From Malicious to Well Meaning

Every so often, for entertainment I will answer a robocall on my landline. In one call a guy claimed to represent a local police charity, and I agreed to donate $50 to his worthy cause. He said to leave the money in my mailbox and a police officer in street clothes would pick it up. I suggested a better idea, that I would be happy to meet the officer at the police station. He hung up.

Last Sunday’s new episode of The Simpsons, “Bart’s in Jail” (what, again?), was worthy of John Oliver’s Last Week Tonight. It presented a surprisingly serious and cynical view of scams and multi-level marketing firms, including a dig aimed at Cutco. Coincidentally this week, I watched LuLaRich, a 4-part series on Amazon about LuLaRoe, a MLM company operating as a clothing wholesaler that became a pyramid scheme.

I had never heard of LuLaRoe, so I checked to see if there are LuLaRoe sellers on Amazon, and of course there are. Pyramid schemes and scams have been interesting to me ever since seeing this episode of Dragnet as a kid.

The trial of Elizabeth Holmes, who was behind the fraudulent company Theranos, is stretching the limits of distinction between a legitimate business opportunity and stock fraud. Did Holmes sincerely believe she would be able to develop a miracle diagnostic device? If so, was that belief based on actual technology, or was she just acting out a wannabe Steve Jobs fantasy?

Some frauds begin with good intentions, which are known to pave the road to you-know-where. During the 1980’s there was a movement to help people with severe autism who are non-verbal. Facilitated Communication was the subject of a memorable and noteworthy Frontline documentary in 1993. FC is an example of the Ouija Board effect. The level of self-deception on the part of the counselors is appalling, considering their backgrounds in Psychology. This is the foundation of all con games. The victims must be willing participants.

https://youtu.be/WOqIMT4YqnY

Follow-up: One day later, this notice popped up about a fake cop fundraiser scam.

Readerslip

I remember before Internet broadband took off, the total paid circulation for The Boston Sunday Globe was about 625,000 copies. The Sunday want ads were essential, as was the real estate section. The first section of the paper featured full-page display ads for department stores. Every car dealership had ads in the auto section, and every retailer had a slick flyer insert. Print circulation is now less than one quarter of what I remember, and there are only about 250,000 digital subscriptions.

Click to enlarge

Buddy, Gonna Shut You Down

I was inconvenienced during the last federal government shut down, when the accountant I hired for my late parents’ Trust couldn’t file the taxes electronically. Everything was mailed to me and I had to take care of signing and sending it all in myself. The Registered Mail card confirming receipt was never returned by the IRS.

My application for Social Security benefits is currently being processed. If the U.S. gov’t. shuts down after 12:01 AM on Friday, the validation will be put on hold for the duration, and undoubtedly delayed further after that. Grrr…

Warren Warring With Powell

Elizabeth Warren raised questions yesterday about some banking regulatory changes that I wasn’t aware had been made. Fed chairman Jerome Powell’s answers dealt only with technicalities surrounding the relevant cases.

Given the largely hidden return to banking deregulation, Warren isn’t the only one with concerns about what could happen when the next financial crisis arrives.

https://www.marketwatch.com/story/former-fed-official-warns-of-urgent-threat-of-another-financial-crisis-11630346930