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Wall Street Crime And Punishment: Bernard Ebbers And WorldCom's Seriously Wrong Numbers

2021-08-29

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thanks","listText":"Like thanks","text":"Like thanks","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":7,"commentSize":1,"repostSize":0,"link":"https://ttm.financial/post/813246419","repostId":"1184130616","repostType":4,"repost":{"id":"1184130616","pubTimestamp":1630111537,"share":"https://ttm.financial/m/news/1184130616?lang=&edition=fundamental","pubTime":"2021-08-28 08:45","market":"us","language":"en","title":"Wall Street Crime And Punishment: Bernard Ebbers And WorldCom's Seriously Wrong Numbers","url":"https://stock-news.laohu8.com/highlight/detail?id=1184130616","media":"Benzinga","summary":"Does crime pay?\nAmong the mightiest of the high-profile corporate executives that dominated the head","content":"<p><i>Does crime pay?</i></p>\n<p>Among the mightiest of the high-profile corporate executives that dominated the headlines in the 1990s and early 2000s,<b>Bernard Ebbers</b>physically stood out from his peers — the 6-foot-4 head of WorldCom was dubbed the “telecom cowboy” thanks to his sartorial preference for jeans, cowboy boots and a 10-gallon hat.</p>\n<p>Ebbers also stood out from his peers for tightly holding on to Luddite practices as the digital age dawned. He famously refused to communicate with his workforce via email. Even worse, he stood out thanks to a prickly personality that quickly seethed when confronted with unpleasant news. A 2002 profile in The Economist defined him as “parochial, stubborn, preoccupied with penny-pinching … a difficult man to work for.”</p>\n<p><b>But ultimately, Ebbers stood out for being at the center of what was (at the time) the largest accounting fraud in U.S. history, which was followed by the harshest prison sentence ever imposed on a corporate executive for financial crimes.</b></p>\n<p><b>A Man In Search Of Himself:</b>&nbsp;Bernard John Ebbers was born Aug. 27, 1941, in Edmonton, Alberta, the second of five children. His father John was a traveling salesman and his peripatetic profession brought the family down from Canada into California, where he jettisoned his sales work and became an auto mechanic. The family later relocated to Gallup, New Mexico, where Ebbers’ parents became teachers on the Navajo Nation Indian reservation.</p>\n<p>The Ebbers clan was back in Canada when Ebbers was a teenager and Bernie (as he was commonly known) came into adulthood unable to determine a course for his life. He&nbsp;attended Canada’s University of Alberta and Michigan’s Calvin College before accepting a basketball scholarship to Mississippi College. But he was the victim of a robbery prior to his senior year that left him seriously injured and switched his attention from playing to coaching the junior varsity team.</p>\n<p>Ebbers graduated in 1967 majoring in physical education and minoring in secondary education. He supported himself during his college years by taking on a variety of odd jobs including a bouncer and milk delivery driver. He married his college sweetheart,<b>Linda Pigott,</b>after graduating and landed work teaching science to middle-school students while coaching high school basketball.</p>\n<p>But Ebbers didn’t stay very long in the school system. When his wife received a job offer as a teacher in another Mississippi town, the couple relocated and he found work managing a garment factory warehouse. By 1974, he tired of working for others and responded to a newspaper advertisement seeking a buyer for a motel in Columbia, Mississippi.</p>\n<p>Ebbers’ approach to running a hospitality establishment sometimes bordered on the eccentric.&nbsp;He would distribute bathroom towels at the front desk and require guests to return them to avoid being charged for taking them. Nonetheless, he found a niche in hospitality management and by the early 1980s he owned and operated eight motels within Mississippi and Texas; he also picked up a car dealership that also proved profitable.</p>\n<p><b>Calling Out Around The World:</b>Ebbers might have remained in the Mississippi hospitality industry had it not been for the 1982 breakup of<b>AT&amp;T Inc.'s</b>&nbsp;T 0.41%monopoly on the U.S. telephone system. This created a seismic shift in the telecommunications world by enabling other companies to begin reselling long-distance telephone services.</p>\n<p>In 1983, Ebbers and three friends met at a diner in Hattiesburg, Mississippi, to consider the feasibility of pursuing this newly opened opportunity. Ebbers theorized that having control of his long-distance calling services could benefit his motel business. In the days before mobile phones, guests in lodging establishments in need of long-distance calling would either have to feed handfuls of quarters into payphones or make calls from their rooms, which usually came with extra fees.</p>\n<p>Ebbers and his pals decided to get into the telecommunications business with&nbsp;<b>Long Distance Discount Services,</b>&nbsp;which they established in 1985 with headquarters in Jackson, Mississippi, with Ebbers as CEO.</p>\n<p><b>Carl J. Aycock,</b>a Mississippi financial advisor who was among the early investors in LDDS, would later laugh at the unlikelihood of Ebbers running a telecom company.</p>\n<p>“The only experience Bernie had before operating a long-distance company was he used the phone,” Aycock quipped in a 1997 interview.</p>\n<p>Maybe Ebbers did not possess an encyclopedic knowledge of telecommunications technology, but the good fortune he enjoyed in the motel business transitioned to this unlikely setting. Within four years of its launch, LDDS was being publicly traded.</p>\n<p>Within 10 years of its opening, LDDS took on an almost Pac Man-style persona of gobbling up telecom firms in&nbsp;sight of the company, acquiring more than 60 different telecommunications company. By 1995, the company renamed itself LDDS WorldCom.</p>\n<p>Many of the company’s acquisitions were on the small side, and the company was never considered a major player in the telecom industry until its $720 million acquisition of&nbsp;<b>Advanced Telecommunications Corporation</b>&nbsp;in 1992.</p>\n<p>The unlikely acquisition came with Ebbers’ ability to outbid industry titans AT&amp;T and&nbsp;<b>Sprint Corporation,</b>both considerably larger players in this field.</p>\n<p>The one unfortunate development during this time was the end of Ebbers’ marriage in 1997. He remarried in 1999 to&nbsp;<b>Kristie Webb.</b></p>\n<p>In February 1998, Ebbers’ company launched its acquisition plans for&nbsp;<b>CompuServe</b>&nbsp;from&nbsp;<b>H&amp;R Block Inc</b>.</p>\n<p>This transaction was followed by an astonishing spin of assets: LDDS sold the CompuServe Information Service portion of its acquisition to<b>America Online,</b>while retaining the CompuServe Network Services portion of the business. AOL simultaneously sold LDDS WorldCom its networking division, Advanced Network Services.</p>\n<p>In September 1998, LDDS WorldCom sealed a $37 billion union with&nbsp;<b>MCI Communications,</b>which created the largest corporate merger in U.S. history. The combined entity became MCI WorldCom, and for Ebbers it seemed that the sky was the limit —&nbsp;except that Ebbers’ ability to soar in the corporate skies resulted in an Icarus-worthy predicament.</p>\n<p><b>A Little Out Of Touch:</b>One year after the CompuServe and MCI deals, Ebbers’ company boasted an 80,000-person workforce, a market capitalization of roughly $185 billion and its shares were trading at a peak of nearly $62.</p>\n<p>At the peak of the company’s success, Ebbers granted an interview to The New York Times aboard his 130-yacht, which he berthed in the resort town of Hilton Head, South Carolina. He claimed that the secret of his success was “not as complicated as people make it out to be,” adding that he surrounded himself with experts who advised him on which moves to make.</p>\n<p>“I’m not an engineer by training,” he said. “I’m not an accountant by training. I’m the coach. I’m not the point guard who shoots the ball.”</p>\n<p>But as the company grew larger, Ebbers penny-pinching behavior during his early motel management days became more extreme. WorldCom executives would later complain that Ebbers stopped providing free coffee within their offices and directed security guards fill the water coolers with tap water.</p>\n<p>And for the head of a telecommunications company, Ebbers was curiously distrustful of cutting-edge tech developments. He refused to communicate via email and would not carry a pager or a cell phone. He would explain his actions internally by repeating “That’s the way we did it at LDDS,” and in a 1997 Business Week interview about this behavior he claimed that “when you come to the table with a (physical education) degree like I do, you don't know a lot about the technical stuff.”</p>\n<p>While Ebbers’ arms-length distance from personal technology could have been attributed to a zany quirk, there was another problem that couldn’t be happily shrugged away. As the company expanded, operational problems began to permeate the multiple divisions. Ebbers would become impatient or worse when confronted with problems, to the point that he would angrily demand that he only wanted to be addressed with good news.</p>\n<p><b>In retrospect, Ebbers’ refusal to acknowledge that his company was growing too fast and too large proved to be a fatal flaw</b>, especially when the corporate culture began to manufacture good news in lieu of reporting problems. As a result, Ebbers’ XL-sized business empire was sustained by taking on massive amounts of debt and highly improper accounting.</p>\n<p><b>Detour Off The Cliff:</b>The first cracks in this corporate story began in October 1999 when MCI WorldCom —&nbsp;which had become the second-largest long-distance telephone company in the country —&nbsp;announced a $129 billion merger with Sprint, the third-largest telecom carrier. Within nine months of this announcement, the merger was canceled in the face of pressure from U.S. and European regulators who feared a telecom monopoly would be born from this union. MCI WorldCom walked away from the failure by renaming itself as WorldCom.</p>\n<p>With the rise of the new millennium came the fall of the dot-com industry, and almost any company that had a tech-related aspect found itself taking a financial tumble. When Ebbers’ company tried to cut corners and save money, it turned into an act of self-immolation.</p>\n<p>Worldcom’s network systems engineering division exhausted its annual capital expenditures budget by November 2000, with a&nbsp;senior manager ordering&nbsp;a halt to processing payments for network systems vendors and suppliers until the beginning of 2001.</p>\n<p>The company’s chief technical officer,<b>Fred Briggs,</b>then ordered all of the labor associated with the capital projects in the network systems division to be booked as an expense rather than a capital project —&nbsp;and his directive was shared with other divisions in the company.</p>\n<p>A WorldCom budget analyst named&nbsp;<b>Kim Amigh</b>in the company’s Richardson, Texas, office recognized the legal ramifications of intentionally mischaracterizing capital expenses and lodged a protest against the order. The directive was canceled and so was Amigh —&nbsp;three months after his action, Amigh was abruptly laid off from the company.</p>\n<p>But Vice President of Internal Audit&nbsp;<b>Cynthia Cooper</b>&nbsp;learned of Amigh’s findings and picked up his trail. Her department began combing through WorldCom’s accounts and found $2 billion that the company claimed in its public filings was spent on capital expenditures during the first three quarters of 2001 —&nbsp;except that the funds were never authorized for that purpose and were clearly operating costs moved into the capital expenditure accounting as a way to make WorldCom look more profitable.</p>\n<p>Cooper could not find anyone in the WorldCom leadership ranks to explain the $2 billion discrepancy. Most executives said it was a “prepaid capacity,” a meaningless term which they couldn’t define when pressed by Cooper.</p>\n<p>And Cooper was not alone in her suspicions. The U.S. Securities and Exchange Commission could not fathom how WorldCom continued to claim robust profits during the dot-com period while its competitors were operating at a loss, and it sent forth a “Request for Information” to learn the secret of its success.</p>\n<p>Adding to this chaos were Ebbers’ personal financial woes, which became exacerbated during to dot-com crisis by margin calls on his WorldCom shares, which were tanking as the economy plummeted into a recession.</p>\n<p>To alleviate his monetary pain, Ebbers borrowed $50 million from WorldCom in September 2000&nbsp;— and then borrowed again&nbsp;and again. By April 2002, Ebbers was $400 million in debt to WorldCom and the board of directors demanded his resignation, which he provided.</p>\n<p>In June 2002, WorldCom acknowledged its earnings reports contained $3.9 billion in accounting misstatements, with the figure&nbsp;later adjusted to $11 billion. In July 2002, the company declared bankruptcy and was delisted from public trading. Also during that month, Ebbers was called before the U.S. House of Representatives Committee on Financial Services to explain what happened. He pleaded the Fifth Amendment.</p>\n<p><b>Road’s End:</b>The efforts to bring Ebbers to trial got off to a weird start when the State of Oklahoma jumped the gun with a 15-count indictment, only to drop its charges in favor of federal prosecution.</p>\n<p>Ebbers was indicted in May 2004 on seven counts of filing false statements with securities regulators plus one count each of conspiracy and securities fraud. Ebbers agreed to testify on his behalf, which many observers later considered to be a major mistake because he came across as evasive and unconvincing when insisting WorldCom’s downfall was solely the fault of his subordinates and that he was ignorant about how his company worked.</p>\n<p>“I know what I don’t know,” Ebbers said during his trial. “To this day, I don’t know technology, and I don’t know finance or accounting.”</p>\n<p>Ebbers was found guilty on all counts and was sentenced to 25 years in prison, the longest sentence ever handed down in U.S. history for a financial fraud case against a corporate executive.</p>\n<p>He remained free on bail while fighting to overturn the verdict, but the conviction was upheld in the U.S. Court of Appeals for the Second Circuit in July 2006. Two months later, he drove himself in his luxury Mercedes-Benz to a low-security Louisiana prison to begin his sentence. Two years later, his wife Kristie successfully filed for divorce.</p>\n<p>After 13 years behind bars, Ebbers was granted a compassionate release on Dec. 21, 2019, due to a deteriorating state of health that included macular degeneration that left him legally blind, anemia, a weakened heart condition and the beginnings of dementia. He returned to his home in Brookhaven, Mississippi, and passed away on Feb. 2, 2020.</p>\n<p>In defining his rise to the top, Ebbers harkened back to his basketball days by insisting, “The coach's job is to get the best players and get them to play together.” But in explaining his fall from grace, Ebbers forgot that the core of coaching is accepting responsibility for the team’s performance and he blamed his “best players” for not being able to “play together” while absolving himself from their errors.</p>\n<p>Said Ebbers when confronted with his ultimate failure as the corporate equivalent of a coach: “I didn't have anything to apologize for.”</p>\n<p></p>","source":"lsy1606299360108","collect":0,"html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>Wall Street Crime And Punishment: Bernard Ebbers And WorldCom's Seriously Wrong Numbers</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; 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He famously refused to communicate with his workforce via email. Even worse, he stood out thanks to a prickly personality that quickly seethed when confronted with unpleasant news. A 2002 profile in The Economist defined him as “parochial, stubborn, preoccupied with penny-pinching … a difficult man to work for.”\nBut ultimately, Ebbers stood out for being at the center of what was (at the time) the largest accounting fraud in U.S. history, which was followed by the harshest prison sentence ever imposed on a corporate executive for financial crimes.\nA Man In Search Of Himself: Bernard John Ebbers was born Aug. 27, 1941, in Edmonton, Alberta, the second of five children. His father John was a traveling salesman and his peripatetic profession brought the family down from Canada into California, where he jettisoned his sales work and became an auto mechanic. The family later relocated to Gallup, New Mexico, where Ebbers’ parents became teachers on the Navajo Nation Indian reservation.\nThe Ebbers clan was back in Canada when Ebbers was a teenager and Bernie (as he was commonly known) came into adulthood unable to determine a course for his life. He attended Canada’s University of Alberta and Michigan’s Calvin College before accepting a basketball scholarship to Mississippi College. But he was the victim of a robbery prior to his senior year that left him seriously injured and switched his attention from playing to coaching the junior varsity team.\nEbbers graduated in 1967 majoring in physical education and minoring in secondary education. He supported himself during his college years by taking on a variety of odd jobs including a bouncer and milk delivery driver. He married his college sweetheart,Linda Pigott,after graduating and landed work teaching science to middle-school students while coaching high school basketball.\nBut Ebbers didn’t stay very long in the school system. When his wife received a job offer as a teacher in another Mississippi town, the couple relocated and he found work managing a garment factory warehouse. By 1974, he tired of working for others and responded to a newspaper advertisement seeking a buyer for a motel in Columbia, Mississippi.\nEbbers’ approach to running a hospitality establishment sometimes bordered on the eccentric. He would distribute bathroom towels at the front desk and require guests to return them to avoid being charged for taking them. Nonetheless, he found a niche in hospitality management and by the early 1980s he owned and operated eight motels within Mississippi and Texas; he also picked up a car dealership that also proved profitable.\nCalling Out Around The World:Ebbers might have remained in the Mississippi hospitality industry had it not been for the 1982 breakup ofAT&T Inc.'s T 0.41%monopoly on the U.S. telephone system. This created a seismic shift in the telecommunications world by enabling other companies to begin reselling long-distance telephone services.\nIn 1983, Ebbers and three friends met at a diner in Hattiesburg, Mississippi, to consider the feasibility of pursuing this newly opened opportunity. Ebbers theorized that having control of his long-distance calling services could benefit his motel business. In the days before mobile phones, guests in lodging establishments in need of long-distance calling would either have to feed handfuls of quarters into payphones or make calls from their rooms, which usually came with extra fees.\nEbbers and his pals decided to get into the telecommunications business with Long Distance Discount Services, which they established in 1985 with headquarters in Jackson, Mississippi, with Ebbers as CEO.\nCarl J. Aycock,a Mississippi financial advisor who was among the early investors in LDDS, would later laugh at the unlikelihood of Ebbers running a telecom company.\n“The only experience Bernie had before operating a long-distance company was he used the phone,” Aycock quipped in a 1997 interview.\nMaybe Ebbers did not possess an encyclopedic knowledge of telecommunications technology, but the good fortune he enjoyed in the motel business transitioned to this unlikely setting. Within four years of its launch, LDDS was being publicly traded.\nWithin 10 years of its opening, LDDS took on an almost Pac Man-style persona of gobbling up telecom firms in sight of the company, acquiring more than 60 different telecommunications company. By 1995, the company renamed itself LDDS WorldCom.\nMany of the company’s acquisitions were on the small side, and the company was never considered a major player in the telecom industry until its $720 million acquisition of Advanced Telecommunications Corporation in 1992.\nThe unlikely acquisition came with Ebbers’ ability to outbid industry titans AT&T and Sprint Corporation,both considerably larger players in this field.\nThe one unfortunate development during this time was the end of Ebbers’ marriage in 1997. He remarried in 1999 to Kristie Webb.\nIn February 1998, Ebbers’ company launched its acquisition plans for CompuServe from H&R Block Inc.\nThis transaction was followed by an astonishing spin of assets: LDDS sold the CompuServe Information Service portion of its acquisition toAmerica Online,while retaining the CompuServe Network Services portion of the business. AOL simultaneously sold LDDS WorldCom its networking division, Advanced Network Services.\nIn September 1998, LDDS WorldCom sealed a $37 billion union with MCI Communications,which created the largest corporate merger in U.S. history. The combined entity became MCI WorldCom, and for Ebbers it seemed that the sky was the limit — except that Ebbers’ ability to soar in the corporate skies resulted in an Icarus-worthy predicament.\nA Little Out Of Touch:One year after the CompuServe and MCI deals, Ebbers’ company boasted an 80,000-person workforce, a market capitalization of roughly $185 billion and its shares were trading at a peak of nearly $62.\nAt the peak of the company’s success, Ebbers granted an interview to The New York Times aboard his 130-yacht, which he berthed in the resort town of Hilton Head, South Carolina. He claimed that the secret of his success was “not as complicated as people make it out to be,” adding that he surrounded himself with experts who advised him on which moves to make.\n“I’m not an engineer by training,” he said. “I’m not an accountant by training. I’m the coach. I’m not the point guard who shoots the ball.”\nBut as the company grew larger, Ebbers penny-pinching behavior during his early motel management days became more extreme. WorldCom executives would later complain that Ebbers stopped providing free coffee within their offices and directed security guards fill the water coolers with tap water.\nAnd for the head of a telecommunications company, Ebbers was curiously distrustful of cutting-edge tech developments. He refused to communicate via email and would not carry a pager or a cell phone. He would explain his actions internally by repeating “That’s the way we did it at LDDS,” and in a 1997 Business Week interview about this behavior he claimed that “when you come to the table with a (physical education) degree like I do, you don't know a lot about the technical stuff.”\nWhile Ebbers’ arms-length distance from personal technology could have been attributed to a zany quirk, there was another problem that couldn’t be happily shrugged away. As the company expanded, operational problems began to permeate the multiple divisions. Ebbers would become impatient or worse when confronted with problems, to the point that he would angrily demand that he only wanted to be addressed with good news.\nIn retrospect, Ebbers’ refusal to acknowledge that his company was growing too fast and too large proved to be a fatal flaw, especially when the corporate culture began to manufacture good news in lieu of reporting problems. As a result, Ebbers’ XL-sized business empire was sustained by taking on massive amounts of debt and highly improper accounting.\nDetour Off The Cliff:The first cracks in this corporate story began in October 1999 when MCI WorldCom — which had become the second-largest long-distance telephone company in the country — announced a $129 billion merger with Sprint, the third-largest telecom carrier. Within nine months of this announcement, the merger was canceled in the face of pressure from U.S. and European regulators who feared a telecom monopoly would be born from this union. MCI WorldCom walked away from the failure by renaming itself as WorldCom.\nWith the rise of the new millennium came the fall of the dot-com industry, and almost any company that had a tech-related aspect found itself taking a financial tumble. When Ebbers’ company tried to cut corners and save money, it turned into an act of self-immolation.\nWorldcom’s network systems engineering division exhausted its annual capital expenditures budget by November 2000, with a senior manager ordering a halt to processing payments for network systems vendors and suppliers until the beginning of 2001.\nThe company’s chief technical officer,Fred Briggs,then ordered all of the labor associated with the capital projects in the network systems division to be booked as an expense rather than a capital project — and his directive was shared with other divisions in the company.\nA WorldCom budget analyst named Kim Amighin the company’s Richardson, Texas, office recognized the legal ramifications of intentionally mischaracterizing capital expenses and lodged a protest against the order. The directive was canceled and so was Amigh — three months after his action, Amigh was abruptly laid off from the company.\nBut Vice President of Internal Audit Cynthia Cooper learned of Amigh’s findings and picked up his trail. Her department began combing through WorldCom’s accounts and found $2 billion that the company claimed in its public filings was spent on capital expenditures during the first three quarters of 2001 — except that the funds were never authorized for that purpose and were clearly operating costs moved into the capital expenditure accounting as a way to make WorldCom look more profitable.\nCooper could not find anyone in the WorldCom leadership ranks to explain the $2 billion discrepancy. Most executives said it was a “prepaid capacity,” a meaningless term which they couldn’t define when pressed by Cooper.\nAnd Cooper was not alone in her suspicions. The U.S. Securities and Exchange Commission could not fathom how WorldCom continued to claim robust profits during the dot-com period while its competitors were operating at a loss, and it sent forth a “Request for Information” to learn the secret of its success.\nAdding to this chaos were Ebbers’ personal financial woes, which became exacerbated during to dot-com crisis by margin calls on his WorldCom shares, which were tanking as the economy plummeted into a recession.\nTo alleviate his monetary pain, Ebbers borrowed $50 million from WorldCom in September 2000 — and then borrowed again and again. By April 2002, Ebbers was $400 million in debt to WorldCom and the board of directors demanded his resignation, which he provided.\nIn June 2002, WorldCom acknowledged its earnings reports contained $3.9 billion in accounting misstatements, with the figure later adjusted to $11 billion. In July 2002, the company declared bankruptcy and was delisted from public trading. Also during that month, Ebbers was called before the U.S. House of Representatives Committee on Financial Services to explain what happened. He pleaded the Fifth Amendment.\nRoad’s End:The efforts to bring Ebbers to trial got off to a weird start when the State of Oklahoma jumped the gun with a 15-count indictment, only to drop its charges in favor of federal prosecution.\nEbbers was indicted in May 2004 on seven counts of filing false statements with securities regulators plus one count each of conspiracy and securities fraud. Ebbers agreed to testify on his behalf, which many observers later considered to be a major mistake because he came across as evasive and unconvincing when insisting WorldCom’s downfall was solely the fault of his subordinates and that he was ignorant about how his company worked.\n“I know what I don’t know,” Ebbers said during his trial. “To this day, I don’t know technology, and I don’t know finance or accounting.”\nEbbers was found guilty on all counts and was sentenced to 25 years in prison, the longest sentence ever handed down in U.S. history for a financial fraud case against a corporate executive.\nHe remained free on bail while fighting to overturn the verdict, but the conviction was upheld in the U.S. Court of Appeals for the Second Circuit in July 2006. Two months later, he drove himself in his luxury Mercedes-Benz to a low-security Louisiana prison to begin his sentence. Two years later, his wife Kristie successfully filed for divorce.\nAfter 13 years behind bars, Ebbers was granted a compassionate release on Dec. 21, 2019, due to a deteriorating state of health that included macular degeneration that left him legally blind, anemia, a weakened heart condition and the beginnings of dementia. He returned to his home in Brookhaven, Mississippi, and passed away on Feb. 2, 2020.\nIn defining his rise to the top, Ebbers harkened back to his basketball days by insisting, “The coach's job is to get the best players and get them to play together.” But in explaining his fall from grace, Ebbers forgot that the core of coaching is accepting responsibility for the team’s performance and he blamed his “best players” for not being able to “play together” while absolving himself from their errors.\nSaid Ebbers when confronted with his ultimate failure as the corporate equivalent of a coach: “I didn't have anything to apologize for.”","news_type":1},"isVote":1,"tweetType":1,"viewCount":52,"authorTweetTopStatus":1,"verified":2,"comments":[],"imageCount":0,"langContent":"EN","totalScore":0},{"id":813246959,"gmtCreate":1630208322471,"gmtModify":1676530243953,"author":{"id":"3575515425027333","authorId":"3575515425027333","name":"krishna","avatar":"https://static.tigerbbs.com/5fe28588178bb891ec239b269e98f824","crmLevel":2,"crmLevelSwitch":0,"followedFlag":false,"idStr":"3575515425027333","authorIdStr":"3575515425027333"},"themes":[],"htmlText":"<a href=\"https://laohu8.com/S/5EK.SI\">$SINOCLOUD GROUP LIMITED(5EK.SI)$</a>isis okay","listText":"<a href=\"https://laohu8.com/S/5EK.SI\">$SINOCLOUD GROUP LIMITED(5EK.SI)$</a>isis okay","text":"$SINOCLOUD GROUP LIMITED(5EK.SI)$isis okay","images":[{"img":"https://static.tigerbbs.com/831210c4bc85f373dff2edbf50a2f270","width":"1080","height":"1920"}],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":2,"commentSize":0,"repostSize":0,"link":"https://ttm.financial/post/813246959","isVote":1,"tweetType":1,"viewCount":126,"authorTweetTopStatus":1,"verified":2,"comments":[],"imageCount":1,"langContent":"EN","totalScore":0},{"id":148301054,"gmtCreate":1625925059378,"gmtModify":1703750948476,"author":{"id":"3575515425027333","authorId":"3575515425027333","name":"krishna","avatar":"https://static.tigerbbs.com/5fe28588178bb891ec239b269e98f824","crmLevel":2,"crmLevelSwitch":0,"followedFlag":false,"idStr":"3575515425027333","authorIdStr":"3575515425027333"},"themes":[],"htmlText":"Like and comment thank you","listText":"Like and comment thank you","text":"Like and comment thank you","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":2,"commentSize":1,"repostSize":0,"link":"https://ttm.financial/post/148301054","repostId":"2150370120","repostType":4,"repost":{"id":"2150370120","pubTimestamp":1625879410,"share":"https://ttm.financial/m/news/2150370120?lang=&edition=fundamental","pubTime":"2021-07-10 09:10","market":"us","language":"en","title":"Top 10 Cloud Stocks to Buy on the Next Dip","url":"https://stock-news.laohu8.com/highlight/detail?id=2150370120","media":"Motley Fool","summary":"How can you capitalize on secular growth trends like digital transformation, artificial intelligence (AI), cybersecurity, analytics, video streaming, work from anywhere, the gig economy, and more? Last time, I covered stocks six through 10 on the list, and today I cover my top five!","content":"<p>Today, I cover my top high-conviction cloud stocks to buy on the next dip. These are high-growth software-as-a-service (SaaS) and cloud stocks that I currently hold in my $1.6 million long-term investing portfolio.</p>\n<p>If you aren't familiar with the terminology, SaaS is simply a component of cloud computing. SaaS refers to software hosted outside of your organization and offered as a subscription-based service. Overall, SaaS generally offers businesses lower total cost of ownership. The latest software updates and enhancements are generally done for you as the client, allowing businesses to have the latest and greatest without additional effort or overhead. Additionally, SaaS enables businesses to shift capital expenses to operating expenses, allowing them to stretch budgets from an accounting perspective.</p>\n<p>Cloud computing refers to servers that are connected through the internet, as well as the software, data centers, and databases that create an online network. Leveraging \"the cloud\" allows users and businesses to consume and analyze data without having to manage databases or software on their own physical, on-premises servers and machines.</p>\n<p>Digital transformation, artificial intelligence (AI), cybersecurity, machine learning, centralized analytics, customer relationship management, enterprise resource planning (ERP), connected TV (CTV), streaming, work from anywhere, the gig economy, and other secular growth trends fuel SaaS and cloud infrastructure. But what are the best stocks to buy in order to ride these waves and boost your portfolio?</p>\n<p>I'll provide 10 total stocks over two articles and videos. Today, I will cover stocks 1 through 10.</p>\n<p>#10.<b>salesforce.com</b>&nbsp;(NYSE:CRM) is the leader in customer relationship management (CRM). <a href=\"https://laohu8.com/S/CRM\">Salesforce</a> is a SaaS provider that enables organizations to integrate marketing, sales, service, e-commerce, and IT into a single customer view. Salesforce is acquiring<b>Slack</b> (NYSE:WORK), which has caused volatility in the stock. The leadership team has proven to shareholders many times that they can successfully acquire businesses and add value. I firmly believe that this acquisition will add tremendous value to Salesforce customers. The company plans to build Slack into its Service Cloud products, which will increase employee productivity from anywhere.</p>\n<p>#9.<b>DocuSign</b>(NASDAQ:DOCU) offers more than most people realize. Its business consists of four primary pillars -- manage, prepare, sign, and act -- which collectively are called the DocuSign Agreement Cloud. The company continues to expand offerings, and its recent earnings results prove it. For Q1 FY22, revenues grew 58% year over year to $469 million. Its billings also grew 54% year over year to $527 million with a 125% net dollar retention rate. The below video goes into more detail, breaking down the pillars and solutions.</p>\n<p>#8.<b>Twilio</b> (NYSE:TWLO) is often misunderstood. Sure, it helps companies like Uber and DoorDash connect customers to businesses, but what else does it do? Here is a list of solutions Twilio can offer:</p>\n<ul>\n <li><b>Messaging:</b> You can send and receive SMS, MMS, and OTT messages globally (to and from over 180 countries) and in a scalable manner. For example, Twilio can be used to created automated replies to customers and route important requests to humans for additional interaction.</li>\n <li><b>Customer engagement:</b>Contact centers can leverage Twilio for customer engagement channels, and the tools can be quite complex. For example, Twilio offers AI-powered tools for customer self-service, automatic text notifications, callbacks, etc.</li>\n <li><b>Marketing:</b>Campaigns can use Twilio to send specific, customizable messages with the ability to track data such as click-through rates.</li>\n <li><b>Business email services:</b> Twilio can send and receive emails. Twilio SendGrid Email API allows businesses to create flexible, scalable, and engaging campaigns.</li>\n</ul>\n<p>#7<b>The Trade Desk</b> (NASDAQ:TTD) focuses on the ad-tech space, and it has a tremendous total addressable market (TAM) when you consider the possibilities in CTV. CTV means \"connected TV,\" which is essentially any television connected to the internet. Think<b>Roku</b> (NASDAQ:ROKU), YouTube, part of<b>Alphabet</b> (NASDAQ:GOOGL),<b>Amazon</b> Prime (NASDAQ:AMZN),<b>Disney</b>'s Disney+&nbsp;(NYSE:DIS), and others. Smart TVs are changing the internet, and buying The Trade Desk is the best way to play this space, in my opinion. The company allows its clients to buy advertisements or run global marketing campaigns in areas such as CTV, display ads, and even social media. These are massive secular growth trends, and The Trade Desk can help your portfolio capture some of this growth.</p>\n<p>#6.<b><a href=\"https://laohu8.com/S/ZM\">Zoom</a> Video</b> (NASDAQ:ZM) is the epitome of a work-from-home stock, but can it be a large part of the work-from-anywhere movement that is here to stay? The answer, in my opinion, is yes. Zoom is now a verb, and recently Charlie Munger told CNBC that he's \"in love with Zoom\" and thinks it's \"here to stay.\" I agree with him, and the below video shares more details as to why.</p>\n<p>In case you missed the last article, I'll provide some background. If you aren't familiar with the terminology, SaaS is simply a component of cloud computing. SaaS refers to software hosted outside of your organization and offered as a subscription-based service. SaaS generally offers businesses lower total cost of ownership. The latest software updates and enhancements are generally done for the client, allowing businesses to have the latest and greatest without additional effort or overhead. Additionally, SaaS enables businesses to shift capital expenses to operating expenses, allowing them to stretch budgets from an accounting perspective.&nbsp;</p>\n<p><i>Cloud computing</i> refers to servers that are connected through the internet, as well as the software, data centers, and databases that create an online network. Leveraging \"the cloud\" allows users and businesses to consume and analyze data without having to manage databases or software on their own physical, on-premises servers and machines.&nbsp;</p>\n<p>Digital transformation, artificial intelligence (AI), cybersecurity, machine learning, centralized analytics, customer relationship management, enterprise resource planning (ERP), connected TV (CTV), streaming, work from anywhere, the gig economy, and other secular growth trends fuel SaaS and cloud infrastructure. But what are the best stocks to buy in order to ride these waves and boost your portfolio?&nbsp;</p>\n<p>#5. <b>Zscaler</b> (NASDAQ:ZS) offers customers a security stack as a cloud service, which offers lower cost and complexity than \"old-school\" traditional gateway methods. Zscaler's global infrastructure brings internet gateways closer to users all around the world, creating a faster and more streamlined experience. The company enables work-from-anywhere cloud security in a highly scalable fashion.&nbsp;</p>\n<p>#4. <b><a href=\"https://laohu8.com/S/DDOG\">Datadog</a></b> (NASDAQ:DDOG) provides monitoring and analytics tools that give IT teams insights from anywhere and at any time. Datadog, like Zscaler, is very scalable. In fact, most cloud-native providers are highly scalable, which is part of the reason they rank high on the list. Datadog brings information together from across an entire organization into a simple dashboard. Companies that leverage Datadog enjoy benefits such as improved user experience, faster resolutions to interruptions, and overall better business decisions.&nbsp;</p>\n<p>Datadog has continuously improved its product suite as well as its partnership network. In fact, Datadog recently announced a new partnership with <b>Microsoft</b> (NASDAQ:DDOG) Azure, which allows streamlined experiences for configuration, purchasing, and even managing Datadog inside the Azure portal. Additionally, on July 1 Datadog announced a partnership with <a href=\"https://laohu8.com/S/CRM\">Salesforce</a> to provide real-time monitoring and threat detection across the <b>Salesforce</b> (NASDAQ:DDOG)&nbsp;platform.</p>\n<p>From a product perspective, here are the highlights:</p>\n<ul>\n <li><b>Application performance monitoring (APM) </b>provides visibility into application functionality and health.&nbsp;</li>\n <li><b>Infrastructure monitoring </b>allows businesses to monitor IT infrastructure.</li>\n <li><b>Log management </b>provides visualization and data for any performance problems.</li>\n <li><b>User experience monitoring </b>includes both synthetics and real user monitoring (RUM).</li>\n <li><b>Network performance monitoring </b>allows insights and analysis into network traffic flow from both hybrid and cloud environments.</li>\n <li><b>Incident management and continuous profiler </b>improves workflows.&nbsp;</li>\n <li><b>Security monitoring </b>provides threat detection.</li>\n</ul>\n<p>#3. <b><a href=\"https://laohu8.com/S/SNOW\">Snowflake</a></b> (NYSE:SNOW) offers what it calls a \"data warehouse-as-a-service\" (DaaS), a cloud-based data storage and analytics solution. Interestingly, Snowflake is not a SaaS company since its revenues are over 90% consumption based. Snowflake reduces cost and improves agility. Its data platform is unique in that it is not built on an existing big data platform.&nbsp;</p>\n<p>As you may have heard around the time of the IPO, Snowflake is backed by Warren Buffett's <b>Berkshire Hathaway</b> (NYSE:BRK.A). Snowflake's clients include <b>Apple</b> (NASDAQ:AAPL), <b>Nike</b> (NYSE:NKE), <b>Mastercard</b> (NYSE:MA), and many others. Snowflake is all about big data, and it deserves a top spot on the list.&nbsp;</p>\n<p>#2. <b>Cloudflare</b>'s (NYSE:NET) mission is to help \"build a better internet.\" Cloudflare is actually a network. In fact, it's <a href=\"https://laohu8.com/S/AONE\">one</a> of the larger networks on the planet. Cloudflare enables a faster and more secure internet for anyone with an internet presence. Cloudflare has data centers across the globe, and it boasts an astonishing 25 million internet properties, a number that grows daily. To date, Cloudflare handles over 17 percent of the Fortune 1000 internet requests, and the company handles 25 million HTTP requests every second on average. Cloudflare is all about the future of the internet, and it belongs in my portfolio as a long-term investment.&nbsp;</p>\n<p>#1 <b>Crowdstrike</b> (NASDAQ:CRWD) is the leader in endpoint security. Crowdstrike's Falcon platform stops breaches through both prevention and response, a process known as endpoint detection and response (EDR). It uses agent-based sensors that can be installed on Mac, Linux, and Windows. Crowdstrike relies on a cloud-hosted SaaS platform that manages data and prevents, detects, and responds to threats. Both malware and non-malware attacks are covered via Crowdstrike's cloud-delivered technologies in a lightweight solution.&nbsp;</p>\n<p>Cyberattacks continue to be a major threat, and the total addressable market for cybersecurity is enormous. Crowdstrike has been a monster since its IPO in 2019, growing into a $60 billion market cap company. But I think Crowdstrike is just getting started, and it stands tall as my top high-conviction cloud/SaaS stock for the next decade.</p>\n<p>If you want deeper-dive analysis on these stocks, please watch the video below, where I cover these and many others in the cloud space. These growth stocks can boost your long-term investing portfolio, so please check out the below video and subscribe to make sure you stay on top of this sector.&nbsp;</p>","source":"fool_stock","collect":0,"html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>Top 10 Cloud Stocks to Buy on the Next Dip</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nTop 10 Cloud Stocks to Buy on the Next Dip\n</h2>\n\n<h4 class=\"meta\">\n\n\n2021-07-10 09:10 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://www.fool.com/investing/2021/07/09/top-10-cloud-stocks-to-buy-on-the-next-dip-part-ii/><strong>Motley Fool</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>Today, I cover my top high-conviction cloud stocks to buy on the next dip. These are high-growth software-as-a-service (SaaS) and cloud stocks that I currently hold in my $1.6 million long-term ...</p>\n\n<a href=\"https://www.fool.com/investing/2021/07/09/top-10-cloud-stocks-to-buy-on-the-next-dip-part-ii/\">Web Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","type":0,"thumbnail":"","relate_stocks":{"DOCU":"Docusign","TTD":"Trade Desk Inc.","CRWD":"CrowdStrike Holdings, Inc.","TWLO":"Twilio Inc","NET":"Cloudflare, Inc.","ZM":"Zoom","DDOG":"Datadog","SNOW":"Snowflake","CRM":"赛富时","ZS":"Zscaler Inc."},"source_url":"https://www.fool.com/investing/2021/07/09/top-10-cloud-stocks-to-buy-on-the-next-dip-part-ii/","is_english":true,"share_image_url":"https://static.laohu8.com/e9f99090a1c2ed51c021029395664489","article_id":"2150370120","content_text":"Today, I cover my top high-conviction cloud stocks to buy on the next dip. These are high-growth software-as-a-service (SaaS) and cloud stocks that I currently hold in my $1.6 million long-term investing portfolio.\nIf you aren't familiar with the terminology, SaaS is simply a component of cloud computing. SaaS refers to software hosted outside of your organization and offered as a subscription-based service. Overall, SaaS generally offers businesses lower total cost of ownership. The latest software updates and enhancements are generally done for you as the client, allowing businesses to have the latest and greatest without additional effort or overhead. Additionally, SaaS enables businesses to shift capital expenses to operating expenses, allowing them to stretch budgets from an accounting perspective.\nCloud computing refers to servers that are connected through the internet, as well as the software, data centers, and databases that create an online network. Leveraging \"the cloud\" allows users and businesses to consume and analyze data without having to manage databases or software on their own physical, on-premises servers and machines.\nDigital transformation, artificial intelligence (AI), cybersecurity, machine learning, centralized analytics, customer relationship management, enterprise resource planning (ERP), connected TV (CTV), streaming, work from anywhere, the gig economy, and other secular growth trends fuel SaaS and cloud infrastructure. But what are the best stocks to buy in order to ride these waves and boost your portfolio?\nI'll provide 10 total stocks over two articles and videos. Today, I will cover stocks 1 through 10.\n#10.salesforce.com (NYSE:CRM) is the leader in customer relationship management (CRM). Salesforce is a SaaS provider that enables organizations to integrate marketing, sales, service, e-commerce, and IT into a single customer view. Salesforce is acquiringSlack (NYSE:WORK), which has caused volatility in the stock. The leadership team has proven to shareholders many times that they can successfully acquire businesses and add value. I firmly believe that this acquisition will add tremendous value to Salesforce customers. The company plans to build Slack into its Service Cloud products, which will increase employee productivity from anywhere.\n#9.DocuSign(NASDAQ:DOCU) offers more than most people realize. Its business consists of four primary pillars -- manage, prepare, sign, and act -- which collectively are called the DocuSign Agreement Cloud. The company continues to expand offerings, and its recent earnings results prove it. For Q1 FY22, revenues grew 58% year over year to $469 million. Its billings also grew 54% year over year to $527 million with a 125% net dollar retention rate. The below video goes into more detail, breaking down the pillars and solutions.\n#8.Twilio (NYSE:TWLO) is often misunderstood. Sure, it helps companies like Uber and DoorDash connect customers to businesses, but what else does it do? Here is a list of solutions Twilio can offer:\n\nMessaging: You can send and receive SMS, MMS, and OTT messages globally (to and from over 180 countries) and in a scalable manner. For example, Twilio can be used to created automated replies to customers and route important requests to humans for additional interaction.\nCustomer engagement:Contact centers can leverage Twilio for customer engagement channels, and the tools can be quite complex. For example, Twilio offers AI-powered tools for customer self-service, automatic text notifications, callbacks, etc.\nMarketing:Campaigns can use Twilio to send specific, customizable messages with the ability to track data such as click-through rates.\nBusiness email services: Twilio can send and receive emails. Twilio SendGrid Email API allows businesses to create flexible, scalable, and engaging campaigns.\n\n#7The Trade Desk (NASDAQ:TTD) focuses on the ad-tech space, and it has a tremendous total addressable market (TAM) when you consider the possibilities in CTV. CTV means \"connected TV,\" which is essentially any television connected to the internet. ThinkRoku (NASDAQ:ROKU), YouTube, part ofAlphabet (NASDAQ:GOOGL),Amazon Prime (NASDAQ:AMZN),Disney's Disney+ (NYSE:DIS), and others. Smart TVs are changing the internet, and buying The Trade Desk is the best way to play this space, in my opinion. The company allows its clients to buy advertisements or run global marketing campaigns in areas such as CTV, display ads, and even social media. These are massive secular growth trends, and The Trade Desk can help your portfolio capture some of this growth.\n#6.Zoom Video (NASDAQ:ZM) is the epitome of a work-from-home stock, but can it be a large part of the work-from-anywhere movement that is here to stay? The answer, in my opinion, is yes. Zoom is now a verb, and recently Charlie Munger told CNBC that he's \"in love with Zoom\" and thinks it's \"here to stay.\" I agree with him, and the below video shares more details as to why.\nIn case you missed the last article, I'll provide some background. If you aren't familiar with the terminology, SaaS is simply a component of cloud computing. SaaS refers to software hosted outside of your organization and offered as a subscription-based service. SaaS generally offers businesses lower total cost of ownership. The latest software updates and enhancements are generally done for the client, allowing businesses to have the latest and greatest without additional effort or overhead. Additionally, SaaS enables businesses to shift capital expenses to operating expenses, allowing them to stretch budgets from an accounting perspective. \nCloud computing refers to servers that are connected through the internet, as well as the software, data centers, and databases that create an online network. Leveraging \"the cloud\" allows users and businesses to consume and analyze data without having to manage databases or software on their own physical, on-premises servers and machines. \nDigital transformation, artificial intelligence (AI), cybersecurity, machine learning, centralized analytics, customer relationship management, enterprise resource planning (ERP), connected TV (CTV), streaming, work from anywhere, the gig economy, and other secular growth trends fuel SaaS and cloud infrastructure. But what are the best stocks to buy in order to ride these waves and boost your portfolio? \n#5. Zscaler (NASDAQ:ZS) offers customers a security stack as a cloud service, which offers lower cost and complexity than \"old-school\" traditional gateway methods. Zscaler's global infrastructure brings internet gateways closer to users all around the world, creating a faster and more streamlined experience. The company enables work-from-anywhere cloud security in a highly scalable fashion. \n#4. Datadog (NASDAQ:DDOG) provides monitoring and analytics tools that give IT teams insights from anywhere and at any time. Datadog, like Zscaler, is very scalable. In fact, most cloud-native providers are highly scalable, which is part of the reason they rank high on the list. Datadog brings information together from across an entire organization into a simple dashboard. Companies that leverage Datadog enjoy benefits such as improved user experience, faster resolutions to interruptions, and overall better business decisions. \nDatadog has continuously improved its product suite as well as its partnership network. In fact, Datadog recently announced a new partnership with Microsoft (NASDAQ:DDOG) Azure, which allows streamlined experiences for configuration, purchasing, and even managing Datadog inside the Azure portal. Additionally, on July 1 Datadog announced a partnership with Salesforce to provide real-time monitoring and threat detection across the Salesforce (NASDAQ:DDOG) platform.\nFrom a product perspective, here are the highlights:\n\nApplication performance monitoring (APM) provides visibility into application functionality and health. \nInfrastructure monitoring allows businesses to monitor IT infrastructure.\nLog management provides visualization and data for any performance problems.\nUser experience monitoring includes both synthetics and real user monitoring (RUM).\nNetwork performance monitoring allows insights and analysis into network traffic flow from both hybrid and cloud environments.\nIncident management and continuous profiler improves workflows. \nSecurity monitoring provides threat detection.\n\n#3. Snowflake (NYSE:SNOW) offers what it calls a \"data warehouse-as-a-service\" (DaaS), a cloud-based data storage and analytics solution. Interestingly, Snowflake is not a SaaS company since its revenues are over 90% consumption based. Snowflake reduces cost and improves agility. Its data platform is unique in that it is not built on an existing big data platform. \nAs you may have heard around the time of the IPO, Snowflake is backed by Warren Buffett's Berkshire Hathaway (NYSE:BRK.A). Snowflake's clients include Apple (NASDAQ:AAPL), Nike (NYSE:NKE), Mastercard (NYSE:MA), and many others. Snowflake is all about big data, and it deserves a top spot on the list. \n#2. Cloudflare's (NYSE:NET) mission is to help \"build a better internet.\" Cloudflare is actually a network. In fact, it's one of the larger networks on the planet. Cloudflare enables a faster and more secure internet for anyone with an internet presence. Cloudflare has data centers across the globe, and it boasts an astonishing 25 million internet properties, a number that grows daily. To date, Cloudflare handles over 17 percent of the Fortune 1000 internet requests, and the company handles 25 million HTTP requests every second on average. Cloudflare is all about the future of the internet, and it belongs in my portfolio as a long-term investment. \n#1 Crowdstrike (NASDAQ:CRWD) is the leader in endpoint security. Crowdstrike's Falcon platform stops breaches through both prevention and response, a process known as endpoint detection and response (EDR). It uses agent-based sensors that can be installed on Mac, Linux, and Windows. Crowdstrike relies on a cloud-hosted SaaS platform that manages data and prevents, detects, and responds to threats. Both malware and non-malware attacks are covered via Crowdstrike's cloud-delivered technologies in a lightweight solution. \nCyberattacks continue to be a major threat, and the total addressable market for cybersecurity is enormous. Crowdstrike has been a monster since its IPO in 2019, growing into a $60 billion market cap company. But I think Crowdstrike is just getting started, and it stands tall as my top high-conviction cloud/SaaS stock for the next decade.\nIf you want deeper-dive analysis on these stocks, please watch the video below, where I cover these and many others in the cloud space. These growth stocks can boost your long-term investing portfolio, so please check out the below video and subscribe to make sure you stay on top of this sector.","news_type":1},"isVote":1,"tweetType":1,"viewCount":161,"authorTweetTopStatus":1,"verified":2,"comments":[],"imageCount":0,"langContent":"EN","totalScore":0},{"id":148303855,"gmtCreate":1625924983777,"gmtModify":1703750947344,"author":{"id":"3575515425027333","authorId":"3575515425027333","name":"krishna","avatar":"https://static.tigerbbs.com/5fe28588178bb891ec239b269e98f824","crmLevel":2,"crmLevelSwitch":0,"followedFlag":false,"idStr":"3575515425027333","authorIdStr":"3575515425027333"},"themes":[],"htmlText":"<a href=\"https://laohu8.com/S/AMC\">$AMC Entertainment(AMC)$</a>like and comment thank you","listText":"<a href=\"https://laohu8.com/S/AMC\">$AMC Entertainment(AMC)$</a>like and comment thank you","text":"$AMC Entertainment(AMC)$like and comment thank you","images":[{"img":"https://static.tigerbbs.com/ab402e1a328b986c45704bf0ee9516ec","width":"1080","height":"3242"}],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":3,"commentSize":0,"repostSize":0,"link":"https://ttm.financial/post/148303855","isVote":1,"tweetType":1,"viewCount":88,"authorTweetTopStatus":1,"verified":2,"comments":[],"imageCount":1,"langContent":"EN","totalScore":0},{"id":134634973,"gmtCreate":1622220361592,"gmtModify":1704181855573,"author":{"id":"3575515425027333","authorId":"3575515425027333","name":"krishna","avatar":"https://static.tigerbbs.com/5fe28588178bb891ec239b269e98f824","crmLevel":2,"crmLevelSwitch":0,"followedFlag":false,"idStr":"3575515425027333","authorIdStr":"3575515425027333"},"themes":[],"htmlText":"Doing good","listText":"Doing good","text":"Doing good","images":[{"img":"https://static.tigerbbs.com/793f35245ede60de426f0479ba630ac7","width":"1080","height":"2010"}],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":0,"commentSize":0,"repostSize":0,"link":"https://ttm.financial/post/134634973","isVote":1,"tweetType":1,"viewCount":36,"authorTweetTopStatus":1,"verified":2,"comments":[],"imageCount":1,"langContent":"EN","totalScore":0},{"id":191552977,"gmtCreate":1620893134999,"gmtModify":1704350006394,"author":{"id":"3575515425027333","authorId":"3575515425027333","name":"krishna","avatar":"https://static.tigerbbs.com/5fe28588178bb891ec239b269e98f824","crmLevel":2,"crmLevelSwitch":0,"followedFlag":false,"idStr":"3575515425027333","authorIdStr":"3575515425027333"},"themes":[],"htmlText":"Jc","listText":"Jc","text":"Jc","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":1,"commentSize":0,"repostSize":0,"link":"https://ttm.financial/post/191552977","repostId":"1134419676","repostType":4,"repost":{"id":"1134419676","pubTimestamp":1620892887,"share":"https://ttm.financial/m/news/1134419676?lang=&edition=fundamental","pubTime":"2021-05-13 16:01","market":"us","language":"en","title":"Inflation Will Kill This Stock Market","url":"https://stock-news.laohu8.com/highlight/detail?id=1134419676","media":"zerohedge","summary":"I’m not saying nothing else can do the job before inflation fully gets here, just that the kind of i","content":"<p>I’m not saying nothing else can do the job before inflation fully gets here, just that the kind of inflation I’ve been writing about certainly will do it if nothing else does. That’s what terrifies the market and for a very good reason that may not be the first one that comes to some investors’ minds.</p><p>Many talk about the “risk premium” of investing in stocks. As inflation rises, bond yields rise to offset what will be lost to inflation. As bond yields rise, stocks become less competitive.</p><p>That’s a problem, but it’s not the big problem. Not this time.</p><p>The big&nbsp;problem is that we all know where the money for stocks is coming from — the Federal reserve and the US government by borrowing and distributing the money the Fed prints. So, the big problem is the Fed.</p><p><b>Fed is getting tangled in a mess of its own making</b></p><p>Having made the case that high inflation is now already a given, it won’t be long before the Fed is caught in a trap where it needs to continue creating money in order to keep the market rising and to keep stimulating the economy, but it won’t be able to. That’s why we hear the Fed talking incessantly about how inflation is “transitory” right now. The Fed NEEDS to have all investors believe that the rapidly dawning period of inflation will be short so it can be ignored. The Fed needs the market to believe it CAN and WILL keep printing money.</p><p>However, the Fed is just fooling itself. The longer it claims inflation is temporary so that it can ignore the rapidly rising numbers, the more inflation will move out of control because the Fed and the federal government keep the money printing and the armored cars for transporting it running around the clock. (Figuratively speaking, of course.)</p><p>The Fed may fool itself to its (and our) longterm harm, but it is not likely to fool the market much longer because the numbers will be coming in too high for the market to ignore. We’ve saw that on Wednesday in how the market responded to news of the highest inflation in years — a number annualized at 4.2% in April, which is well below the level of inflation we’re about to see this summer. That’s just the wind-up for the pitch.</p><p><b>How inflation will fight the Fed and win</b></p><p>The danger inflation imposes is that, if it rises as high as I am certain it is going to rise (double digits), then the Fed will be forced to raise its interest targets because the market will shove interest up regardless, making the Fed look dumb for claiming an interest target it cannot hold. The Fed won’t be able to what it takes to hold interest down without creating massively greater inflation through its creation of new money.</p><p>However, it is not just that the bond vigilantes will wrest control of interest out of the Fed’s hands, it’s that the stock market will force the Fed to deal with inflation by fearing it whether the Fed says it should or not. Consumers will also press congress to press the Fed to deal with inflation. The longer it delays, the more massively the Fed will have to raise interest rates, just as Paul Volker did in the 80’s to get inflation under control.</p><p>This conundrum is starting to materialize now at a time when the stock market is at absurdly perilous heights. Faint realizations of inflation are no longer so faint, which is why the market is running out of momentum. Investors are starting to believe the Fed will lose control of interest rates. Investors are starting to doubt the Fed’s words of confidence.</p><p>Of course, to crash, momentum has to turn downward, and that won’t likely happen until the market is certain the Fed is going to lose control; but that can happen slowly at first and then quickly as it did in 2018.</p><p>Inflation is a time bomb on the Fed’s back. My thesis is that every month now the Fed is going to find it harder and harder to maintain the illusion that it can keep creating money, pumping it into mom-and-pop investor hands (retail investors, the Robinhood crowed, etc.) through government stimulus programs (at the government’s demand) and keep trying to maintain low interest to pump money into the stock market via corporate stock buybacks funded on loans. Inflation will crush easy money. It rule. The Fed can rule over it, but only by taking away money and crashing markets that are utterly dependent on that money.</p><p>The plate spinner is starting to lose control of all the plates it has to keep twirling on the ends of little sticks. Today’s action in the market shows the market is starting to pay attention to the clatter of falling plates as inflation shows up worse than investors feared. The&nbsp;<i>real</i>&nbsp;fear — the deep paralyzing fear that is only now being foreshadowed — is not competition from rising bond yields (certain as that is to come) but that inflation will become hot enough that the Fed will be forced to turn off all of its go juice.</p><p>Inflation has the power to suddenly turn market sentiment on its head because, well, follow the money back to where it is coming from.</p><blockquote>Stocks headed sharply lower as inflation jitters percolated again, following a report showing U.S. inflation in the year to April rose at its fastest pace in about 13 years, amid the recovery from the COVID pandemic. <i>MarketWatch</i></blockquote><p>Inflation jitters will become inflation&nbsp;<i>panic</i>&nbsp;when it becomes clear that the rise to 4.2 is not just a blip but the first step on the consumer side of many steps to come. Hopefully none of my readers were paying much attention to economists who were forecasting a meager 3.6%.</p><blockquote>“Inflation destroys wealth. Period,” said Patrick Leary, head of trading at Incapital, in an interview with MarketWatch. “We see inflation showing up in markets. If it’s indeed transitory, markets can live with it.&nbsp; <b><i>But if it’s not transitory, that’s when it is going to become troubling for stocks.</i></b>”</blockquote><p>The destruction of wealth is one concern, but the bigger concern, I believe, is the loss of the Amazon-scale, easy-money stream into the market. This is why the market went up when the jobs report was truly horrible. The report of slackening employment eased feelings of concern about inflation causing the Fed to turn off the flow. Its why the market plunged today on solid news to the contrary of higher inflation than many were expecting.</p><p>The Fed’s hand may soon be forced by reality; and if you’ve been reading here — particularly the Patron Posts that focused intensively on inflation, you’ve had a good idea of what is coming. One won’t have to wait until the Fed tightens to stop inflation, however; one only has to wait until stock investors become convinced the Fed will have to tighten,<i>&nbsp;regardless of what the Fed claims to assure investors it won’t.</i></p><p>As&nbsp;<i>MarketWatch</i>&nbsp;noted yesterday,</p><blockquote>Tuesday is looking dicey for stocks, notably the technology space,&nbsp; <b><i>as inflation jitters continue to ripple across markets. The sector has been bearing the brunt of concerns that higher inflation may prompt an early end to the Federal Reserve’s COVID-19 pandemic-driven accommodative stance.</i></b>&nbsp;After last week’s downside jobs surprise, some fear&nbsp; <b><i>Wednesday’s consumer price data could also deliver a nasty shock.</i></b></blockquote><p>The market is top-heavy and jittery under its own load to such an extent that it will crash if it merely believes the Fed will be forced to tighten. That’s why it jolted as a foreshock today, but it wasn’t a shock at all if you’ve been reading here. It was expected.</p><blockquote><b><i>Inflation is the “</i></b> <b>worst-case</b> <b><i>&nbsp;scenario” for this ticking-time-bomb market full of complacent investors,</i></b>&nbsp;warns our call of the day from Thomas H. Kee Jr., president and chief executive of Stock Traders Daily and portfolio manager at Equity Logic.</blockquote><p>And here’s the&nbsp;<i>key</i>:</p><blockquote>“Arguably, the ONLY reason stimulus has even been possible is because there has been no inflation.&nbsp; <b><i>If inflation comes back,</i></b> <b>all</b> <b><i>&nbsp;of the safeguards investors have been given (free money from stimulus) will be dissolved and won’t be</i></b> <b>able</b> <b><i>&nbsp;to come back to save the day</i></b>,” Kee told MarketWatch…. He said recent jobs data indeed suggest price rises will be “more serious than previously thought….”“The declines can be much worse than 25% and <b><i>&nbsp;if the FOMC [Federal Open Market Committee] is handcuffed because of inflation, the swift bounce back that investors have been used to will not happen</i></b>&nbsp;either,” said Kee. “The fair value multiple on the SPX SPX (^GSPC) is not 30 – [to] 35x. It’s more like 15x….”What would bring that down to earth is the return of natural-risk perceptions among investors — severely lacking right now. “They have been given free money by the government, stimulus programs are in full effect, and investors don’t perceive any risk at all. That is the most dangerous thing!” Kee said….“ <b><i>When the big buyer is not there … that is when natural perceptions of risk come back, and if that happens … watch out below!!</i></b>”</blockquote><p>You see, rising inflation has the power to cut the Fed off at the knees. The kind of inflation I’ve been writing about can suck the mojo right out of the Fed, and that is why Powell is already doing his best to convince financial markets that the Fed&nbsp;<i>wants</i>&nbsp;higher inflation and convince them that the higher inflation it wants is temporary before it even begins.</p><p>Market susceptibility</p><p>Notes Lance Roberts,</p><blockquote><b><i>There is no way this bull market doesn’t end very badly. We all know that is the reality of this liquidity-fueled market,</i></b>&nbsp;but we keep investing for “Fear Of Missing Out.” <i>Seeking Alpha</i></blockquote><p>How much does all that stimulus money from Fed and Feds pouring into the market create the cashflow that made the past year’s insanity possible?</p><blockquote>Over the past 5-MONTHS, more money has poured into the equity markets than in the last 12-YEARS combined.</blockquote><p>Do the math and ask yourself what happens if the money HAS to be turned off because inflation forces the Fed to stop creating to much new money in an environment of to few goods due to previous COVID-shutdown shortages and the continuing problems they’ve set up.</p><p>And, if you don’t think the market is precariously riding high on easy money, look at how much it is rising on rising margin debt (money owed to brokers):</p><p><img src=\"https://static.tigerbbs.com/4ca87d635f36dfaa1c989d7e459550d1\" tg-width=\"914\" tg-height=\"592\" referrerpolicy=\"no-referrer\"><i>Seeking Alpha</i></p><p>When the Fed is pressed hard to raise interest rates and stop printing money, brokers aren’t going to be so free in lending money. Right now, it’s easy money at almost free rates. More to the point, though, when the market does start coming down because of concerns about the Fed cutting off easy money, all that margin debt starts unwinding in a hurry as people are forced to sell assets and reduce their margin debt.</p><p>As you can also see, huge, rapid spikes like this in market debt tend to happen right before severe crashes:</p><p><img src=\"https://static.tigerbbs.com/7ff13864e0443e2a448952529cdf6e2c\" tg-width=\"758\" tg-height=\"511\" referrerpolicy=\"no-referrer\"><i>Seeking Alpha</i></p><blockquote>In the short term, fundamentals do not matter. However, in the long term, they matter a lot.</blockquote><p>Sentiment can cause investors to overlook economic fundamentals for a long time, but a sudden change in perception of fundamentals long overlooked in an environment of high margin debt and bring a rapid correction of one’s frame of reference.</p><blockquote>Currently, investors are overlooking fundamentals on the expectation the economy and earnings will improve to justify the market overvaluation.</blockquote><p>That is not likely to happen. Even if it does, perception of the financial landscape (the core value of of money) has been far too optimistic in most circles, as seen by the shock today; but you could see this coming from a year away.</p><p>The Fed talks as though it still doesn’t see what is coming, but that’s the same Fed that talked about how easy tightening was going to be. It appears it had no idea that it didn’t have an exit plan that wouldn’t send sentiment sharply south and crash the market. Yet, that, too, could be seen from years away by those who were not worshipping at the feet of Father Fed.</p><blockquote>When, or if, expectations of recovery are disappointed, the market will begin to reprice itself for its intrinsic value. Given that the market is currently trading more than twice the level of underlying economic growth, which is where corporate profits come from, such suggests a significant risk.</blockquote><p>That’s why the Dow fell 682 points (2%) today, and the S&amp;P fell 2.14% and the NASDAQ, 368 points (2.67%). There wasn’t much of a safe space to be found in stocks.</p><p>Don’t tell me inflation doesn’t matter to this market. Worst day in six months. More on this in another Patron Post.</p><p>Now let me, once again, do the kind of corrective reporting I said was going to be essential at this time. First, the fake news:</p><blockquote>One big reason for the acceleration was&nbsp; <i>base effects</i>&nbsp;– at this time a year ago, the economy was hit with the worst of the Covid pandemic and inflation was unusually low.CNBC</blockquote><p>That isn’t accurate. As I said in my last Patron Post, wherein I also laid out the statistical facts and source to back up my statement,</p><blockquote>Food prices and many other prices rose like they normally do last March, in spite of the pandemic. In fact, after March, they rose worse than normal with every month in the remainder of 2020 coming in between 3.5% and 4% on an annualized basis.“Inflation Tsunami Sirens Are Screaming!“</blockquote><p>I noted in particular one economist who said groceries and fuel were now just making up for last time:</p><blockquote>So,&nbsp; <i>like groceries,</i>&nbsp;gas is catching up to get back to where we would actually expect it to be….</blockquote><p>What predominantly happened last year was that&nbsp;<i>fuel</i>&nbsp;prices plummeted due to nothing being transported and lack of vacationing and lack of commuting, but&nbsp;<i>groceries</i>? Come on!</p><blockquote>“Catching up” may be true for gas if you look back to where prices were in 2018, but it’s total horse manure when you embrace groceries in the comment. Groceries have no catching up to do whatsoever. The average rate of inflation for food for all of 2020 was 3.4%, which compares to rates that 0.3%-2.5% for every year going back until 2011 where the average for the year was. 3.6%.And while overall inflation was less than normal for April through June last year, what does that have to do with this year? [Overall] prices still rose last year; so, it is NOT as if you are comparing to an anomalous year where overall prices fell in those months, meaning some of this year’s gain was just making up for last year’s unusual loss. Then you could truthfully say there was a base effect.</blockquote><p><b><i>So, inflation is coming in much hotter than the Fed led people to believe; and, as my recent Patron Posts have laid out, there is plenty more inflation already baked in on the producer side that will certainly be passed through. I noted you could expect to see that starting to show up on the consumer side now, and you just did. It’s going to be an inflation-hot summer, which can sour sentiment, so stocks won’t take well to that. To be sure, there is a lot of testosterone still determined to press stocks up no matter what, but a hot and humid summer will zap that sentiment, as it did today; and it will keep zapping it no matter what the charts readers are prognosticating based on current sentimental trends. Trends can change quickly in the face of facts</i></b><b>if</b><b><i>&nbsp;the facts crash in with enough vigor. I think high inflation is the much-feared fact that can break through by stopping the Fed’s plans from moving forward.</i></b></p><p>If the Fed does keep moving forward with the same kind of blind ignorance and stubborn resolve to prove itself right that led it to keep pursuing its economic tightening regime (as I claimed it would do for too long in 2018, contrary to good judgment), it will really be making things worse for itself and harder to tame. I think that is not unlikely.</p><blockquote>“ <b><i>There are people who think the Fed is not just behind the curve, they’re maybe missing the point and by the time they start to play catch up, it’s too late,</i></b>” Wall Street veteran Art Cashin said WednesdayCNBC</blockquote><p>As one economist noted,</p><blockquote>“We doubt this report will change the view of officials that inflationary pressures are ‘largely transitory,‘” wrote Michael Pearce, senior U.S. economist at Capital Economics.&nbsp; <b><i>“It’s just that there’s a</i></b> <b>lot more</b> <b><i>&nbsp;‘transitory’ than they were expecting.</i></b>”CNBC</blockquote><p>Indeed. A lot more. What will they do when they run out of a fake base effect to blame it on?</p><p>Liked it? Take a second to support David Haggith on Patreon!</p>","collect":0,"html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>Inflation Will Kill This Stock Market </title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nInflation Will Kill This Stock Market \n</h2>\n\n<h4 class=\"meta\">\n\n\n2021-05-13 16:01 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://www.zerohedge.com/news/2021-05-12/inflation-will-kill-stock-market><strong>zerohedge</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>I’m not saying nothing else can do the job before inflation fully gets here, just that the kind of inflation I’ve been writing about certainly will do it if nothing else does. That’s what terrifies ...</p>\n\n<a href=\"https://www.zerohedge.com/news/2021-05-12/inflation-will-kill-stock-market\">Web Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","type":0,"thumbnail":"","relate_stocks":{".SPX":"S&P 500 Index",".DJI":"道琼斯","SPY":"标普500ETF",".IXIC":"NASDAQ Composite"},"source_url":"https://www.zerohedge.com/news/2021-05-12/inflation-will-kill-stock-market","is_english":true,"share_image_url":"https://static.laohu8.com/e9f99090a1c2ed51c021029395664489","article_id":"1134419676","content_text":"I’m not saying nothing else can do the job before inflation fully gets here, just that the kind of inflation I’ve been writing about certainly will do it if nothing else does. That’s what terrifies the market and for a very good reason that may not be the first one that comes to some investors’ minds.Many talk about the “risk premium” of investing in stocks. As inflation rises, bond yields rise to offset what will be lost to inflation. As bond yields rise, stocks become less competitive.That’s a problem, but it’s not the big problem. Not this time.The big problem is that we all know where the money for stocks is coming from — the Federal reserve and the US government by borrowing and distributing the money the Fed prints. So, the big problem is the Fed.Fed is getting tangled in a mess of its own makingHaving made the case that high inflation is now already a given, it won’t be long before the Fed is caught in a trap where it needs to continue creating money in order to keep the market rising and to keep stimulating the economy, but it won’t be able to. That’s why we hear the Fed talking incessantly about how inflation is “transitory” right now. The Fed NEEDS to have all investors believe that the rapidly dawning period of inflation will be short so it can be ignored. The Fed needs the market to believe it CAN and WILL keep printing money.However, the Fed is just fooling itself. The longer it claims inflation is temporary so that it can ignore the rapidly rising numbers, the more inflation will move out of control because the Fed and the federal government keep the money printing and the armored cars for transporting it running around the clock. (Figuratively speaking, of course.)The Fed may fool itself to its (and our) longterm harm, but it is not likely to fool the market much longer because the numbers will be coming in too high for the market to ignore. We’ve saw that on Wednesday in how the market responded to news of the highest inflation in years — a number annualized at 4.2% in April, which is well below the level of inflation we’re about to see this summer. That’s just the wind-up for the pitch.How inflation will fight the Fed and winThe danger inflation imposes is that, if it rises as high as I am certain it is going to rise (double digits), then the Fed will be forced to raise its interest targets because the market will shove interest up regardless, making the Fed look dumb for claiming an interest target it cannot hold. The Fed won’t be able to what it takes to hold interest down without creating massively greater inflation through its creation of new money.However, it is not just that the bond vigilantes will wrest control of interest out of the Fed’s hands, it’s that the stock market will force the Fed to deal with inflation by fearing it whether the Fed says it should or not. Consumers will also press congress to press the Fed to deal with inflation. The longer it delays, the more massively the Fed will have to raise interest rates, just as Paul Volker did in the 80’s to get inflation under control.This conundrum is starting to materialize now at a time when the stock market is at absurdly perilous heights. Faint realizations of inflation are no longer so faint, which is why the market is running out of momentum. Investors are starting to believe the Fed will lose control of interest rates. Investors are starting to doubt the Fed’s words of confidence.Of course, to crash, momentum has to turn downward, and that won’t likely happen until the market is certain the Fed is going to lose control; but that can happen slowly at first and then quickly as it did in 2018.Inflation is a time bomb on the Fed’s back. My thesis is that every month now the Fed is going to find it harder and harder to maintain the illusion that it can keep creating money, pumping it into mom-and-pop investor hands (retail investors, the Robinhood crowed, etc.) through government stimulus programs (at the government’s demand) and keep trying to maintain low interest to pump money into the stock market via corporate stock buybacks funded on loans. Inflation will crush easy money. It rule. The Fed can rule over it, but only by taking away money and crashing markets that are utterly dependent on that money.The plate spinner is starting to lose control of all the plates it has to keep twirling on the ends of little sticks. Today’s action in the market shows the market is starting to pay attention to the clatter of falling plates as inflation shows up worse than investors feared. The real fear — the deep paralyzing fear that is only now being foreshadowed — is not competition from rising bond yields (certain as that is to come) but that inflation will become hot enough that the Fed will be forced to turn off all of its go juice.Inflation has the power to suddenly turn market sentiment on its head because, well, follow the money back to where it is coming from.Stocks headed sharply lower as inflation jitters percolated again, following a report showing U.S. inflation in the year to April rose at its fastest pace in about 13 years, amid the recovery from the COVID pandemic. MarketWatchInflation jitters will become inflation panic when it becomes clear that the rise to 4.2 is not just a blip but the first step on the consumer side of many steps to come. Hopefully none of my readers were paying much attention to economists who were forecasting a meager 3.6%.“Inflation destroys wealth. Period,” said Patrick Leary, head of trading at Incapital, in an interview with MarketWatch. “We see inflation showing up in markets. If it’s indeed transitory, markets can live with it.  But if it’s not transitory, that’s when it is going to become troubling for stocks.”The destruction of wealth is one concern, but the bigger concern, I believe, is the loss of the Amazon-scale, easy-money stream into the market. This is why the market went up when the jobs report was truly horrible. The report of slackening employment eased feelings of concern about inflation causing the Fed to turn off the flow. Its why the market plunged today on solid news to the contrary of higher inflation than many were expecting.The Fed’s hand may soon be forced by reality; and if you’ve been reading here — particularly the Patron Posts that focused intensively on inflation, you’ve had a good idea of what is coming. One won’t have to wait until the Fed tightens to stop inflation, however; one only has to wait until stock investors become convinced the Fed will have to tighten, regardless of what the Fed claims to assure investors it won’t.As MarketWatch noted yesterday,Tuesday is looking dicey for stocks, notably the technology space,  as inflation jitters continue to ripple across markets. The sector has been bearing the brunt of concerns that higher inflation may prompt an early end to the Federal Reserve’s COVID-19 pandemic-driven accommodative stance. After last week’s downside jobs surprise, some fear  Wednesday’s consumer price data could also deliver a nasty shock.The market is top-heavy and jittery under its own load to such an extent that it will crash if it merely believes the Fed will be forced to tighten. That’s why it jolted as a foreshock today, but it wasn’t a shock at all if you’ve been reading here. It was expected.Inflation is the “ worst-case  scenario” for this ticking-time-bomb market full of complacent investors, warns our call of the day from Thomas H. Kee Jr., president and chief executive of Stock Traders Daily and portfolio manager at Equity Logic.And here’s the key:“Arguably, the ONLY reason stimulus has even been possible is because there has been no inflation.  If inflation comes back, all  of the safeguards investors have been given (free money from stimulus) will be dissolved and won’t be able  to come back to save the day,” Kee told MarketWatch…. He said recent jobs data indeed suggest price rises will be “more serious than previously thought….”“The declines can be much worse than 25% and  if the FOMC [Federal Open Market Committee] is handcuffed because of inflation, the swift bounce back that investors have been used to will not happen either,” said Kee. “The fair value multiple on the SPX SPX (^GSPC) is not 30 – [to] 35x. It’s more like 15x….”What would bring that down to earth is the return of natural-risk perceptions among investors — severely lacking right now. “They have been given free money by the government, stimulus programs are in full effect, and investors don’t perceive any risk at all. That is the most dangerous thing!” Kee said….“ When the big buyer is not there … that is when natural perceptions of risk come back, and if that happens … watch out below!!”You see, rising inflation has the power to cut the Fed off at the knees. The kind of inflation I’ve been writing about can suck the mojo right out of the Fed, and that is why Powell is already doing his best to convince financial markets that the Fed wants higher inflation and convince them that the higher inflation it wants is temporary before it even begins.Market susceptibilityNotes Lance Roberts,There is no way this bull market doesn’t end very badly. We all know that is the reality of this liquidity-fueled market, but we keep investing for “Fear Of Missing Out.” Seeking AlphaHow much does all that stimulus money from Fed and Feds pouring into the market create the cashflow that made the past year’s insanity possible?Over the past 5-MONTHS, more money has poured into the equity markets than in the last 12-YEARS combined.Do the math and ask yourself what happens if the money HAS to be turned off because inflation forces the Fed to stop creating to much new money in an environment of to few goods due to previous COVID-shutdown shortages and the continuing problems they’ve set up.And, if you don’t think the market is precariously riding high on easy money, look at how much it is rising on rising margin debt (money owed to brokers):Seeking AlphaWhen the Fed is pressed hard to raise interest rates and stop printing money, brokers aren’t going to be so free in lending money. Right now, it’s easy money at almost free rates. More to the point, though, when the market does start coming down because of concerns about the Fed cutting off easy money, all that margin debt starts unwinding in a hurry as people are forced to sell assets and reduce their margin debt.As you can also see, huge, rapid spikes like this in market debt tend to happen right before severe crashes:Seeking AlphaIn the short term, fundamentals do not matter. However, in the long term, they matter a lot.Sentiment can cause investors to overlook economic fundamentals for a long time, but a sudden change in perception of fundamentals long overlooked in an environment of high margin debt and bring a rapid correction of one’s frame of reference.Currently, investors are overlooking fundamentals on the expectation the economy and earnings will improve to justify the market overvaluation.That is not likely to happen. Even if it does, perception of the financial landscape (the core value of of money) has been far too optimistic in most circles, as seen by the shock today; but you could see this coming from a year away.The Fed talks as though it still doesn’t see what is coming, but that’s the same Fed that talked about how easy tightening was going to be. It appears it had no idea that it didn’t have an exit plan that wouldn’t send sentiment sharply south and crash the market. Yet, that, too, could be seen from years away by those who were not worshipping at the feet of Father Fed.When, or if, expectations of recovery are disappointed, the market will begin to reprice itself for its intrinsic value. Given that the market is currently trading more than twice the level of underlying economic growth, which is where corporate profits come from, such suggests a significant risk.That’s why the Dow fell 682 points (2%) today, and the S&P fell 2.14% and the NASDAQ, 368 points (2.67%). There wasn’t much of a safe space to be found in stocks.Don’t tell me inflation doesn’t matter to this market. Worst day in six months. More on this in another Patron Post.Now let me, once again, do the kind of corrective reporting I said was going to be essential at this time. First, the fake news:One big reason for the acceleration was  base effects – at this time a year ago, the economy was hit with the worst of the Covid pandemic and inflation was unusually low.CNBCThat isn’t accurate. As I said in my last Patron Post, wherein I also laid out the statistical facts and source to back up my statement,Food prices and many other prices rose like they normally do last March, in spite of the pandemic. In fact, after March, they rose worse than normal with every month in the remainder of 2020 coming in between 3.5% and 4% on an annualized basis.“Inflation Tsunami Sirens Are Screaming!“I noted in particular one economist who said groceries and fuel were now just making up for last time:So,  like groceries, gas is catching up to get back to where we would actually expect it to be….What predominantly happened last year was that fuel prices plummeted due to nothing being transported and lack of vacationing and lack of commuting, but groceries? Come on!“Catching up” may be true for gas if you look back to where prices were in 2018, but it’s total horse manure when you embrace groceries in the comment. Groceries have no catching up to do whatsoever. The average rate of inflation for food for all of 2020 was 3.4%, which compares to rates that 0.3%-2.5% for every year going back until 2011 where the average for the year was. 3.6%.And while overall inflation was less than normal for April through June last year, what does that have to do with this year? [Overall] prices still rose last year; so, it is NOT as if you are comparing to an anomalous year where overall prices fell in those months, meaning some of this year’s gain was just making up for last year’s unusual loss. Then you could truthfully say there was a base effect.So, inflation is coming in much hotter than the Fed led people to believe; and, as my recent Patron Posts have laid out, there is plenty more inflation already baked in on the producer side that will certainly be passed through. I noted you could expect to see that starting to show up on the consumer side now, and you just did. It’s going to be an inflation-hot summer, which can sour sentiment, so stocks won’t take well to that. To be sure, there is a lot of testosterone still determined to press stocks up no matter what, but a hot and humid summer will zap that sentiment, as it did today; and it will keep zapping it no matter what the charts readers are prognosticating based on current sentimental trends. Trends can change quickly in the face of factsif the facts crash in with enough vigor. I think high inflation is the much-feared fact that can break through by stopping the Fed’s plans from moving forward.If the Fed does keep moving forward with the same kind of blind ignorance and stubborn resolve to prove itself right that led it to keep pursuing its economic tightening regime (as I claimed it would do for too long in 2018, contrary to good judgment), it will really be making things worse for itself and harder to tame. I think that is not unlikely.“ There are people who think the Fed is not just behind the curve, they’re maybe missing the point and by the time they start to play catch up, it’s too late,” Wall Street veteran Art Cashin said WednesdayCNBCAs one economist noted,“We doubt this report will change the view of officials that inflationary pressures are ‘largely transitory,‘” wrote Michael Pearce, senior U.S. economist at Capital Economics.  “It’s just that there’s a lot more  ‘transitory’ than they were expecting.”CNBCIndeed. A lot more. What will they do when they run out of a fake base effect to blame it on?Liked it? Take a second to support David Haggith on Patreon!","news_type":1},"isVote":1,"tweetType":1,"viewCount":19,"authorTweetTopStatus":1,"verified":2,"comments":[],"imageCount":0,"langContent":"EN","totalScore":0},{"id":193462521,"gmtCreate":1620811136963,"gmtModify":1704348753771,"author":{"id":"3575515425027333","authorId":"3575515425027333","name":"krishna","avatar":"https://static.tigerbbs.com/5fe28588178bb891ec239b269e98f824","crmLevel":2,"crmLevelSwitch":0,"followedFlag":false,"idStr":"3575515425027333","authorIdStr":"3575515425027333"},"themes":[],"htmlText":"NC","listText":"NC","text":"NC","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":2,"commentSize":0,"repostSize":0,"link":"https://ttm.financial/post/193462521","repostId":"1186046747","repostType":4,"repost":{"id":"1186046747","weMediaInfo":{"introduction":"Providing stock market headlines, business news, financials and earnings ","home_visible":1,"media_name":"Tiger Newspress","id":"1079075236","head_image":"https://static.tigerbbs.com/8274c5b9d4c2852bfb1c4d6ce16c68ba"},"pubTimestamp":1620810345,"share":"https://ttm.financial/m/news/1186046747?lang=&edition=fundamental","pubTime":"2021-05-12 17:05","market":"us","language":"en","title":"Most of chinese tech stocks rose  in premarket trading Wednesday","url":"https://stock-news.laohu8.com/highlight/detail?id=1186046747","media":"Tiger Newspress","summary":"(May 12) Most of chinese tech stocks rose in premarket trading Wednesday.","content":"<p>(May 12)&nbsp;Most of chinese tech stocks rose in premarket trading Wednesday.</p>\n<p><img src=\"https://static.tigerbbs.com/931b9780e8deb539d9716a681d9ca2e8\" tg-width=\"334\" tg-height=\"564\"></p>","collect":0,"html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>Most of chinese tech stocks rose  in premarket trading Wednesday</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; 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overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nMost of chinese tech stocks rose  in premarket trading Wednesday\n</h2>\n\n<h4 class=\"meta\">\n\n\n<a class=\"head\" href=\"https://laohu8.com/wemedia/1079075236\">\n\n\n<div class=\"h-thumb\" style=\"background-image:url(https://static.tigerbbs.com/8274c5b9d4c2852bfb1c4d6ce16c68ba);background-size:cover;\"></div>\n\n<div class=\"h-content\">\n<p class=\"h-name\">Tiger Newspress </p>\n<p class=\"h-time\">2021-05-12 17:05</p>\n</div>\n\n</a>\n\n\n</h4>\n\n</header>\n<article>\n<p>(May 12)&nbsp;Most of chinese tech stocks rose in premarket trading Wednesday.</p>\n<p><img src=\"https://static.tigerbbs.com/931b9780e8deb539d9716a681d9ca2e8\" tg-width=\"334\" tg-height=\"564\"></p>\n\n</article>\n</div>\n</body>\n</html>\n","type":0,"thumbnail":"","relate_stocks":{"PDD":"拼多多","JD":"京东","BABA":"阿里巴巴"},"is_english":true,"share_image_url":"https://static.laohu8.com/e9f99090a1c2ed51c021029395664489","article_id":"1186046747","content_text":"(May 12) Most of chinese tech stocks rose in premarket trading Wednesday.","news_type":1},"isVote":1,"tweetType":1,"viewCount":42,"authorTweetTopStatus":1,"verified":2,"comments":[],"imageCount":0,"langContent":"EN","totalScore":0}],"hots":[{"id":813246419,"gmtCreate":1630208353931,"gmtModify":1676530243969,"author":{"id":"3575515425027333","authorId":"3575515425027333","name":"krishna","avatar":"https://static.tigerbbs.com/5fe28588178bb891ec239b269e98f824","crmLevel":2,"crmLevelSwitch":0,"followedFlag":false,"authorIdStr":"3575515425027333","idStr":"3575515425027333"},"themes":[],"htmlText":"Like thanks","listText":"Like thanks","text":"Like thanks","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":7,"commentSize":1,"repostSize":0,"link":"https://ttm.financial/post/813246419","repostId":"1184130616","repostType":4,"repost":{"id":"1184130616","pubTimestamp":1630111537,"share":"https://ttm.financial/m/news/1184130616?lang=&edition=fundamental","pubTime":"2021-08-28 08:45","market":"us","language":"en","title":"Wall Street Crime And Punishment: Bernard Ebbers And WorldCom's Seriously Wrong Numbers","url":"https://stock-news.laohu8.com/highlight/detail?id=1184130616","media":"Benzinga","summary":"Does crime pay?\nAmong the mightiest of the high-profile corporate executives that dominated the head","content":"<p><i>Does crime pay?</i></p>\n<p>Among the mightiest of the high-profile corporate executives that dominated the headlines in the 1990s and early 2000s,<b>Bernard Ebbers</b>physically stood out from his peers — the 6-foot-4 head of WorldCom was dubbed the “telecom cowboy” thanks to his sartorial preference for jeans, cowboy boots and a 10-gallon hat.</p>\n<p>Ebbers also stood out from his peers for tightly holding on to Luddite practices as the digital age dawned. He famously refused to communicate with his workforce via email. Even worse, he stood out thanks to a prickly personality that quickly seethed when confronted with unpleasant news. A 2002 profile in The Economist defined him as “parochial, stubborn, preoccupied with penny-pinching … a difficult man to work for.”</p>\n<p><b>But ultimately, Ebbers stood out for being at the center of what was (at the time) the largest accounting fraud in U.S. history, which was followed by the harshest prison sentence ever imposed on a corporate executive for financial crimes.</b></p>\n<p><b>A Man In Search Of Himself:</b>&nbsp;Bernard John Ebbers was born Aug. 27, 1941, in Edmonton, Alberta, the second of five children. His father John was a traveling salesman and his peripatetic profession brought the family down from Canada into California, where he jettisoned his sales work and became an auto mechanic. The family later relocated to Gallup, New Mexico, where Ebbers’ parents became teachers on the Navajo Nation Indian reservation.</p>\n<p>The Ebbers clan was back in Canada when Ebbers was a teenager and Bernie (as he was commonly known) came into adulthood unable to determine a course for his life. He&nbsp;attended Canada’s University of Alberta and Michigan’s Calvin College before accepting a basketball scholarship to Mississippi College. But he was the victim of a robbery prior to his senior year that left him seriously injured and switched his attention from playing to coaching the junior varsity team.</p>\n<p>Ebbers graduated in 1967 majoring in physical education and minoring in secondary education. He supported himself during his college years by taking on a variety of odd jobs including a bouncer and milk delivery driver. He married his college sweetheart,<b>Linda Pigott,</b>after graduating and landed work teaching science to middle-school students while coaching high school basketball.</p>\n<p>But Ebbers didn’t stay very long in the school system. When his wife received a job offer as a teacher in another Mississippi town, the couple relocated and he found work managing a garment factory warehouse. By 1974, he tired of working for others and responded to a newspaper advertisement seeking a buyer for a motel in Columbia, Mississippi.</p>\n<p>Ebbers’ approach to running a hospitality establishment sometimes bordered on the eccentric.&nbsp;He would distribute bathroom towels at the front desk and require guests to return them to avoid being charged for taking them. Nonetheless, he found a niche in hospitality management and by the early 1980s he owned and operated eight motels within Mississippi and Texas; he also picked up a car dealership that also proved profitable.</p>\n<p><b>Calling Out Around The World:</b>Ebbers might have remained in the Mississippi hospitality industry had it not been for the 1982 breakup of<b>AT&amp;T Inc.'s</b>&nbsp;T 0.41%monopoly on the U.S. telephone system. This created a seismic shift in the telecommunications world by enabling other companies to begin reselling long-distance telephone services.</p>\n<p>In 1983, Ebbers and three friends met at a diner in Hattiesburg, Mississippi, to consider the feasibility of pursuing this newly opened opportunity. Ebbers theorized that having control of his long-distance calling services could benefit his motel business. In the days before mobile phones, guests in lodging establishments in need of long-distance calling would either have to feed handfuls of quarters into payphones or make calls from their rooms, which usually came with extra fees.</p>\n<p>Ebbers and his pals decided to get into the telecommunications business with&nbsp;<b>Long Distance Discount Services,</b>&nbsp;which they established in 1985 with headquarters in Jackson, Mississippi, with Ebbers as CEO.</p>\n<p><b>Carl J. Aycock,</b>a Mississippi financial advisor who was among the early investors in LDDS, would later laugh at the unlikelihood of Ebbers running a telecom company.</p>\n<p>“The only experience Bernie had before operating a long-distance company was he used the phone,” Aycock quipped in a 1997 interview.</p>\n<p>Maybe Ebbers did not possess an encyclopedic knowledge of telecommunications technology, but the good fortune he enjoyed in the motel business transitioned to this unlikely setting. Within four years of its launch, LDDS was being publicly traded.</p>\n<p>Within 10 years of its opening, LDDS took on an almost Pac Man-style persona of gobbling up telecom firms in&nbsp;sight of the company, acquiring more than 60 different telecommunications company. By 1995, the company renamed itself LDDS WorldCom.</p>\n<p>Many of the company’s acquisitions were on the small side, and the company was never considered a major player in the telecom industry until its $720 million acquisition of&nbsp;<b>Advanced Telecommunications Corporation</b>&nbsp;in 1992.</p>\n<p>The unlikely acquisition came with Ebbers’ ability to outbid industry titans AT&amp;T and&nbsp;<b>Sprint Corporation,</b>both considerably larger players in this field.</p>\n<p>The one unfortunate development during this time was the end of Ebbers’ marriage in 1997. He remarried in 1999 to&nbsp;<b>Kristie Webb.</b></p>\n<p>In February 1998, Ebbers’ company launched its acquisition plans for&nbsp;<b>CompuServe</b>&nbsp;from&nbsp;<b>H&amp;R Block Inc</b>.</p>\n<p>This transaction was followed by an astonishing spin of assets: LDDS sold the CompuServe Information Service portion of its acquisition to<b>America Online,</b>while retaining the CompuServe Network Services portion of the business. AOL simultaneously sold LDDS WorldCom its networking division, Advanced Network Services.</p>\n<p>In September 1998, LDDS WorldCom sealed a $37 billion union with&nbsp;<b>MCI Communications,</b>which created the largest corporate merger in U.S. history. The combined entity became MCI WorldCom, and for Ebbers it seemed that the sky was the limit —&nbsp;except that Ebbers’ ability to soar in the corporate skies resulted in an Icarus-worthy predicament.</p>\n<p><b>A Little Out Of Touch:</b>One year after the CompuServe and MCI deals, Ebbers’ company boasted an 80,000-person workforce, a market capitalization of roughly $185 billion and its shares were trading at a peak of nearly $62.</p>\n<p>At the peak of the company’s success, Ebbers granted an interview to The New York Times aboard his 130-yacht, which he berthed in the resort town of Hilton Head, South Carolina. He claimed that the secret of his success was “not as complicated as people make it out to be,” adding that he surrounded himself with experts who advised him on which moves to make.</p>\n<p>“I’m not an engineer by training,” he said. “I’m not an accountant by training. I’m the coach. I’m not the point guard who shoots the ball.”</p>\n<p>But as the company grew larger, Ebbers penny-pinching behavior during his early motel management days became more extreme. WorldCom executives would later complain that Ebbers stopped providing free coffee within their offices and directed security guards fill the water coolers with tap water.</p>\n<p>And for the head of a telecommunications company, Ebbers was curiously distrustful of cutting-edge tech developments. He refused to communicate via email and would not carry a pager or a cell phone. He would explain his actions internally by repeating “That’s the way we did it at LDDS,” and in a 1997 Business Week interview about this behavior he claimed that “when you come to the table with a (physical education) degree like I do, you don't know a lot about the technical stuff.”</p>\n<p>While Ebbers’ arms-length distance from personal technology could have been attributed to a zany quirk, there was another problem that couldn’t be happily shrugged away. As the company expanded, operational problems began to permeate the multiple divisions. Ebbers would become impatient or worse when confronted with problems, to the point that he would angrily demand that he only wanted to be addressed with good news.</p>\n<p><b>In retrospect, Ebbers’ refusal to acknowledge that his company was growing too fast and too large proved to be a fatal flaw</b>, especially when the corporate culture began to manufacture good news in lieu of reporting problems. As a result, Ebbers’ XL-sized business empire was sustained by taking on massive amounts of debt and highly improper accounting.</p>\n<p><b>Detour Off The Cliff:</b>The first cracks in this corporate story began in October 1999 when MCI WorldCom —&nbsp;which had become the second-largest long-distance telephone company in the country —&nbsp;announced a $129 billion merger with Sprint, the third-largest telecom carrier. Within nine months of this announcement, the merger was canceled in the face of pressure from U.S. and European regulators who feared a telecom monopoly would be born from this union. MCI WorldCom walked away from the failure by renaming itself as WorldCom.</p>\n<p>With the rise of the new millennium came the fall of the dot-com industry, and almost any company that had a tech-related aspect found itself taking a financial tumble. When Ebbers’ company tried to cut corners and save money, it turned into an act of self-immolation.</p>\n<p>Worldcom’s network systems engineering division exhausted its annual capital expenditures budget by November 2000, with a&nbsp;senior manager ordering&nbsp;a halt to processing payments for network systems vendors and suppliers until the beginning of 2001.</p>\n<p>The company’s chief technical officer,<b>Fred Briggs,</b>then ordered all of the labor associated with the capital projects in the network systems division to be booked as an expense rather than a capital project —&nbsp;and his directive was shared with other divisions in the company.</p>\n<p>A WorldCom budget analyst named&nbsp;<b>Kim Amigh</b>in the company’s Richardson, Texas, office recognized the legal ramifications of intentionally mischaracterizing capital expenses and lodged a protest against the order. The directive was canceled and so was Amigh —&nbsp;three months after his action, Amigh was abruptly laid off from the company.</p>\n<p>But Vice President of Internal Audit&nbsp;<b>Cynthia Cooper</b>&nbsp;learned of Amigh’s findings and picked up his trail. Her department began combing through WorldCom’s accounts and found $2 billion that the company claimed in its public filings was spent on capital expenditures during the first three quarters of 2001 —&nbsp;except that the funds were never authorized for that purpose and were clearly operating costs moved into the capital expenditure accounting as a way to make WorldCom look more profitable.</p>\n<p>Cooper could not find anyone in the WorldCom leadership ranks to explain the $2 billion discrepancy. Most executives said it was a “prepaid capacity,” a meaningless term which they couldn’t define when pressed by Cooper.</p>\n<p>And Cooper was not alone in her suspicions. The U.S. Securities and Exchange Commission could not fathom how WorldCom continued to claim robust profits during the dot-com period while its competitors were operating at a loss, and it sent forth a “Request for Information” to learn the secret of its success.</p>\n<p>Adding to this chaos were Ebbers’ personal financial woes, which became exacerbated during to dot-com crisis by margin calls on his WorldCom shares, which were tanking as the economy plummeted into a recession.</p>\n<p>To alleviate his monetary pain, Ebbers borrowed $50 million from WorldCom in September 2000&nbsp;— and then borrowed again&nbsp;and again. By April 2002, Ebbers was $400 million in debt to WorldCom and the board of directors demanded his resignation, which he provided.</p>\n<p>In June 2002, WorldCom acknowledged its earnings reports contained $3.9 billion in accounting misstatements, with the figure&nbsp;later adjusted to $11 billion. In July 2002, the company declared bankruptcy and was delisted from public trading. Also during that month, Ebbers was called before the U.S. House of Representatives Committee on Financial Services to explain what happened. He pleaded the Fifth Amendment.</p>\n<p><b>Road’s End:</b>The efforts to bring Ebbers to trial got off to a weird start when the State of Oklahoma jumped the gun with a 15-count indictment, only to drop its charges in favor of federal prosecution.</p>\n<p>Ebbers was indicted in May 2004 on seven counts of filing false statements with securities regulators plus one count each of conspiracy and securities fraud. Ebbers agreed to testify on his behalf, which many observers later considered to be a major mistake because he came across as evasive and unconvincing when insisting WorldCom’s downfall was solely the fault of his subordinates and that he was ignorant about how his company worked.</p>\n<p>“I know what I don’t know,” Ebbers said during his trial. “To this day, I don’t know technology, and I don’t know finance or accounting.”</p>\n<p>Ebbers was found guilty on all counts and was sentenced to 25 years in prison, the longest sentence ever handed down in U.S. history for a financial fraud case against a corporate executive.</p>\n<p>He remained free on bail while fighting to overturn the verdict, but the conviction was upheld in the U.S. Court of Appeals for the Second Circuit in July 2006. Two months later, he drove himself in his luxury Mercedes-Benz to a low-security Louisiana prison to begin his sentence. Two years later, his wife Kristie successfully filed for divorce.</p>\n<p>After 13 years behind bars, Ebbers was granted a compassionate release on Dec. 21, 2019, due to a deteriorating state of health that included macular degeneration that left him legally blind, anemia, a weakened heart condition and the beginnings of dementia. He returned to his home in Brookhaven, Mississippi, and passed away on Feb. 2, 2020.</p>\n<p>In defining his rise to the top, Ebbers harkened back to his basketball days by insisting, “The coach's job is to get the best players and get them to play together.” But in explaining his fall from grace, Ebbers forgot that the core of coaching is accepting responsibility for the team’s performance and he blamed his “best players” for not being able to “play together” while absolving himself from their errors.</p>\n<p>Said Ebbers when confronted with his ultimate failure as the corporate equivalent of a coach: “I didn't have anything to apologize for.”</p>\n<p></p>","source":"lsy1606299360108","collect":0,"html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>Wall Street Crime And Punishment: Bernard Ebbers And WorldCom's Seriously Wrong Numbers</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nWall Street Crime And Punishment: Bernard Ebbers And WorldCom's Seriously Wrong Numbers\n</h2>\n\n<h4 class=\"meta\">\n\n\n2021-08-28 08:45 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://www.benzinga.com/news/21/08/22680432/wall-street-crime-and-punishment-bernard-ebbers-and-worldcoms-seriously-wrong-numbers><strong>Benzinga</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>Does crime pay?\nAmong the mightiest of the high-profile corporate executives that dominated the headlines in the 1990s and early 2000s,Bernard Ebbersphysically stood out from his peers — the 6-foot-4 ...</p>\n\n<a href=\"https://www.benzinga.com/news/21/08/22680432/wall-street-crime-and-punishment-bernard-ebbers-and-worldcoms-seriously-wrong-numbers\">Web Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","type":0,"thumbnail":"","relate_stocks":{"HRB":"H&R布洛克税务"},"source_url":"https://www.benzinga.com/news/21/08/22680432/wall-street-crime-and-punishment-bernard-ebbers-and-worldcoms-seriously-wrong-numbers","is_english":true,"share_image_url":"https://static.laohu8.com/e9f99090a1c2ed51c021029395664489","article_id":"1184130616","content_text":"Does crime pay?\nAmong the mightiest of the high-profile corporate executives that dominated the headlines in the 1990s and early 2000s,Bernard Ebbersphysically stood out from his peers — the 6-foot-4 head of WorldCom was dubbed the “telecom cowboy” thanks to his sartorial preference for jeans, cowboy boots and a 10-gallon hat.\nEbbers also stood out from his peers for tightly holding on to Luddite practices as the digital age dawned. He famously refused to communicate with his workforce via email. Even worse, he stood out thanks to a prickly personality that quickly seethed when confronted with unpleasant news. A 2002 profile in The Economist defined him as “parochial, stubborn, preoccupied with penny-pinching … a difficult man to work for.”\nBut ultimately, Ebbers stood out for being at the center of what was (at the time) the largest accounting fraud in U.S. history, which was followed by the harshest prison sentence ever imposed on a corporate executive for financial crimes.\nA Man In Search Of Himself: Bernard John Ebbers was born Aug. 27, 1941, in Edmonton, Alberta, the second of five children. His father John was a traveling salesman and his peripatetic profession brought the family down from Canada into California, where he jettisoned his sales work and became an auto mechanic. The family later relocated to Gallup, New Mexico, where Ebbers’ parents became teachers on the Navajo Nation Indian reservation.\nThe Ebbers clan was back in Canada when Ebbers was a teenager and Bernie (as he was commonly known) came into adulthood unable to determine a course for his life. He attended Canada’s University of Alberta and Michigan’s Calvin College before accepting a basketball scholarship to Mississippi College. But he was the victim of a robbery prior to his senior year that left him seriously injured and switched his attention from playing to coaching the junior varsity team.\nEbbers graduated in 1967 majoring in physical education and minoring in secondary education. He supported himself during his college years by taking on a variety of odd jobs including a bouncer and milk delivery driver. He married his college sweetheart,Linda Pigott,after graduating and landed work teaching science to middle-school students while coaching high school basketball.\nBut Ebbers didn’t stay very long in the school system. When his wife received a job offer as a teacher in another Mississippi town, the couple relocated and he found work managing a garment factory warehouse. By 1974, he tired of working for others and responded to a newspaper advertisement seeking a buyer for a motel in Columbia, Mississippi.\nEbbers’ approach to running a hospitality establishment sometimes bordered on the eccentric. He would distribute bathroom towels at the front desk and require guests to return them to avoid being charged for taking them. Nonetheless, he found a niche in hospitality management and by the early 1980s he owned and operated eight motels within Mississippi and Texas; he also picked up a car dealership that also proved profitable.\nCalling Out Around The World:Ebbers might have remained in the Mississippi hospitality industry had it not been for the 1982 breakup ofAT&T Inc.'s T 0.41%monopoly on the U.S. telephone system. This created a seismic shift in the telecommunications world by enabling other companies to begin reselling long-distance telephone services.\nIn 1983, Ebbers and three friends met at a diner in Hattiesburg, Mississippi, to consider the feasibility of pursuing this newly opened opportunity. Ebbers theorized that having control of his long-distance calling services could benefit his motel business. In the days before mobile phones, guests in lodging establishments in need of long-distance calling would either have to feed handfuls of quarters into payphones or make calls from their rooms, which usually came with extra fees.\nEbbers and his pals decided to get into the telecommunications business with Long Distance Discount Services, which they established in 1985 with headquarters in Jackson, Mississippi, with Ebbers as CEO.\nCarl J. Aycock,a Mississippi financial advisor who was among the early investors in LDDS, would later laugh at the unlikelihood of Ebbers running a telecom company.\n“The only experience Bernie had before operating a long-distance company was he used the phone,” Aycock quipped in a 1997 interview.\nMaybe Ebbers did not possess an encyclopedic knowledge of telecommunications technology, but the good fortune he enjoyed in the motel business transitioned to this unlikely setting. Within four years of its launch, LDDS was being publicly traded.\nWithin 10 years of its opening, LDDS took on an almost Pac Man-style persona of gobbling up telecom firms in sight of the company, acquiring more than 60 different telecommunications company. By 1995, the company renamed itself LDDS WorldCom.\nMany of the company’s acquisitions were on the small side, and the company was never considered a major player in the telecom industry until its $720 million acquisition of Advanced Telecommunications Corporation in 1992.\nThe unlikely acquisition came with Ebbers’ ability to outbid industry titans AT&T and Sprint Corporation,both considerably larger players in this field.\nThe one unfortunate development during this time was the end of Ebbers’ marriage in 1997. He remarried in 1999 to Kristie Webb.\nIn February 1998, Ebbers’ company launched its acquisition plans for CompuServe from H&R Block Inc.\nThis transaction was followed by an astonishing spin of assets: LDDS sold the CompuServe Information Service portion of its acquisition toAmerica Online,while retaining the CompuServe Network Services portion of the business. AOL simultaneously sold LDDS WorldCom its networking division, Advanced Network Services.\nIn September 1998, LDDS WorldCom sealed a $37 billion union with MCI Communications,which created the largest corporate merger in U.S. history. The combined entity became MCI WorldCom, and for Ebbers it seemed that the sky was the limit — except that Ebbers’ ability to soar in the corporate skies resulted in an Icarus-worthy predicament.\nA Little Out Of Touch:One year after the CompuServe and MCI deals, Ebbers’ company boasted an 80,000-person workforce, a market capitalization of roughly $185 billion and its shares were trading at a peak of nearly $62.\nAt the peak of the company’s success, Ebbers granted an interview to The New York Times aboard his 130-yacht, which he berthed in the resort town of Hilton Head, South Carolina. He claimed that the secret of his success was “not as complicated as people make it out to be,” adding that he surrounded himself with experts who advised him on which moves to make.\n“I’m not an engineer by training,” he said. “I’m not an accountant by training. I’m the coach. I’m not the point guard who shoots the ball.”\nBut as the company grew larger, Ebbers penny-pinching behavior during his early motel management days became more extreme. WorldCom executives would later complain that Ebbers stopped providing free coffee within their offices and directed security guards fill the water coolers with tap water.\nAnd for the head of a telecommunications company, Ebbers was curiously distrustful of cutting-edge tech developments. He refused to communicate via email and would not carry a pager or a cell phone. He would explain his actions internally by repeating “That’s the way we did it at LDDS,” and in a 1997 Business Week interview about this behavior he claimed that “when you come to the table with a (physical education) degree like I do, you don't know a lot about the technical stuff.”\nWhile Ebbers’ arms-length distance from personal technology could have been attributed to a zany quirk, there was another problem that couldn’t be happily shrugged away. As the company expanded, operational problems began to permeate the multiple divisions. Ebbers would become impatient or worse when confronted with problems, to the point that he would angrily demand that he only wanted to be addressed with good news.\nIn retrospect, Ebbers’ refusal to acknowledge that his company was growing too fast and too large proved to be a fatal flaw, especially when the corporate culture began to manufacture good news in lieu of reporting problems. As a result, Ebbers’ XL-sized business empire was sustained by taking on massive amounts of debt and highly improper accounting.\nDetour Off The Cliff:The first cracks in this corporate story began in October 1999 when MCI WorldCom — which had become the second-largest long-distance telephone company in the country — announced a $129 billion merger with Sprint, the third-largest telecom carrier. Within nine months of this announcement, the merger was canceled in the face of pressure from U.S. and European regulators who feared a telecom monopoly would be born from this union. MCI WorldCom walked away from the failure by renaming itself as WorldCom.\nWith the rise of the new millennium came the fall of the dot-com industry, and almost any company that had a tech-related aspect found itself taking a financial tumble. When Ebbers’ company tried to cut corners and save money, it turned into an act of self-immolation.\nWorldcom’s network systems engineering division exhausted its annual capital expenditures budget by November 2000, with a senior manager ordering a halt to processing payments for network systems vendors and suppliers until the beginning of 2001.\nThe company’s chief technical officer,Fred Briggs,then ordered all of the labor associated with the capital projects in the network systems division to be booked as an expense rather than a capital project — and his directive was shared with other divisions in the company.\nA WorldCom budget analyst named Kim Amighin the company’s Richardson, Texas, office recognized the legal ramifications of intentionally mischaracterizing capital expenses and lodged a protest against the order. The directive was canceled and so was Amigh — three months after his action, Amigh was abruptly laid off from the company.\nBut Vice President of Internal Audit Cynthia Cooper learned of Amigh’s findings and picked up his trail. Her department began combing through WorldCom’s accounts and found $2 billion that the company claimed in its public filings was spent on capital expenditures during the first three quarters of 2001 — except that the funds were never authorized for that purpose and were clearly operating costs moved into the capital expenditure accounting as a way to make WorldCom look more profitable.\nCooper could not find anyone in the WorldCom leadership ranks to explain the $2 billion discrepancy. Most executives said it was a “prepaid capacity,” a meaningless term which they couldn’t define when pressed by Cooper.\nAnd Cooper was not alone in her suspicions. The U.S. Securities and Exchange Commission could not fathom how WorldCom continued to claim robust profits during the dot-com period while its competitors were operating at a loss, and it sent forth a “Request for Information” to learn the secret of its success.\nAdding to this chaos were Ebbers’ personal financial woes, which became exacerbated during to dot-com crisis by margin calls on his WorldCom shares, which were tanking as the economy plummeted into a recession.\nTo alleviate his monetary pain, Ebbers borrowed $50 million from WorldCom in September 2000 — and then borrowed again and again. By April 2002, Ebbers was $400 million in debt to WorldCom and the board of directors demanded his resignation, which he provided.\nIn June 2002, WorldCom acknowledged its earnings reports contained $3.9 billion in accounting misstatements, with the figure later adjusted to $11 billion. In July 2002, the company declared bankruptcy and was delisted from public trading. Also during that month, Ebbers was called before the U.S. House of Representatives Committee on Financial Services to explain what happened. He pleaded the Fifth Amendment.\nRoad’s End:The efforts to bring Ebbers to trial got off to a weird start when the State of Oklahoma jumped the gun with a 15-count indictment, only to drop its charges in favor of federal prosecution.\nEbbers was indicted in May 2004 on seven counts of filing false statements with securities regulators plus one count each of conspiracy and securities fraud. Ebbers agreed to testify on his behalf, which many observers later considered to be a major mistake because he came across as evasive and unconvincing when insisting WorldCom’s downfall was solely the fault of his subordinates and that he was ignorant about how his company worked.\n“I know what I don’t know,” Ebbers said during his trial. “To this day, I don’t know technology, and I don’t know finance or accounting.”\nEbbers was found guilty on all counts and was sentenced to 25 years in prison, the longest sentence ever handed down in U.S. history for a financial fraud case against a corporate executive.\nHe remained free on bail while fighting to overturn the verdict, but the conviction was upheld in the U.S. Court of Appeals for the Second Circuit in July 2006. Two months later, he drove himself in his luxury Mercedes-Benz to a low-security Louisiana prison to begin his sentence. Two years later, his wife Kristie successfully filed for divorce.\nAfter 13 years behind bars, Ebbers was granted a compassionate release on Dec. 21, 2019, due to a deteriorating state of health that included macular degeneration that left him legally blind, anemia, a weakened heart condition and the beginnings of dementia. He returned to his home in Brookhaven, Mississippi, and passed away on Feb. 2, 2020.\nIn defining his rise to the top, Ebbers harkened back to his basketball days by insisting, “The coach's job is to get the best players and get them to play together.” But in explaining his fall from grace, Ebbers forgot that the core of coaching is accepting responsibility for the team’s performance and he blamed his “best players” for not being able to “play together” while absolving himself from their errors.\nSaid Ebbers when confronted with his ultimate failure as the corporate equivalent of a coach: “I didn't have anything to apologize for.”","news_type":1},"isVote":1,"tweetType":1,"viewCount":52,"authorTweetTopStatus":1,"verified":2,"comments":[],"imageCount":0,"langContent":"EN","totalScore":0},{"id":148301054,"gmtCreate":1625925059378,"gmtModify":1703750948476,"author":{"id":"3575515425027333","authorId":"3575515425027333","name":"krishna","avatar":"https://static.tigerbbs.com/5fe28588178bb891ec239b269e98f824","crmLevel":2,"crmLevelSwitch":0,"followedFlag":false,"authorIdStr":"3575515425027333","idStr":"3575515425027333"},"themes":[],"htmlText":"Like and comment thank you","listText":"Like and comment thank you","text":"Like and comment thank 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stock market headlines, business news, financials and earnings ","home_visible":1,"media_name":"Tiger Newspress","id":"1079075236","head_image":"https://static.tigerbbs.com/8274c5b9d4c2852bfb1c4d6ce16c68ba"},"pubTimestamp":1620810345,"share":"https://ttm.financial/m/news/1186046747?lang=&edition=fundamental","pubTime":"2021-05-12 17:05","market":"us","language":"en","title":"Most of chinese tech stocks rose  in premarket trading Wednesday","url":"https://stock-news.laohu8.com/highlight/detail?id=1186046747","media":"Tiger Newspress","summary":"(May 12) Most of chinese tech stocks rose in premarket trading Wednesday.","content":"<p>(May 12)&nbsp;Most of chinese tech stocks rose in premarket trading Wednesday.</p>\n<p><img src=\"https://static.tigerbbs.com/931b9780e8deb539d9716a681d9ca2e8\" tg-width=\"334\" tg-height=\"564\"></p>","collect":0,"html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" 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hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nMost of chinese tech stocks rose  in premarket trading Wednesday\n</h2>\n\n<h4 class=\"meta\">\n\n\n<a class=\"head\" href=\"https://laohu8.com/wemedia/1079075236\">\n\n\n<div class=\"h-thumb\" style=\"background-image:url(https://static.tigerbbs.com/8274c5b9d4c2852bfb1c4d6ce16c68ba);background-size:cover;\"></div>\n\n<div class=\"h-content\">\n<p class=\"h-name\">Tiger Newspress </p>\n<p class=\"h-time\">2021-05-12 17:05</p>\n</div>\n\n</a>\n\n\n</h4>\n\n</header>\n<article>\n<p>(May 12)&nbsp;Most of chinese tech stocks rose in premarket trading Wednesday.</p>\n<p><img src=\"https://static.tigerbbs.com/931b9780e8deb539d9716a681d9ca2e8\" tg-width=\"334\" tg-height=\"564\"></p>\n\n</article>\n</div>\n</body>\n</html>\n","type":0,"thumbnail":"","relate_stocks":{"PDD":"拼多多","JD":"京东","BABA":"阿里巴巴"},"is_english":true,"share_image_url":"https://static.laohu8.com/e9f99090a1c2ed51c021029395664489","article_id":"1186046747","content_text":"(May 12) Most of chinese tech stocks rose in premarket trading Wednesday.","news_type":1},"isVote":1,"tweetType":1,"viewCount":42,"authorTweetTopStatus":1,"verified":2,"comments":[],"imageCount":0,"langContent":"EN","totalScore":0},{"id":191552977,"gmtCreate":1620893134999,"gmtModify":1704350006394,"author":{"id":"3575515425027333","authorId":"3575515425027333","name":"krishna","avatar":"https://static.tigerbbs.com/5fe28588178bb891ec239b269e98f824","crmLevel":2,"crmLevelSwitch":0,"followedFlag":false,"authorIdStr":"3575515425027333","idStr":"3575515425027333"},"themes":[],"htmlText":"Jc","listText":"Jc","text":"Jc","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":1,"commentSize":0,"repostSize":0,"link":"https://ttm.financial/post/191552977","repostId":"1134419676","repostType":4,"repost":{"id":"1134419676","pubTimestamp":1620892887,"share":"https://ttm.financial/m/news/1134419676?lang=&edition=fundamental","pubTime":"2021-05-13 16:01","market":"us","language":"en","title":"Inflation Will Kill This Stock Market","url":"https://stock-news.laohu8.com/highlight/detail?id=1134419676","media":"zerohedge","summary":"I’m not saying nothing else can do the job before inflation fully gets here, just that the kind of i","content":"<p>I’m not saying nothing else can do the job before inflation fully gets here, just that the kind of inflation I’ve been writing about certainly will do it if nothing else does. That’s what terrifies the market and for a very good reason that may not be the first one that comes to some investors’ minds.</p><p>Many talk about the “risk premium” of investing in stocks. As inflation rises, bond yields rise to offset what will be lost to inflation. As bond yields rise, stocks become less competitive.</p><p>That’s a problem, but it’s not the big problem. Not this time.</p><p>The big&nbsp;problem is that we all know where the money for stocks is coming from — the Federal reserve and the US government by borrowing and distributing the money the Fed prints. So, the big problem is the Fed.</p><p><b>Fed is getting tangled in a mess of its own making</b></p><p>Having made the case that high inflation is now already a given, it won’t be long before the Fed is caught in a trap where it needs to continue creating money in order to keep the market rising and to keep stimulating the economy, but it won’t be able to. That’s why we hear the Fed talking incessantly about how inflation is “transitory” right now. The Fed NEEDS to have all investors believe that the rapidly dawning period of inflation will be short so it can be ignored. The Fed needs the market to believe it CAN and WILL keep printing money.</p><p>However, the Fed is just fooling itself. The longer it claims inflation is temporary so that it can ignore the rapidly rising numbers, the more inflation will move out of control because the Fed and the federal government keep the money printing and the armored cars for transporting it running around the clock. (Figuratively speaking, of course.)</p><p>The Fed may fool itself to its (and our) longterm harm, but it is not likely to fool the market much longer because the numbers will be coming in too high for the market to ignore. We’ve saw that on Wednesday in how the market responded to news of the highest inflation in years — a number annualized at 4.2% in April, which is well below the level of inflation we’re about to see this summer. That’s just the wind-up for the pitch.</p><p><b>How inflation will fight the Fed and win</b></p><p>The danger inflation imposes is that, if it rises as high as I am certain it is going to rise (double digits), then the Fed will be forced to raise its interest targets because the market will shove interest up regardless, making the Fed look dumb for claiming an interest target it cannot hold. The Fed won’t be able to what it takes to hold interest down without creating massively greater inflation through its creation of new money.</p><p>However, it is not just that the bond vigilantes will wrest control of interest out of the Fed’s hands, it’s that the stock market will force the Fed to deal with inflation by fearing it whether the Fed says it should or not. Consumers will also press congress to press the Fed to deal with inflation. The longer it delays, the more massively the Fed will have to raise interest rates, just as Paul Volker did in the 80’s to get inflation under control.</p><p>This conundrum is starting to materialize now at a time when the stock market is at absurdly perilous heights. Faint realizations of inflation are no longer so faint, which is why the market is running out of momentum. Investors are starting to believe the Fed will lose control of interest rates. Investors are starting to doubt the Fed’s words of confidence.</p><p>Of course, to crash, momentum has to turn downward, and that won’t likely happen until the market is certain the Fed is going to lose control; but that can happen slowly at first and then quickly as it did in 2018.</p><p>Inflation is a time bomb on the Fed’s back. My thesis is that every month now the Fed is going to find it harder and harder to maintain the illusion that it can keep creating money, pumping it into mom-and-pop investor hands (retail investors, the Robinhood crowed, etc.) through government stimulus programs (at the government’s demand) and keep trying to maintain low interest to pump money into the stock market via corporate stock buybacks funded on loans. Inflation will crush easy money. It rule. The Fed can rule over it, but only by taking away money and crashing markets that are utterly dependent on that money.</p><p>The plate spinner is starting to lose control of all the plates it has to keep twirling on the ends of little sticks. Today’s action in the market shows the market is starting to pay attention to the clatter of falling plates as inflation shows up worse than investors feared. The&nbsp;<i>real</i>&nbsp;fear — the deep paralyzing fear that is only now being foreshadowed — is not competition from rising bond yields (certain as that is to come) but that inflation will become hot enough that the Fed will be forced to turn off all of its go juice.</p><p>Inflation has the power to suddenly turn market sentiment on its head because, well, follow the money back to where it is coming from.</p><blockquote>Stocks headed sharply lower as inflation jitters percolated again, following a report showing U.S. inflation in the year to April rose at its fastest pace in about 13 years, amid the recovery from the COVID pandemic. <i>MarketWatch</i></blockquote><p>Inflation jitters will become inflation&nbsp;<i>panic</i>&nbsp;when it becomes clear that the rise to 4.2 is not just a blip but the first step on the consumer side of many steps to come. Hopefully none of my readers were paying much attention to economists who were forecasting a meager 3.6%.</p><blockquote>“Inflation destroys wealth. Period,” said Patrick Leary, head of trading at Incapital, in an interview with MarketWatch. “We see inflation showing up in markets. If it’s indeed transitory, markets can live with it.&nbsp; <b><i>But if it’s not transitory, that’s when it is going to become troubling for stocks.</i></b>”</blockquote><p>The destruction of wealth is one concern, but the bigger concern, I believe, is the loss of the Amazon-scale, easy-money stream into the market. This is why the market went up when the jobs report was truly horrible. The report of slackening employment eased feelings of concern about inflation causing the Fed to turn off the flow. Its why the market plunged today on solid news to the contrary of higher inflation than many were expecting.</p><p>The Fed’s hand may soon be forced by reality; and if you’ve been reading here — particularly the Patron Posts that focused intensively on inflation, you’ve had a good idea of what is coming. One won’t have to wait until the Fed tightens to stop inflation, however; one only has to wait until stock investors become convinced the Fed will have to tighten,<i>&nbsp;regardless of what the Fed claims to assure investors it won’t.</i></p><p>As&nbsp;<i>MarketWatch</i>&nbsp;noted yesterday,</p><blockquote>Tuesday is looking dicey for stocks, notably the technology space,&nbsp; <b><i>as inflation jitters continue to ripple across markets. The sector has been bearing the brunt of concerns that higher inflation may prompt an early end to the Federal Reserve’s COVID-19 pandemic-driven accommodative stance.</i></b>&nbsp;After last week’s downside jobs surprise, some fear&nbsp; <b><i>Wednesday’s consumer price data could also deliver a nasty shock.</i></b></blockquote><p>The market is top-heavy and jittery under its own load to such an extent that it will crash if it merely believes the Fed will be forced to tighten. That’s why it jolted as a foreshock today, but it wasn’t a shock at all if you’ve been reading here. It was expected.</p><blockquote><b><i>Inflation is the “</i></b> <b>worst-case</b> <b><i>&nbsp;scenario” for this ticking-time-bomb market full of complacent investors,</i></b>&nbsp;warns our call of the day from Thomas H. Kee Jr., president and chief executive of Stock Traders Daily and portfolio manager at Equity Logic.</blockquote><p>And here’s the&nbsp;<i>key</i>:</p><blockquote>“Arguably, the ONLY reason stimulus has even been possible is because there has been no inflation.&nbsp; <b><i>If inflation comes back,</i></b> <b>all</b> <b><i>&nbsp;of the safeguards investors have been given (free money from stimulus) will be dissolved and won’t be</i></b> <b>able</b> <b><i>&nbsp;to come back to save the day</i></b>,” Kee told MarketWatch…. He said recent jobs data indeed suggest price rises will be “more serious than previously thought….”“The declines can be much worse than 25% and <b><i>&nbsp;if the FOMC [Federal Open Market Committee] is handcuffed because of inflation, the swift bounce back that investors have been used to will not happen</i></b>&nbsp;either,” said Kee. “The fair value multiple on the SPX SPX (^GSPC) is not 30 – [to] 35x. It’s more like 15x….”What would bring that down to earth is the return of natural-risk perceptions among investors — severely lacking right now. “They have been given free money by the government, stimulus programs are in full effect, and investors don’t perceive any risk at all. That is the most dangerous thing!” Kee said….“ <b><i>When the big buyer is not there … that is when natural perceptions of risk come back, and if that happens … watch out below!!</i></b>”</blockquote><p>You see, rising inflation has the power to cut the Fed off at the knees. The kind of inflation I’ve been writing about can suck the mojo right out of the Fed, and that is why Powell is already doing his best to convince financial markets that the Fed&nbsp;<i>wants</i>&nbsp;higher inflation and convince them that the higher inflation it wants is temporary before it even begins.</p><p>Market susceptibility</p><p>Notes Lance Roberts,</p><blockquote><b><i>There is no way this bull market doesn’t end very badly. We all know that is the reality of this liquidity-fueled market,</i></b>&nbsp;but we keep investing for “Fear Of Missing Out.” <i>Seeking Alpha</i></blockquote><p>How much does all that stimulus money from Fed and Feds pouring into the market create the cashflow that made the past year’s insanity possible?</p><blockquote>Over the past 5-MONTHS, more money has poured into the equity markets than in the last 12-YEARS combined.</blockquote><p>Do the math and ask yourself what happens if the money HAS to be turned off because inflation forces the Fed to stop creating to much new money in an environment of to few goods due to previous COVID-shutdown shortages and the continuing problems they’ve set up.</p><p>And, if you don’t think the market is precariously riding high on easy money, look at how much it is rising on rising margin debt (money owed to brokers):</p><p><img src=\"https://static.tigerbbs.com/4ca87d635f36dfaa1c989d7e459550d1\" tg-width=\"914\" tg-height=\"592\" referrerpolicy=\"no-referrer\"><i>Seeking Alpha</i></p><p>When the Fed is pressed hard to raise interest rates and stop printing money, brokers aren’t going to be so free in lending money. Right now, it’s easy money at almost free rates. More to the point, though, when the market does start coming down because of concerns about the Fed cutting off easy money, all that margin debt starts unwinding in a hurry as people are forced to sell assets and reduce their margin debt.</p><p>As you can also see, huge, rapid spikes like this in market debt tend to happen right before severe crashes:</p><p><img src=\"https://static.tigerbbs.com/7ff13864e0443e2a448952529cdf6e2c\" tg-width=\"758\" tg-height=\"511\" referrerpolicy=\"no-referrer\"><i>Seeking Alpha</i></p><blockquote>In the short term, fundamentals do not matter. However, in the long term, they matter a lot.</blockquote><p>Sentiment can cause investors to overlook economic fundamentals for a long time, but a sudden change in perception of fundamentals long overlooked in an environment of high margin debt and bring a rapid correction of one’s frame of reference.</p><blockquote>Currently, investors are overlooking fundamentals on the expectation the economy and earnings will improve to justify the market overvaluation.</blockquote><p>That is not likely to happen. Even if it does, perception of the financial landscape (the core value of of money) has been far too optimistic in most circles, as seen by the shock today; but you could see this coming from a year away.</p><p>The Fed talks as though it still doesn’t see what is coming, but that’s the same Fed that talked about how easy tightening was going to be. It appears it had no idea that it didn’t have an exit plan that wouldn’t send sentiment sharply south and crash the market. Yet, that, too, could be seen from years away by those who were not worshipping at the feet of Father Fed.</p><blockquote>When, or if, expectations of recovery are disappointed, the market will begin to reprice itself for its intrinsic value. Given that the market is currently trading more than twice the level of underlying economic growth, which is where corporate profits come from, such suggests a significant risk.</blockquote><p>That’s why the Dow fell 682 points (2%) today, and the S&amp;P fell 2.14% and the NASDAQ, 368 points (2.67%). There wasn’t much of a safe space to be found in stocks.</p><p>Don’t tell me inflation doesn’t matter to this market. Worst day in six months. More on this in another Patron Post.</p><p>Now let me, once again, do the kind of corrective reporting I said was going to be essential at this time. First, the fake news:</p><blockquote>One big reason for the acceleration was&nbsp; <i>base effects</i>&nbsp;– at this time a year ago, the economy was hit with the worst of the Covid pandemic and inflation was unusually low.CNBC</blockquote><p>That isn’t accurate. As I said in my last Patron Post, wherein I also laid out the statistical facts and source to back up my statement,</p><blockquote>Food prices and many other prices rose like they normally do last March, in spite of the pandemic. In fact, after March, they rose worse than normal with every month in the remainder of 2020 coming in between 3.5% and 4% on an annualized basis.“Inflation Tsunami Sirens Are Screaming!“</blockquote><p>I noted in particular one economist who said groceries and fuel were now just making up for last time:</p><blockquote>So,&nbsp; <i>like groceries,</i>&nbsp;gas is catching up to get back to where we would actually expect it to be….</blockquote><p>What predominantly happened last year was that&nbsp;<i>fuel</i>&nbsp;prices plummeted due to nothing being transported and lack of vacationing and lack of commuting, but&nbsp;<i>groceries</i>? Come on!</p><blockquote>“Catching up” may be true for gas if you look back to where prices were in 2018, but it’s total horse manure when you embrace groceries in the comment. Groceries have no catching up to do whatsoever. The average rate of inflation for food for all of 2020 was 3.4%, which compares to rates that 0.3%-2.5% for every year going back until 2011 where the average for the year was. 3.6%.And while overall inflation was less than normal for April through June last year, what does that have to do with this year? [Overall] prices still rose last year; so, it is NOT as if you are comparing to an anomalous year where overall prices fell in those months, meaning some of this year’s gain was just making up for last year’s unusual loss. Then you could truthfully say there was a base effect.</blockquote><p><b><i>So, inflation is coming in much hotter than the Fed led people to believe; and, as my recent Patron Posts have laid out, there is plenty more inflation already baked in on the producer side that will certainly be passed through. I noted you could expect to see that starting to show up on the consumer side now, and you just did. It’s going to be an inflation-hot summer, which can sour sentiment, so stocks won’t take well to that. To be sure, there is a lot of testosterone still determined to press stocks up no matter what, but a hot and humid summer will zap that sentiment, as it did today; and it will keep zapping it no matter what the charts readers are prognosticating based on current sentimental trends. Trends can change quickly in the face of facts</i></b><b>if</b><b><i>&nbsp;the facts crash in with enough vigor. I think high inflation is the much-feared fact that can break through by stopping the Fed’s plans from moving forward.</i></b></p><p>If the Fed does keep moving forward with the same kind of blind ignorance and stubborn resolve to prove itself right that led it to keep pursuing its economic tightening regime (as I claimed it would do for too long in 2018, contrary to good judgment), it will really be making things worse for itself and harder to tame. I think that is not unlikely.</p><blockquote>“ <b><i>There are people who think the Fed is not just behind the curve, they’re maybe missing the point and by the time they start to play catch up, it’s too late,</i></b>” Wall Street veteran Art Cashin said WednesdayCNBC</blockquote><p>As one economist noted,</p><blockquote>“We doubt this report will change the view of officials that inflationary pressures are ‘largely transitory,‘” wrote Michael Pearce, senior U.S. economist at Capital Economics.&nbsp; <b><i>“It’s just that there’s a</i></b> <b>lot more</b> <b><i>&nbsp;‘transitory’ than they were expecting.</i></b>”CNBC</blockquote><p>Indeed. A lot more. What will they do when they run out of a fake base effect to blame it on?</p><p>Liked it? Take a second to support David Haggith on Patreon!</p>","collect":0,"html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>Inflation Will Kill This Stock Market </title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nInflation Will Kill This Stock Market \n</h2>\n\n<h4 class=\"meta\">\n\n\n2021-05-13 16:01 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://www.zerohedge.com/news/2021-05-12/inflation-will-kill-stock-market><strong>zerohedge</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>I’m not saying nothing else can do the job before inflation fully gets here, just that the kind of inflation I’ve been writing about certainly will do it if nothing else does. That’s what terrifies ...</p>\n\n<a href=\"https://www.zerohedge.com/news/2021-05-12/inflation-will-kill-stock-market\">Web Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","type":0,"thumbnail":"","relate_stocks":{".SPX":"S&P 500 Index",".DJI":"道琼斯","SPY":"标普500ETF",".IXIC":"NASDAQ Composite"},"source_url":"https://www.zerohedge.com/news/2021-05-12/inflation-will-kill-stock-market","is_english":true,"share_image_url":"https://static.laohu8.com/e9f99090a1c2ed51c021029395664489","article_id":"1134419676","content_text":"I’m not saying nothing else can do the job before inflation fully gets here, just that the kind of inflation I’ve been writing about certainly will do it if nothing else does. That’s what terrifies the market and for a very good reason that may not be the first one that comes to some investors’ minds.Many talk about the “risk premium” of investing in stocks. As inflation rises, bond yields rise to offset what will be lost to inflation. As bond yields rise, stocks become less competitive.That’s a problem, but it’s not the big problem. Not this time.The big problem is that we all know where the money for stocks is coming from — the Federal reserve and the US government by borrowing and distributing the money the Fed prints. So, the big problem is the Fed.Fed is getting tangled in a mess of its own makingHaving made the case that high inflation is now already a given, it won’t be long before the Fed is caught in a trap where it needs to continue creating money in order to keep the market rising and to keep stimulating the economy, but it won’t be able to. That’s why we hear the Fed talking incessantly about how inflation is “transitory” right now. The Fed NEEDS to have all investors believe that the rapidly dawning period of inflation will be short so it can be ignored. The Fed needs the market to believe it CAN and WILL keep printing money.However, the Fed is just fooling itself. The longer it claims inflation is temporary so that it can ignore the rapidly rising numbers, the more inflation will move out of control because the Fed and the federal government keep the money printing and the armored cars for transporting it running around the clock. (Figuratively speaking, of course.)The Fed may fool itself to its (and our) longterm harm, but it is not likely to fool the market much longer because the numbers will be coming in too high for the market to ignore. We’ve saw that on Wednesday in how the market responded to news of the highest inflation in years — a number annualized at 4.2% in April, which is well below the level of inflation we’re about to see this summer. That’s just the wind-up for the pitch.How inflation will fight the Fed and winThe danger inflation imposes is that, if it rises as high as I am certain it is going to rise (double digits), then the Fed will be forced to raise its interest targets because the market will shove interest up regardless, making the Fed look dumb for claiming an interest target it cannot hold. The Fed won’t be able to what it takes to hold interest down without creating massively greater inflation through its creation of new money.However, it is not just that the bond vigilantes will wrest control of interest out of the Fed’s hands, it’s that the stock market will force the Fed to deal with inflation by fearing it whether the Fed says it should or not. Consumers will also press congress to press the Fed to deal with inflation. The longer it delays, the more massively the Fed will have to raise interest rates, just as Paul Volker did in the 80’s to get inflation under control.This conundrum is starting to materialize now at a time when the stock market is at absurdly perilous heights. Faint realizations of inflation are no longer so faint, which is why the market is running out of momentum. Investors are starting to believe the Fed will lose control of interest rates. Investors are starting to doubt the Fed’s words of confidence.Of course, to crash, momentum has to turn downward, and that won’t likely happen until the market is certain the Fed is going to lose control; but that can happen slowly at first and then quickly as it did in 2018.Inflation is a time bomb on the Fed’s back. My thesis is that every month now the Fed is going to find it harder and harder to maintain the illusion that it can keep creating money, pumping it into mom-and-pop investor hands (retail investors, the Robinhood crowed, etc.) through government stimulus programs (at the government’s demand) and keep trying to maintain low interest to pump money into the stock market via corporate stock buybacks funded on loans. Inflation will crush easy money. It rule. The Fed can rule over it, but only by taking away money and crashing markets that are utterly dependent on that money.The plate spinner is starting to lose control of all the plates it has to keep twirling on the ends of little sticks. Today’s action in the market shows the market is starting to pay attention to the clatter of falling plates as inflation shows up worse than investors feared. The real fear — the deep paralyzing fear that is only now being foreshadowed — is not competition from rising bond yields (certain as that is to come) but that inflation will become hot enough that the Fed will be forced to turn off all of its go juice.Inflation has the power to suddenly turn market sentiment on its head because, well, follow the money back to where it is coming from.Stocks headed sharply lower as inflation jitters percolated again, following a report showing U.S. inflation in the year to April rose at its fastest pace in about 13 years, amid the recovery from the COVID pandemic. MarketWatchInflation jitters will become inflation panic when it becomes clear that the rise to 4.2 is not just a blip but the first step on the consumer side of many steps to come. Hopefully none of my readers were paying much attention to economists who were forecasting a meager 3.6%.“Inflation destroys wealth. Period,” said Patrick Leary, head of trading at Incapital, in an interview with MarketWatch. “We see inflation showing up in markets. If it’s indeed transitory, markets can live with it.  But if it’s not transitory, that’s when it is going to become troubling for stocks.”The destruction of wealth is one concern, but the bigger concern, I believe, is the loss of the Amazon-scale, easy-money stream into the market. This is why the market went up when the jobs report was truly horrible. The report of slackening employment eased feelings of concern about inflation causing the Fed to turn off the flow. Its why the market plunged today on solid news to the contrary of higher inflation than many were expecting.The Fed’s hand may soon be forced by reality; and if you’ve been reading here — particularly the Patron Posts that focused intensively on inflation, you’ve had a good idea of what is coming. One won’t have to wait until the Fed tightens to stop inflation, however; one only has to wait until stock investors become convinced the Fed will have to tighten, regardless of what the Fed claims to assure investors it won’t.As MarketWatch noted yesterday,Tuesday is looking dicey for stocks, notably the technology space,  as inflation jitters continue to ripple across markets. The sector has been bearing the brunt of concerns that higher inflation may prompt an early end to the Federal Reserve’s COVID-19 pandemic-driven accommodative stance. After last week’s downside jobs surprise, some fear  Wednesday’s consumer price data could also deliver a nasty shock.The market is top-heavy and jittery under its own load to such an extent that it will crash if it merely believes the Fed will be forced to tighten. That’s why it jolted as a foreshock today, but it wasn’t a shock at all if you’ve been reading here. It was expected.Inflation is the “ worst-case  scenario” for this ticking-time-bomb market full of complacent investors, warns our call of the day from Thomas H. Kee Jr., president and chief executive of Stock Traders Daily and portfolio manager at Equity Logic.And here’s the key:“Arguably, the ONLY reason stimulus has even been possible is because there has been no inflation.  If inflation comes back, all  of the safeguards investors have been given (free money from stimulus) will be dissolved and won’t be able  to come back to save the day,” Kee told MarketWatch…. He said recent jobs data indeed suggest price rises will be “more serious than previously thought….”“The declines can be much worse than 25% and  if the FOMC [Federal Open Market Committee] is handcuffed because of inflation, the swift bounce back that investors have been used to will not happen either,” said Kee. “The fair value multiple on the SPX SPX (^GSPC) is not 30 – [to] 35x. It’s more like 15x….”What would bring that down to earth is the return of natural-risk perceptions among investors — severely lacking right now. “They have been given free money by the government, stimulus programs are in full effect, and investors don’t perceive any risk at all. That is the most dangerous thing!” Kee said….“ When the big buyer is not there … that is when natural perceptions of risk come back, and if that happens … watch out below!!”You see, rising inflation has the power to cut the Fed off at the knees. The kind of inflation I’ve been writing about can suck the mojo right out of the Fed, and that is why Powell is already doing his best to convince financial markets that the Fed wants higher inflation and convince them that the higher inflation it wants is temporary before it even begins.Market susceptibilityNotes Lance Roberts,There is no way this bull market doesn’t end very badly. We all know that is the reality of this liquidity-fueled market, but we keep investing for “Fear Of Missing Out.” Seeking AlphaHow much does all that stimulus money from Fed and Feds pouring into the market create the cashflow that made the past year’s insanity possible?Over the past 5-MONTHS, more money has poured into the equity markets than in the last 12-YEARS combined.Do the math and ask yourself what happens if the money HAS to be turned off because inflation forces the Fed to stop creating to much new money in an environment of to few goods due to previous COVID-shutdown shortages and the continuing problems they’ve set up.And, if you don’t think the market is precariously riding high on easy money, look at how much it is rising on rising margin debt (money owed to brokers):Seeking AlphaWhen the Fed is pressed hard to raise interest rates and stop printing money, brokers aren’t going to be so free in lending money. Right now, it’s easy money at almost free rates. More to the point, though, when the market does start coming down because of concerns about the Fed cutting off easy money, all that margin debt starts unwinding in a hurry as people are forced to sell assets and reduce their margin debt.As you can also see, huge, rapid spikes like this in market debt tend to happen right before severe crashes:Seeking AlphaIn the short term, fundamentals do not matter. However, in the long term, they matter a lot.Sentiment can cause investors to overlook economic fundamentals for a long time, but a sudden change in perception of fundamentals long overlooked in an environment of high margin debt and bring a rapid correction of one’s frame of reference.Currently, investors are overlooking fundamentals on the expectation the economy and earnings will improve to justify the market overvaluation.That is not likely to happen. Even if it does, perception of the financial landscape (the core value of of money) has been far too optimistic in most circles, as seen by the shock today; but you could see this coming from a year away.The Fed talks as though it still doesn’t see what is coming, but that’s the same Fed that talked about how easy tightening was going to be. It appears it had no idea that it didn’t have an exit plan that wouldn’t send sentiment sharply south and crash the market. Yet, that, too, could be seen from years away by those who were not worshipping at the feet of Father Fed.When, or if, expectations of recovery are disappointed, the market will begin to reprice itself for its intrinsic value. Given that the market is currently trading more than twice the level of underlying economic growth, which is where corporate profits come from, such suggests a significant risk.That’s why the Dow fell 682 points (2%) today, and the S&P fell 2.14% and the NASDAQ, 368 points (2.67%). There wasn’t much of a safe space to be found in stocks.Don’t tell me inflation doesn’t matter to this market. Worst day in six months. More on this in another Patron Post.Now let me, once again, do the kind of corrective reporting I said was going to be essential at this time. First, the fake news:One big reason for the acceleration was  base effects – at this time a year ago, the economy was hit with the worst of the Covid pandemic and inflation was unusually low.CNBCThat isn’t accurate. As I said in my last Patron Post, wherein I also laid out the statistical facts and source to back up my statement,Food prices and many other prices rose like they normally do last March, in spite of the pandemic. In fact, after March, they rose worse than normal with every month in the remainder of 2020 coming in between 3.5% and 4% on an annualized basis.“Inflation Tsunami Sirens Are Screaming!“I noted in particular one economist who said groceries and fuel were now just making up for last time:So,  like groceries, gas is catching up to get back to where we would actually expect it to be….What predominantly happened last year was that fuel prices plummeted due to nothing being transported and lack of vacationing and lack of commuting, but groceries? Come on!“Catching up” may be true for gas if you look back to where prices were in 2018, but it’s total horse manure when you embrace groceries in the comment. Groceries have no catching up to do whatsoever. The average rate of inflation for food for all of 2020 was 3.4%, which compares to rates that 0.3%-2.5% for every year going back until 2011 where the average for the year was. 3.6%.And while overall inflation was less than normal for April through June last year, what does that have to do with this year? [Overall] prices still rose last year; so, it is NOT as if you are comparing to an anomalous year where overall prices fell in those months, meaning some of this year’s gain was just making up for last year’s unusual loss. Then you could truthfully say there was a base effect.So, inflation is coming in much hotter than the Fed led people to believe; and, as my recent Patron Posts have laid out, there is plenty more inflation already baked in on the producer side that will certainly be passed through. I noted you could expect to see that starting to show up on the consumer side now, and you just did. It’s going to be an inflation-hot summer, which can sour sentiment, so stocks won’t take well to that. To be sure, there is a lot of testosterone still determined to press stocks up no matter what, but a hot and humid summer will zap that sentiment, as it did today; and it will keep zapping it no matter what the charts readers are prognosticating based on current sentimental trends. Trends can change quickly in the face of factsif the facts crash in with enough vigor. I think high inflation is the much-feared fact that can break through by stopping the Fed’s plans from moving forward.If the Fed does keep moving forward with the same kind of blind ignorance and stubborn resolve to prove itself right that led it to keep pursuing its economic tightening regime (as I claimed it would do for too long in 2018, contrary to good judgment), it will really be making things worse for itself and harder to tame. I think that is not unlikely.“ There are people who think the Fed is not just behind the curve, they’re maybe missing the point and by the time they start to play catch up, it’s too late,” Wall Street veteran Art Cashin said WednesdayCNBCAs one economist noted,“We doubt this report will change the view of officials that inflationary pressures are ‘largely transitory,‘” wrote Michael Pearce, senior U.S. economist at Capital Economics.  “It’s just that there’s a lot more  ‘transitory’ than they were expecting.”CNBCIndeed. A lot more. What will they do when they run out of a fake base effect to blame it on?Liked it? 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