Mystery Man Who Moves Japanese Markets Made More Than 1 Million Trades

September 28th, 2014

This is an entertaining piece about a Japanese daytrader who goes by the alias CIS.

Via: Bloomberg:

Betting on rebounds was dangerous, but he’d watched SoftBank lose a fifth of its value over nine days, and a drop in U.S. markets overnight had driven the shares even lower. The odds were tilting further in favor of a bounce, by his reckoning. He decided to pull the trigger, rat-a-tat-tatting the orders in, Bloomberg Markets magazine will report in its November issue.

Ninety minutes later, he cashed out with a profit of 140.6 million yen. Then it was on to the next trade for the former video game champion and pachinko gambler who goes by the name CIS. The 35-year-old day trader says he made 6 billion yen, after taxes, betting on Japanese stocks last year.


Tinkering with Brain’s Decision Circuits Makes Rats Go Random

September 27th, 2014

Via: Los Angeles Times:

“Our brains have evolved to be strategic, so we have evolved to use our past experience to optimize future choice,” said lead investigator Alla Y. Karpova, a neuroscientist at the Howard Hughes Medical Institute’s Janelia Research Campus in Virginia.

“Against weak competitors, a strategic approach is probably useful, because if you figure out the approach of the opponent, you can actually do better than when you’re just random. You can even out-compete them,” Karpova said.

But random exploration may be more appropriate to a new situation full of mixed signals, where experience offers no guide. Some part of the brain has to decide how to decide.

Researchers set out to find how and where such choices are made. They created three computer opponents with increasingly tough strategies to punish patterns in how rats sought selected holes to poke their noses in, looking for food. One was a bit lenient; the second, a bit less forgiving; and the third, strict — it was programmed to learn from the rat and thwart its strategy.

“When animals initially played against the weak competitors, they appeared to maintain a strategic approach, just like people have observed before with primates,” Karpova said. “But when we put them up against a very sophisticated competitor … the animals switched to the random mode.”

And they got stuck there, for hundreds of trials.

Researchers weren’t done. They created a new brain-buster. It gave higher rewards for a certain pattern of pokes (such as right-right-left) but also mild reward rates (16%) for non-patterned responses.

The “strategic” rodents that had played against competitors one and two beat the odds at the hidden pattern task. Their reward rates, about 20%, indicated that sticking to strategic thinking helped them uncover the hidden pattern. Those that had first played the sternest computer taskmaster earned just a 14.5% reward rate, below even the random rate.

“They were completely blind to the sudden availability of a simple strategy that would be beneficial,” Karpova said. “They got stuck in this random mode.”


Ello: Something’s Missing from the About Page

September 27th, 2014

I was looking for some sort of social networking site or software that Cryptogon contributors could use in a post-Cryptogon era. I thought Ello might be worth considering—until I researched it a bit more.

Check this out.

Via: Aral Balkan:

What I didn’t know at the time was that they’d taken $435,000 in seed funding from FreshTracks Capital, a Vermont-based Venture Capital firm. This had apparently been announced by FreshTracks Capital in March.

Let me put it bluntly: if a company has taken venture capital, you have already been sold. It’s not a matter of if, it’s simply a matter of when. (Unless the company goes under before it can exit, that is.)


NY Fed Fired Examiner Who Took on Goldman Sachs

September 26th, 2014

Via: ProPublica:

In the spring of 2012, a senior examiner with the Federal Reserve Bank of New York determined that Goldman Sachs had a problem.

Under a Fed mandate, the investment banking behemoth was expected to have a company-wide policy to address conflicts of interest in how its phalanxes of dealmakers handled clients. Although Goldman had a patchwork of policies, the examiner concluded that they fell short of the Fed’s requirements.

That finding by the examiner, Carmen Segarra, potentially had serious implications for Goldman, which was already under fire for advising clients on both sides of several multibillion-dollar deals and allegedly putting the bank’s own interests above those of its customers. It could have led to closer scrutiny of Goldman by regulators or changes to its business practices.

Before she could formalize her findings, Segarra said, the senior New York Fed official who oversees Goldman pressured her to change them. When she refused, Segarra said she was called to a meeting where her bosses told her they no longer trusted her judgment. Her phone was confiscated, and security officers marched her out of the Fed’s fortress-like building in lower Manhattan, just 7 months after being hired.

“They wanted me to falsify my findings,” Segarra said in a recent interview, “and when I wouldn’t, they fired me.”

Today, Segarra filed a wrongful termination lawsuit against the New York Fed in federal court in Manhattan seeking reinstatement and damages. The case provides a detailed look at a key aspect of the post-2008 financial reforms: The work of Fed bank examiners sent to scrutinize the nation’s “Too Big to Fail” institutions.

Related / Must Listen: The Secret Recordings of Carmen Segarra


Hungary Suspends Gas Supplies to Ukraine

September 26th, 2014

Via: BBC:

Hungary’s gas pipeline operator, FGSZ, says it has suspended delivery of gas to neighbouring Ukraine “indefinitely”.

Ukraine has been receiving gas from Hungary, Poland and Slovakia since Russia cut off supplies to Ukraine in June in a dispute over unpaid bills.

Ukraine’s state-owned gas firm, Naftogaz, confirmed the stoppage. It called the move “unexpected and unexplained”.

FGSZ said it cut deliveries to Ukraine to raise the flow of gas to Hungary.

With winter approaching fears are mounting that Ukraine will be unable to heat homes and power industry without Russian gas.

On Friday Russian and Ukrainian energy ministers are meeting in Berlin for European Union brokered talks, aimed at heading off such a crisis.


Argentina Uses Drones to Spot Wealthy Tax Cheats

September 26th, 2014

Via: AP:

Argentine tax evaders beware: The government is using a drone to spot you.

The Buenos Aires province’s tax agency said Wednesday that it has used drones to identify some 200 mansions and about 100 swimming pools that haven’t been declared by their owners.


Bash Bug May Pose Bigger Threat Than Heartbleed

September 26th, 2014

Unbelievable.

Via: Reuters:

A newly discovered security bug in a widely used piece of Linux software, known as “Bash,” could pose a bigger threat to computer users than the “Heartbleed” bug that surfaced in April, cyber experts warned on Wednesday.

Bash is the software used to control the command prompt on many Unix computers. Hackers can exploit a bug in Bash to take complete control of a targeted system, security experts said.

The Department of Homeland Security’s United States Computer Emergency Readiness Team, or US-CERT, issued an alert saying the vulnerability affected Unix-based operating systems including Linux and Apple Inc’s (AAPL.O) Mac OS X.

The “Heartbleed” bug allowed hackers to spy on computers but not take control of them, according to Dan Guido, chief executive of a cybersecurity firm Trail of Bits.

“The method of exploiting this issue is also far simpler. You can just cut and paste a line of code and get good results.”

Tod Beardsley, an engineering manager at cybersecurity firm Rapid7, warned the bug was rated a “10” for severity, meaning it has maximum impact, and rated “low” for complexity of exploitation, meaning it is relatively easy for hackers to launch attacks.

“Using this vulnerability, attackers can potentially take over the operating system, access confidential information, make changes, et cetera,” Beardsley said. “Anybody with systems using Bash needs to deploy the patch immediately.”

US-CERT advised computer users to obtain operating systems updates from software makers. It said that Linux providers including Red Hat Inc (RHT.N) had already prepared them, but it did not mention an update for OS X. Apple representatives could not be reached.


School Districts Got Military Gear from Pentagon

September 26th, 2014

Via: CBS:

A CBS News review shows campus police across the country have received millions of dollars worth of military gear from the Pentagon.

Now, there are calls to halt those transfers, even though some agencies say the weapons are necessary.

CBS News correspondent Manuel Bojorquez reports from the University of Texas, Arlington, that the University of Texas System’s police protect more than a dozen campuses and 330,000 people across the state.

The director of police said those additional weapons and gear are necessary, given the type of emergencies that can happen.

When University of Texas police responded to a bomb threat in 2012, they arrived in a Humvee. It’s one of three large military vehicles the university’s police system has acquired from the Department of Defense. They recently received a mine-resistant vehicle, which was designed to withstand roadside bombs on the battlefields in Iraq and Afghanistan.

“The turret has been removed, so there’s no weapons systems associated with it,” University of Texas System Director of Police Michael Heidingsfield said.

He says its purpose is to protect the occupants and save lives.

“That vehicle will be used solely in response to an active shooter or armed intruder events,” Heidingsfield said. “Or perhaps in anticipation of a major natural catastrophic event.”

The university’s police department is one of at least 125 school law enforcement agencies in 25 states that have received military gear free of charge from the Department of Defense. That includes police departments for 23 kindergarten-through-12 school districts and 102 colleges and universities.


Managing a Nightmare: The CIA Reveals How It Watched Over the Destruction of Gary Webb

September 25th, 2014

Via: First Look:

Eighteen years after it was published, “Dark Alliance,” the San Jose Mercury News’s bombshell investigation into links between the cocaine trade, Nicaragua’s Contra rebels, and African American neighborhoods in California, remains one of the most explosive and controversial exposés in American journalism.

The 20,000-word series enraged black communities, prompted Congressional hearings, and became one of the first major national security stories in history to blow up online. It also sparked an aggressive backlash from the nation’s most powerful media outlets, which devoted considerable resources to discredit author Gary Webb’s reporting. Their efforts succeeded, costing Webb his career. On December 10, 2004, the journalist was found dead in his apartment, having ended his eight-year downfall with two .38-caliber bullets to the head.

These days, Webb is being cast in a more sympathetic light. He’s portrayed heroically in a major motion picture set to premiere nationwide next month. And documents newly released by the CIA provide fresh context to the “Dark Alliance” saga — information that paints an ugly portrait of the mainstream media at the time.

On September 18, the agency released a trove of documents spanning three decades of secret government operations. Culled from the agency’s in-house journal, Studies in Intelligence, the materials include a previously unreleased six-page article titled “Managing a Nightmare: CIA Public Affairs and the Drug Conspiracy Story.” Looking back on the weeks immediately following the publication of “Dark Alliance,” the document offers a unique window into the CIA’s internal reaction to what it called “a genuine public relations crisis” while revealing just how little the agency ultimately had to do to swiftly extinguish the public outcry. Thanks in part to what author Nicholas Dujmovic, a CIA Directorate of Intelligence staffer at the time of publication, describes as “a ground base of already productive relations with journalists,” the CIA’s Public Affairs officers watched with relief as the largest newspapers in the country rescued the agency from disaster, and, in the process, destroyed the reputation of an aggressive, award-winning reporter.


Entire Australian Web to be Monitored and Whistleblowers to be Jailed

September 25th, 2014

In terms of the surveillance side of this, I guess that they want to be able to have a legal framework for what has been going on for decades.

Via: Sydney Morning Herald:

Australian spies will soon have the power to monitor the entire Australian internet with just one warrant, and journalists and whistleblowers will face up to 10 years’ jail for disclosing classified information.

The government’s first tranche of tougher anti-terrorism bills, which will beef up the powers of the domestic spy agency ASIO, passed the Senate by 44 votes to 12 on Thursday night with bipartisan support from Labor.

The bill, the National Security Legislation Amendment Bill (No. 1) 2014, will now be sent to the House of Representatives, where passage is all but guaranteed on Tuesday at the earliest.

Anyone – including journalists, whistleblowers and bloggers – who “recklessly” discloses “information … [that] relates to a special intelligence operation” faces up to 10 years’ jail.

Any operation can be declared “special” by an authorised ASIO officer.


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