Wednesday, August 31, 2016
18 years in Wall Street, left after finding out it was all horseshit. Founder/ Master and Commander: iBankCoin, finance news and commentary from the future.
Joined Nov 10, 2007
13,881 Blog Posts

Identities of Over 1 Million Americans Were Pilfered by Illegals and the IRS Knew About It and Said Nothing

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Our good friends at the IRS have been sleeping at the wheel. More than 1 million social security numbers have been pilfered by illegal immigrants, mostly for employment purposes. The IRS knew about it for 5 years and never bothered to let anyone know. After all, it wasn’t their problem. If these illegals and their fraudulent SS #s decided to file their taxes under the fake identity, well then, the IRS could screw you–the original owner of the number. Your credit score and lines of credit would suffer irreparable damage, but the C students at the IRS would keep very busy, indeed, enforcing the tax code for government hacks from coast to coast.

Via WashTimes

“Taxpayers identified as victims of employment-related identity theft are not notified,” the inspector general said.

“It is stunning that the IRS has chosen to aid and abet identity thieves for so long instead of protecting the innocent victims of the theft,” said Sen. Daniel Coats, Indiana Republican.

Between 2011 and 2015 the agency flagged nearly 1.1 million returns where someone appeared to have stolen a valid Social Security number, the inspector general said.

The IRS did not have any new comment on the findings, instead referring reporters to an official response filed with the inspector general, in which the agency insisted it’s making progress.

Karen Schiller, commissioner for the IRS‘ small business and self-employed division, said the 2014 pilot program was helpful, even if it didn’t completely solve the notification problem, and said the agency will try to alert all taxpayers beginning next year.
“As we continue to battle and make progress against all strains of identity theft in the tax ecosystem, we recognized that we were missing an important partner in this effort — the taxpaying public,” said Ms. Schiller, who had the task of answering the inspector general.

She also vowed to figure out a system to let the Social Security Administration (SSA) know if someone’s number has been stolen.
Under the 2014 pilot program, the IRS did notify some 25,000 taxpayers whose SSNs were pilfered. The notice they received told them to contact credit-monitoring agencies to try to head off any more damage to their personal finances.

But the IRS said it’s prevented by federal law from telling taxpayers who stole their identity.
The IRS says its role is not to enforce immigration laws but rather to collect taxes. The agency issues ITINs to ensure that unauthorized workers can still file tax returns, even if they aren’t supposed to be working in the U.S.

Taxpayers who use an ITIN are eligible for some tax credits, particularly for their children who are U.S. citizens.
Congressional Republicans have long complained to the IRS that it is protecting illegal immigrants from discovery by allowing the use of ITINs but failing to share the information with other agencies.

Mr. Coats, who has written legislation requiring victims to be notified, even confronted IRS officials about their lax behavior at a hearing in April.
“All of us can agree that victims need to know that they’re victims, and need to know that an agency of the federal government, whether it’s IRS or whether it’s SSA, or both, ought to have some ability to talk to each other,” Mr. Coats said.

IRS Commissioner John G. Koskinen told Mr. Coats at the hearing that in many of the cases, friends or relatives lent their Social Security numbers to the unauthorized workers, and already know their information is being fraudulently used.

He also said the agency struggled to come up with a solution that wouldn’t chase illegal immigrants away from filing their taxes altogether.
“Obviously, priority for taxpayers and the IRS is collecting those taxes,” he said.

In some cases IRS employees said they sent a notice, but the Social Security Administration had no record of it. In other cases, it appears the IRS didn’t even bother to make a notification.

“The lack of a formal process to ensure that the SSA is notified of income not associated with an innocent taxpayer is problematic because this notification is essential to ensure that victims’ Social Security benefits are not affected,” the inspector general said.

Also, IRS audits are at 11 year lows. They seem to be moonlighting over there.

They wouldn’t want to piss 1 million Americans off and alert them to the fact that illegals are actively FUCKING THEM.

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Obama Has Commuted the Sentences of More Inmates Than Previous 10 Presidents Combined

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For some reason, this doesn’t seem like a feel good story to me. I am not a fervent believer in the drug laws, especially those that send away street pharmacists for 20 years. He isn’t freeing these poor lads, but instead greatly reducing their sentences. You can sift through the rubble here. The vast majority of these criminals are in fact street pharmacists.

chart_083016_commutations[1]_0

Today’s 111 commutation grants underscore the President’s commitment to using his clemency authority to provide a second chance to deserving individuals. To date, President Obama has granted 673 commutations: more commutations than the previous ten presidents combined. More than one-third of the President’s commutation recipients, or 232 individuals, were serving life sentences.

We must remember that these are individuals — sons, daughters, parents, and in many cases, grandparents — who have taken steps toward rehabilitation and who have earned their second chance. They are individuals who received unduly harsh sentences under outdated laws for committing largely nonviolent drug crimes, for example, the 35 individuals whose life sentences were commuted today. For each of these applicants, the President considers the individual merits of each application to determine that an applicant is ready to make use of his or her second chance.

While I expect that the President will continue to grant commutations through the end of this administration, the individualized nature of this relief highlights the need for bipartisan criminal justice reform legislation, including reforms that address excessive mandatory minimum sentences. Only the passage of legislation can achieve the broader reforms needed to ensure our federal sentencing system operates more fairly and effectively in the service of public safety.

Opinion? Is he power grabbing, over-stepping the boundaries of the executive branch or is he St. Obama? Am I being too cynical or is this gigantic leap in Presidential commutations more Manchurian candidate shit from Obama?

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Sean Hannity Goes Apeshit on Glenn Beck and the #NeverTrumpers

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On his radio show today, Sean Hannity went fucking apeshit on Glenn Beck and the Never Trumpers- people like J. Kasich, Beck, Jeb, the National Review etc.

Here is the text. The video clip of his diatribe is below.

“Well, let me just say to all of you. And that includes the commentator class. That includes the Jonah Goldberg class, that includes radio talk show hosts. Glenn Beck is like on a — it’s a holy war for him at this point. I mean, he’s off the rails attacking me every day. Blaming me for Trump. Well, no. I was fair to everybody, Glenn. Whether you want to admit it or not. I know I was fair. My conscience is clear. And I, frankly, I’m proud to pull the lever for Donald Trump with a clear conscience.

“So here’s what I say to all of you Never Trumpers — Glenn Beck, I hope you’re listening. You own Hillary Clinton’s Supreme Court appointments. You own it! You are doing everything you can do to cast doubt in people’s minds! Trump gave us a list. You own her Supreme Court nominees, you own her un-vetted refugees and the 550% increase she will bring into this country. You own the jobs that illegal immigrants will take from the 95 million Americans out of the labor force. You own Obamacare, which is a disaster for this country. You own education because she is beholden to the NEA [National Education Association]. And if we don’t improve the lives of 95 million Americans out of the labor force, I blame you for that, too!

“Because you’re helping elect her. And I’m also saying that, hey, we have a $4,100 increase in healthcare payments since Obama has been president. It’s only going to go higher. You get responsibility for that, too! We have got 12 million more Americans on food stamps. If that increases, I’m going to blame you! We have 46 million total. Eight million more Americans living in poverty. Fifty million Americans in poverty. If that gets worse, I’m blaming you! You know, we have the worst home ownership in 51 years. If that gets worse, guess who I’m blaming? I’m blaming all of you!

“Arrogant, stubborn, lying about what Trump has said and his record. Purposefully distorting, creating doubt, misperception — and you’re so obsessed, some of you with Trump, you don’t even go over how corrupt Hillary is! What a disaster Obama has been. And if we have 1 in 5 American families four years from now, still without a single family member working, I am blaming you. And if in four years from now we have 1 in 6 American men, 18 to 24, in jail or living in mommy’s basement, I’ll blame you. And if we continue to build up more debt than every other president combined like Obama did, well, that’s your debt! And that’s money you are helping to steal from our kids! And we have the lowest labor participation rate since the ’70s, well, I blame you for that!

“And if we elect a president because you are so stubborn, arrogant, and stupid, that can’t say ‘radical Islam’ and can’t engage an enemy and identify it, that’s your fault as well! And if you help elect the single most corrupt person to ever seek the presidency, somebody who lies like she did, somebody who sold out her office for gain like she has, somebody who has failed on Iran and ISIS and radical Islam in general, and Iraq and Iran and Syria and North Africa and Libya, I’m blaming you!

“And you are going to say, ‘Hannity, we blame you. You gave Donald Trump time on your show.’ And I gave every other candidate time. His agenda is infinitely better than hers. And if you can’t see that, then that’s your problem. You own it. You own her. You own every dumb thing she’s about to do. I blame you. Got it? I am going to name names regularly if she wins.”

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Nigel Farage Says a Trump Win Could Mean the End of the Globalists; Thanks Hillary for the Kind Words

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In an interview with Alex Jones today, Britain’s hero of democracy and independence from EU tyranny, Nigel Farage discussed BREXIT and how a Trump win in the upcoming Presidential elections could be an even bigger blow to the globalist schemes. Being the gentleman that he is, he thanked Hillary Clinton for her recent criticism of him–saying it raised his profile in America greatly and has turned him into a political football.

‘If America, the leader of the western world, once again, becomes the leader of the FREE WORLD, well then, I think, basically, we would have done away with the globalists.’

-Farage

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Professor Grinberg on EU-$AAPL Ruling: ‘There’s a Fundamental Problem with Rule of Law in the Retroactivity’

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The bureaucrats in the EU ruled that Ireland cut an improper tax deal with Apple, back in 1991. As a result, they’re punishing Apple for it and retroactively fining them $14.5b dollars. This is an unprecedented rule that not only affects Apple, but the entire oligarchy of US multi-nationals. This, of course, is unacceptable.

Professor Grinberg weighs in and clarifies the topic for those of you sucking on watermelons at home.

The cure for all of this chicanery is repatriation. Lower the tax rate from 40% to 10% and permit US oligarchs to bring back $2.1 trillion in cash held overseas, so that they could partake in share buybacks and other types of horseshit.

More on this topic from CNBC.

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Who’s Boxed in, Ackman or Icahn?

CNBC EVENTS -- Delivering Alpha 2014 -- Pictured: (l-r) CNBC's Scott Wapner interviews Carl Icahn, Chairman, Icahn Enterprises and Bill Ackman, Managing Partner, Pershing Square Capital Management at the CNBC Institutional Investor Delivering Alpha Conference in New York -- (Photo by: Heidi Gutman/CNBC)

The absurd media organization called CNBC today asked the question today, is Icahn boxed in to HLF? I didn’t bother to read it, because, well, the premise is inane.

Then Icahn responded by talking mad shit about Ackman.

“If anyone should feel boxed in, it’s Ackman,” Icahn said in an exclusive interview with CNBC.com.

“Ackman is an astute student of the market, as I am, and I think he would probably agree that there is very rarely, if ever, a company with the short interest, as it was just announced of 27.2 million shares of the 92 million shares outstanding. Of the 92 million, there are 20 percent to 25 percent that are closely held.”

“The only time you see the ratio very close to that is in companies that are on the verge of bankruptcy,” he added.

“Obviously, Herbalife is not anywhere near that position, and is in fact growing dramatically in countries such as China.”

“I don’t believe any professional short-sellers would ever take a position in a company with these numbers,” Icahn said. “As the old saying goes, fools will go where angels fear to tread.”

So my question to you is this: who’s boxed in, the guy with a net worth of $20 billion and permanent capital, up big in HLF, or the guy beguiled by high profile, humiliating losses, racked with terror from the specter of an Icahn led short squeeze?

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Update on My Gold Positions

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I started a position in GLD and a few miners last week, all of which are getting C-4d today amidst the market sell off. Deflation is the rage, as the dollar grinds higher and commodities lower.

My losses are being offset by my 20% weighting in my FCX short, which is circling the drain.

Bear in mind, my position in gold isn’t a trade, but more of a longer term thesis trade headed into the fall.

Should TLT start to trade down, which would be entirely nonsensical given the risk off environment, only then would I be exposed to loss.

With 25% in cash, I am looking forward to allocating money into the SPY, but only after a sharp decline.

Without question, we are at the doorstep of a sharp decline, similar to what H. Clinton faces in the polls.

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The Month of August Closes Out a Speculators Delight, the Old Guard Left in the Dust

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For all of the excitement on the teevee and Twitter, markets will close out August flat. On the upside were terrific gains in the semis, led higher by SEMI (+77%), MU (+20%) and MCHP (+11%).

Banks did well too, bouncing off the lows. Some of the best gains were found overseas, many of which traded up double digits.

Biotechs and many low quality names rallied too, creating an interesting market ruled by advantageous stock pickers. Indexers were left in the dust.

Oil and gas stocks did well, led by gains in high profile names like CHK and CLR.

Utilities traded off, as well as numerous telecoms and other ‘safe haven’ stocks.

Gold traded down, abhorrently.

The Chinese Twitter, WB, traded up 46%. ANGI, YY, YELP and SALE all traded up 20-35%. BABA traded up 17%, highlighting a terrific month for degenerate Chinese burrito stocks listed in the US. Even FIT did well, higher by 12%.

The old guard names, like CRM, AMZN, ORCL, FB, GOOGL and AAPL did absolutely nothing. Zilch.

The fact that mega cap tech and others did poorly most likely means the hedge fund industry underperformed, once again. While it’s true, the bigger names did nothing and the overall indexes traded flat, there are dozens of huge winners found in lowly mid to smaller capped names, and China. Typically, and I don’t mean to be foreboding all the time, this stage of a bull market represents the last leg before the fall. While this isn’t always the case, if recent history is of any use to us at all, the month of September is going to be far less rewarding for people playing with dynamite sticks inside gunpowder factories.

Gentlemen don’t chase degeneracy. They bemuse themselves by watching it from afar.

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Bank of America: Here’s How to Play the Rise of the Millennial aka Moron Generation

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The hobo generation of grifters and Bernie bros are never gonna spend money like previous generations. They’ve been mutated by the water, the media and their phones. But, the delusional pollyannas over at BAC are pleasantly optimistic, despite all of the evidence pointing to the opposite direction.

“There are 2 billion Millennials worldwide and they have overtaken Boomers to become the largest living generation in U.S. history,” the team writes. “But we need to prepare for the rise of the 2.4 billion Centennials — born at the turn of the century and set to live to over 100 years. They are embracing diversity, sustainability, globalization, disruptive technology, peak stuff,’ new business models, and entrepreneurialism like no generation before them — and they are economically optimistic to boot.”

Not only is the team betting on them living longer, they are also predicting their incomes will nearly triple in the next 15 years, going from $21 trillion in 2015 to $62 trillion by 2030. Based on this, here are the five key themes they believe are in play:

Here is how BAC wants you to play this terrific tailwind of sloppy Joe eating renters.

Consumerism: American Eagle Outfitters Inc.(AEO), Expedia Inc.(EXPE), Target Corp.(TGT), Starbucks Corp.(SBUX), Fitbit Inc. (FIT) and Under Armour Inc.(UA)

Homes: The Home Depot Inc. (HD), Lowe’s Companies Inc. (LOW), Masco Corp.(MAS), and Toll Brothers Inc. (TOL)

Education: Bright Horizons Family Solutions Inc. (BFAM), Adobe Systems Inc. (ADBE), Alphabet Inc.(GOOGL), HP Inc.(HP), and Microsoft Corp.(MSFT)

Finance: First Data Corp. (FDC) and On Deck Capital Inc. (ONDK)

Seriously, how fucking lame is this report? Notice how the genius doesn’t bother to mention NKE or a real restaurant, other than hipster SBUX. Talk about stereotyping a generation. Although the millennials are in fact hobo vagabond hipsters right now, they will not be once they start earning real money. This BAC analyst is a fucking moron of the first magnitude. If I actually cared enough, I’d find his name and write it on this blog, calling him such.

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Bill Clinton Wants to Fill Detroit’s Vacated Homes and Jobs with Syrian Refugees

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It’s like a crazy man is on the teevee, spewing insane shit and thinking everyone is just as crazy as he is. Is he so fucking delusional that he believes these Syrian refugees are all peace loving men and women, wholly interested in raising families and just integrating into our western ideal? Of course not. This is part of the plan.

Bill says “there are 10,000 structurally sound buildings in Detroit, which are vacated” that can be filled with Syrian refugees. He says Syria is truly the ones missing out on all of this winship and how we will take these ‘hard working’ people and make lemonade.

The fuck?

It’s all there in black and white.

Speaking of which, the black unemployment rate in Detroit is upwards of 15%.

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