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Amazon Goes Full Orwellian

Amazon Goes Full Orwellian


Bezos poised to become knower of all things, with strategic moves to collect info on individuals inside and out.

“We know that no one ever seizes power with the intention of relinquishing it,” came a warning from George Orwell’s novel, 1984, that is rapidly, wickedly, becoming prophecy with new Amazon eye-in-the- sky technology and a dark and disturbing twist. The American Civil Liberties Union (ACLU) is poking that eye with a sharp stick.

And Jeff Bezos is not feeling the love.

In what appears to be Bezos’s latest strategic move in the quest to replace God as knower of all things is a hybrid monster of facial recognition software and a doorbell camera widget manufactured by Ring, a company that Amazon bought earlier this year.

In a gross assault on the right to privacy, a patent filed months ago essentially describes a product that captures information on people who as much as walk past a doorbell, sending real-time information to police databases.  It also will allow customers the ability to upload to law enforcement photos of anyone they deem might be a sketchy individual.

What does a non-sketchy, normal person wear when ringing a doorbell?

Jacob Snow, a technology and civil liberties attorney for the ACLU, is fired up and fighting:

“It’s rare for patent applications to lay out, in such nightmarish detail, the world a company wants to bring about.  Amazon is dreaming of a dangerous future … ”

Or perhaps Bezos dreams of ruling the world.

Biometrics Bastardization

But attaining an unlimited collection of facial snapshots is just the beginning. A deeper dive into the patent application reveals that Amazon is prepping to expand its unlimited munitions stash of photos with other biometrics.  And what it plans to extract from unsuspecting folks will horrify freedom-loving Americans.

…click on the above link to read the rest of the article…

Police Use Facial Recognition Doorbells To Create Private Watchlist Networks

Police Use Facial Recognition Doorbells To Create Private Watchlist Networks

Earlier this year, I reported that Amazon’s spying Ring doorbells are being installed everywhere and how everyone’s privacy is at stake.

But a recent CNN article revealed that Amazon wants to turn homeowners’ doorbells into facial recognition devices using their Rekogntion software.

An Amazon patent application which was made public on the United States Patent and Trademark Office website, describes how a network of cameras could work together with facial recognition technology to identify people.

Amazon also wants homeowners to create their “own” private database of suspicious people, effectively creating private watchlist networks.

The application describes creating a database of suspicious persons. Unwanted visitors would be added to the list when a homeowner tags them as not authorized. Other people could be added to the database because they are a convicted felon or registered sex offender, according to the application. Residents may also alert neighbors of a suspicious person’s presence.

Because who doesn’t want to create a private watchlist of your friends and neighbors?

Amazon is not the only company that wants you to spy on your neighbors.

Nest Hello is Google’s facial recognition doorbell that can identify anyone and store their images to the cloud. Homeowners are required to sign up for a Nest Aware subscription that ranges anywhere from $5.00 to $30.00 a month.

Arlo Audio Doorbell, August’s Doorbell Cam ProSkybell and Netatmo are also profiting from turning neighbors into government spies.

Earlier this year an article in the Orlando Sentinel revealed that police have created a private neighborhood network of 10,000 spying doorbells.

Orlando Police are hoping further access to the network of about 10,000 Ring users in Orlando will help the department solve burglaries, mail thefts and other crimes.

…click on the above link to read the rest of the article…

Friday Hasn’t Even Started Yet, But It’s Already Ugly

Friday Hasn’t Even Started Yet, But It’s Already Ugly

The FANGMAN stocks went to heck afterhours.

Just a note to show how decrepit and ephemeral the enthusiasm for stocks is.

So far in October, the S&P 500 has booked 13 losing days, including October 10, when the index dropped 3.3%, and October 24, when it dropped 3.1%. Then came today, with the feel-good moment of a boisterous 1.9% gain. And then came after-hours trading, and nearly everything went to heck, particularly the FANGMAN stocks that weigh so heavily on the index with their $4-trillion market cap. And Friday morning looks already ugly. All of the FANGMAN stocks were in the red in late trading:

  • Facebook [FB]: -2.3%
  • Amazon [AMZN]: -7.4%
  • Netflix [NFLX]: -2.8%
  • Google’s parent Alphabet [GOOG]: -3.7%
  • Microsoft [MSFT]: -1.5%
  • Apple [AAPL]: -0.4%
  • NVIDIA [NVDA]: -2.8%

There were some standout reasons:

Amazon plunged after it reported record profit but missed on revenues and guided down Q4 expectations for sales and profits, a sign of slowing revenue growth. It was down as much as $150 a share, or almost 9%.

Google’s parent Alphabet reported that revenues grew 22%, which missed expectations. Earnings beat, but a considerable slice – $1.38 billion! – of those earnings came from the gains in its portfolio of equity securities. CFO Ruth Porat warned that traffic acquisition costs would increase further as consumers are shifting search activity from desktop computers to mobile devices. Shares plunged up to 5%.

Intel [INTC] reported earnings that beat expectations, and shares initially jumped, but during the earnings call, things got muddled fast, and shares gave up their gains.

Advanced Micro Devices [AMD], an Intel competitor, had plunged 15% during the day despite the big rally in tech shares, after reporting results and discussing a graphics-chip glut resulting from the collapse of the crypto-mining business. It lost another 3% after hours.

…click on the above link to read the rest of the article…

Did The Nasdaq Bubble Just Burst?

Regular readers will recall when back in March, Bank of America cautioned that after the tech bubble in 2000, the housing bubble in 2006, we were witnessing the third biggest bubble of all time: the e-Commerce bubble.

Well, after several weeks of sharp volatility which has hammered tech stocks, slammed momentum trades and hurt growth factors, the tech sector is once again sharply lower after hours largely on the back of disappointments from Google and Amazon, with the  ETF which tracks the Nasdaq 100 dropping about 2%, and threatening to slide back into a bear market.

The reason for this latest weakness in the QQQs may be that investors are finally realizing that the latest Nasdaq bubble may have popped, if for no other reason than what is shown in the Bloomberg chart below: namely revenue growth at the two e-commerce titans, Google and Amazon, appears to have finally peaked.

Granted, the decline is not in revenue but in revenue growth, however when investors are already beyond skittish about peak earnings, a slowdown in the second derivative may be all they need to sell now and ask questions later. Which may explains why FANG stocks are all sharply lower after hours as the market begins to reasses just how much longer the “e-commerce bubble” as defined by Bank of America has left before it pops…

“Tech-Wrecked”: Global Stocks, US Futures Plunge As Panic Selling Returns

“Tech-Wrecked”: Global Stocks, US Futures Plunge As Panic Selling Returns

“The good news is: It’s Friday. The bad news is: everything else.” For traders, Bloomberg’s summary of today’s early morning action couldn’t be more spot on.

On the last day of a turbulent week, global market turmoil is back with a vengeance and traders in the US are greeted by another sea of red as stocks in Europe renewed their plunge along with Asian shares and U.S. futures as the tech-wreck returns after disappointing results from technology giants Amazon and Google slammed sentiment one day after a torrid dead cat bounce.

Disappointing Amazon and Alphabet results reignited investors’ anxieties about the overwhelming dominance of tech stocks – prized for seemingly unstoppable growth – in this market cycle, as well as peak earnings with e-commerce revenue growth now clearly rolling over. “There’s a huge amount of hot money in the FANG stocks,” said Christopher Peel, chief investment officer at Tavistock Wealth, and now it’s clearly going out.

The rosy picture of U.S. indexes finally ending their 6-day losing streak faded very quickly with Asian equities falling again, and after yesterday’s solid bounce, S&P futures were trading below the Wednesday session lows with the Nasdaq once again inside correction territory, down over 10% from its September highs.

The MSCI All-Country World Index was down 0.3% after trading began in Europe. It was set for its fifth straight week of losses, its worst losing streak since May 2013. “Expectations for US company earnings are quite high, so whenever they are not being met, the reactions are quite severe,” said Miraji Othman, credit strategist at BayernLB. “We have grown used to solid numbers, 18 percent revenue growth, 25 percent revenue growth and so on. The valuations have become quite ambitious.”

…click on the above link to read the rest of the article…

Father Of World Wide Web Launches Platform Which Aims To Radically Decentralize The Internet

“For people who want to make sure the Web serves humanity, we have to concern ourselves with what people are building on top of it,” Tim Berners-Lee told Vanity Fair last month. “I was devastated” he said while going through a litany of harmful and dangerous developments of the past three decades of the web.

That’s why “the Father of the World Wide Web” has launched a start-up that intends to end the dominance of Facebook, Google, and Amazon, while in the process letting individuals take back control of their own data.

Berners-Lee’s new online platform and company Inrupt is being described as a “personal online data store,” or pod, where everything from messages, music, contacts or other personal data will be stored in one place overseen by the user instead of an array of platforms and apps run by corporations seeking to profit off personal information. The project seeks “personal empowerment through data” and aims to “take back” the web, according to company statements.

The man who created the world wide web by implementing the first ever successful communication between a Hypertext Transfer Protocol (HTTP) client and server via the internet in 1989 lamented that his creation has been abused by powerful entities for everything mass surveillance to fake news to psychological manipulation to corporations commodifying individuals’ information.

Sir Tim Berners-Lee, Image via Wikimedia Commons

But he’s long been at work on a new project to take the web back, described in depth by the business technology magazine Fast Company:

This week, Berners-Lee will launch, Inrupt, a startup that he has been building, in stealth mode, for the past nine months. Backed by Glasswing Ventures, its mission is to turbocharge a broader movement afoot, among developers around the world, to decentralize the web and take back power from the forces that have profited from centralizing it. In other words, it’s game on for Facebook, Google, Amazon.

…click on the above link to read the rest of the article…

Amazon is Far More Dangerous and Powerful Than You Want to Admit

Amazon is Far More Dangerous and Powerful Than You Want to Admit

The sneaky thing about Amazon’s increased dominance in so many key aspects of our lives is that much of the perniciousness is hidden. No one’s going to tell you about all the retailers who have gotten pressured or destroyed via its tactics while you’re happily clicking “add to cart” and smiling about 2-day free shipping. In this sense, it can be best compared to the evils of factory farming. Most people just simply have no idea about the immense damage going on behind the scenes as they indulge in incredible convenience and what looks like a good deal.

– From my November 15, 2017 post: Amazon Poses a Serious Threat to Freedom and Free Markets

Today’s post should be seen as an update to last year’s article referenced above. In the months that have followed, I’ve been consistently frustrated by the lack of interest when it comes to the dangers presented by Amazon and its richest man in the world ($165 billion as of last count) CEO Jeff Bezos. The following Twitter exchange is a good example of what I mean:


There are far worse companies- all the defense companies, all the banks, most of the oil companies. They all support endless war and profit from endless war. Amazon does not.

Sure it does. Bezos is on a board advising the Pentagon and Amazon has a $600million contract with the CIA. You’re a smart guy, I’m sure you know this. https://www.google.com/amp/s/amp.businessinsider.com/amazon-ceo-jeff-bezos-joins-pentagon-defense-advisory-board-2016-8 

Amazon CEO Jeff Bezos joins a group led by ex-Google CEO Eric Schmidt to advise the Pentagon

Amazon CEO Jeff Bezos is now part of an advisory board for the Pentagon led by former Google CEO Eric Schmidt.

businessinsider.com


…click on the above link to read the rest of the article…

Not Just Fangs: Manias and Echo Bubbles Abound

It’s not just the FANGs investors should be worried about. A Tweet and an article explain.


“With the FANG stocks faltering lately investors are starting to become concerned about their impact on the broader market. And there is certainly something to this.”https://app.hedgeye.com/insights/69386-it-s-more-than-just-fang-stocks-investors-should-be-worried-about?type=guest-contributors 

It’s More Than Just FANG Stocks Investors Should Be Worried About

What investors really should be worried about then is the possibility that the reappraisal of the FANG stocks is representative of a much wider reappraisal that began back in February.

app.hedgeye.com


Echo Bubbles Abound

Pater Tenebrarum at Acting Man discusses Stock Market Manias of the Past vs the Echo Bubble.

The Big Picture

The diverging performance of major US stock market indexes which has been in place since the late January peak in DJIA and SPX has become even more extreme in recent months. In terms of duration and extent, it is one of the most pronounced such divergences in history. It also happens to be accompanied by weakening market internals, some of the most extreme sentiment and positioning readings ever seen and an ever more hostile monetary backdrop.

The above combination is consistent with a market close to a major peak – although one must always keep in mind that divergences can become even more pronounced – as was for instance demonstrated on occasion of the technology sector blow-off in late 1999 – 2000.

Along similar lines, extremes in valuations can persist for a very long time as well and reach previously unimaginable levels. The Nikkei of the late 1980s is a pertinent example for this. Incidentally, the current stock buyback craze is highly reminiscent of the 1980s Japanese financial engineering method known as keiretsu or zaibatsu, as it invites the very same rationalizations.

…click on the above link to read the rest of the article…

The Economy is Cracking Up. Are You?

The Economy is Cracking Up. Are You?

Economic cracks big enough to drive a car industry into are opening up all over the globe. Trade gaps are opening up between major allies. Widening spreads between the dollar and other currencies are shredding emerging markets. As we start into summer, these cracks and several others described below have become big enough to get everyone’s attention, just as I said last year would become the situation.

I had, as readers here know, predicted the same for last summer but revised my timing to this summer after Trump was elected and the hope for tax cuts lit on fire one of the world’s greatest stock rallies. Those tax cuts are also creating another rapidly rising gap between government revenue and government spending.

That rally died, pretty much as I said it would, almost as soon as those tax cuts became law. In fact, it died sooner than I said it would because I thought the tax cuts would provide more economic levity than they have. The Dow and S&P 500, as of last Monday’s close, hit their longest correction period since 1984! That’s more than half of my lifetime since we saw a correction period last this long.

However, now that the trade war is officially engaged, FANGMAN stocks (Facebook, Apple, Netflix, Google, Microsoft, Amazon and NVIDIA) are taking the market up again. Whether they will undo my prediction that the second leg down in the stock market will occur in early summer … remains to be seen.

Even so, this past Monday, when nearly every expert fully expected Netflix would blaze the trail upward as markets refocused on “earnings”, Netflix shares got slammed (down 13% in one mammoth stomp) because it had almost 20% fewer new subscribers than it had projected in April.

…click on the above link to read the rest of the article…

Amazon’s Fusion With the State Shows Neoliberalism’s Drift to Neo-Fascism

Amazon’s Fusion With the State Shows Neoliberalism’s Drift to Neo-Fascism

BLINKING RED BUBBLE LIGHT: Stock Market Investor Margin Debt Reaches New High

BLINKING RED BUBBLE LIGHT: Stock Market Investor Margin Debt Reaches New High

The world is standing at the edge of the financial abyss while most investors are entirely in the dark.  However, specific indicators suggest the market is one giant RED BLINKING LIGHT.  One of these indicators is the amount of margin debt held by investors.  What is quite surprising about the level of investor margin debt is that it has hit a new record high even though the market has sold off 2,500 points from its peak in February.

It seems as if investors no longer believe in market cycles or fundamentals. Instead, the Wall Street saying that “This time is different” has become permanently ingrained in the market psychology.  For example, it doesn’t seem to matter to the market that Amazon makes no money on its massive online retail business.  The only segment of Amazon’s business that made a decent profit last quarter was from its Cloud hosting services.

So, the new Amazon way of doing business in the United States is to destroy the retail industry so it can break even.  I gather once many of the retail chains have gone out of business; Amazon might then increase its prices and shipping costs.  But for now, the mighty online retail chain is firmly entrenched in the U.S. RETAIL CANNIBALIZATION mode.

Unfortunately, if Amazon is successful in destroying a significant portion of the brick and mortar retail industry, it will spell bad news for Americans when the next financial collapse takes place.   Why?  Well, the simple answer is that we can’t go backward.  Think about this for a moment.

…click on the above link to read the rest of the article…

Morgan Stanley: The Tech Bubble “Can Burst At Any Moment, Without Warning”

Earlier this week, Goldman Sachs, whose market-timing calls leave much to be desired, declared that tech stocks are “not a bubble”, and went so far as to predict that the secular increase in tech names could continue for decades, spawning vivid memories of Goldman’s May 2008 prediction of $200 oil just months before the start of the second great depression, and before oil crashed more than $100/barrel, wiping out a generation of muppets.

However, it is now safe to say that with the exception of some truly naive individuals, virtually nobody believes Goldman any more, and thus Goldman’s “all clear” may be just the top-tick so many had been waiting for.

One skeptic is Bank of America’s Michael Hartnett who back in March, just as the tech sector suffered its first big rout of 2018, had the gall to tell the truth and observe that the “e-Commerce” sector, which consists of AMZN, NFLX, GOOG, TWTR, EBAY, FB, was now up 617% since the financial crisis, making it the 3rd largest bubble of the past 40 years, and at this rate – assuming no major drop in the 6 constituent stocks – was set to become the largest bubble of all time over the next few months.

Hartnett followed up this this week by noting that while so far Tech stocks have seen record inflows as they have emerged as the “defensive growth” sector of the late market cycle…

… the “big risk” is “as in 1998, that credit tremors spread and investors forced to deleverage from risk assets, raise cash”, while the “biggest risk” is a “quick, deep tech selloff.  Or, as Bloomberg’s Andrew Cinko put it on Friday it, “if the times get tough and investors must delever they will sell “what they own,” and that “those who are rotating to financials and banks this week and away from tech may simply be trading the frying pan for the fire.”

…click on the above link to read the rest of the article…

In Latest Privacy Scandal, Facebook Gave Apple, Amazon And Others Unprecedented Access To User Data

Facebook has been giving user data to at least 60 major device manufacturers over the last decade – including Apple, Amazon, BlackBerry, Microsoft and Samsung – as part of a data-sharing partnership program which allowed the companies to integrate various features such as messaging and “like” buttons into their products.

The data-sharing agreement, reported Sunday evening by the New York Times, allowed manufacturers to access information on relationship status, calendar events, political affiliations and religion, among other things. An Apple spokesman, for example, said that the company relied on private access to Facebook data to allow users to post on the social network without opening the Facebook app, among other things.

What’s more, the manufacturers were able to access the data of users’ friends without their explicit consent, despite Facebook declaring they would not let outside companies access user data. The catch? The NYT explains.

Facebook’s view that the device makers are not outsiders lets the partners go even further, The Times found: They can obtain data about a user’s Facebook friends, even those who have denied Facebook permission to share information with any third parties.

In interviews, several former Facebook software engineers and security experts said they were surprised at the ability to override sharing restrictions. –NYT

It’s like having door locks installed, only to find out that the locksmith also gave keys to all of his friends so they can come in and rifle through your stuff without having to ask you for permission,” said Ashkan Soltani, a research and privacy consultant and former chief technologist for the Federal Trade Commission (FTC).

…click on the above link to read the rest of the article…

Congressional Democrats Demand Answers About Amazon’s Facial Recognition Technology

Photo illustration: Getty Images

CONGRESSIONAL DEMOCRATS DEMAND ANSWERS ABOUT AMAZON’S FACIAL RECOGNITION TECHNOLOGY

REPS. KEITH ELLISON, D-Minn., and Emanuel Cleaver, D-Mo., sent a letter to Amazon CEO Jeff Bezos on Friday morning, demanding answers about how the tech giant’s facial recognition technology is being used by law enforcement agencies around the country.

The letter, provided to The Intercept ahead of its public release, lists a total of 12 requests for information regarding Amazon’s facial recognition service, branded as “Rekognition,” including the names of any law enforcement or government agencies that use the system and data on how the service could enable, or itself engage in, discrimination, including racial and gender bias.

“The disproportionally high arrest rates for members of the black community make the use of facial recognition technology by law enforcement problematic,” the letter reads, “because it could serve to reinforce this trend.”

According to an Ellison aide, the letter is an attempt to enact at least a baseline level of congressional oversight for the tech giant — an attempt that comes less than two months after congressional hearings that tried to do the same for Facebook.

Ellison Cleaver Letter to Jeff Bezos 3 pages

Amazon came under fire earlier this week after the American Civil Liberties Union and its affiliates, as well as 35 other civil liberties organizations, released a public letter expressing concerns about how Amazon markets its technology to law enforcement agencies. The ACLU letter coincided with the release of a trove of documents, which the organization obtained through public records requests and after a six-month investigation, that shed light on the company’s relationship and correspondence with law enforcement agencies in Oregon and Florida.

…click on the above link to read the rest of the article…

The Big Tech Backlash of 2018

Herbert Ponting Scott’s Terra Nova Expedition, Antarctica 1911

Something must be terribly wrong with the world. A few days ago Elizabeth Warren agreed with Trump on China, now Bernie Sanders agrees with him about Amazon. What’s happening?

Bernie Sanders Agrees With Trump: Amazon Has Too Much Power

Independent Vermont senator and 2016 presidential hopeful Bernie Sanders echoed President Donald Trump in expressing concern about retail giant Amazon. Sanders said that he felt Amazon had gotten too big on CNN’s “State of the Union” Sunday, and added that Amazon’s place in society should be examined.

“And I think this is, look, this is an issue that has got to be looked at. What we are seeing all over this country is the decline in retail. We’re seeing this incredibly large company getting involved in almost every area of commerce. And I think it is important to take a look at the power and influence that Amazon has,” said Sanders.

A backlash against Facebook, a backlash against Amazon. Are these things connected? Actually, yes, they are connected. But not in a way that either Trump or Sanders has clued in to. Someone who has, a for now lone voice, is David Stockman. Here’s what he wrote last week.

The Donald’s Blind Squirrel Nails An Acorn

It is said that even a blind squirrel occasionally finds an acorn, and so it goes with the Donald. Banging on his Twitter keyboard in the morning darkness, he drilled Jeff Bezos a new one – or at least that’s what most people would call having their net worth lightened by about $2 billion:

…click on the above link to read the rest of the article…

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