Financial Reporting

A little bit in the weeds, here, but necessary for future understandings by some investors. The proximate matter is FTX’ collapse and bankruptcy (with possibly criminal activities associated).

In a footnote to the financial statements, the company said its “primary shareholder is also the primary shareholder of several related entities which do business with the company.” It didn’t say who the related parties were for any specific transaction it disclosed.
The standard accounting rules for disclosing related-party transactions are vague and have long been considered a weakness in the system. There is no clear-cut rule requiring companies to disclose the players in a related-party transaction. The rules do say, “If necessary to the understanding of the relationship, the name of the related party shall be disclosed.”

He Chose

Alec Baldwin claims that he’s blameless when he fired his pistol, which shot led to the shooting death of Halyna Hutchins and the wounding of Joel Souza on the set of his movie, Rust. He’s suing a number of movie production personnel in his effort to duck his own responsibility.

Baldwin’s claim is that the movie production team’s armorer, Hannah Gutierrez-Reed; assistant director, David Halls; an assistant armorer, Seth Kenney; and the team’s prop master, Sarah Zachry, are the only ones responsible for the shooting. Baldwin’s lawyer, Luke Nikas, enumerated what he claims is the fatal chain of events.

What the Ratings Mean

Viewpoint Diversity Score is a relatively new organization; it’s a project of Alliance Defending Freedom. VDS’ goal:

Through our Business Index and Resources we’re providing a roadmap for businesses to meaningfully respect customers, and other external stakeholders who hold diverse religious and ideological beliefs, foster viewpoint diversity in their workplaces, and reflect a commitment to the underlying principles of American democracy through their giving and political engagement.

This isn’t, though, a crowd pushing diversity, equity, and inclusion claptrap; it’s much more serious than that. They’re not demanding that everyone comport themselves in accordance with VDS’ viewpoints or be cancelled. Instead,

A Question

Pope Francis has renewed an…agreement…between the Vatican and the People’s Republic of China that allows appointment of Catholic Bishops in the PRC, so long as the PRC’s government men approve of the candidates and their appointment. Nominally, the Pope has veto authority over the nominations, but it’s the PRC government men who nominate. Since 2018—when the agreement was signed—there have been six bishops ordained, and 40 dioceses still have no bishop. That’s how well this arrangement is working.

Despite that, the Holy See Press Office had this:

Political Cowardice

President Joe Biden (D) is desperate to avoid encountering Russian President Vladimir Putin during the upcoming G20 meeting.

The White House is bent on preventing President Biden from having a run-in with Russian President Vladimir Putin while the pair attend the G20 summit next month, according to a new report.
White House aides want to avoid even a hallway meeting between the two, or any other situation that might allow for them to be pictured together[.]

Credibility

CNN‘s ex-boss Jeff Zucker and MSNBC‘s ex-boss Phil Griffin defended their decision to suppress the Hunter Biden laptop news in the runup to the 2020 Presidential election.

Griffin:

The Justice Department was looking into it, never reported it until he [Hunter Biden] is the son of a candidate. I don’t think it’s a main story until that happens.

The son of a major candidate for office misbehaving badly isn’t news. Never mind that Joe Biden had been making Hunter part of his campaign all along, seeking sympathy for his drug-abusing son for having overcome his addiction. Never mind that Hunter Biden already was news for his use of his diseased brother’s widow, his business dealings, and his use of his familial relationships in furthering his deals.

Who’s in Charge?

British Prime Minister Liz Truss and her then-Chancellor of the Exchequer Kwasi Kwarteng proposed a serious personal and corporate tax reduction for British subjects. The Bank of England Governor Andrew Bailey demurred—loudly—and sent the British securities and debt markets into a tailspin.

As a result of the turmoil, Truss folded, fired Kwarteng, and removed the corporate tax reduction.

That wasn’t enough for Bailey and now the TINAs—Tories in Name Alone—and now Truss has virtually quit the game altogether: she’s now withdrawn all of the tax reductions, even those income tax reductions that would have benefitted the ordinary British subject.

A Method of Identifying Acceptable Views

The Wall Street Journal‘s Thursday Notable & Quotable contains an excerpt from a Times Literary Supplement piece in which the piece’s writer recounted a classroom incident in which he had touted a free market society and the instructor had written on his paper, “Are you Margaret Thatcher?” and left the paper ungraded. The classroom boy was mortified.

[T]he comparison shocked me into a more thoughtful politics and provided an early lesson: if you don’t like the fact that you share a view with someone objectionable, consider revising that view.

And

A Simple Enough Solution

And straightforward, too.

Nike thinks it has supply chain and marketing problems with its shoe manufacturing.

Nike Inc’s quarterly results highlight how some US brands have too much inventory at home and in markets like China, where the companies have placed big financial bets.
The sneaker giant on Thursday said revenue from China in the August quarter fell 16% to $1.65 billion, citing Covid-19 lockdowns in different cities hurting store traffic.

The People’s Republic of China represented some 13% of sales and 29% of earnings for Nike in its quarter ending last August.

CDC Fail

Again.

The CDC’s latest “guidance” directly contradicts and rescinds its immediately latest “guidance,” issued just weeks ago.

CDC’s latest guess is this:

[c]larified that healthcare facilities, including nursing homes, have discretion on whether to screen-test asymptomatic personnel. It also now says asymptomatic patients “in general” do not require “empiric use of Transmission-Based Precautions”

Because the vaccines aren’t all that. British cardiologist Aseem Malhotra, Visiting Professor of Evidence-Based Medicine at Brazil’s Bahiana School of Medicine and Public Health: