The Ultimate Lock Picker Hacks Pentagon, Beats Corporate Security for Fun and Profit
May 31st, 2009Via: Wired:
Between stabs at his salad, Tobias hands me his latest idea of fun: nearly 300 pages of self-published hacker-porn detailing his attack on the allegedly uncrackable Medeco high-security lock. “Trust me, this will cause a goddamned riot!” he says, dabbing at tears of joy with a paper napkin. “Oh yeah, this is way, way bigger than the liquid explosives thing!” And he’s right, it is bigger—and with way, way bigger consequences.
And Now… Flu Vaccines in Corn
May 31st, 2009Via: Meat and Poultry:
Iowa State University researchers are putting flu vaccines into the genetic makeup of corn, which may someday allow pigs and humans to get a flu vaccination simply by eating corn or corn products.
“We’re trying to figure out which genes from the swine influenza virus to incorporate into corn so those genes, when expressed, would produce protein,” said Hank Harris, professor in animal science and one of the researchers on the project. “When the pig consumes that corn, it would serve as a vaccine.”
This collaborative effort project involves Mr. Harris and Brad Bosworth, an affiliate associate professor of animal science working with pigs, and Kan Wang, a professor in agronomy, who is developing the vaccine traits in the corn.
According to the researchers, the corn vaccine would also work in humans when they eat corn or even corn flakes, corn chips, tortillas or anything that contains corn, Mr. Harris said. The research is funded by a grant from Iowa State University’s Plant Sciences Institute, and is their Biopharmaceuticals and Bioindustrials Research Initiative.
If the research goes well, the corn vaccine may be possible in five to seven years. In the meantime, the team is trying to expedite the process. “While we’re waiting for Wang to produce the corn, we are starting initial experiments in mice to show that the vaccine might induce an immune response,” Mr. Bosworth said.
Mr. Harris said the team still needs more answers. “The big question is whether or not these genes will work when given orally through corn,” he added. “That is the thing we’ve still got to determine.”
Stability and safety are several advantages to the corn vaccine. Once the corn with the vaccine is grown, it can be stored for long-term without losing its potency, researchers claim. If a swine flu virus breaks out, the corn could be shipped to the location to try to vaccinate animals and humans in the area quickly. Because corn grain is used as food and feed, there is no need for extensive vaccine purification, which can be an expensive process.
The Black World Has Black Fiber; Cut It and Black SUVs Show Up Within Minutes
May 31st, 2009You have to read to the end of the article to find out that the incident happened in 2000.
Via: Washington Post:
This part happens all the time: A construction crew putting up an office building in the heart of Tysons Corner a few years ago hit a fiber optic cable no one knew was there.
This part doesn’t: Within moments, three black sport-utility vehicles drove up, a half-dozen men in suits jumped out and one said, “You just hit our line.”
Whose line, you may ask? The guys in suits didn’t say, recalled Aaron Georgelas, whose company, the Georgelas Group, was developing the Greensboro Corporate Center on Spring Hill Road. But Georgelas assumed that he was dealing with the federal government and that the cable in question was “black” wire — a secure communications line used for some of the nation’s most secretive intelligence-gathering operations.
“The construction manager was shocked,” Georgelas recalled. “He had never seen a line get cut and people show up within seconds. Usually you’ve got to figure out whose line it is. To garner that kind of response that quickly was amazing.”
Black wire is one of the looming perils of the massive construction that has come to Tysons, where miles and miles of secure lines are thought to serve such nearby agencies as the Office of the Director of National Intelligence, the National Counterterrorism Center and, a few miles away in McLean, the Central Intelligence Agency. After decades spent cutting through red tape to begin work on a Metrorail extension and the widening of the Capital Beltway, crews are now stirring up tons of dirt where the black lines are located.
“Yeah, we heard about the black SUVs,” said Paul Goguen, the engineer in charge of relocating electric, gas, water, sewer, cable, telephone and other communications lines to make way for Metro through Tysons. “We were warned that if they were hit, the company responsible would show up before you even had a chance to make a phone call.”
So far, so good, Goguen added. But the peril remains for a project that will spend $150 million moving more than 75 miles of conduit along the three-mile stretch of routes 123 and 7 that run through Tysons.
…
Georgelas, the developer whose company was overseeing the work in 2000 when the Chevrolet Suburbans drove up to the Greensboro Corporate Center, said he figured that the government was involved when an AT&T crew arrived the same day to fix the line, rather than waiting days. His opinion didn’t change when AT&T tried to bill his company for the work but immediately backed down when his company balked.
“These lines are not cheap to move,” Georgelas said. “They said, ‘You owe us $300,000.’ We said, ‘Are you nuts?’ ”
The charges just disappeared.
Government Motors: Majority of GM Bondholders Back Debt-for-Equity Deal
May 31st, 2009Via: Wall Street Journal:
General Motors Corp. moved a step closer to what it hopes will be a smooth bankruptcy process after a majority of investors holding $27 billion in the company’s bonds agreed to forgive the debt for equity in the new company, people familiar with the situation said.
A battle with the group was one of the biggest hurdles biggest hurdles GM faced in orchestrating a quick exit from Chapter 11.
The Obama administration plans to usher GM into bankruptcy court Monday as part of its ambitious effort to remake the American car industry at the tail end of its decades-long decline. President Barack Obama is expected to announce the government’s plans for GM in a speech that will try to convey the message that the government can rebuild GM and Chrysler and salvage some of the taxpayers’ investments.
The auto maker, living on U.S. government loans, faces a Monday deadline imposed by the Obama administration. GM announced Friday that Chief Executive Fritz Henderson would give a press conference on Monday in New York outlining proceedings that would likely take place.
Initially, the company said getting bondholders to agree to a debt swap was its best chance for avoiding Chapter 11. But the latest plan is designed to expedite a bankruptcy filling more than to avoid it. As part of the agreement, bondholders pledged not to oppose GM’s reorganization in court.
Under the plan, the Treasury would provide GM with $30 billion in loans to keep running through a bankruptcy, in addition to $20 billion already given to the company. GM won’t have to repay the loans; instead, the government will turn them into a controlling stake in the company. The UAW would end up with at least a 17.5% stake in the new company after agreeing to concessions that will save GM about $10 billion in obligations to retiree health care as well as billions more on labor costs. In exchange, GM agreed to use a soon-to-be-determined idled plant to build a small car in the U.S.
A Human Language Gene Changes the Sound of Mouse Squeaks
May 31st, 2009Via: New York Times:
People have a deep desire to communicate with animals, as is evident from the way they converse with their dogs, enjoy myths about talking animals or devote lifetimes to teaching chimpanzees how to speak. A delicate, if tiny, step has now been taken toward the real thing: the creation of a mouse with a human gene for language.
The gene, FOXP2, was identified in 1998 as the cause of a subtle speech defect in a large London family, half of whose members have difficulties with articulation and grammar. All those affected inherited a disrupted version of the gene from one parent. FOXP2 quickly attracted the attention of evolutionary biologists because other animals also possess the gene, and the human version differs significantly in its DNA sequence from those of mice and chimpanzees, just as might be expected for a gene sculpted by natural selection to play an important role in language.
Researchers at the Max Planck Institute for Evolutionary Anthropology in Leipzig, Germany, have now genetically engineered a strain of mice whose FOXP2 gene has been swapped out for the human version. Svante Paabo, in whose laboratory the mouse was engineered, promised several years ago that when the project was completed, “We will speak to the mouse.” He did not promise that the mouse would say anything in reply, doubtless because a great many genes must have undergone evolutionary change to endow people with the faculty of language, and the new mouse was gaining only one of them. So it is perhaps surprising that possession of the human version of FOXP2 does in fact change the sounds that mice use to communicate with other mice, as well as other aspects of brain function.
Loan Modifications: Redefault Rates May Reach 75%
May 31st, 2009Via: Wall Street Journal:
A central tenet of Washington economic policy for the past three years has been that the key to ending the recession is stopping mortgage foreclosures, whatever the cost. Well, another new study shows that mortgage-servicing companies are having a terrible time of it, not least because the mortgages are continuing to sour at a rate nearly as fast as they can be modified.
Yesterday’s Journal reports that Fitch Ratings looked at mortgages bundled into securities between 2005 and 2007 and managed by some 30 mortgage companies. Fitch found that a conservative projection was that between 65% and 75% of modified subprime loans will fall delinquent by 60 days or more within 12 months of having been modified to keep the borrowers in their homes. This is an even worse result than previous reports by federal regulators. Even loans whose principal was reduced by as much as 20% were still redefaulting in a range of 30% to 40% after 12 months.
Rising U.S. Bond Yields May Spark Credit Crisis II
May 30th, 2009Via: Reuters:
The global financial crisis may morph into a second, equally virulent phase where borrowing costs rise again, hobbling an embryonic economic recovery, debilitating cash-strapped banks, and punishing investors all over again.
Early warnings signs of this scenario include surging government bond yields, a slumping U.S. dollar, and the fading of the bear market rally in U.S. stocks.
Optimists hope that a fragile two-month rally in world stock markets, a rise in U.S. Treasury yields from record lows during the depths of the crisis in late 2008, and some less scary economic data all signal that a recovery is around the corner.
But gloomy analysts insist that thinking is delusional.
Once Credit Crisis Version 2.0 ramps up, foreign investors may punish the U.S. government for borrowing trillions of dollars too much by refusing to buy its debt until bond prices plunge to much cheaper levels.
The telling harbinger is benchmark Treasury note yields’ surge to six-month highs around 3.75 percent this week, as investors began to balk at the record U.S. government borrowing requirement this year.
The U.S. Treasury plans to sell about $2 trillion in new debt this year to fund a $1.8 trillion fiscal deficit.
Heavy selling of U.S. dollar-denominated assets could trigger a full-blown currency crisis and usher in surging inflation, forcing mortgage rates and corporate bond yields up, undermining any rebound in economic activity.
“The financial crisis is a downward spiral with two twists,” said George Feiger, chief executive of Contango Capital Advisors in Berkeley, California.
First came the banking crisis and a huge contraction of credit, starting in mid-2007 which resulted in the stock market panic of 2008 which triggered the deepest U.S. recession in at least two decades.
“Once you have got a recession you have good old-fashioned credit losses,” Feiger said. “The second leg is now the consequences of the massive recession and it is just now working its way out,” he said.
Investors, many of them foreigners who own a large chunk of the U.S. Treasury market, are steadily demanding higher yields.
The price of the historic rescues of banks, insurers, manufacturers, and securities markets, to prevent a complete collapse during the worst financial crisis since the Great Depression, has meant a record U.S. government borrowing requirement.
But by issuing so much debt, the United States risks repulsing a critical buyer: foreign central banks, who own more than a quarter of marketable U.S. Treasuries. China recently overtook Japan as the biggest such buyer.
“We are getting into that stage which I call ‘the markets revenge'”, said Martin Weiss, president of Weiss Research Inc. in Jupiter, Florida.
Weiss, known for his especially pessimistic views on the banking system and economy, recently published a book entitled: “The Ultimate Depression Survival Guide”.
“The market attacked anyone who had the toxic assets,” he said.
Now, foreign investors’ primary target is the U.S. government because it has bought many of the tarnished securities from banks and some of the failing institutions itself, but the selloff will soon spread to all U.S. dollar-denominated assets, Weiss expects.
Selling could push up the 10-year Treasury note’s yield to about 6.0 percent Weiss warns. For now, he urges investors to stash much of their savings in short term Treasury bills, which carry minimal interest rate risk.
Foreign investors are running out of patience with the U.S. government’s debt issuance, he argued.
“What happened at the end of this month is the beginning of the end of that goodwill period,” Weiss said. “There could be a major near-term selloff in the dollar.”
This month, the euro has gained nearly 7.0 percent against the U.S. dollar. Meanwhile, the benchmark ten-year U.S. Treasury note’s yield has surged to six-month highs around 3.75 percent, nearly doubling from its lowest level in 50 years of 2.04 percent seen last December.
Ultimately, corporate bond yields, although still at very wide yield spreads of more than four percentage points above Treasuries according to Merrill Lynch data, will also spike again, Weiss warned. The S&P 500 stock index may fall to 500 points in this next phase of the crisis he added, down from 911 points early on Friday, he said.
On the other hand, many economists reckon the U.S. government and Federal Reserve have averted a rerun of the Great Depression by swiftly orchestrating financial rescues and monetary and fiscal stimulus to offset sagging consumer spending.
Yet even as the U.S. economy and banking system struggle to recover from two years of turmoil, Europe’s banks are even more debilitated, raising the threat of a second global systemic crisis spreading back across the Atlantic to the United States, some analysts fear.
“I think the most likely origins for a major crisis would be beyond our borders,” said David Levy, chairman of the Jerome Levy Forecasting Center in Mount Kisco, New York.
Troubled Bank Loans Hit a Record High
May 30th, 2009Via: New York Times:
OVERALL loan quality at American banks is the worst in at least a quarter century, and the quality of loans is deteriorating at the fastest pace ever, according to statistics released this week by the Federal Deposit Insurance Corporation.
The report highlighted that even as the government and major banks have scrambled to deal with the impaired securities the banks own, the institutions have been plagued by an unprecedented volume of old-fashioned loans going bad.
Of the entire book of loans and leases at all banks — totaling $7.7 trillion at the end of March — 7.75 percent were showing some sign of distress, the F.D.I.C. reported. That was up from 6.9 percent at the end of 2008 and from 4.1 percent a year earlier. It also exceeded the previous high of 7.26 percent set in 1990 and 1991, during the last crisis in American banking.
The F.D.I.C. has been collecting the figures since 1984.
Virtually the only encouraging news in the report was that the banks’ loan portfolio might be worsening more slowly than it was. While the increase of 3.65 percentage points in a year is the highest ever, the quarterly rise was smaller than in the fourth quarter of last year.
The figures, as shown in the accompanying charts, include loans that are more than 30 days behind in payments, a category that will include some loans that catch up and become current. But the percentage that are at least 90 days overdue, or on which the bank has stopped accruing interest or written off, is also higher than at any time since 1984.
As recently as mid-2006, the proportion of troubled loans was at a historic low, and bank regulators were confident that the institutions were well capitalized and could survive any likely economic downturn. They were wrong, it turned out.
The problems stretch across nearly every category of loan, and every size of bank, although the loan problems appear to be somewhat less severe at smaller banks.
$500 Off Coupon for MultiCharts Gold
May 30th, 2009In my recent post about being frugal, I wrote that I often wait for things to go on sale before buying them, and when they finally go on sale, I wind up talking myself out of going through with the purchase.
Here’s a case in point:
I received a $500 off coupon for some trading software that I was thinking about buying. MultiCharts is normally $1497, but it’s $997 for the next day.
I like looking for trading systems. It’s a fun hobby of mine; a bit like playing with Lego for adults. Automated trading is a hard nut to crack. Very hard. All I’ve ever come up with, in about ten years of trying, has proven to be random chance under rigorous back testing. I do much better by playing with chicken entrails and “squinting” at the charts. Someone asked why I used Elliot Wave on a recent call when I hadn’t used Elliot Wave in previous calls. My response was, “I don’t know. The 5-3 pattern just jumped out at me that time, on that interval, on that index.” So, no, I haven’t learned how to code my Magic 8 Ball/squinty eye algorithm for automated trading.
Thanks to a generous reader (she knows who she is), I had the privilege of using MCFXPro (this is MultiCharts with just Forex functionality) for several months and taught myself EasyLanguage to the point where I was writing fairly complicated strategies and bizarre custom indicators. For example, I wanted the system look for a short length channel low above a longer length channel low on the RSI of SlowK, all under 35. In other words, if you can dream it up, you can implement it on this software (if you can code it). It’s quite exciting to create far out studies from scratch and strategies that are entirely your own. It doesn’t mean that they will do jack shit, but at least you can try it all out.
If you’re interested in being able to own (as opposed to lease at great monthly expense) an outstanding charting system, designed from the ground up as a multi-interval analysis tool, complete with an EasyLanguage-based backtesting engine, check out MultiCharts. Make sure that you have a data feed that works with it if you’re using it for real time environments. It’s more expensive than lots of Lego sets, but there’s nothing to clean up when you’re finished. 😉
Use this link to get the $500 off price. This is not an affiliate thing. I receive no commission. This is the link that the company sent to me if I personally wanted to buy the software. The only reason I’m mentioning this is because someone out there might be looking for a tool like this, and $500 off is pretty sweet.
Apologies for the short notice. The offer was initially good for four days, but I only saw it today because it was sitting in my unverified email senders’ queue.
The Bond Vigilantes
May 29th, 2009Via: Bloomberg:
Bonds usually rally when the economy is in recession and inflation is subdued. Gross domestic product dropped at a 5.7 percent annual pace in the first quarter, after contracting at a 6.3 percent rate in the last three months of 2008, according to the Commerce Department.
This time it’s different because the Congressional Budget Office projects Obama’s spending plan will expand the deficit this year to about four times the previous record, and cause a $1.38 trillion shortfall in fiscal 2010. The U.S. will need to raise $3.25 trillion this year to finance its objectives, up from less than $1 trillion in 2008, according to Goldman Sachs Group Inc., one of 16 primary dealers of U.S. government securities that are obligated to bid at Treasury auctions.
“The deficit and funding the deficit has become front and center,” said Jim Bianco, president of Bianco Research LLC in Chicago. “The Fed is going to have to walk a fine line here and has to continue with a policy of printing money to buy Treasuries while at the same time convince the market that this isn’t going to end in tears with fits of inflation.”
…
The bond vigilantes are being led by international investors, who own about 51 percent of the $6.36 trillion in marketable Treasuries outstanding, up from 35 percent in 2000, according to data compiled by the Treasury.
New Group
“The vigilante group is different this time around,” said Mark MacQueen, a partner and money manager at Austin, Texas- based Sage Advisory Services Ltd., which oversees $7.5 billion. “It’s major foreign creditors. This whole idea that we need to spend our way out of our problems is being questioned.”


