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Jedi2155

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3 hours ago, Malaphax said:

Disinflation

I had to look this word up since I've never seen it before.

Video brings out some interesting ideas.

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I have a personal loathing for CDs because of the complete lack of liquidity.  Nearly every asset class including basic money markets is a better option for cash holdings. 

Kuhla and I both posted investment options with 4 week/1 month durations.  That Synchony CD yields 0.4% more than a US treasury and has a 12 month duration.  If you can afford to invest for 1 Year + there's no reason why you would want to use a CD. 

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On 3/14/2018 at 8:58 AM, Malaphax said:

We have our first (and only) scapegoat in the Equifax saga of stupidity and incompetence. 

http://money.cnn.com/2018/03/14/news/companies/equifax-insider-trading/index.html

I'd love to see all of these idiots charged, but realistically the SEC will be satisfied with just charging one. 

.......and they did.

article - https://www.zdnet.com/article/former-equifax-executive-sent-behind-bars-for-insider-trading-after-data-breach/

Quote

A former Chief Information Officer (CIO) of Equifax has been issued a prison sentence for insider trading on the firm's disastrous data breach before the incident became public knowledge. 

Jun Ying served as the CIO of the credit rating agency's US Information Solutions arm at the time a 2017 data breach resulted in the exposure and theft of information belonging to roughly 145 million US citizens. 
Security

Consumer data including names, Social Security numbers, dates of birth, home addresses, and partial driving license details were exposed. 

An Apache Struts vulnerability present in Equifax systems -- despite a patch being made available two months prior -- was blamed for the breach. 
.....

The 44-year-old executive then sold all of his stock, resulting in payment of over $950,000. According to US prosecutors, the insider trading benefited Ying to the tune of over $480,000 and circumvented a loss of over $117,000. 

Several weeks later, Equifax publicly admitted to the data breach and the firm's share price plummeted. 

Ying pleaded guilty to insider trading and was sentenced to four months in prison with a year of supervised release. In addition, the former CIO was fined $55,000 and ordered to pay $117,117 in restitution. 
.....

Oh. So he still made a tidy bit of money off of this even after the fine. How nice. Cost of doing business.

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While you're technically correct I want to provide a bit of detail on how the stock options system functions. 

Most stock options are given at an exercise price below the current market value or at a market value at some point in time in the past. 
Ex: Your company gives you 100 shares worth of stock options for XYZ stock with an exercise price of $100 and a vesting period of 1 year.  After the vesting period you can choose to exercise the options at any time, you're given that choice because it's a taxable event. 
If the stock price is currently $200 your benefit is going to be $10,0000 (100 x [$200 - $100]).  If you decide to exercise and sell everything because you know the stock price is going to tank you can negate a loss.  If the price drops to somewhere above your exercise price but below the price you sold at then you can still have a positive benefit.  So in this example if the price dropped to $175 after the hack comes to light, you circumvented a loss of $2,500.  If the SEC decides to fine you and take your illegal gains then you might still have made some money on the option trade - because the stock didn't drop all the way to where your initial exercise price was. 

He had a $480,000 gain from the options position, but he was fined $50,000 + $117,117.  If he had sold at the very bottom of this event (like an idiot) he would have still had a gain of $480,000 - $117,117 = $362,883  Nothing about that gain is illegal.  He also received a 5 month prison sentence and will be on probation for at least 1 year. 

I'm not a prosecutor but I have no issues with the very short jail sentence, but I would like to see the fine be larger than $50,000. 

I'm not trying to defend this shitbag but I'm trying to present the information accurately. 

Here's a graph of EFX stock price to provide some additional context. 

image.png

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The Equifax breach settlement is now live and you can file claims against it.  There are a few options, but in general there's a $125 claim if you opt out of credit monitoring (why trust the morons that suffered a breach) because you already use an existing service.  And there's an option to bill for your time at $25/hr for up to 20 hours.  People on reddit claim they don't require documentation for anything under 10 hours, so theoretically you can file for $125 + $250 from equifax. 
I'd say go ahead and take them for a ride, encourage friends, family and everyone you know to claim as much as you can get away with. 

https://www.equifaxbreachsettlement.com/

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i dont get the 2nd part.  up to 20 hours of what ? how do you know if youre qualify ? did you do it ? how long is the filing process ?

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On 7/24/2019 at 3:50 PM, Malaphax said:

The Equifax breach settlement is now live and you can file claims against it.  There are a few options, but in general there's a $125 claim if you opt out of credit monitoring (why trust the morons that suffered a breach) because you already use an existing service.  And there's an option to bill for your time at $25/hr for up to 20 hours.  People on reddit claim they don't require documentation for anything under 10 hours, so theoretically you can file for $125 + $250 from equifax. 
I'd say go ahead and take them for a ride, encourage friends, family and everyone you know to claim as much as you can get away with. 

https://www.equifaxbreachsettlement.com/

Yea none of that shit is happening.  FTC says too many people filed so everyone gets free credit monitoring... from the agency that got hacked and leaked your data on the internet.  What an absolute joke. 

https://www.ftc.gov/enforcement/cases-proceedings/refunds/equifax-data-breach-settlement

Quote

5. I thought I could choose $125 instead of free credit monitoring. What happened?

The public response to the settlement has been overwhelming. Millions of people have visited this site in just the first week. Because the total amount available for these alternative payments is $31 million, each person who takes the money option is going to get a very small amount. Nowhere near the $125 they could have gotten if there hadn’t been such an enormous number of claims filed.

The free credit monitoring provides a much better value, and everyone whose information was exposed can take advantage of it. If your information was exposed in the data breach, and you file a valid claim before the deadline, you are guaranteed at least four years of free monitoring at all three credit bureaus (Equifax, Experian, and TransUnion) and $1,000,000 of identity theft insurance, among other benefits. The market value of this product is hundreds of dollars per year.

You can still choose the cash option on the claim form, but you will be disappointed with the amount you receive and you won’t get the free credit monitoring.

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This is something I have been mentioning offline and I'm posting here partially for my own future documentation.

I am very likely to move some or all of my investments to put them more in line with Socially Responsible Investing (SRI) or Environmental, Social and Governance (ESG) views.

Notes:

VSGX ETF ESG International Stock ETF
https://institutional.vanguard.com/web/cf/product-details/fund/4394

ESGV ETF ESG U.S. Stock ETF
https://institutional.vanguard.com/web/cf/product-details/fund/4393

VEIPX Investor Equity Income Fund Investor Shares
https://institutional.vanguard.com/web/cf/product-details/fund/0065

VFTSX Investor FTSE Social Index Fund Investor Shares
https://institutional.vanguard.com/web/cf/product-details/fund/0213

SOCIALLY CONSCIOUS ESG CORE-4 PORTFOLIO

https://core-4.com/esg-core-4-funds/
https://core-4.com/esg-core-4-portfolio/

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The Fed is currently working on an instant payment system, they hope to roll it out in 2023.  Currently big banks are working with the clearing house on their own version. 

https://www.marketplace.org/2019/08/06/the-fed-enters-the-instant-payment-fray/

To provide my own commentary - This is why I was initially excited by blockchain technology.  This is what we're moving toward.  Checks shouldn't take 5 business days to clear, and ACH payments shouldn't need an overnight to clear.  Stock/Bonds and Mutual Funds should be instant purchases rather than 1-2 days.  The instant payment and transaction systems will invariable squeeze and even destroy certain jobs, and while it sounds callous, I can't wait.  As someone who deals a fair bit with transactions, it blows my mind that everything sits in some weird "pending" status for so long while it's being verified, in actuality some middleman is taking a cut and big banks are holding onto cash for a few days, because there's been no pressure on them. 

I'd also love to see all major transactions like mortgages and real estate use a blockchain style system to shorten escrow and consolidate chains of title. 

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