Tag: Good Writing

It’s Called Fraud

I am referring, of course to Tesla, and the efforts by the board of directors to temporarily pump up the stock price using accounting so that Elon Musk can cash in, because ethics and honesty are only for the little people.

It’s not just Musk though, it’s companies like Norwegian cruise lines, which is using accounting tricks to ignore the effects of Coronavirus so that it can hit the numbers so that its executives get their bonuses.

In the middle of a crisis that threatens to destroy the whole cruise line industry.

At its core is something called adjusted earnings before interest, tax, depreciation and amortization (EBITDA).

The adjustments use factors which are not considered acceptable under generally accepted accounting principles (GAAP), which allows for senior executives to loot the company.

What we are seeing are things like:

  • Not counting stock options grants as an expense so that they can issue those same stock options which the executives convert to cash.
  • Ignoring expenses like interest payments
  • Add in non-existent revenue, such as deferred revenue that results from merger activity. (“Ghost revenue”)

In the case of Norwegian Cruise Lines, it appears that revenue shortfalls from the current pandemic will be ignored because they are, “Not representative of our day-to-day operations and we have included similar nonrepresentative adjustments in prior periods.”

that is accounting speak for, “F%$# you, I want my money.”

The thing is, these are real costs, and real shortfalls, and when companies cook the books to hit numbers to justifiy bonuses, it sucks resources out of the company that otherwise would be invested in improving the business, or ***cough*** Boeing ***cough*** in maintaining a cushion in the event of an event impacting revenues or costs.

See this Twitter thread for a good summary of what is going on:

Stop the looting, and start prosecuting.

No, This is Not Matt Taibbi

I saw that it was Rolling Stone, and I saw the first paragraph of this article about Roger Stone’s legal problems, and I said that this HAD to be Matt Taibbi.

It isn’t, though it is a wonderful bit of prose:

It’s not every day that a degenerate former swinger and serial scumbag who built a career based on a single line of bullshit and self-fellation so constant and vigorous that it is practically a yogic art form stands before the bar of justice, but here we are. Roger Stone is, as he loves to be, in the center of a national political scandal, and with his sentencing approaching in just days, Stone hoped the Trump “Justice” Department would save him from a well-deserved sentence of seven to nine years in prison.

Stone earned the recommended sentence not because he is a Trump ally, but because he threatened witnesses, lied to the court and to the House of Representatives, and got caught. Worst of all, he threatened Judge Amy Berman-Jackson online, defied various gag orders, and engaged in his usual rat-fuckery. He made the mistake of thinking that Judge Berman-Jackson is as gullible as the claque of hangers-on, wanna-be catamites, and scumbag errand boys with whom Stone usually surrounds himself.

………

Stone deserved everything in the first sentencing memo. Every minute. He deserves to be dragged from the courtroom in shackles and issued his itchy, federal-prison poly-cotton orange scrubs. Karmically, he deserves it because he was one of Trump’s lifelong enablers, and because once Trump was elected, Stone trafficked in the most lunatic and corrosive conspiracy theories under the sun. Stone’s gift for sleaze-bag political tactics was always that — tactical. He was great at piling on a wounded victim (see Elliot Spitzer), but it was Trump who kept Stone afloat for decades.

It is a wonderfully savage account of Roger Stone, and his current conviction for lying to Congress.

Read the whole thing.

Tweet of the Day

Why not? She was the most factor in electing him in 2016

Bankole: Is Hillary Clinton helping to elect Trump? https://t.co/yKgjoUeMnE via @detroitnews

— Another Nobody for #Bernie2020 (@laughingliberal) January 27, 2020

Hillary Clinton, even more than her minions, has completely eschewed any responsibility for her loss.

I am not the most self-aware individual, but even I see a serious need for some introspection here.

Tweet of the Day

Particularly since today is the MLK holiday:

Preserving the tweet that got @jaboukie insta banned, for future generations pic.twitter.com/7rPEQYCg2o

— 🌷 (@_flowerguardian) January 20, 2020

This is the best comment I’ve seen about the FBI’s statement about Martin Luther King today ignoring the fact that J. Edgar Hoover had a literally murderous vendetta against him.

Tweet of the Day

It would be hard to come up with a sentence more opposite to objective reality than, “the function of the intelligence community is to speak truth to power.” https://t.co/6z8Do4qHaF

— Matt Taibbi (@mtaibbi) January 17, 2020

This is not quite at the level of, “The world’s most powerful investment bank is a great vampire squid wrapped around the face of humanity, relentlessly jamming its blood funnel into anything that smells like money,” but it is close.

Going There

Over at the Gray Lady, columnist Jamelle Bouie manages to invoke the writings H.P. Lovecraft to describe Donald Trump.

This is not something that I expected to see in the New York Times, but I approve:

Much of the work of H.P. Lovecraft, an American horror and science fiction writer who worked during the first decades of the 20th century, is defined by individual encounters with the incomprehensible, with sights, sounds and ideas that undermine and disturb reality as his characters understand it. Faced with things too monstrous to be real, but which exist nonetheless, Lovecraftian protagonists either reject their senses or descend into madness, unable to live with what they’ve learned.

It feels, at times, that when it comes to Donald Trump, our political class is this Lovecraftian protagonist, struggling to understand an incomprehensibly abnormal president. The reality of Donald Trump — an amoral narcissist with no capacity for reflection or personal growth — is evident from his decades in public life. But rather than face this, too many people have rejected the facts in front of them, choosing an illusion instead of the disturbing truth.

………

I think most observers know this. But the implications are terrifying. They suggest a much more dangerous world than the one we already believe we live in, where in a fit of pique, a single action taken by a single man could have catastrophic consequences for millions of people. This isn’t a new observation. When he was still a rival — and not one of Trump’s most reliable allies — Senator Marco Rubio of Florida warned Republicans that they shouldn’t give “the nuclear codes of the United States” to an “erratic individual.” Hillary Clinton said Trump was “temperamentally unfit to hold an office that requires knowledge, stability and immense responsibility” and that “a man you can bait with a tweet is not a man we can trust with nuclear weapons.”

 One is an incomprehensible evil without the even smallest portion of humanity, the other is Cthulhu.

Good Point

Ian Welsh has a very interesting analysis of the US policy of assassinations targeting leaders of organizations hostile to American interests.

Specifically, he notes that it doesn’t work, think about how many Taliban #2s have been drones, but we continue.

His conclusion, one I wholeheartedly agree with, is that assassination of leaders does not work to stop properly functioning organizations, and that the reason that we continue to use this strategy is because US institutions are fundamentally dysfunctional, where the loss of a leader can put the whole organization at risk:

The assassination strategy the US pursues is interesting, not in what it says about the US’s foes, but what it says about the American leaders. Al-Qaeda’s “No. 2 Man” has been “killed” so often that it’s a running joke, and Taliban leadership is regularly killed by assassination. Bush did this, Obama really, really did this. Probably a lot of these stories are BS, but it’s also probably safe to assume that a lot of leadership has been killed.

The Taliban is still kicking the coalition’s ass.

Leadership isn’t as big a deal as people make it out to be–IF you have a vibrant organization in which people believe. New people step up, and they’re competent enough. Genius leadership is very rare, and a good organization doesn’t need it, though it’s welcome when it exists. As long as the organization knows what it’s supposed to do (kick Americans out of Afghanistan), and everyone’s motivated to do that, leadership doesn’t need to be especially great, but it will be generally competent, because the people in the organization will make it so.

American leaders are obsessed with leadership because they lead organizations in whose goals no one believes. Or rather, they lead organizations for whom everyone knows the leadership doesn’t believe in its ostensible goals. Schools are led by people who hate teachers and want to privatize schools to make profit. The US is led by men who don’t believe in the Constitution or the Bill of Rights. Police are led by men who think their jobs are to protect the few and beat down the many, not to protect and serve. Corporations make fancy mission statements and talk about valuing employees and customers, but they just want to make a buck and will fuck anyone, employee or customer, below the C-suite. They don’t have a “mission” (making money is not a mission, it’s a hunger if it’s all you want to do); they are parasites and they know it. [I would add that our military works toward getting retired generals comfortable sinecures at Lockheed Martin]

Making organizations work if they’re filled with people who don’t believe in the organization, or who believe that the “leadership” is only out for themselves and has no mission beyond helping themselves, not even enriching the employees or shareholders, is actually hard. People don’t get inspired by making the C-suite rich. Bureaucrats, knowing they are despised and distrusted by their political counterparts, and knowing that they aren’t allowed to do their ostensible jobs, as with the EPA generally not being allowed to protect the environment, the DOJ not being allowed to prosecute powerful monied crooks, and the FDA being the slave of drug companies and the whims of politically-connected appointees, are hard to move, hard to motivate, making it hard to get to anyone to do anything but the minimum.

So American leaders, and indeed the leaders of most developed nations, think they’re something special. in fact, getting people to do anything is difficult, and convincing people to do the wrong thing, when they joined to actually teach, protect the environment, make citizens healthier, or actually prosecute crooks, even more so. Being a leader in the West, even though it comes with virtually complete immunity for committing crimes against humanity, violating civil rights, or stealing billions from ordinary citizens, is, in many respects, a drag. A very, very well-paying drag, but a drag. Very few people have the necessary flexible morals and ability to motivate employees through the coercion required.

So American leaders, in specific, and Westerners, in general, think that organizations will fall apart if the very small number of people who can actually lead, stop leading. But that’s because they think that leading the Taliban, say, is like leading an American company or the American government. They think it requires a soulless prevaricator who takes advantage of and abuses virtually everyone and is still able to get people to, reluctantly, do their jobs.

Functioning organizations aren’t like that. They suck leadership upwards. Virtually everyone is being groomed for leadership and is ready for leadership. They believe in the cause, they know what to do, they’re involved. And they aren’t scared of dying, if they really believe. Oh sure, they’d rather not, but it won’t stop them from stepping up.

This not only explains the failure of our assassination policy, it explains the failure of our business, politics, and military.

What we are seeing (taken from the comments to Mr. Welsh’s post) is that our managers are Ayn Rands John Galt made flesh.

Tweet of the Day

If 1024 fair coins are each tossed 10 times, chances are good (> 63%) that at least one will come up heads 10 times in a row; and that coin will be proud to explain how its skill, faith, guts & determination made its achievement possible, and how that combo can work for you too.

— Marian Farah (@bayesiangirl) January 8, 2020

Far too many people are born on 3rd base, and think that they have won a triple.

Winning the birth lottery does not make you a better person.