Taking A Swipe At Skype

“Fight Against Stupidity And Bureaucracy”

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No, it’s not me who is taking a swipe at Skype. I use Skype a lot for communicating with people. I find it particularly good for contacting friends in foreign lands, which you can do for free, but also for making paid telephone calls too.

I have been using it for over a decade, almost from it started, and long before it was bought by Microsoft. Although other flavors have arrived on the scene I stick with Skype.

It’s the comfort of familiarity, something I wish the nerds at WordPress would pay attention to instead of continually making smart-ass changes that no one has asked for or wants. If it ain’t broke, don’t fix it guys!

But getting back to Skype, it has now become a victim of the snoopers – again!

This time it has been told it has to appear before a court in Belgium because it refused to hand over customer data following a request for assistance by the Federal Computer Crime Unit of the Federal Judicial Police (FCCU) in a ‘criminal investigation’.

Microsoft has been very sensitive to appearing to buckle under when requested to release information about its Skype users ever since it was alleged that it had changed the architecture of the communications software to make it more “wiretap friendly”, something which it has always denied.

Despite Microsoft releasing transparency reports stating that it had not handed over the content of any Skype conversations in response to regular law enforcement requests, privacy and security analysts remain unconvinced.

Unfortunately, as usually happens when the lawyers get to work, the fundamental importance of this case – which is government’s mania for trying to remove the right to privacy of its citizens – gets lost in spurious legal arguments.

Now, instead of defending the right to privacy, the court’s time is being taken up with deciding whether or not a VoIP service like Skype should be treated as a telecoms operator in Belgium. If it is then it would have to comply with Belgian regulatory requirements for telecoms operators and release data to the snoopers.

I said earlier that the request by the Belgian snoopers is in regard to a ‘criminal investigation’ but the alleged crimes under investigation have not been specified, nor has the identity of the suspect or suspects.

It’s another one of those government catch-all phrases like ‘terrorist activity’ or ‘national security’ that are used as a cover for intrusions into people’s privacy whenever they feel like it.

The result of this Belgian case will be an interesting marker for future attacks on the privacy of Skype users. My guess is that if the snoopers win their case then Skype should brace itself for a multitude of similar requests from governments all over the world. If on the other hand the courts rules in favor of the privacy of Skype users then the government will simply put their hackers to work and try to get the information illegally as they have done and are doing.

So it’s another one of those ‘heads’ privacy loses and ‘tails’ the snoopers win.

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They Got Away With It AGAIN!

“Fight Against Stupidity And Bureaucracy”

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Last week several of the ‘BIG’ banks – you remember, the ones that are too big to let go bust – were fined in the region of $5.7 billion for illegal manipulation of the currency markets.

The usual suspects were included, J P Morgan, Citibank, Barclays  and RBS all pleading guilty – but only after they were sure what the medicine they would be getting would be.

It’s a huge amount of money, there’s no denying that. And losing it will make the banksters hurt a bit. But only a bit.

And that’s the problem.

Yet again the United States government has failed to bring these criminals to justice after more of their deliberate fraud and theft.

In other words, they let them get away with it AGAIN!

Now, if I walk into a branch of, for example, Citibank and try to steal the money that their customers have deposited with them for safe-keeping, I would be videoed, photographed, and if I was lucky enough to get out of the premises, pursued by the police and even the FBI for as long as it took to capture me.

And I couldn’t have any complaints because that’s the way it should be. Thieves should be sought out, captured and after due process thrown into jail.

However, if I am a bankster, have good government contacts, and ply money and favors to those in government, then I am treated very differently.

I can embark on insider trading (which is essentially what the banksters were doing when they were illegally manipulating the currency markets), I can sell loans to people that clearly can’t afford them, then take their houses away or sell on their debt wrapped up in a ‘AAA’ bundle to my richer customers, and after all that steal even more of the money my customers have entrusted to me by awarding myself and my collaborators big bonuses that none of us have earned or are entitled to.

In this scenario am I pursued by the police and FBI?

Nope.

Am I thrown in jail to be the bitch of Skull-cracker Jones or Scarface Smith?

Nope.

Will I have to personally pay back the money I stole?

Nope, again.

So what will happen to me if I am a bankster?

At worst I will get a slap on the wrist and told not to do it again. Even though recent history has proved that this is no deterrent and I will do it again at the first opportunity I get.

And, of course, I don’t have to personally pay the government’s fine no matter how big it may be. Instead my company has to cough up on my behalf.

Not that the company is much bothered either because when it runs out of money it goes back to the government which hands it back at least the value of the fine and usually much, much more.

Think this system is fair?

Neither do I.

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The Only Way Is Up, Unless It’s Sideways.

“Fight Against Stupidity And Bureaucracy”

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It has been nine years since the ‘Fed’ put up interest rates in the US. Not a day goes by when some pundit or other is explaining why an interest rate rise is imminent whilst yet another is warning that the US dollar is about to collapse in a heap.

There’s even a fed funds futures market for people to bet which way they think it is going to go.

For what it’s worth, I think the US dollar will weaken from its current position because a lot of the support it is getting lies solely in the belief that interest rates are about to start going up.

Much of that dollar support is created by continual talk from Yellen and the Fed about raising rates. But the fact is that every time they reach the point at which they said interest rates would rise, they chicken out.

So why does the Fed keep making big promises that it hasn’t the nerve to keep?

Good question, I’m glad you asked.

Although it might make them look a bit foolish, what their continual rate rise threats also do is to help to discourage speculation in US stocks and bonds – not a healthy thing for any economy.

If they do, do it, I don’t think they will until very late in 2015 – maybe not until 2016.

2016?

But wait.

2016 is an election year.

Will Obama deliberately burst Hilary’s Democrat Party bubble by allowing interest rates to rise? He might do it out of spite I suppose. There’s no love lost between them since Obama beat her for the candidacy and then won the Presidential election eight years ago.

But I think the election year may mean we are looking at 2017 for those rate hikes.

So who is right, me and people who think like me or the great unwashed of the media who are still predicting an imminent rate hike.

I wouldn’t bet the farm on it, but I think I might risk a few zero interest dollars that they are wrong and I’m not.

Stay tuned for some gloating or a big spoonful of humble pie come June this year.

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Does My Ass Look Big In This?

“Fight Against Stupidity And Bureaucracy”

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The wife of a friend of mine once asked him, “Does this new dress make my ass look big?” He started off well by replying, “No, of course not, Darling, the dress is lovely.”  And if he’d left it at that he would have scored lots of plus points, but then he added the fateful line, “You’ve just got a big ass!”

 

I may have told you that story before and I may well tell it again, because it’s funny and it’s true. This time it is by way of introduction to today’s post – or rant – on the subject of airline seats. I’ve already given you my two cent’s worth on airfares a few days ago. (Click here if you want to read that.)

Just when you thought they couldn’t get any smaller, or more uncomfortable, airlines are shrinking seat widths yet again to squeeze more passengers in and more money out of them. The latest culprit is Airbus, which unveiled a new 11 seat-per-row reconfiguration for its A380 superjumbo jet.

The Airbus A380 currently seats ten passengers uncomfortably per row in economy in a 3-4-3 configuration, but the new configuration adds yet another seat to the middle section to make it a 3-5-3 – with even less room per passenger and even more discomfort.

 

Airbus are making the excuse that the seats in the new configuration will be the same width as before, which is 18 inches or 46 cms, but then they add the qualifying word “technically” which means whilst what they are saying may be true in theory, in practice you the paying passenger will have less room.

Applying fasab logic to the situation, if you raise an airplane’s seating capacity from 525 seats to 544 seats, and at the same time you don’t make the airplane any bigger, then there is less room for the poor abused passengers. (quod erat demonstrandum or Q.E.D.)

The A380’s main users are Emirates, Singapore Airlines, Lufthansa and Qantas, all of them long-haul carriers meaning you will be squashed up like a sardine for at least eight hours, maybe much, much longer which adds greatly to the discomfort experienced by passengers.

Other long-haul airplanes that are shrinking the width of their seats include the new models of the Boeing 777, many of which are flown by United and American Airlines. They will now come with a squashingly miserable 17 in. seat width.

The seat squashing trend started with the short-haul airlines and they got away with it because of the relatively short journey times. Long-haul is different – much different – and passengers should be less willing to endure many hours of discomfort.

To add a great big insult to this injurious trend, it is all taking place against a backdrop of decreasing fuel costs and rising airfares – in other words more greed than need on behalf of the airline companies who buy these newly configured butt busters.

On the plus side – for passengers – not a single airline placed an order for the world’s two biggest commercial jets, the Boeing 747-8 and the double-decker Airbus A380 during 2014. In fact most of the Boeing 747-8s that have been sold have been mainly the air freighter version. On the negative side, as just mentioned, airplanes like the 777 are also to be made much more uncomfortable too.

With air travel forecast to more than double from today’s 3.3 billion passengers a year to 7.3 billion by 2034 – according to the International Air Transport Association – I fear greatly for the comfort of those of us flying economy.

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The Banksters Balls It Up Again!

“Fight Against Stupidity And Bureaucracy”

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I wrote a post a few weeks ago about the effect that low oil prices would have on the banks. (Click here if you want to read it.) and another the week before last about the reasons for the decline in the oil price (click here if you want to read that)

As they always do, the idiots that run these financial institutions saw something they thought was going to last forever and threw their money and their clients’ money at it without reason.

Nowhere was this type of recklessness more apparent than during the sub-prime fraud when the banksters lent money to people who clearly could not afford it and then sold on those loans as bogus ‘AAA’ securities to their wealthy customers and other buyers who mistakenly thought that the banks would not try to con them.

Well the banks have done more or less the same today.

Banks have been lending hand over fist to oil companies and those who service the energy sector. They have lent billions of dollars that  –  now the oil price has plummeted  –  has no chance of being paid back. They have underwritten bonds, lent money on expensive fracking operations and even financed the speculative building of homes for oil workers.

It was good while it lasted. But it didn’t last long!

In the 1980s something similar happened when energy prices also slumped. Texas was particularly hard hit and many banks either collapsed or had to be rescued because of their bad loans to oil companies and to local real estate developers speculating on the oil boom.

It’s going to happen again.

The bankster’s greed and stupidity means that their banks are going to take another financial hit, they are going to lose more of their customers’ money. Time for another round of big bonuses, if the last disaster is anything to go by!

Obviously they have been too stupid to learn from the past. Not surprising really.

But the big question is what will government do this time?

Has it learned anything?

Will the government let the banks suffer the consequences of their own stupidity, as they should have when the sub-prime catastrophe hit?

Or will they again use OUR money to bail the banks out, making some nonsense excuse that these companies “are too big to allow to go under”?

And we are talking about BIG banks. Wells Fargo, for example, a huge financial powerhouse, made approximately 15 percent of its investment banking revenue from the oil and gas industry during 2014. Another biggie, Citigroup, was much the same, with this sector accounting for around 12 percent.

And it’s not just in America that the pain is being felt this time.

In Canada, which largely avoided the worst of the sub-prime debacle, some of their leading banks could face an even sharper decline in revenues, so reliant is the whole country on the energy and resources sectors. One of Canada’s biggest banks, Scotiabank, derives approximately 35 percent of its investment banking revenue from oil and gas companies, according to 2014 figures.

Then there’s Wall Street.

Usually they make loans like these and sell them off to unsuspecting investors, however, with the very public fall in oil prices that everyone knows about, firms that financed energy deals are now finding it harder to offload this debt.

As an example of their problems, according to a recent NYT report, Morgan Stanley, was among a group of banks that made $850 million of loans to Vine Oil and Gas, an affiliate of Blackstone, a private equity firm. They are still trying to sell on that debt, but no one is buying. Goldman Sachs and UBS led a $220 million loan last year to the private equity firm Apollo Global Management to buy Express Energy Services. Not all that debt has been sold to other investors either so they are left holding that baby too.

That’s only loans to the oil companies and speculators. Some of the worst loans made by the banks have been to a multitude of companies that provide services to the oil industry. Some of these services companies, lured by the oil boom, are relatively new and/or small and probably under-capitalized so their debt burden can quickly drag them under when projected profits fail to materialize.

Naturally you can expect that the banksters will use all their lobbying and political power to make sure the government steps in again.

But the truth is the government really does not need to (they didn’t the last time either). The ‘to-big-to-fail’ banks may lose on their energy bets, but they will recoup a lot of that money from ordinary people like you and I.

Lower oil prices means that we need less cash to fill up our gas tanks or heat our homes, so the chances are we will feel a bit freer to use that credit card or maybe even take out a mortgage.

Of course, for the banksters that’s a slow way to riches. They want that business for sure, but they will also want the government to write off their other bad loans too.

Let’s see what happens this time.

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Two-Faced Book.

“Fight Against Stupidity And Bureaucracy”

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I’m back on one of my pet hates today. Yes, it’s Facebook as you might have gathered from the title. The most successful useless piece of crap ever invented. Wish I’d thought of it.

They make it very easy to sign up to Facebook. In fact they make it compulsory even if all you want to do is be polite and look at a photo one of your friends has sent you a link to.

But it’s not so easy to get back off it again. They say it is, but it’s not.

It’s bad enough that companies like Facebook think they have the right to track your internet movements when you are a signed up member. But Facebook has recently admitted that it tracks non-users as well.

Facebook has apparently been secretly installing tracking cookies on users’ computers, even when they had deleted their account and asked not to be followed. I think this is a breach of privacy rights and plain bad manners too.

Facebook admitted that such cookies may have been placed in what they called ‘a few instances’. It didn’t quantify how many ‘a few instances’ is, but considering the number of people who have used Facebook we could be looking at a big number.

They have tried “Setting the record straight”, and are blaming a ‘bug’ the way you do when you are caught out. But their track record is not good!

By the way, hope you ‘like’ this post on Facebook or we’ll track you down and find out why 🙂

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The High Flying Profiteers And Suckers Like Me!

“Fight Against Stupidity And Bureaucracy”

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Yesterday I wrote a short post about the over-supply in the oil market and how the price has fallen and likely to remain at lower levels for a while – major global catastrophes excepted of course.

The strange thing is – a little bit of sarcasm there, it’s not really strange at all – is that the substantial fall in oil prices has not led to the consumer paying less for their air fares. Gas prices for your car have come down, but the cost of your ticket on the airlines hasn’t. In other words air travelers – suckers like me – are paying the same for a ticket as we were before the oil slump.

I smell a bit of profiteering going on. More than a bit actually. Not to mention collusion between the bigger airlines to keep their ticket prices inflated.

Of course the big airlines counter with arguments like they have to buy their fuel well in advance and therefore they bought at the older, higher price. That may well be true but they are also buying right now at the much lower price which should more than compensate and mean a drop in ticket prices.

Yes – but I mean, no – don’t be silly, the poor airlines have had to invest a lot of money to upgrade their services, fleets and infrastructures.

I would believe that more if I weren’t still traveling on the same clapped out airplanes with wonky seats squashed up against each other in the sardine like manner we have come to hate but endure. On top of that we, the customers, now have to do most of the work for the airline staff like checking ourselves in, printing our own luggage tags, and so forth.

It is remarkable that not only does a significant drop in fuel costs lead to the same or higher airfares, but the much heralded mergers that we are told will increase efficiency and decrease costs also mean the same or higher air fares too.

What these consolidations, or mergers, really do is to reduce competition – there are only four major US airlines American-US Airways, Delta, Southwest and United – and allow airlines to set prices with little fear of being undersold. And in any case, what most of the public do not know is that airlines don’t price their flights based on their cost, they price it based on demand and demand does not seem to be very price sensitive.

It’s one of those heads they win tales we lose scenarios. So don’t hold your breath for anything more than a token drop in airfares in the near future.

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Time For Some Crude Talk.

“Fight Against Stupidity And Bureaucracy”

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It’s not so long ago that I was getting bombarded with emails about how great an investment oil would be.

At that time the predictions by those in the ‘know’, who really know nothing, was that oil would hit $200 per barrel – maybe much, much more!

Well, they almost got the number correct, except that oil actually hit $20 per barrel, not $200. As these things go it was a pretty good guess!!!

So why has the oil price declined and, although it has recovered a bit, why are the predictions for today’s low prices to hold long term?

The simple layman’s answer of course is that the oil price has declined because supply is greater than demand. When there is a surplus of a commodity the price falls and when it is scarce the price rises.

The supply of oil has increased relative to demand for a number of reasons.

The most obvious one is the vast reserves of oil found and now being recovered in the massive shale-oil fields in the United States of America and the tar-sands in Canada that have added more than 5 million barrels per day to domestic oil production since 2008. Able to produce more at home, North America has been able to reduce its demand for imported oil.

The effect of this, of course, is that the OPEC countries have seen their annual revenues fall sharply during the same period. To try to rectify this fall in income, which they need to provide for their own citizens, they have been trying to replace lost revenue from North America by increasing production of their own oil supplies.

In other words, they have created even more over supply in the market, which helps to keep the oil price down.

Then there was the ISIS or ISIL terrorists in Iraq who had taken control of most of the oil fields and were dumping oil on the black market as fast as they could to help finance their war. Recently they’ve lost control of a lot of those oil fields so that part of the equation may no longer be in play to the same extent.

However, if there is a deal ever done with the Iranians and they are able to trade without restriction again, no doubt they will be adding their oil to the market glut which will also help to keep the market over-supplied and the price suppressed.

Then there is the increasing use of compressed natural gas or CNG. This is the natural gas that used to be burned off at the oil wells, but that is now collected, compressed into tanks and used to power vehicles and in drilling equipment, meaning less diesel is purchased.

Despite all these over-supply pressures, the thing that is keeping the oil price from collapsing completely is the continued demand from China. This is a good thing because a long-term collapse in the oil price, whilst it may make life a bit easier financially for many with decreased heating and fuel bills, also has detrimental secondary effects on some parts of the country where the oil industry provides a living for a great many people.

I haven’t had an email about investing in oil for a long time and I don’t expect them to start again soon. Now you know why.

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RIPIE, YIPEE!!!

“Fight Against Stupidity And Bureaucracy”

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In my post last Friday that I called ‘Looking Through The Windows’ (click here if you want to read it)   I mentioned that the demise of Microsoft’s Internet Explorer browser was imminent and Windows 10 would see a whole new ‘streamlined’ internet browsing system bundled with it.

Now it’s official.

Microsoft is indeed ditching Internet Explorer. If fact it is getting rid of the entire brand.

Microsoft has confirmed that it was re-branding its new browser, currently known as ‘Project Spartan’, when it is released in summer.

As usual, the need to kill off Internet Explorer is Microsoft’s own fault. They have released a series of bloated and buggy versions of IE over recent years, every one worse than the previous one. Now IE has attained a very negative reputation with internet users, particularly experienced ones.

But IE’s death will not be a quick and painless one. Instead a lingering demise is planned. Why I don’t know.

Some versions of Windows 10 will apparently still be shipped with IE still on board. Presumably you will have to go through the rigmarole of deleting it and replacing it when the new version is ready. Possibly a reason not to buy the new Windows 10 system until they get their act together.

On the positive side, the new browser will be free. Not because Microsoft likes to give things away for free (that’s not what made Bill Gates the richest man in the world), but because they started that trend when they were trying to kill off Netscape, which they successfully did.

Since then no one pays for a browser. Apple, Google, Mozilla, Opera and the rest are all freebees these days. Inadvertently I suppose Microsoft did us all a big favor.

The only thing that scares me is the hype coming from Microsoft.

Statements like, “Microsoft’s change in direction is a smart, albeit bold, and a symbolic gesture.” don’t fill me with confidence. It is the same type of nonsense that preceded the release of ‘Windows Vista’ and ‘Windows 8’, and if you read last week’s post you will know what disasters I thought they were.

So will a change of name, or re-branding as Microsoft calls it, mean that their new browser will be a good one? The jury is still out on that. Like everything else we will have to wait and see. If they stick with the name ‘Spartan’ the implication would be that the new browser will be slick, fast and not memory hogging. That would indeed be good and a welcome changes from recent versions of Internet Explorer.

Having said that, I don’t think Google Chrome is in any imminent danger though.

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Happy Birthday Dot.Com

“Fight Against Stupidity And Bureaucracy”

Yesterday I was looking through the windows. Today it’s dot coms.

Technically I’m a week late but I thought I would wish good old Dot.Com many happy returns anyway.

Thirty years ago, on March 15th 1985, the first dot.com domain name was registered. It was symbolics.com.

It wasn’t a significant event at the time because way back in 1985 about the only people using the internet on a commercial basis were US government contractors. Ecommerce giants such as Amazon.com and Ebay.com hadn’t even been thought of.

It has all changed since then of course. Slowly at first, only four other dot.coms were registered in 1985, but now thirty years on the total number of registered top-level domains, or TLDs as they are known sometimes, has surpassed 288 million and showing no signs of stopping.

That total includes over 115 million dot coms, which are still the most sought after and most valuable, but there are also dot nets, dot orgs, dot biz, dot infos and a host of others. In fact more than 500 new TLDs are being added to the internet right now, with another 500 in the pipeline.

And the dot com era has spawned an entirely new industry. These names are now traded like commodities, most worth a few bucks, but quite a number making it to 6 and 7 figures (that’s over $1million!).

So what happened to the symbolics.com name? It was eventually sold off for an undisclosed sum to a Dallas, Texas-based investor group in August 2009.

Like I said at the start, Happy Birthday Dot.com, the first thirty years have been good.

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