Traffic Accident

Kindergarten level agenda behind Kinder Morgan buyout

DB8FB78C-4983-44C9-AF1B-6463106AB020

The Canadian Liberal government is paying $4.5bn for a 60yr old pipeline that was sold a decade ago to Kinder Morgan for $377m for an asset RBC values at $2.5bn. Another $7.5bn will be spent to “create jobs”. Apart from Canadian tax dollars going to fund a US company’s ability to expand and compete against Canadian suppliers, the real truth of Trudeau’s intentions probably don’t become any clearer when examining the sponsored summer jobs programme (where businesses could only get greenlighted if they shared “his” values). Yes, taxpayer dollars were approved by Trudeau to help activists protest a pipeline he’s just bought. This was an ad posted by Dogwood:

“As an organizing assistant through the Canada Summer Jobs program you will work directly with a Dogwood Provincial Organizer and the field organizing team to help our organizing network stop the Kinder Morgan pipeline and tanker project, as well as help us strengthen the public call for stronger, more accountable and transparent democracy.”

He has already been crashing in the polls. This will help to no end. So much for transparency.

US Healthcare bankruptcies surge 270% in 2018 vs 2017

5FB0C080-29A2-4181-95A6-453888F9114D.jpeg

6 months ago we wrote of the growing crisis of hospitals declaring bankruptcy in America. While The Affordable Care Act (Obamacare) is often lauded by some as noble legislation, according to bankruptcy lawyers, Polsinelli, the changes made to reimbursements that used to help cover hospitals who treated uninsured patients that were pulled under ACA have sent many hospitals to the bankruptcy A&E ward. Polsinelli wrote this month,

The Health Care Services Distress Research Index was 455.00 for the first quarter of 2018. This is an increase over 173 points from last quarter’s record high, approximately 62 percent. The index has experienced record or near-record highs in seven of the last eight quarters. Compared with the same period one year ago, the index has increased over 333 points, approximately 270 percent, and compared with the benchmark period of fourth quarter of 2010, it is up approximately 355 percent.”

HCBR

Polsinelli also wrote in 1Q 2017 that,

“Unlike the public markets, the Polsinelli/TrBK Distress Indices include both public and private companies, creating a broader economic view and one which may show developing trends on Main Street before they appear on Wall Street….Health care distress is high and it seems to be getting worse…

…The business of health care is unlike other industries, such as manufacturing, real estate, or retail. Health care faces all the traditional business challenges, such as competition, the impact of technology on services, and increasing wages. But more, the health care industry is needing to adapt to increasing regulations, changes in reimbursement rates from government or private payors, and a shift from traditional fee-for-service to value-based models that impact profitability…There is unprecedented pressure of major systemic changes to the existing health care system, particularly the implementation of the Affordable Care Act over the last several years and the current status of the program, which is alternately being repealed, repealed and replaced, phased out, or simply defunded…The (Obama) administration’s recent decision to terminate cost sharing reduction payments will also directly impact the health care market. Insurance companies may continue to provide insurance at a higher premium or decide to exit the markets. Eliminating these payments and the resulting premium increases may increase the cost to the government through premium subsidies.”

In short many Americans saw a doubling of premiums (an average increase of 113%) under Obamacare inside of 4 years causing many to forgo the insurance. The reimbursements under the old system (which helped compensate hospitals administering emergency treatment for the uninsured) that were stopped on the proviso people would take up ACA plans backfired. Not enough people signed up and more hospitals running on a days cashflow have been forced to close because the reimbursements designed to protect them against uninsured patients disappeared. When Jonathan Gruber, the architect of Obamacare, testified to Congress he candidly said,

The Affordable Healthcare bill was written in a tortured way to make sure the (Congressional Budget Office) did not score the mandate as taxes…If CBO scored the mandate as taxes, the bill dies, OK? Lack of transparency is a huge political advantage … call it the stupidity of the American voter or whatever … that was really, really critical to get the thing to pass … I wish … we could make it transparent, but I’d rather have the law than not.”

Makes one wonder what the status of the medical equipment suppliers who lease equipment to these hospitals does with the machines they repossess.

Tesla Elongates Fight against ‘unfair’ media

58289DD2-C444-4FD1-B6EA-1902F367BC5E.jpeg

CM totally sympathizes with clickbait media cycle. Tesla CEO Elon Musk railed at the negative coverage surrounding the company in recent times. The memories are clearly short. The media is generally effusive with praise of Tesla. How most newspapers and magazines fawn over Musk! Dan Primack made this point well:

9031FC4E-6B63-4672-8263-604CA003171C.jpeg

Edmunds has also written a damning review of the Model 3 announcing how many problems the car has faced since it was bought.

Some things from the Edmunds long term test were as follows:

The most annoying of those issues was a repeated, uncontrollable increase in stereo volume, sometimes when we weren’t even in the car. Basically, the stereo would suddenly go to full volume without explanation. This and other issues are cataloged from our notes below:

• Would not recognize keycard in or on the console and hence would not go into gear. It did, however, unlock the car. Workaround was to force quit the app and restart the app. Then it would allow the choice of Drive or Reverse.

• The backup camera screen did not appear when reversing.

• Nav screen going haywire: zooming, scrolling, pinching, pixelating all at once.

• Audio system turning on by itself at full volume.

• Audio display randomly moving up and down the screen without any command from a human.

• Audio system came on and went to full volume all by itself while the car was off, locked and unoccupied. I heard it from 100 yards away. “Who is that joker playing his stereo so loud I can hear it from here?” Oh, it’s Elon. I turned it down, but it kept wavering up and down as I started driving, working against my repeated attempts to dial it down. Then it blasted all the way to maximum. My ears are still ringing two hours later. Fixed after reboot. Not sure about hearing damage.

• Audio page leaping up and down rapidly like the up-caret button to expand the source menu was being played with by a kid who ate too much candy. Concurrent with the volume problem above. Same reboot.

• Icons on the map screen flickering.

• The passenger vanity mirror fell off completely. Installed and held on only by double-sided tape. Reinstalled by pressing really hard on the mirror.

• The screen went completely dark on startup, no music or operation. Restarted the car. The screen worked; the backup camera did not.

• The car will not shift into Drive or Reverse upon startup. “Vehicle Systems Are Powering Up. Shift Into D or R After Message Clears.” Have to wait for it to power up. A loud click comes from the rear of the car as if a drive shaft is engaging and the message on the screen goes away.

• The car displays a new message: “Cannot Maintain Vehicle Power. Car May Stop Driving or Shut Down.” No shutdowns yet, but keeping an eye out.

• With 170 miles of range, the car displays a “Regenerative Braking Limited” message. Plenty of available space to store regen power. Logged the issue, then reset the screen with a reboot. The message has not displayed since.

• While the car was parked, the passenger sun visor was left down and the mirror fell out. Pressed back into place. Hoping it won’t fall out again.

While no one should expect reliability to be at levels of mainstream manufacturers that have been at it for decades longer, quality remains a big issue for Tesla. For Musk to slam the media will only lead to responses as this.

6611248D-78A5-4012-A820-C75795BB8547.jpeg

If you ever wanted proof of Australia’s stupid energy policy look no further

Power Station - United Kingdom

Here is a cracker from Jo Nova on proof of how retarded the thinking is with our federal and state governments when it comes to energy policy. The free market makes a compelling case for taking the opposite view of the regulators. The real danger is if more businesses move off the grid (like the Chinese Bitcoin miners) to their own affordable power the cost of electricity to the “rest of us” will soar. It doesn’t take a rocket scientist to work that out. Joe and Joanne Public will be forced to rely on an already unstable energy source with fewer people to cover ever rising network costs. As long as we look as we are doing something about climate change, that will be enough. Nuts!

The marketplace for free speech weighs Wolf & Trump

0DDA3817-B905-4CEE-8389-D32655BBE425.jpeg

Poor old Michelle Wolf. You know, the young lady whose fingernails-down-a-chalkboard voice made off-coloured jokes surrounding abortion, Trump’s bedroom prowess, his daughter being as useful as an empty box of tampons and even portrayed WH Press Secretary Sarah Huckabee Sanders as a fat softball playing lesbian Uncle Tom for white women. Adam Sandler has just shredded her $4mn contract to star in Little Niki via Twitter. While CM is always against boycotts, compelled speech and virtue signaling, we’re struggling to work out whether Sandler terminated it on the basis of tasteless content or awful delivery? A combination perhaps?

Wolf tweeted back that she was fine with that because she was to play a role in the reboot of Bride of Chucky. Unfortunately that film role has also been cancelled, costing her another $410,000.

Freedom of speech is a funny thing. Wolf has every right to express what she chooses but should not complain if her backers (including her liberal mates) retreat because she picked the wrong audience to showcase them. Humour is always about fine lines. Sadly for Wolf she couldn’t even memorize her humour, having the read her jokes (?) out. The best comics don’t need scripts and can shred people off the cuff. That’s what makes them funny.

Yes, many have equated Wolf’s remarks to Trump’s greatest hits saying it’s unfair to pick on her. As a reminder Trump said,

grabbed her by the p*ssy”,

“I moved  on her like a bitch”,

“African countries are sh*tholes”

or

Michelle Wolf was over the top

Yet the market for free speech weighed his and her offensiveness. American voters had every opportunity to make sure he didn’t enter the White House on the basis of his vulgar remarks about women made over a decade ago. (Un)fortunately for them, his election to blow up the establishment was deemed more relevant to Americans than locker-room talk made in private over a hot mic.

Presumably, Wolf, much like Kathy Griffin (of bloodied severed Trump head fame), offer absolutely nothing outside their careers. They’re most unlikely to be able to force two nations to take up peace negotiations or shirt front dictactors. So when they stake their risky actions on going ‘viral’ to boost their careers and it blows up in their faces, the sole responsibility is theirs. No sympathy. In fact if it wasn’t for Trump they’d be virtual nobodies.

So is the marketplace for free speech unfair? Think of the price of people, stocks, bonds or anything else you can think of  varies depending on the market weighted bid/offer of the underlying assets. Sadly for Wolf and Griffin, the bids dried up almost immediately. For Trump, market expectations have long since been priced.

Air India seconds from disaster?

671D048C-DA2B-46DD-9AD6-1D8AD02EF81B

Typical to see the press try to link the tragic accident caused by engine failure on a Southwest flight and a poorly fitted window frame on an Air India 787. The press once again went for clickbait talking about “smashed window…three rushed to hospital” instead of trying to search fact that this was a cosmetic folly and nothing more.

The main difference was in the Southwest accident, engine parts flying at 3,000rpm punctured the EXTERIOR window causing rapid decompression. In Air India’s case a poorly mounted interior window which has the functions of sound deadening and aesthetics popped out of a mount which would cause zero risk of compromising the plane’s structural integrity. If you look at the picture the oxygen masks haven’t deployed which would occur automatically if it did.

The sad truth of the Southwest uncontained failure is that the engine casing is supposed to catch any debris that breaks off. Such metal fatigue is more likely on such aircraft types (737) is that the short haul nature puts more stress on components. Such aircraft make more than half a dozen cycles (takeoff/landing) a day meaning wear and tear is higher. Tyres make a good reference- a 737 gets new tyres on average every 20 days. A long haul aircraft despite being heavier gets tyres every 40-60 days.

So typical press phooey to connect two completely unrelated accidents.

Tesla’s Autopilot beta testing means customers are crash test dummies

DCD0B79C-8F2E-4A81-912B-A7B6EE330A61

Back in April 2016, we wrote about the dangerous legal ramifications facing Tesla due to its overzealous promotion of the auto-pilot function. What people tend to forget is the issues surrounding liability. An insurance company often covers a driver with respect to accidents – wet road, poor visibility or being hit by another driver. The insurer covers that type of damage. Yet the death of a Tesla driver in California last week was found to have had the auto pilot function on. Why should an insurer pay for damages that result from willful negligence promoted by the manufacturer itself? This is a design fault. Moreover how could Elon Musk’s legal team not suggest that he refrain from such promotion? Accidents as a result of Tesla’s auto pilot are becoming so numerous that it is hard to fathom why people put so much faith in the system, as this video highlights. They are willingly becoming crash test dummies.

DF8508D5-2491-49EB-BEA8-15C64DE165AB.jpeg

Tesla’s own website notes, “Build upon Enhanced Autopilot and order Full Self-Driving Capability on your Tesla. This doubles the number of active cameras from four to eight, enabling full self-driving in almost all circumstances, at what we believe will be a probability of safety at least twice as good as the average human driver. The system is designed to be able to conduct short and long distance trips with no action required by the person in the driver’s seat.”

The video on the autopilot webpage highlighting the autopilot function on the makes no reference to ensure drivers pay attention to the road even when the system is in use. Sounds to me like the ambulance chasers have plenty of ammunition to launch a class action. It only cost Toyota $1.2bn for the runaway accelerator issue. For a company deeply in debt with such heavy losses, rising interest rates, falling credit rating and senior departures, Tesla should be careful not to get carried away with signaling the virtues of systems that are clearly flawed.

4349AF04-8ACD-4587-A072-A4640B7E29A9.jpeg