Category: Business

The Parable of the Frog and the Scorpion in Silicon

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It appears that Qualcomm has plans to design a competitor to Apple’s M1 chip.

I don’t know if they actually have the technical ability to do this, they dominate the cell phone modem and SoC chip markets, but given their record of monopolistic and abusive business practices, what person in their right mind would rely on them for the technical core of their product?

Qualcomm’s new CEO, Cristiano Amon, says the company will have no problem producing laptop chips to compete directly with Apple’s M1—mainly because Qualcomm now employs some of the key minds behind Apple’s highly publicized breakthrough. Amon told Reuters in a recent interview that Qualcomm will attempt to design its own system-on-a-chip (SoC) for laptops without working with ARM, its partner in smartphone chips.

This SoC would include a 5G modem as well as a CPU. Explaining this strategy, Amon said:

We needed to have the leading performance for a battery-powered device. If Arm, which we’ve had a relationship with for years, eventually develops a CPU that’s better than what we can build ourselves, then we always have the option to license from Arm.

This year, Qualcomm purchased startup Nuvia for $1.4 billion. Nuvia was founded by former Apple employees who had worked on the Apple Silicon transition in the lead up to the launch of the M1.

Amon said that Qualcomm intends to use that Nuvia acquisition to drive the development of new chips for consumer devices, including laptops, to offer computer-makers a counterpoint to Apple’s highly efficient silicon.

Seriously, given their behavior in the past, how could ANYONE trust them not to institute onerous licensing requirements as soon as they have achieved a modicum of commercial success?

You know the senario, “Sorry, but we’ve changed our licensing terms.  Instead of the chip manufacturer paying a 30% royalty, the system manufacturer will have to pay a 20% royalty.  Have a nice day.”

Toyota USA Needs a Major Management Shakeup

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This car model from Toyota has taken on a new meaning. pic.twitter.com/dNLMI9GhnC

— MeidasTouch.com (@MeidasTouch) June 28, 2021

Best Tweet on the Subject

Because the car manufacturer leads in campaign donations to members of the “Sedition Caucus” since January 6. 

I understand the need for companies to spread the campaign donations around, I’ve always felt that the current system is more extortion than it is bribery, but you can donate to Republicans without being the single most aggressive of people who supported the insurrection at the Capitol:

Nearly three-dozen corporate PACs have donated at least $5,000 to Republicans who objected to certifying the 2020 election, yet Toyota leads by a substantial margin.

………

By the numbers: Data compiled by the left-leaning watchdog group Citizens for Responsibility and Ethics in Washington show Toyota gave $55,000 to 37 GOP objectors this year.

  • That equates to a quarter of the bloc that voted to nullify President Biden’s win after the Capitol siege.

  • Toyota gave more than twice as much — and to nearly five times as many members of Congress — as the No. 2 company on the list, Cubic Corp., a San Diego-based defense contractor.

  • The Japanese automaker’s donations this year included a February contribution to Rep. Andy Biggs, an Arizona Republican who has been one of Congress’ most vocal election conspiracy theorists. According to an organizer of the “Stop the Steal” rally prior to the Capitol attack, Biggs also helped put on that event, a charge Biggs has denied.

What they’re saying: “We do not believe it is appropriate to judge members of Congress solely based on their votes on the electoral certification,” a Toyota spokesperson said in a statement emailed to Axios. 

This is a bummer.  

I have a 2004 Toyota Prius with about  ¼ million miles on it, and I like the car, I consider it my midlife crisis car,* but it is getting long in the tooth, and it’s getting to be time to find a replacement.

I WAS considering a newer Prius, possibly a Prime plug-in, but I try to avoid buying from companies with stupid and psychotic management.  (It’s actually it’s a REMARKABLY high bar to clear with American management these days.)

Any recommendations from my reader(s) for a decent reliable high MPG car not from Toyota?

*Yeah, a 2004 Prius as my midlife crisis car. I am the dullest motherf%$#er on the face of the earth.

Boeing Still Cannot Make Aircraft

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The FAA has announced that it is delaying certification of their new 777X variant because of design maturity and potentially disastrous problems with its control systems.

Everyone employed at Boeing’s Chicago headquarters beyond the janitors and secretaries need to be fired ……… and into the sun:

In yet another blow to Boeing, the Federal Aviation Administration last month formally denied the jet maker permission to move forward with a key step in certifying its forthcoming giant widebody airplane, the 777X.

In a sternly worded letter dated May 13, which was reviewed by The Seattle Times, the FAA warned Boeing it may have to increase the number of test flights planned and that certification realistically is now more than two years out, probably in late 2023.

That could push the jet’s entry into commercial service into early 2024, four years later than originally planned.

Clearly, someone at Boeing decided to, “Take off their engineer hat and put your management hat on,” with predictable results.*

Boeing is suffering death by MBA.

………

The FAA cited a long litany of concerns, including a serious flight control incident during a test flight on Dec. 8, 2020, when the plane experienced an “uncommanded pitch event” — meaning the nose of the aircraft pitched abruptly up or down without input from the pilots.

Boeing has yet to satisfy the FAA that it has fully understood and corrected what went wrong that day.

After all the troubles with the 737 MAX, you think that they would have that one at the top of their, “To Do” list, but in their rush to meet schedule, and to move production to a non-union facility, they screwed the pooch AGAIN.

“The aircraft is not yet ready,” [local FAA manager Ian] Won wrote. “The technical data required for type certification has not reached a point where it appears the aircraft type design is mature and can be expected to meet the applicable regulations.”

An FAA official, who asked not to be identified in order to speak freely, said the drag on 777X certification is now “the subject of a lot of attention” at high levels both within the agency and at Boeing.

The FAA got burnt by Boeing with the 737MAX, and they are now dubious of Boeing’s claims.

The reputational damage to the Seattle aircraft manufacturer from its rampant managerialism is ongoing and an existential threat to its continued viability as a going concern.

*This is a paraphrase of a comment made to Thikol engineer Roger Boisjoly by an unnamed manager when he warned of the danger of launching the Space Shuttle Challenger in very low temperatures.†

†For those who don’t know your history, the o-rings in the solid booster failed, and the Challenger blew up.

This is an Outrage

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In an otherwise anodyne article about how modern super-hero animation is uniquely innovative and edgy, (This same article has  written at least once every 18 months or so since at least 1980) they release a bit of shocking news, that the producers of the Harley Quinn animated series were forced to delete a scene where Batman went down on Catwoman.

They though that it was the wrong image for a hero, which is complete crap.  Real heroes, and real men, lick pussy.*

My reaction upon hearing the news was, “Will No One Rid Me of these Turbulent Media Executives?”†

Seriously, the Harley Quinn series is profane, with “S” and “F” Bombs, sexual innuendo, violence, murders, and and theater people, how could they not have Batman NOT demonstrating is consideration to his true love’s‡ pleasure?

I am profoundly disappointed, and I want to see if there is a suppressed clip of this on the internet.  It could be the new butthole cut of cats:

“It’s incredibly gratifying and free to be using characters that are considered villains because you just have so much more leeway,” says Halpern. “A perfect example of that is in this third season of ‘Harley’ [when] we had a moment where Batman was going down on Catwoman. And DC was like, ‘You can’t do that. You absolutely cannot do that.’ They’re like, ‘Heroes don’t do that.’ So, we said, ‘Are you saying heroes are just selfish lovers?’ They were like, ‘No, it’s that we sell consumer toys for heroes. It’s hard to sell a toy if Batman is also going down on someone.’”

(In fairness to DC, both Halpern and Schumacker went on to say that the company has been remarkably supportive of their series and has allowed them to push the envelope numerous times. Still, it remains to be seen if Batman and Catwoman will be shown engaging in some bedroom antics in Season 3 or if it will simply be implied via cunning linguistics.)

I want the to see the caring and sharing lover cut of that Harly Quinn episode.

This is not The Onion, it’s Variety.

*Don’t hatge me because I made this joke. If you had thought of it, you would have too.

†It’s a reference to the conflict between Thomas à Becket and King Henry II of England. Read a history book.

‡Unless you think that his true love is Dick Grayson/Robin/Nightwing, but that is would take me down a rabbit hole that involve at least a dozen posts.

It’s All of the “Gig Economy” Companies

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Amazon just settled a lawsuit where it stole tips from its drivers.

The short version is, they used tip data to lower rates to drivers in specific areas.

This is the very epitome of how companies like Amazon, Uber, Lyft, DoorDash, etc. use opaque algorithms to cheat their employees:

The US Federal Trade Commission on Friday announced the approval a consent order against Amazon that requires the company to pay $61.7m to resolve charges that for two and a half years it took tips intended for Amazon Flex drivers and concealed the diversion of funds.

………

The tech giant launched its Flex service in 2015, promising drivers – which it classified as independent contractors and referred to as “delivery partners” – that it would pay $18-25 per hour for the delivery of goods from Amazon.com, Prime Now (household goods), Amazon Fresh (groceries), and Amazon Restaurant (takeout).

Amazon’s ads made promises like, “You will receive 100 per cent of the tips you earn while delivering with Amazon Flex.”

However, during the period from late 2016 through August 2019, drivers – who, as independent contractors, paid for their own car, fuel, maintenance, and insurance – saw only a portion of the promised gratuity when customers opted to tip.

That’s because Amazon allegedly, without telling its drivers, shifted to a “variable base pay” rate, which varied by location, wasn’t disclosed to drivers, and was frequently lower than the promised hourly range.

“Under the variable base pay approach, for over two and a half years, Amazon secretly reduced its own contribution to drivers’ pay to an algorithmically set, internal ‘base rate’ using data it collected about average tips in the area,” the FTC complaint [PDF] explains.

………

To make up any difference between the base rate and the advertised minimum, Amazon is said to have used some or all of any tip left by customers to meet its payment commitment. For example, if Amazon set a base rate for a region at $12 and the customer left a tip of $6 via Amazon’s electronic tip collection system, then the company paid the driver only $12 and augmented the payment with the $6 tip, instead of paying the $18.

This is not enough.  People should be going to jail for this, and not just white collar prison.

This should be hard time in a hard prison, not just because of the scope and callousness of the theft, but because the threat of a few years in Terre Haute will get people to turn on higher ups in the operation.

They stole from thousands of their employees, and they did so knowingly, there are numerous internal emails detailing the reputational risk to Amazon.

Just Desserts

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The explosion of arbitration clauses in business contracts, and the Supreme Court’s enthusiastic embrace of keeping ordinary folks away from fair courts, has led to a situation where there is often no recourse for people cheated by businesses.

People have now created companies that automate the application for arbitration, completely overwhelming the ability of the companies, and the arbitrators, to process:

For years, AT&T worked tirelessly to erode its customers’ legal rights, using mouse print in its terms of service preventing consumers from participating in lawsuits against the company. Instead, customers were forced into binding arbitration, where arbitrators, chosen and paid by the companies under fire, unsurprisingly rule in favor of companies more often than not. Initially, the lower courts derided this anti-consumer behavior for what it was, noting that however brutally flawed the class action is, binding arbitration, at least the way we let companies designed it, in many ways made things worse.

But these lower court roadblocks quickly evaporated when the Supreme Court ruled in 2011 (Mobility v. Concepcion) that what AT&T was doing was perfectly OK. While lower courts saw this as an “unconscionable” abuse of consumer rights and the law, the Supreme Court bought into the ongoing myth that binding arbitration is a hyper-efficient, modern alternative to class actions. In reality, it shifted things to a form of binding arbitration that was costly, lopsided, and cumbersome for consumers, and less transparent for those used to visiting Pacer to dig up legal histories.

Fast forward to a few years ago, when a growing number of companies and services (like Fairshake) began streamlining the arbitration process, making it easier and less expensive for consumers (and yeah, class action lawyers). This shifted the balance of power back toward consumers, and starting in 2018 or so companies like Uber, AT&T and Comcast began to complain they were being swamped with arbitration feuds. Now, a year later, even giants like Amazon are being forced to take consumer complaints back to the courtroom, in part because a system they constructed to dodge accountability is no longer helping them do that:

………

In short, corporations (beginning with AT&T) spent the better part of the last decade fighting for an arbitration system that resulted in fewer payouts, fewer successful complaints, and less overall transparency. And while happy about that initially, the second the internet and technology shifted the balance of power in the other direction, they were eager to flee back to the devil they knew. It should be curious to see if other giants like AT&T also begin stripping binding arbitration out of their end user agreements, or if this is just a temporary setback on the path toward less accountability.

By way of example, Uber has had 12,500 requests for arbitration filed, and it has refused to start the process, which is now being litigated, and Amazon has thrown in the towel, and is allowing customers to file in court:

Amazon.com Inc. has stopped requiring customers to pursue claims in arbitration — rather than a court of law — after tens of thousands of people inundated the company with complaints that the Alexa digital assistant was improperly collecting voice recordings.

Amazon’s terms of service, which govern everything from buying products on the company’s web store to using its consumer gadgets, now lets customers file class-action suits against the company in state or federal court. Previously claimants had to enter arbitration as individuals. All cases must be filed in King County, Washington, where Amazon is based, according to rules that were last updated on May 3.

The change follows the filing of some 75,000 Alexa-related arbitration claims — almost entirely from people represented by Chicago law firm Keller Lenkner LLC — in the last 16 months. The cases likely added up to tens of millions of dollars in filing fees payable by Amazon, according to the Wall Street Journal, which reported the move earlier Tuesday.

Companies have created a biased process, and gone as far as possible to convince any litigant that this process is completely unfair so as to discourage filing.

Someone made it as simple as going to a web site, and clicking, “I agree,” and now they are clicking their asses off.

Nuclear Power, Meet Blue Screen of Death

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I’ve written about Bill Gates plans to create a sodium cooled fast breeder reactor before. 

Well, they (Warren Buffet is involved as well) have now selected a location for the prototype reactor.

I have a number of problems with the reactor in addition to Bill Gates’ involvement:

  • Molten sodium will leak, and it is highly flammable, and is potentially explosive. (The history of sodium cooled reactors is universally horrible)
  • The reactor uses 20% Highly Enriched Uranium (HEU), which enriched is enough to make a bomb.  (You can at levels in excess of 10% enrichment)
  • By design, it produces large amounts of Plutonium. (Traveling Wave Reactor)

Needless to say, I am not sanguine:

Power companies run by billionaire friends Bill Gates and Warren Buffett have chosen Wyoming to launch the first Natrium nuclear reactor project on the site of a retiring coal plant.

TerraPower, founded by Gates about 15 years ago, and power company PacifiCorp, owned by Warren Buffett’s Berkshire Hathaway, said on Wednesday that the exact site of the Natrium reactor demonstration plant was expected to be announced by the end of the year.

Small advanced reactors, which run on different fuels to traditional reactors, are regarded by some as a critical carbon-free technology than can supplement intermittent power sources like wind and solar as states strive to cut emissions that cause climate change.

“Regarded by some,” Huh?  

Maybe if your last name is, “Strangelove.”

………

“This is our fastest and clearest course to becoming carbon negative,” Wyoming’s governor, Mark Gordon, said. “Nuclear power is clearly a part of my all-of-the-above strategy for energy” in Wyoming, the country’s top coal-producing state.

This statement is absolutely false.  The construction of time for reactors is measured in decades, while wind turbines go up in a few months. 

If we need to move now, pretty much any other power source is online faster.

The project features a 345 megawatt sodium-cooled fast reactor with molten salt-based energy storage that could boost the system’s power output to 500MW during peak power demand. TerraPower said last year that the plants would cost about $1bn.

The molten salt energy storage, but using mechanical storage like pumped water is simpler, cheaper, and more efficient.

About the only thing more terrifying than Bill Gates starting up a bunch of nuclear reactors, he’s alreay half way to a bond villain, would be if Comcast were to be running those plants.

Boeing F%$#s Up Again

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Boeing will be delaying delivery of new 787s because of new safety issues.

Once again, Boeing’s MBA driven culture has led to it cutting corners, and the FAA has called foul.

It appeared that faith based safety procedures are not looked upon favorably by the regulatory authorities:

Boeing Co. has halted deliveries of its 787 Dreamliners, adding fresh delays for customers following a recent five-month suspension in handing over the aircraft due to production problems, people familiar with the matter said.

Federal air-safety regulators have requested more information about Boeing’s proposed solution to address the previously identified quality lapses, these people said.

………

A Boeing spokesman said the company was working in a timely and transparent manner to provide regulators with more information related to undelivered 787s. The Federal Aviation Administration on Friday confirmed that Boeing had halted Dreamliner deliveries, saying that the plane maker needs to demonstrate that its proposed inspection method complies with federal-safety regulations.

There are statistical methods to validate these procedures, it’s just that Boeing couldn’t be bothered to take the time, because there were union members to be laid off.

………

The FAA launched a review of Boeing’s Dreamliner production last year and has increased scrutiny of its 737 MAX manufacturing operations following earlier factory slip-ups.

As part of its Dreamliner scrutiny, the agency has recently requested more information about the plane maker’s proposed method for addressing quality issues using a system that would allow for targeted checks of newly produced aircraft, rather than broader inspections of more areas, people familiar with the matter said. Boeing’s proposed method is based on a statistical analysis of data.

Until Boeing can satisfy the FAA’s requests, the agency is requiring Boeing to perform the broader inspections, which are more time-consuming and labor-intensive, these people said.

Many of the 787 quality lapses involve tiny gaps where sections of the jet’s fuselage, or body of the plane, join together. Problems have emerged in other places, too, including the vertical fin and horizontal stabilizer at the tail. Such gaps could lead to eventual premature fatigue of certain portions of the aircraft, potentially requiring extensive repairs during routine, long-term maintenance.

This is a problem with composite structures.  Unlike aluminum, things need to fit exactly, since you there is very little flexing to accommodate tolerance stack-up.

You have to get these shims right, or you get point loads, which are death to composites.

………

Boeing has reduced output of the Dreamliner to five a month after shuttering assembly at its Everett, Wash., plant near Seattle and focusing production at North Charleston, S.C. It had built up a backlog of around 100 finished planes by the end of April, and had hoped to deliver most of them by the end of the year.

Yes, the South Carolina plant, which (by their own admission) they opened just to punish and weaken the union, which has poor training, poor morale, and poor safety procedures.

The management at Boeing does not know how to make airliners, and holds the people who do in deep disdain, and it shows.

When do the crashes start?  

My bad, they already have.

Not Enough Bullets

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After engaging in one of the most brazen and delusional frauds in the history of history, former WeWork CEO Adam Neumann will get even more money as payment for leaving the criminal enterprise that he founded.

Whoever said that crime doesn’t pay has clearly never been funded by Softbank: 

Nearly two years ago, SoftBank Group Corp. sought to part ways with WeWork co-founder Adam Neumann when it bailed out the shared-office company. It hasn’t been an easy divorce.

Securities filings from earlier this month show WeWork in February gave Mr. Neumann an enhanced stock award worth roughly $245 million, a benefit that wasn’t extended to other early shareholders and hasn’t been previously reported.

The deal was part of a renegotiation of the former chief executive’s giant 2019 exit package meant to end a long-running dispute between him and SoftBank and help clear the way for a public listing for WeWork, according to people familiar with the matter.

In addition, the final package gave him nearly $200 million in cash, let him refinance $432 million in debt on favorable terms and allowed an entity Mr. Neumann controls to sell $578 million in WeWork stock.

………

The filings also show how, after Mr. Neumann’s exit in the fall of 2019, WeWork took big losses as it sold off a number of companies acquired at his direction. It garnered just $164 million on 10 investments that were initially purchased for $759 million in cash and WeWork stock.

………

Executive-severance experts said the package stands out not only for its enormous size, but also given Mr. Neumann’s record. The valuation of WeWork, which he co-founded in 2010, fell to around $8 billion when he left from $47 billion in early 2019. In all, WeWork has raised more than $11 billion to build a company worth $7.9 billion, not including debt.

This guy should be sharing a cell with Martin Shkreli, not getting hundreds of millions more dollars in remuneration.

The man looted the company, and has been rewarded for this.

Something is very wrong with our society’s incentives.

The Colonial Pipeline Was Unaffected by the Ransomeware Attack

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It turns out that the systems controlling the pipeline continued to function as intended, it was only the billing systems were hit, which means that the decision to shut down the pipeline, which threw much of the East Coast of the US into a panic, was not about safety, and critical infrastructure was not impacted, it was just that collecting payments from customers became more inconvenient.

The technical term for what Colonial did was irresponsible, and possibly negligent.

Why am I not surprised that Koch Industries, aka, the Koch Brothers, are a major shareholder?

This, “F%$# you, pay me,” attitude is integral to their warped souls:

The cyber attack that shutdown the Colonial pipeline causing a gas panic and stoking fears of gasoline shortages, didn’t actually shut down the pipeline. It impacted the billing system at the Colonial Pipeline Co., which shut it down because they were worried about how they’d collect payments. 

Yes, the fuel-carrying pipeline was shut down last week in order to prevent a company that is entrusted with what should be a public utility from enduring an accounting headache.

I really hope that someone, I’m looking at you Katie Porter, to whip out the old white board, and cut the executives running a new asshole at hearings.

For the problem described, they could have set up a paper system, and faxes, (or scanners and Gmail) to handle billing temporarily in perhaps 48 hours.

Boeing Still Can’t Build Planes, Part 4⁹

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In 2019, a sweeping transformation of Boeing’s quality system deliberately eliminated thousands of quality checks during production and cut 100s of quality inspector jobs.

Ernesto Gonzalez-Beltran, the architect of that shift, left the company in Decemberhttps://t.co/SbcHIzcnFp

— Dominic Gates (@dominicgates) May 18, 2021

Roll Tape!

Boeing has finally been forced to accept the fact that axing hundreds quality inspectors in order to bust the union did now work, and now they are rehiring the inspectors that they laid off, and they canned the architect of the failed program:

The Boeing Co. has quietly recalled at least some of as many as 900 quality control inspectors who were laid off in 2019 as part of a drive to adopt car-industry manufacturing processes in aerospace manufacturing.

The move comes after the union for the inspectors – Machinists District Lodge 751 – pushed the company to prove that getting rid of inspectors could be done without risking quality issues and would actually improve production times.

“Our union’s goal is to save Boeing from making decisions that could be detrimental to (its) future and ours,” union leaders said in its monthly AeroMechanic newsletter. “A second set of eyes is a critical component of building Boeing airplanes and necessary for the long-term success of the company.”

A union spokeswoman said she was unable to say precisely how many of the inspectors were initially laid off, and how many have been brought back since the recalls started. Boeing’s media relations team did not respond to a written list of questions on the topic.

………

In theory, if you eliminate the downtime and the inspections a few thousand times on each plane, that adds up to substantial savings in production time without any investment in people or tools.

IAM 751 appealed to the Federal Aviation Administration to look into Boeing’s plan and made rumblings about getting its supporters in Congress to intervene. Congress is now preparing an investigation into quality lapses at Boeing.

But the deciding factor, in this case, seems to have been the union’s demand to enter into what’s called effects bargaining. Since Boeing was eliminating 900 jobs, the union claimed the right to negotiate over the impact of those changes on its members.

As a result of these talks, Boeing and the union agreed that a team of union-appointed experts would begin reviewing data in areas where inspections were ending, with the ability to propose reinstating inspections when warranted, using Boeing’s own risk assessment criteria and FAA regulations as guidelines.

No Efficiency Gains

What the experts found was that eliminating inspections did not lead to a more efficient production process, the union said.

They f%$#ed up their quality processes for nothing more than the hope that they could fire some union members, and they failed.

If you fired Boeing’s entire C-Suite and replaced them with dirnking bird toys, you would increase productiveity and product quality.

Yeah, Subsidies, That Will Work

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The California Air Resources Board (CARB) has come to the conclusion that the Gypsy cab companies like Uber and Lyft are dysproportionally responsivle for greenhouse gas emissions in the state, and so they are looking to pass a rule mandating electric vehicle adoptions by those companies.

Uber and Lyft want public subsidies to follow the law.

The response of California should be to tell them to go Cheney themselves:

California clean-air regulators want nearly all trips on Uber and Lyft ride-hailing platforms to be in electric vehicles, mandating costly measures that the companies call unrealistic without more public subsidies for EVs.

………

And yet the firms are pushing back on the CARB effort to force the transition, arguing taxpayers should shoulder much of the burden.

………

Uber and Lyft say they can’t afford the EV transition either. Uber said in a December letter to CARB that, without “sufficient” subsidies, the rule would unduly burden the companies, along with their drivers and consumers.

Uber and Lyft have already proved that they are an enemy of good government (Proposition 22), let them pay their own way.

My Heart Bleeds Borscht

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Elizabeth Holmes’ lawyers are desperately trying to hide her extravagant lifestyle from the jury, because they know how poorly this will fare with a jury.

Needless to say, the prosecution wants to include this information, both because it would make the jury hostile to her, and because it goes to motive.

I’m rooting for the prosecution:

Attorneys for Theranos Inc. founder Elizabeth Holmes sparred with federal prosecutors Thursday over whether details of the wealth, fame and perks she attained as chief executive would be relevant to jurors at her coming criminal fraud trial.

“What she wore, where she stayed, how she flew, what she ate—has nothing to do with this trial,” Kevin Downey, an attorney for Ms. Holmes, said in federal court in San Jose, Calif.

Ms. Holmes is facing a trial in late August on charges of wire fraud and conspiracy to commit wire fraud for alleged misrepresentations she made about Theranos’s blood-testing technology.

………

U.S. District Judge Edward Davila said Thursday he had concerns about whether prosecutors could talk about the popularity Ms. Holmes obtained as CEO along with perks such as the use of a private jet and stays in fancy hotels. Ms. Holmes was once worth $4.5 billion on paper. Mr. Downey said in court she received a salary of a “couple hundred thousand dollars a year,” which he said was probably less than many of her peers.

………

“The point here is the so-called success of Theranos was entirely the product of a fraud,” Assistant U.S. Attorney John Bostic said in court, arguing that details about her lifestyle are relevant because they can help show Ms. Holmes’ motive.

………

Attorneys for Ms. Holmes argued this week that jurors could unfairly view the violations found by the Centers for Medicare and Medicaid Services and Food & Drug Administration as proof that Ms. Holmes is guilty.

“The jury could convict based on violation of a regulation, that’s the danger,” Jean Ralph Fleurmont, a Williams & Connolly attorney representing Ms. Holmes, told the judge.

Ummm ……… That Theranos, and hence Holmes, was knowingly violating regulations goes to the heart of the fraud.

The fact that she repeatedly violated goes to intent, particularly when she threatened people who notified of her of problems.

Prosecutors said Ms. Holmes regularly cited Theranos’s compliance with federal standards to the press and in board meetings, making it relevant. The fact that they weren’t complying with industry standards is “a brick in the wall” that helps show the company’s tests “were not accurate or reliable,” assistant U.S. Attorney Robert Leach said.

I think that Elizabeth Holmes should be treated fairly and equally, by which I mean that she should be treated like a random minority accused of low level bunco.

Boeing Still Can’t Make Planes

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The FAA will audit Boeing following the discovery of a serious manufacturing flaw.

The short version of this is that Boeing has systematically dismantled procedures to allow employees to report safety issues on the shop floor to senior management, because the management fetishist MBA culture that was imported from McDonnell Douglas when they acquired the firm.

Since McDonnell took over Boeing with Boeing’s money, they have systematically dismantled every advantage that Boeing once they came on board:

Boeing Co. is facing an audit to determine why changes in its manufacturing practices on the 737 Max led to a hazard that went unnoticed for almost two years.

The Federal Aviation Administration, which oversees Boeing and has meted out multiple civil penalties against the planemaker in recent years, said in a statement Thursday that it is also investigating the origin of the manufacturing flaw.

“These initiatives are part of our commitment to continually evaluating and improving our oversight of all aspects of aviation safety, recognizing that catching errors at the earliest possible point enhances what is already the world’s safest form of transportation,” the agency said.

………

The flaws in the electrical components raise new questions about Boeing’s ability to monitor safety issues within the company. The lack of a robust internal safety review and oversight system was cited repeatedly by multiple reviews of the 737 Max crashes.

Until recent months, Boeing didn’t have what is known as a Safety Management System, which requires an organization to conduct more robust risk analyses of design features, open channels for employees to raise concerns and involve senior management.

………

The changes to how certain electrical components were installed on the 737 Max occurred in 2019. At the time, Boeing concluded it was such a minor change that it didn’t require FAA approval, the agency said in a statement. Similarly, Boeing employees who are deputized to act on behalf of the federal regulator also didn’t approve of the changes.

………

The electrical problem was deemed serious enough that the agency said it was waiving the normal period for public comment and would require the repairs as soon as Boeing completes a bulletin detailing them.

Boeing is being run by finance guys, and their business model is tor burn the the company down for the insurance money.

The Just in Time Economy

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Now the global chip shortage has moved from automobiles to consumer electronics.

The capitalist system cannot create robustness in markets, because the creation of safety margins are expensive, and inherently unprofitable.

Our hyper-efficient global economy has a glass jaw:

The deepening global chip crunch is spreading to makers of smartphones, televisions and home appliances, according to suppliers in Asia, as companies boost stockpiles of in-demand semiconductors.

Chip supplies have tightened due to booming demand for electronics during the Covid-19 pandemic and outages at large production facilities.

But the shortage has been worsened by hoarding by sanctions-hit Chinese groups, which has made it harder for some companies to secure components for everyday electronics such as washing machines and toasters.

………

LG, a big appliance maker, said the chip shortage had not yet disrupted its production but admitted it was a risk. “We are closely monitoring the situation as no manufacturer can be free of the problem if it gets prolonged,” the company said.

A small TV maker in Seoul said: “It is getting more difficult to secure key components unless you pay higher prices. We have to hike TV prices, reflecting the rising material costs.”

Production of low-margin processors that carry out simple tasks such as weighing clothes in a washing machine or crisping bread in a smart toaster has been affected.

“Microcontroller units are in tight supply, which could be impacting general appliances,” said Randy Abrams, head of Asian semiconductor research at Credit Suisse.

………

Foundries in South Korea said they were unable to satisfy surging orders even while operating at full capacity.

This is why we need governments, and government regulation.

Running a society completely on selfishness is insane.

A Good Start

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One of the problems with privacy is that law-enforcement uses private actors to collect personal information to collect data which it would otherwise be constitutionally forbidden from doing.

Senator Ron Widen has introduced the 4th Amendment is not for Sale Act to forbid this.

It’s nice, but the bill should be expanded to the point where Peter Thiel’s Palantir is driven out of business:

Federal agencies have taken advantage of legal loopholes to collect massive amounts of personal information from cell phone and internet users without congressional or judicial authorization for years, but that practice is being challenged by a bipartisan and bicameral group of lawmakers who introduced legislation on Wednesday that would prevent the U.S. government from buying individuals’ information from data brokers without a court order.

Led by Sen. Ron Wyden (D-Ore.), a group of 20 senators introduced the Fourth Amendment Is Not For Sale Act (pdf) in the upper chamber of Congress. Reps. Jerry Nadler (D-N.Y.) and Zoe Lofgren (D-Calif.) also unveiled an equivalent bill in the House.

By closing major loopholes in federal privacy laws—including the Electronic Communications Privacy Act and the Foreign Intelligence Surveillance Act—the newly proposed legislation seeks to protect everyone in the U.S. from unlawful searches and seizures, one of the key civil liberties spelled out in the Bill of Rights.

In a press release (pdf), the lawmakers said that “while there are strict rules for consumer-facing companies—phone companies like AT&T and Verizon and tech companies like Google and Facebook—loopholes in the law currently permit data brokers and other firms without a direct relationship to consumers to sell Americans’ private information to the government without a court order.”

………

The Fourth Amendment Is Not For Sale Act would require law enforcement agencies to obtain a court order before accessing data about people through third-party brokers that “aggregate and sell information like detailed user location data, surreptitiously gathered from smartphone apps or other sources,” The Verge reported Wednesday.

As Free Press Action explained, the bill would also prevent “police and intelligence agencies from buying data on people if the information was obtained from a user’s account or device, or via deception, hacking, violations of a contract, privacy policy, or terms of service.”

In addition, the bill would close loopholes that enable the national security state to buy metadata about U.S. residents’ international calls, texts, and emails, and to collect records about their web browsing of foreign websites. While this is information that would typically require a warrant to access, the intelligence community has found ways to circumvent the Fourth Amendment, routinely violating individuals’ constitutional rights in the process.

Call your Congress Critters and tell them to support the bill.

Not only will it force elements of the state security apparatus to behave more ethically, but it will also take money out of the pickets of the data brokers.

H/t naked capitalism.

Also, NYPD Officers Will Have to Start Asking Their Wives for Blow Jobs Again

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On the Stellar Parthenon BBS, user DC noted, upon hearing that the Manhattan DA will stop pursuing prostitution prosecutions, cynically observed that, “The income for NYPD officers just dropped by 20%, now that they can’t shake down the women.“

I noted (See title) that it will likely effect their home and family life as well. 

Manhattan District Attorney Cy Vance, Jr. announced on Wednesday that his office would no longer prosecute prostitution and unlicensed massage.

The new policy, according to a press release from the office, will prevent unnecessary future contacts with the criminal justice system, eliminate the collateral consequences associated with having a prostitution case or conviction and “empower New Yorkers to interact with law enforcement without fear of arrest or deportation.”

“Over the last decade we’ve learned from those with lived experience, and from our own experience on the ground: criminally prosecuting prostitution does not make us safer, and too often, achieves the opposite result by further marginalizing vulnerable New Yorkers,” Vance said in a statement.

“By vacating warrants, dismissing cases, and erasing convictions for these charges, we are completing a paradigm shift in our approach,” he added.

Amazon Fesses Up in Pissgate

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Amazon has been trolling its critics so unhinged lately that their own IT department thought that someone had hacked their Twitter account. 

This is because many public figures, indluding many leading lights in the left wing of the Democratic Party, including Bernie Sanders and Alexandria Ocasio-Cortez, have been highlighting the brutal inhumanity of Amazon’s treatments of its workers, including allegations that the schedules for its drivers are so tight that they have no time to relieve themselves, and have to use pee bottles.

Amazon furiously denied those allegations, maintaining that they treat their employees well, and no one has to piss in a bottle to make quota.

Or rather, Amazon WAS denying those reports, but now they are saying that their earlier statements were inoperative:  Drivers were using pee bottles after all:

Amazon has apologized to the congressman Mark Pocan, admitting to scoring an “own goal” in its initial denial of his suggestion its drivers were sometimes forced to urinate in bottles during delivery rounds.

“We know that drivers can and do have trouble finding restrooms because of traffic or sometimes rural routes, and this has been especially the case during Covid when many public restrooms have been closed,” the company said in a blogpost.

Its admission came a week after the Wisconsin Democrat criticised working conditions for Amazon staff, saying in a tweet: “Paying workers $15 [an hour] doesn’t make you a ‘progressive workplace’ when you union-bust and make workers urinate in water bottles.”

Amazon responded: “You don’t really believe the peeing in bottles thing, do you? If that were true, nobody would work for us.”

It subsequently walked back that comment.

………

Pocan tweeted that the company should acknowledge “the inadequate working conditions you’ve created for all your workers, then fix that for everyone and finally, let them unionize without interference.”

Indeed.

Amazon is a horrible place, run by a horrible person, and if you buy from them, you are a co-conspirator.

This Has Gotta Hurt

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It appears that even CrossFit is sick and tired of Marjorie Taylor Greene’s antics:

With every pull-up, power snatch, and hotel-room burpee, Marjorie Taylor Greene used CrossFit to build her brand, from gym owner to the House of Representatives’ most visible far-right conspiracy theorist. Before and during her political rise, CrossFit’s headquarters ignored Greene’s existence and her praise of the company’s workout programs — until now.

CrossFit for the first time disavowed Greene after BuzzFeed News asked in February about her history of calling for violence against political enemies, support for QAnon, attempts to undermine the 2020 presidential election, and amplification of other dangerous and deceptive nonsense. “CrossFit supports respectful fact-based political dialogue to address our common challenges, and we strongly oppose the loathsome and dangerous lies attributed to Ms. Greene,” Andrew Weinstein, a CrossFit spokesperson, told BuzzFeed News.

………

CrossFit has attempted to revamp its image — but without alienating a large swath of its supporters — after former CEO and owner Greg Glassman resigned in June 2020. That’s when BuzzFeed News published his leaked call with affiliate owners where he questioned why the company would mourn George Floyd’s killing and where he spread vicious racist and QAnon-adjacent conspiracies. In its wake, CrossFit athletes announced that they would boycott the brand’s marquee event, the CrossFit Games, unless new leadership were installed. Gym owners canceled their affiliations and changed their names.

Since CrossFit was founded, it has been a welcome space for conservatives, gaining early traction with law enforcement and military members. Under Glassman, the company’s brand was built on a “libertarian” and machismo philosophy and fostered a tough culture. CrossFit’s statement criticizing the views of a pro-military Republican member of Congress shocked long-term members.

“It ends up by saying we don’t support this lady, which is a pretty hard stance to take especially for CrossFit being as tied to it is to the military and generally the conservative movement,” a member of CrossFit’s new Diversity, Equity, and Inclusion Council told BuzzFeed News after hearing the statement.

BTW, am I the only one who thinks that Marjorie Taylor Greene might be abusing anabolic steroids as a part of her fitness regime?

It would explain her behavior, but then again, I’m an engineer, not a psychiatrist or endocrinologist, dammit.*

(Full disclosure: I have a family member who is prominent in CrossFit.)

*I love it when I get to go all Dr. McCoy!

Remember When I Said that Contextual Ads Were More Effective?

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I pointed to the case of a Dutch broadcaster who got better results, and more revenue, when they stopped using ad tech that tracked and identified (stalked) people, and switched to ads based on the contents of the web page that they were viewing. 

Well, with Google shifting its own ad tech, some other companies are discovering that what they were sold by Google and Facebook was complete pants: 

Bacardi last October ran a test to tell whether its campaign promoting Bombay Sapphire in the U.K. could boost sales and brand favor—and in the process help answer a broader question about the long-term fate of its digital marketing as the way consumers are targeted for ads faces a shift.

The campaign took 10,000 anonymized identities of people who had visited the gin brand’s distillery or website, and sent them offers like promotional emails or Instagram ads promising drink recipes and early access to new products.

The result was a click-through rate, which indicates how often ad exposures lead to clicks, around 9% higher than previous campaigns that relied on common but now endangered targeting methods, such as using data from third-party sources. The new campaign also saw a 14% increase in cost efficiency as measured by a cost-per-click metric.

Bacardi says those and other encouraging signs give it confidence in its ability to build its brand and sell products even once it no longer has access to individual ad tracking and targeting technology that Google plans to move against next year.

My guess is that Bacardi’s marking department is calling Google and Facebook and the other “Stalker Advertisers”  pig felching* c%$# sucking con men who should be put up against the wall, because they realized that they have been scammed.

You want to sell booze?  Buy ads on booze web sites.

It’s that simple, and it’s cheaper, and far less opaque.

*If you do not know that that word means, Don’t Google It. Trust me.