Experts at the German Federal Office for Security in Information Technology (BSI) determined that Windows 8, the touch-screen enabled, super-duper, but sales-challenged operating system is dangerous for data security. It allows Microsoft to control the computer remotely through a backdoor – with keys likely accessible to the NSA.
China is the promised land for our revenue-challenged tech heroes: 1.2 billion consumers, economic growth several times that of the US, and companies splurging on IT. Layer the “cloud” on top, and China is corporate nirvana: a high-growth sector in a high-growth country. Or was nirvana, now that the NSA’s hyperactive spying practices have spilled out.
Cisco CEO Chambers gushed with positive vibes during the earnings call: “unbelievably strong results,” he said about the quarter. He talked about record revenues. “We have strong momentum,” he said, “very solid execution.” But he lowered guidance, lamented the debacles in China and Japan, and announced layoffs. Then he uttered the word “lumpy.”
The cloud is a growth industry. And a religion in Silicon Valley: you’re better off with all your data and software stored in a data center somewhere on the planet. It’s a beacon of growth that revenue-challenged global tech giants like Oracle and IBM wave in the faces of antsy investors. But now, they’re going to pay a steep price for their cooperation with the NSA.
Amazon’s promotion machine shifted into high gear to tout President Obama’s visit to one of its warehouses where he unveiled his “better bargain” for “middle class jobs.” The visit was artfully synced with Amazon’s announcement that it would create 7,000 jobs. Out of nothing. One of the ongoing lies in America’s jobs crisis – and Obama stepped right into it.
People in the upper income categories, those who don’t have to worry about the price of toilet paper, have seen their incomes rise over the years. The rest are in a downward spiral: median household income, adjusted for inflation, has dropped 7.8% since 2000. The lower end got hit the hardest. For these folks, tissue makers have a special strategy: desheeting.
From tiny app makers to giants like AT&T, they’re all part of Big Data. They chase after billions by collecting, storing, and mining personal data. Data is money. Much more than money, if governments get it. Which led documentary filmmaker Cullen Hoback to lament: “The craziest thing is that I didn’t realize I was making a horror film.”
At first, it was just multinational drugmaker GlaxoSmithKline that allegedly paid bribes in China, including “sexual bribes,” to “government officials, medical associations, hospitals and doctors,” by using travel agencies as conduit. For a total of $489 million. Now more big drugmakers are on the hot seat for the same crimes in China – and in the US.
The asset bubbles the Fed’s money-printing and bond-buying binge has created are spectacular, the risk-taking on Wall Street with other people’s money a sight to behold. Big winners were mortgage Real Estate Investment Trusts – and those who got fat on extracting fees. But now the pendulum is swinging back, and the bloodletting has started.
Tapering bond purchases gets real. New York Fed President William Dudley has spoken. He represents Goldman, where he was a managing director. Goldman owns part of the NY Fed and is one of its 21 “primary dealers.” But it doesn’t want the financial system to blow up. On the theory that you can milk a cow many times, but you can bleed it only once.