Archive for May 4th, 2007


Scottish election results

The Scottish National Party (SNP) ended 50 years of Labor dominance in Scotland in Thursday’s vote and Labor suffered heavy losses in local council elections in England and lesser losses in elections to the devolved Welsh assembly.”

This is a historic moment,” SNP leader Alex Salmond said. “The Labor Party has no moral authority left to govern Scotland.”

The SNP strongly supports Scottish independence and plans to put it on the ballot within three years.

From Red Squirrel in the comments here.

The SNP won the election by one seat. Overall, it was a disaster for small parties. Lots of work to do now… [The Scottish Socialist Party lost several seats]

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Hanging chads hits Scotland election?

From Gus Abraham of 1820.co.uk  on the current election debacle in Scotland.

Remember the hanging chads? There was lots of superior sniggering about it at the time this side of the pond as you might imagine.

Looks like our own chads are hanging right now:

Couldn’t be anything to do with the massive rise in popularity of the Scottish National Party could it? It’s not over yet: 31 seats still to be announced

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New Century faces criminal probe

crater

The poster child for sleazy subprime mortgages, New Century Financial, is facing a criminal probe over how they booked gains. It appears they may have been using the MSU Method of Accounting (that would be “Making Sh*t Up”).

In a filing with the U.S. Securities and Exchange Commission, New Century said it was “extremely difficult to validate the assumptions” it used in determining its gains from these transactions called securitizations.

In related news, KPMG, their auditor just quit, something which is a gigantic red flag, and New Century just announced they are laying off 2,000 more employees. Thus, the company as it existed has cratered completely, leaving much road kill in its path. A few fat cats got richer, there was a huge transfer of wealth from the poor and middle class to the ruling class. But this time they all got so greedy and exploitative that their mad schemes for more plunder have exploded in their faces.

CPA Sue Sez: Here’s what New Century’s defense will be during the criminal investigation: (A)”We did not have to consider affordability in our consideration of collectability”: (B) “The debtor is an adult, entirely responsible for his or her own actions. The contract is fair, and allows early repayment. The debtor is responsible for taking actions to protect himself by refinancing. *Thus* we have *no* responsibility”; and (C) In the event of a BK, we are ultimately protected by the lifetime ball & chain of the new bankruptcy law.”

The SEC rules (SAB 102) have been there for a long time, and there’s no excuse for not following them and little if any weasel room.

a]n institution’s method of estimating credit losses should be well documented, with clear explanations of the supporting analyses and rationale.”6 Additionally, the Audit Guide states that “the institution’s conclusions about the appropriate amount [of the loan loss allowance] should be well documented.

An estimated loss from a loss contingency, such as the collectibility of receivables, should be accrued when, based on information available prior to the issuance of the financial statements, it is probable that an asset has been impaired or a liability has been incurred at the date of the financial statements and the amount of the loss can be reasonably estimated.

Translation: The MSU Method of Accounting is not allowed.

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Congress seeks to stop Net evildoers, uh huh

A Senate committee is investigating how to stop “extremists” from using the Internet, or least to monitor what they’re doing, even as they admit that doing so will be difficult at best. Adding to their travails, they’ve not even started doing anything, while holding investigations that demonstrate they’ve apparently got few clues indeed.

Consider these gems of cluelessness:

To Lieberman, the report demonstrates how “the internet is a weapon in the hands of our extremist enemies who use it to plot attack strategies, reach out across borders to potential terrorist recruits with targeted marketing messages and talk with each other in real time.

One wonders how many of those on the committee use the net on a daily basis or understand how it works? Anyone who lives on the net already knows it is borderless, and to say this is like saying cars run on gas. If you have to state the blindingly obvious as a potential insight, then you’ve, um, got a steep learning curve ahead.

Also, his “targeted marketing messages” implies extremists have a hierarchical organization when of course, they don’t, as they function in networks.

If the committee wants to understand how extremists use the net, they should study open source software development. It’s essentially the same process as what John Robb, in his new book Brave New War, calls open source warfare. Everyone has input. New ideas can be adopted by all. Groups form at will to do a project then disband. The profit motive isn’t important. It’s not hierarchical. For those in rigidly hierarchical D.C., these concepts must seem alien indeed.

One puzzle the report cited: “How it is that a nation that gave rise to Silicon Valley, Hollywood, and Madison Avenue came to be outplayed in the realm of ideas, effectively communicated in the new media?”

Could it be because huge hierarchical marketing approaches have nothing to do with the topic at hand?

The group suggested several ways to help remedy the problem, including developing a “compelling counter-narrative for worldwide delivery,” doing more to promote cross-cultural dialogue and “recognize and address the need” for more behavioral research into the process of radicalization.

And what would the counter-narrative be? “We invaded Iraq based on lies, oopsie?” For a narrative to be effective, it needs to be believable or at least partially reality-based. As to why people become radicalized, try, “your assault helicopter blew up our house and killed my parents.”

Yes, I know atrocities happen on all sides. But this is asymmetrical warfare we’re talking about here. Tactics that work for guerrillas often have the opposite effect when used by the state. In Brave New War, Robb details the work of Israeli military historian and strategist Martin van Creveld.

After much study of Israel vs. its enemies, Crevald concluded that 1) when the strong fight the weak, they become weak, 2) the nation-state is in decline, 3) warfare is changing into a form that nation-states will not be able to defeat, 4) when a nation-state takes on a guerrilla movement, it will lose. Why? Because they will be seen as the strong beating up the weak, it will look terrible in the press, and will eventually led to a collapse of morale in the troops and damage the global image of the nation-state. Sounds familiar, doesn’t it?

Meanwhile Congress tries to gallop to the rescue and free the net from the evildoers but just shows their ignorance instead.

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