that the official version of events is simply
false. Since a momentous Cabinet meeting in February 1970, there
has been no ‘war on drugs’ in this country, only the official
pretence of one.

Of course, the U.K. doesn’t wage anywhere near as aggressive a
war on drugs as the U.S. does. However, the fact remains that
possession of drugs in the U.K. can
result
in a prison term. Supplying drugs can also result in a
prison term, and the British government considers sharing drugs as
supplying. In June, the British government
reported
that over 10,000 people in England and Wales were in
prison for drug offenses, representing 14 percent of the sentenced
prison population. 

There may be cannabis clubs in the U.K., but the growing and
possession of the product they are dedicated to is, unfortunately,
still illegal. 

Thankfully, it looks like Hitchens holds
a minority view
when it comes to British drug policy, and at
least one British law enforcement official, the
chief constable of Durham Constabulary
, believes that making
drugs legal would be a good policy change. 

from Hit & Run http://reason.com/blog/2013/11/18/cannabis-clubs-are-flourishing-in-the-uk
via IFTTT

A Peek Beneath Tesla’s Non-GAAP Hood Reveals Nothing But Cockroaches

Back in August, we joked that in the Tesla press-release the one most often used word was Non-GAAP (43 times). Conveniently, we provided a word cloud of the company’s Q2 release for the visual learners to grasp just this:

That TESLA’s earnings were an epic non-GAAP adjustment joke was only further cemented by the fact that the company itself provided a bridge between its GAAP and Non-GAAP earnings.

Of course, back then TSLA stock was merely the latest bubble frenzy so pointing out the obvious: namely that the realty behind the numbers presented for public consumption was far uglier than most expected.

Now, the euphoria is over and  the story is different, as not only has the company’s self-reported and erroneous record of making the safest car in the world gone up in flames, but the momentum appears terminally broken and following today’s most recent 11% drop, TSLA stock could soon be headed for double digit territory again.

More importantly, however, the end of the momentum story means that those who care about such anachronisms as fundamentals can once again look beneath the hood of TSLA to get the true story of what is really going.

There, with the help of Bloomberg’s forensic accounting sleuth Jonathan Weil one uncovers nothing but cockroaches.

From Weil:

Most companies that play the non-GAAP game goose their numbers by excluding expenses. Tesla does this, too. It backs out stock-based compensation, for example. But the biggest kick to its non-GAAP earnings comes from an increase in top-line revenue.

 

The company reported third-quarter non-GAAP revenue of $602.6 million, which was about 40 percent more than its GAAP revenue. It achieved such a boost by transforming $171.2 million of liabilities into sales.

 

Here’s how it worked. In April, Tesla started a new financing program under which customers have the option to sell their vehicles back to the company after three years for guaranteed minimum amounts. The accounting rules say Tesla can’t recognize all of the revenue immediately in those instances and must account for such transactions as leases. So after Tesla takes customers’ cash, it records liabilities for “deferred revenue” and “resale value guarantee” on its balance sheet.

 

Mahoney noted two main problems with including so much of those amounts in non-GAAP revenue. Some customers wouldn’t have chosen Tesla cars were it not for the financing program. So the non-GAAP revenue isn’t comparable to Tesla’s sales before the program began, and it may overstate the true growth and demand. Plus, by adding back the resale-value guarantee, the company “assumes that nobody is going to return the vehicle, for purposes of the non-GAAP revenue,” he said.

 

Lots of companies use gimmicky benchmarks in their earnings releases. What makes Tesla special is that it behaves as if it doesn’t know the proper way to present its non-GAAP numbers. In an ironic twist, two attorneys at Wilson Sonsini Goodrich & Rosati, which helped take Tesla public in 2010, penned a lengthy article in 2008 explaining the legal requirements and best practices for earnings releases; it’s still on the law firm’s website.

 

“GAAP comparison numbers in an earnings release must be set forth with equal or greater prominence to the non-GAAP numbers,” attorneys Steven Bochner and Richard Cameron Blake wrote. “For instance, if an issuer announces GAAP and non-GAAP earnings per share in its press release, it should report the GAAP earnings per share prior to the non-GAAP earnings per share.”

 

The bigger concern here should be what some investors call the “cockroach theory”: Where there is one problem, there probably are more. Tesla has disclosed compliance failures before. In March, its management concluded that Tesla’s ‘‘internal control over financial reporting was ineffective as of Dec. 31, 2012.’’ Its auditor, PricewaterhouseCoopers LLP, concurred. In a related matter, Tesla had to restate its cash-flow numbers for much of 2011 and 2012. In its latest quarterly report, filed last week, Tesla said its controls still weren’t effective as of Sept. 30. 

Because the only thing better than one flaming cockroach are many flaming cockroaches.

Weil’s conclusion:

None of these flubs has been especially damaging. Yet taken together, they suggest a company that lacks basic skills in accounting and disclosure, which could be a serious problem for a young manufacturer with a $17 billion stock-market value that loses money and trades for 9.5 times its revenue for the past four quarters. The next time Tesla messes up because of poor controls, the consequences could be worse.

 

As Tesla said in its latest annual report: ‘‘If we are unable to assert that our internal control over financial reporting is effective, or if our independent registered public accounting firm is unable to express an opinion on the effectiveness of our internal controls, we could lose investor confidence in the accuracy and completeness of our financial reports, which would have a material adverse effect on the price of our common stock.’’

Oh well, at least the fully spontaneously combusted Tesla Model S (because the safest car in the world is never expected do something as silly as run over a metal object while on the road) makes for a very handy, if slightly smoldering, paperweight.


    



via Zero Hedge http://feedproxy.google.com/~r/zerohedge/feed/~3/Wdoq6Tcxejg/story01.htm Tyler Durden