Presenting North America’s Most Frustrating Airports

As the busiest travel week of the year gathers pace (amid fears of a winter storm cluserf##k on the East Coast), we thought Bloomberg Businessweek's rankings of the most (and least) frustrating airports in North America might help travelers looking to skip town…

The most frustrating airport in North America is…. Laguardia…based on the time it takes to get there; how easy it is to clear security; the quality of terminals and restrooms; amenities; and how often flights take off on schedule.

 

But JFK has the worst 'commute'…

 

And O'Hare the worst track record for on-time departures…


 

Source: Bloomberg Businessweek




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The Rand-ian Writing On The Wall

Submitted by Jeff Thomas via The Burning Platform blog,

The Writing on the Wall

When you see that in order to produce, you need to obtain permission from men who produce nothing—when you see that money is flowing to those who deal, not in goods, but in favors—when you see that men get richer by graft and by pull than by work, and your laws don’t protect you against them, but protect them against you—when you see corruption being rewarded and honesty becoming a self-sacrifice—you may know that your society is doomed. – Ayn Rand; Atlas Shrugged, 1957

Pretty strong words… the last four, in particular.

Ayn Rand knew whereof she spoke. Born in St. Petersburg, Russia, in 1905, she became politically conscious while still a child and did not favour the existing concept of constitutional monarchy. So, it would not have been surprising if, when the Russian revolution broke out when she was twelve, she bought into the proselytising of Vladimir Lenin, as so many did at that time.

Instead, she quickly surmised that the Bolsheviks’ claim to improve life for the average man was, in reality, a plan to diminish the quality of life for all of the people. In doing so, the Bolsheviks confiscated her father’s business and displaced her family. At one point they were nearly starving, but in 1925, she received permission to emigrate to the US. (She later attempted to get her parents and sisters out, but it proved to be too late.)

A Lesson Hard-Learned

In establishing her now well-known beliefs in governmental systems, Ayn Rand had the benefit of having observed the entire progression from a relatively benign monarchical system to totalitarianism. As a result, she not only learned that political leaders can be deceitful in their claims for social improvement, she also learned, first hand, that those leaders (and/or hopeful leaders) who promise that they are going to change the system in such a way that everyone will “have all they need,” are the most deceitful of all.

In my opinion, the greatest possible threat from the fanciful claims by politicians lies in the willingness of the populace to actually believe such claims. Sadly, it does seem as though the majority of people in any country tend to be extraordinarily gullible in this regard.

The very idea that some method can be found that would make it possible to equalise all people is patently ludicrous. There will always be differences in intellect, talent, and ambition from one individual to the next. The idea that any government should somehow enforce the more gifted or more motivated to continually give up the fruits of their efforts, whilst giving those fruits to others who are less gifted and less motivated is, by definition, unworkable.

The Obvious Choice

Such an idea, whether we consider it laudable or not, cannot ultimately succeed. The most that can be expected is that the idea could successfully be enforced, which would result, eventually, in the gifted and motivated ceasing to make the necessary effort to excel. And, of course, in socialist countries, this is what, over time, we see take place.

There is a direct relationship between the degree of “redistribution” by the government and the decline in effort by the gifted or motivated.

Still, there will always exist those who are less gifted or less motivated who will want to believe that political leaders can somehow make this impossible concept a reality. And of course, these people can fully be expected to vote for, or otherwise support, those who make such empty promises.

Therefore, the realisation that should be taken away from this discussion is that, over time, it is perfectly predictable that a given government might ultimately go in a direction of self-destruction, as it will be likely to pander to the majority, who seek such largesse at the expense of others.

What then, of the minority? What of those who are in that group of more gifted or more motivated people—the ones that do, historically, tend to push a society forward with their abilities and efforts?

They have a choice. They can “go with the flow,” should the country in question go into social and political decline; they can accept it and try to muddle through, as did Ayn Rand’s parents after the revolution. Or they can vote with their feet, as did Rand herself.

The results of these choices are plain: Zinovy and Anna Rosenbaum disappeared into Soviet obscurity, whilst daughter Ayn escaped to become a novelist in a freer and more inspiring country: the US.

This scenario repeated itself in Germany and Austria in the 1930s, when such notables as Albert Einstein, Friedrich Hayek, and Ludwig Von Mises made their exits to the US, England, and Switzerland, respectively.

The Writing Is on the Wall

And so it has gone, throughout history. When the writing is on the wall that “the society is doomed,” most people invariably stick it out where they are, hoping either that “things will get better,” or at least, that “it won’t get too much worse.”

In George Orwell’s 1945 book, “Animal Farm,” the pigs convinced the other animals to revolt against the farmer, whom the pigs claimed was oppressing them. When the revolution succeeded, the animals proudly painted the words, “All animals are equal” on the barn. Later, under cover of darkness, the pigs changed the wording to, “All animals are equal, but some are more equal than others.”

This was literally the writing on the wall—the signal that the moment had arrived when the animals should have either overthrown the pigs or, if that was not possible, hopped the fence and skedaddled.

In real life, making this decision is quite a bit more difficult. However, it can be said that Ayn Rand made the task simpler for us. In the quote above, she offers the “writing on the wall.” It only remains to us to decide whether the point she describes has been reached. We can assume that, if we are presently living in a country that matches her description, and it remains possible at present to make an exit, as she did in 1926, we would be well advised to do so.

Certainly, her parents mistakenly waited longer, and young Ayn was the only one who escaped the Soviet Union.

We cannot control the obsessive behaviour of tyrants. They will forever be amongst us, and the majority of people do tend to “go along” in the end, either through ignorance or in the false belief that they will somehow benefit from such tyranny.

Our one choice, therefore, is the one that was faced by Ayn Rand and her parents. They chose differently and their fates could not have diverged more as a result.




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Tonight on The Independents: Ferguson Announcement and Immediate Aftermath, Possibly Featuring Radley Balko, Deroy Murdock, Basil Smikle, K.T. McFarland, and More

||| Mitch K. SmithAlert
viewers might note that tonight’s scheduled episode of The
Independents
(Fox Business Network, 9 p.m. ET, 6 p.m. PT,
repeats three hours later) starts precisely when the Ferguson Grand
Jury announcement is schedule to come. So, Neil Cavuto will intro
the press conference, FBN will run it live, then kick it back to us
for whatever time is left before 10 p.m.

Scheduled to be on the show under these fluid circumstances
are:

* Beloved ex-Reasoner and current Washington Post
criminal justice writer Radley Balko.

* Fox News contributor and National Review writer
Deroy
Murdock
.

* Democratic political strategist Basil Smikle.

* Former Reagan-administration deputy defense secretary K.T.
McFarland
, who will talk about Chuck Hagel’s firing if there’s
time.

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Currency Wars Reignite As Yuan Tumbles Most In 2 Months And Chinese Bond Market Freezes

Did China just re-enter the currency wars? The Chinese Yuan dropped 0.29% overnight – its biggest drop since September and 2nd biggest devaluation since March – as the currency tumbles back in line with the PBOC’s fixing for the first time in over 3 months. Despite ‘hopes’, S&P confirms the recent (and reconfirmed) rate cut doesn’t signal renewed government intentions to resort to aggressive stimulus to prop up economy. More troubling is the fact that China’s huge corporate debt market appears to be freezing as over $1.2 billion in bond sales were scrapped or delayed last week suggesting wall of maturing debt will find it increasingly difficult to roll-over and keep the dream alive (especially in light of Haixin’s bankruptcy last week).

 

CNY dropped notably overnight, now back in line with the PBOC fix for the first time in 3 months…

 

As Bloomberg reports,

PBOC will probably push USD/CNY fixing higher amid expectations for a weaker yen and euro, as well as the need for looser policy at home, according to Richard Iley, chief economist for Asia at BNP Paribas.

 

“China is losing the currency wars, steadily increasing the risk of another engineered bout of CNY weakness,” Hong Kong-based Iley says in interview today

 

Financial conditions are “uncomfortably tight,” and more easing will be required if real GDP growth is to “have any hope of being propped up close to politically mandated levels next year”

*  *  *

And the fundaraising strains appear to be showing up in the Chinese corporate debt space (as Bloomberg reports)

China’s companies scrapped or delayed at least 7.55 billion yuan ($1.2 billion) of bond sales since Nov. 20 as borrowing costs jumped, flagging fundraising strains even as the central bank eased monetary policy.

 

 

The yield on AAA rated corporate securities due in three years rose 17 basis points last week, the most in a year, to 4.43 percent. The increase comes as investors held more cash ahead of planned new share sales this week, with initial public offerings to lock up at least 1 trillion yuan, according to Australia & New Zealand Banking Group Ltd.

*  *  *

but but but, QE and rate cuts and stuff…




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Liquidity Does Not Create Solvency

Excerpted from John Hussman's Weekly Market Comment via Jim Quinn's Burning Platform blog,

The actions of central bankers around the globe which have been driving stock prices higher are not a sign of control. They are signs of desperation. They are losing control. Their academic theories have failed. Their bosses insist they turn it up to eleven. Something is going to blow. You can feel it. John Hussman knows what will happen. Do you?

That said, it’s worth noting that the inclinations of central banks toward quantitative easing and interest rate suppression are increasingly taking on a tone of desperation in the face of accelerating economic weakness in Japan, Europe and China.

 

While the stated objective is to increase inflation, low inflation isn’t really the economic problem – low growth, intolerable debt burdens, and misallocated capital are at the core of global challenges here. Unfortunately, QE only misallocates capital toward more speculation and low-quality debt (primarily junk and leveraged loan issuance), without much impact on real growth. China’s move was prompted in part by a surge in bad loans to the highest level in nearly a decade. The largest European banks now have gross-leverage ratios as high as 30-to-1 (during the credit crisis, one could order the sequence of defaults accurately using this metric, with Bear Stearns, Lehman, and Fannie Mae right at the top). But liquidity does not create solvency, and with credit spreads widening, the growing desperation of monetary authorities is more a negative signal than a positive one.

 

This is much like what we saw in 2007-2008: when concerns about default are rising, default-free, low-interest rate money is not considered to be an inferior asset, and as a result, its increased availability does not provoke risk-seeking behavior. If we observe narrowing credit spreads and stronger uniformity in market internals, we will be able to infer a shift toward risk-seeking (and in turn, a greater likelihood that monetary easing will provoke further speculation). That won’t make stocks any cheaper, and downside risk will still need to be managed, but our immediate concerns would be less dire. At present, current market conditions and the lessons of history encourage us to be aware that very untidy market outcomes could unfold in very short order.

 

 

The upshot is this. Quantitative easing only “works” to the extent that default-free, low interest liquidity is viewed as an inferior holding. When investor psychology shifts toward increasing risk aversion – which we can reasonably measure through the uniformity or dispersion of market internals, the variation of credit spreads between risky and safe debt, and investor sponsorship as reflected in price-volume behavior – default-free, low-interest liquidity is no longer considered inferior. It’s actually desirable, so creating more of the stuff is not supportive to stock prices. We observed exactly that during the 2000-2002 and 2007-2009 plunges, which took the S&P 500 down by half in each episode, even as the Fed was easing persistently and aggressively. A shift toward increasing internal dispersion and widening credit spreads leaves risky, overvalued, overbought, overbullish markets extremely vulnerable to air-pockets, free-falls, and crashes.

Read all of John Hussman’s Weekly Commentary




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Marissa Alexander Takes Plea Deal in Florida “Warning Shot” Case; Three Years in Jail, Most Already Served

The Florida Times-Union
reports on a not very happy
, but not as bad as it could have
been, end to the prosecution of Marissa Alexander for firing a gun
(and injuring no one) when feeling threatened by her husband.

The details:

Two years after her case generated national attention, the
criminal case against Marissa Alexander concluded Monday afternoon
with a plea deal that will see her serve three years in prison.

Alexander gets credit for the 1,030 days she has already been
locked up. She must serve 65 more days and will return to jail
today. She will be released Jan. 27.

Alexander will stay in Duval County Jail. She will not go to a
state prison.

State waived the minimum mandatory 20-year prison sentence under
the deal….

Alexander also got two years of house arrest. She can leave the
house to go to church, doctors’ appointments and work…

Prosecutors said Alexander fired a shot in the direction of her
estranged husband, Rico Gray, that she called a “warning shot.”
Prosecutors had said Gray’s two children were next to him when the
shot was fired, but Alexander disputed that and said they weren’t
in the room.

She faced three charges of aggravated assault with a weapon, and
could have gotten 60 years in prison if convicted….

Alexander was originally convicted in 2012 and sentenced to 20
years in prison. The conviction was later overturned on appeal
because the judge gave faulty jury instructions.

Jacob Sullum has reported early and often on this case and its
implications for justice when it comes to using a weapon in a
non-lethal way for self-defense for Reason;
see all those clips
.

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Mapping Recent “Incidents” Between Russia And NATO

Having previously shown the dramatic build-up of NATO fighter jets around Russia‘s border, we thought mapping the rising number of “incidents” – which are worse than during the cold war – between NATO and Russia this year would be useful…

 

 

It appears Finland and Sweden are the most at risk of a major ‘incident’.

 

Source: The Washington Post




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Aaron Malin on Observers Defending Protesters and Press in Ferguson

ObserversAs protests
surrounding the shooting of Michael Brown intensify in Ferguson and
throughout the St. Louis area, a crack team of lawyers and legal
observers are prepared to respond to respond to illegitimate police
activity. The National Lawyers Guild and other groups have sent
hundreds of lawyers to Ferguson in recent weeks, and they have
worked closely with the ACLU of Missouri, which has hosted local
training sessions for legal observers. Aaron Malin has the
story.

View this article.

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Just 8 Numbers

Originally posted at Macro-Man blog,

26.1% :  The amount that retail gasoline margins expanded in the United States last month, even as prices dropped $0.34/gallon.

202,000:  Number of Google results for "FX price fixing"

542,000:  Number of Google results for "Gas Station price fixing"

$500,000,000:  Average annual cost to the world if one assumes a daily FX fixing volume of $10 billion and that each rate was wrong by an average of 2 bps (bear in mind that those orders against the main direction of the fix receive a windfall, not a cost!)

$1.34 billion:  Average annual cost to just US consumers if we assume price gouging of $0.01 per gallon

$4.3 billion:  Amount of FX-related fines levied thus far

$41 billion:  Amount of total FX fines expected by Citi bank-stock analysts

$594 billion:  Total subsidies, in 2010 dollars, to fossil fuel companies from the US government, 1950-2010.

*  *  *

Makes you think eh?




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Twitter “Hedge Fund Manager” Anthony Davian Sentenced To 4 Years 9 Months In Federal Prison

Over a year ago we reported that one of Twitter early and most aggressive self-promoters, Anthony Davian, was busted for what was at the time financial Twitters’ the first Ponzi Scheme. In our words then:

Once upon a time there was a Twitter-based, pump-and-dumping daytrading bucket shop posing as a “successful hedge fund manager” also known as Davian Letter/Davian Capital Advisors run by an Ohio gentleman known as Anthony Davian, which for reasons unknown even managed to run outside capital (somehow raking up to $1.5 million in idiot AUM, mostly courtesy of his very aggressive self promotion on Twitter using the @hedgieguy handle), and which didn’t like Zero Hedge much.

 

(but that’s ok because the feeling was mutual – we had advised the SEC in late 2009 that the Davian operation was nothing but a ponzi scheme).

 

A few years later, said outside capital is gone (with losses that could have been prevented had the SEC moved earlier) and moments ago, following a four year delay since our notice, the SEC has finally acted and charged Anthony Davian with fraud.

Today, we can close the case on Athony Davian.

As SIRF reports, “Anthony Davian, a once-prolific presence on social media who held himself out as a iconoclastic hedge fund manager prior to his August 2013 indictment on a series of fraud charges, was sentenced several hours ago in a Cleveland courtroom to four years and nine months in federal prison.

The details of the sentencing courtesy of SIRF’s Roddy Boyd:

Anthony Davian, a once-prolific presence on social media who held himself out as a iconoclastic hedge fund manager prior to his August 2013 indictment on a series of fraud charges, was sentenced several hours ago in a Cleveland courtroom to four years and nine months in federal prison.

 

Federal Judge Patricia Gaughan of Ohio’s Northern District court also ordered Davian to make restitution of approximately $1.8 million to his defrauded investors and serve three years of probation after his release. Should Davian waive his right to appeal, he is slated to report to prison in late December or early January, pending his recovery from a recent foot surgery.

 

According to a pre-sentencing guideline federal prosecutors filed on November 18th, they sought a 60 month sentence (and full restitution) for Davian based on an investigation they claimed showed Davian had never sought to manage money, but only to raise investor capital to fund personal and business expenses, including paying off an office lease and attorney fees.

 

A once forceful presence on what is now known broadly as “Finance Twitter,” Davian’s signature remark was “Ching!” (after a trade he had been discussing allegedly turned profitable for his portfolio,) he was the subject of a July 2013 Southern Investigative Reporting Foundation investigation that raised doubts about his performance and whether he was even managing the several hundred million dollars he then publicly claimed.

 

In the weeks after SIRF’s report was released, lawyers from the Security and Exchange Commission and the Department of Justice filed claims in federal court to shut Davian’s portfolios down and seize assets. Apart from an expensive Audi and a Bath, Ohio property where Davian sought to build a mansion, there was apparently little for government lawyers to seize.

 

In the courtroom, according to notes given to SIRF by someone present in the courtroom who asked not to be identified because he sought “to put this behind me,” Davian’s wife and mother made statements that sought mercy from Judge Gaughan before the sentence was entered. His mother discussed what she argued was Davian’s long history of mental illness; his wife said that all of their children had substantive medical issues that were “drowning them in medical expenses.”

And now we look forward to which self-acclaimed “successful hedge-fund manager” on Twitter will take his place.




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