$147M Bitcoin transaction

A Bitcoin address with a history of large transactions just conducted a transfer worth $147M, more or less.

Rob Ford's exaggerated and imaginary savings to the taxpayers of Toronto

Rob Ford claims that he should be excused for his crack-fuelled, drunken rages while serving as mayor of Toronto, because of the billion dollars he's saved the city. But as a line-by-line analysis of Laughable Bumblefuck's fiscal claims demonstrates, he's just another politician, cooking the books. Cory 13

How would you short London?

Here's a finance riddle: how would you short London's property bubble? House prices are up GBP50K in the last six months, our freeholder is making noises about either buying or forcing us out in order to build a giant tower, and they sold off Scotland Yard (!). They say the market can stay irrational longer than you can stay solvent, and I've been marvelling at the irrationality of London's property market since I moved there in 2003. Just for the sake of argument, if you wanted to put a bet down on a property value crash, how would you make it? Cory 91

HOWTO make $200,000 off of the above-inflation USPS postage hike


The USPS is planning a rare, above-inflation postage stamp price-hike on Jan 26, 2014; and they're also selling "forever-stamps" that can be used at any time. Allison Schrager and Ritchie King show how these two facts in combination offer a significant arbitrage opportunity, and set out a plan to buy 10 million stamps at $0.46 and sell them at $0.48, netting $200,000 in profit, at 4.3 percent.

It's pretty thoroughly thought-through, with a detailed finance and distribution plan. I'd love to see them try it.

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Someone in Chicago used a FTL drive to play the market (or cheated)

Last Wednesday's Fed announcement that it would not taper its bond-buying program triggered huge orders on exchanges everywhere. Several of those orders on Chicago exchanges were placed 2-3 milliseconds after the announcement, which is a good 7 milliseconds faster than the speed of the light-cone emanating from DC, suggesting that either someone in Chicago has a time-machine, or can travel faster than the speed of light, or is a crooked son-of-a-monkey.

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After the Meltdown: tracking the fortunes reaped by the bankers who tanked the economy

The Center for Public Integrity's After the Meltdown series documents the fate of the regulators, executives, and firms that were most directly responsible for the subprime meltdown, and demonstrates that the top bankers for firms like Lehman got unbelievably rich due to their failures, and are still in business with lucrative consulting firms (for example, Lehman CEO Richard Fuld walked away with several hundred million in cash and now has homes in three states and a personal consulting outfit). Consumerist's Chris Morran has done a great job of summarizing the findings:

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Bullshit jobs: why we're not all working 4h days


David Graeber, who wrote last year's incredible Debt: The First 5,000 Years, has an extraordinary essay up called "On the Phenomenon of Bullshit Jobs," which explores the phenomenon of people in productive industries (nursing, teaching, etc) being relentlessly ground down on wages, job stability and working conditions; while all the big money aggregates to the finance industry and a layer of "bullshit jobs" like corporate attorneys, administrators, etc -- who do jobs that produce no tangible benefit.

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Warren Buffet explains why you can't beat the market


In 1975, Warren Buffet wrote a memo to the Washington Post's CEO Katharine Graham about how to invest the company's pension fund. His advice -- to ignore pricey fund-managers, be patient and play the long game -- was good enough that the WaPo pension is still in rude health today. Meanwhile, stark assertions like "the rational expectation of assuring above average pension fund management is very close to nil" continue to have relevance today in questions as diverse as whether we need to pay bankers huge bonuses to keep the "best talent" on hand to how you should invest your pension.

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Student debt and tuition hikes: destroying the lives of America's children


In Rolling Stone, Matt Taibbi takes a long, in-depth look at the scandal of student loans and tuition hikes, a two-headed parasite sucking America's working class and middle class dry as they plunge their children into a lifetime of ballooning debt in the vain hope of a better, college-educated future. The feds keep backing student loans, and the states keep cutting university funding, so the difference is made up by cranking up tuition and shifting the burden to future grads. Meanwhile, the laws that prohibit discharging student debt in bankruptcy, combined with ballooning default penalties (your $30K debt can rocket to $120K if you have a heart-attack and are bedridden and can't make payments) and the most ruthless, unsupervised, criminal collection agencies means that tens of millions of Americans are trapped in a nightmare that never ends -- student debt being the only debt that can be taken out of your Social Security check. Matt Taibbi is a national treasure, and Rolling Stone does us all a service by keeping him working.

If this piece moves you and you want to learn more, Don't miss "Generation of Debt," an important pamphlet on the subject from UC students.

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Unsealed court-settlement documents reveal banks stole $trillions' worth of houses


Back in 2012, the major US banks settled a federal mortgage-fraud lawsuit for $95,000,000. The suit was filed by Lynn Szymoniak, a white-collar fraud specialist, whose own house had been fraudulently foreclosed-upon. When the feds settled with the banks, the evidence detailing the scope of their fraud was sealed, but as of last week, those docs are unsealed, and Szymoniak is shouting them from the hills. The banks precipitated the subprime crash by "securitizing" mortgages -- turning mortgages into bonds that could be sold to people looking for investment income -- and the securitization process involved transferring title for homes several times over. This title-transfer has a formal legal procedure, and in the absence of that procedure, no sale had taken place. See where this is going?

The banks screwed up the title transfers. A lot. They sold bonds backed by houses they didn't own. When it came time to foreclose on those homes, they realized that they didn't actually own them, and so they committed felony after felony, forging the necessary documentation. They stole houses, by the neighborhood-load, and got away with it. The $1B settlement sounded like a big deal, back when the evidence was sealed. Now that Szymoniak's gotten it into the public eye, it's clear that $1B was a tiny slap on the wrist: the banks stole trillions of dollars' worth of houses from you and people like you, paid less than one percent in fines, and got to keep the homes.

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Court finds for man who rewrote the credit-card fine-print to give himself unlimited, interest-free credit


A wily Russian fellow crossed out the fine-print on an unsolicted credit-card application from Tinkoff Credit Systems in 2008 and wrote in his own terms, giving himself unlimited, interest-free credit and exemption from all fees, with a 3MM ruble fee should the bank change the terms and a 1MM ruble fee should they cancel his card. He crossed out the URL giving the terms and conditions and wrote in his own. And a court has ruled that his changes -- which were blindly accepted by the bank -- are binding. He's now suing them for breach of contract, since they refused to pay him the cancellation fee he'd written in -- he's seeking USD727,000.

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How a crook defrauded an online crime BBS

HackBB is a popular underground BBS for computer criminals; last March it went down after a prominent user and administrator called Boneless stole all the funds in an escrow service used by criminals to pay each other for services; destroyed part of HackBB's database; and sent blackmail notes to many of the site's users. Prior to the theft, Boneless had been a sterling member of the community, posting well-written, useful guides to using stolen credit cards, defrauding online bookmakers, and going underground anonymously. After two years' worth of winning the community's trust, he raided them and took the site down. But it didn't last long -- today, HackBB is back up and running.

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What FRPGs can teach us about gold

"Look at games like World of Warcraft, Diablo, Dungeons and Dragons, or the original Final Fantasy. In those games, gold is the money, and you often get gold not by doing an honest day's work, but by running around and beating people up and taking their gold. In other words, the entire world of modern fantasy role-playing is a subtle joke on gold's unsuitability as a medium of exchange." -Noah Smith (via Making Light)

Bank forecloses on wrong house, changes locks, steals tons of stuff, won't compensate owner in full


On Popehat, Ken details the astounding story of Katie Barnett, whose home was burglarized by agents of the First National Bank of Wellston, Ohio, who mistook her house for one that they were foreclosing upon. The bank broke into her house, changed the locks, and got rid of many of Barnett's possessions.

The local police refuse to get involved, and the bank's CEO, Anthony S. Thorne, is refusing to reimburse her in full for her possessions, which were stolen and destroyed by his company. Thorne says that because Barnett can't produce receipts for all of her goods (because who does that?) (and also, even if she had, they'd have been in her burglarized house), and because her recollection of her stuff doesn't match the "inventory" of the bungling bank employees who stole everything she owned, he will not pay her full compensation.

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Legally binding "buzz-off" letters for debt collectors

The Consumer Finance Protection Bureau has released a set of templates for letters to send to harassing debt collectors. These letters contain the binding language required by fair debt collection laws and should cause debt collectors to back off. What's more, they remind debt collectors of the penalties for ignoring such a letter and let them know that you know your rights and are willing to enforce them against the hounds.

New ways to combat harmful debt collection practices (via Consumerist)

(Image: Chopping off my little finger, a Creative Commons Attribution (2.0) image from nihonbunka's photostream)