And the small teams get hit the hardest..these teams survive by calling up the next great hope from AA or AAA to fill a gap. Granted there are some hard nosed athletes which could be considered baseball purist still around, but the Mark Graces of the World are few and far between.. The Yankees payroll is out of control! Lucky for us the remaining fans that talent and money doesn’t always win championships. To me that is a player that should get to stay wherever he wants, and the MLB market should be to a point that some salary could be eatin’ by the Reds to ensure the Hall of Famer goes out exactly as he wanted to go. The purity of the sport is not represented at the Major League level. I know the revenue sharing scam that MLB has put into place to hush up the small teams enough for them to keep a star of two, but this is out of control what these players make. MLB has been slow to move on this, but some initiatives are starting to funnel money back into developing solid inner city youth baseball programs. Contemporary craziness is Pete Rose betting on baseball, strikes, and now the “roid rage.” There are just too many factors to list! It just well…sucks! The game has been tarnished in so many ways. There are fewer African-American playing the game of baseball today then in the 70′s. But no the franchise players are as dead as the suicide squeeze in the MLB. Even the struggling Reds lost Ken Griffey Jr., no he is not a franchise player for Cincinnati.
Counting Down the Downfall of Baseball
I am a baseball fan first and foremost. Too much controversey for the fair weather fan, they are probably Nascar fans now. Baseball hasn’t been able to appeal to elite African-American atheletes. Baseball has a unique dynamic that is referred to as chemistry, and it isn’t for sale!
#7 No Parity in the League
Parity is defined as:equality, as in amount, status, or character. It’s a joke that MLB pulled in order to do away with having pitchers go to the plate and flail out the ball in crucial parts of the game. He is the anti-christ of the purist movement. The only thing that makes it bearable for a fan is they are in third place, and they haven’t had a World Series monopoly. The small market teams will never hold onto a franchise player, and this hurts the fanbase. For a purist of the game the DH opened a window for a single tool baseball player to make it to the bigs.
#5 Boring Commentary
The T.V. ratings are falling because people would rather watch people drive around in a circle at high rates of speed then listen to another has-been drooling all over the microphone about baseball. But without a doubt he wanted to be a Red, even though they were horrible. The already thin pitching talent being spread across the league to play in empty stadiums.
#4 Free Agency and the Death of the Franchise Player
Free agency is a curse! This has destroyed the franchise player. He put up Hall of Fame numbers while in Seattle. There isn’t a whole lot more coaches can do to teach players to throw 100 mph. So how does pitching get back to where it was..Let’s start a couple more expansion teams..that will fix it. Maybe its boring, maybe there are no role models, maybe they have no place to play? For whatever reason there has been a lost link, and it shows. Now we have records that are going to have undeniable question marks beside them. Pitching is usually something you have that is innate and polished, hitting can be developed and is so more effectively in all the ametuer ranks of baseball. He has publicity stunts that take the focus off the game, and puts on a show for our young adoring fans about the urgency to win, and gives them a seminar on the art of whining about losing. Too many prospects are being forced up too early. Hitters have developed, even without the use of human growth hormones, the art of hitting a round ball with a round stick squarely has become a science. The free agent market paired with large market clubs will snuff out any such chances of restoring that to baseball. But somewhere between being a kid that loves the game and being an adult who gets paid to play the game a transformation happens. Maybe the other 9 reasons the MLB sucks has something to do with it!
#3 George Steinbrenner
Don’t get me started on this figure. You can find it the dictionary, but don’t look for it MLB clubhouses. It let’s good hitter loose empasis on defense, and it takes away from the original nature of the game. I am a teacher of the game at many different levels. They give the poor kid a cap and a prayer and send him out there to compete. I like the commentary, but it isn’t exciting television. Spice it up a little bit, if Golf can up their ratings due to Tiger and a few dicy commentators..what is MLB or the broadcast networks doing to change it up?
#10-The players are overpaid. Ole’ George will do whatever it takes to win because he loses so grasiously. I love the game. They also forgot that it took away some fundamental aspects of managing. At least Jeff Gordon’s helmet size didn’t grow two sizes in a single season.
It all goes to say, baseball has lost the interest of the African-American community. With no salary cap Major League Baseball has let a whiny bunch of babies be the face of the organization. The double switch, the bunt, and the art of the pitcher moving a runner over.
#2 The Designated Hitter
The designated hitter was devised in 1979 by the American League to up attendance and run production…blah..blah..blah. Here are my top reasons why…
#8 No Salary Cap
This is a problem. Where did these types of pitchers go? The intimidators, not on roids –I might add –where are they in the league. This is the shoot’em up Nintendo generation here that we are trying to interest in our beloved sport.
#9 Too Many Tampered Seasons
This blemish dates all the way back to the Sox throwing the World Series. League expansion is a cluster of uncanny proportions. The problems are many for this little pickle the MLB has put itself in. This is what happens without a salary cap. This of course helps prepare them for free agency. Or heaven forbid, my favorite argument, a picher that might be able to hit (Babe Ruth ring a bell). These types of players survive their MLB bootcamp with Kansas City or the Reds and then after those teams can no longer afford them they have them well groomed for the “big money franchises.” The rich get richer, the poor keep calling up rookies!
#1 Loss of the Inner City Development
Just when you thought I had nothing intelligent to say: The main reason that Major League Baseball is below average is because the inner cities do not produce baseball players like they have in the past. The head of the Yankee player monopoly will pout until he wins another World Series. Your best 9 against my best 9, everybody hits!
Now that Nolan and the Goose have hung up their cleats who is left to make these lumber lugging neanderthals look retarded at the plate. Pitching is relatively the same
They’re especially known for their excellence in football, as well as putting forward strong contenders in track and baseball.
7. University of Georgia
With rigorous academic requirements for all athletes, Georgia is setting the pace for a new paradigm of scholarships among its top level football, baseball, gymnastics, tennis, and swim teams.
3. Ohio State University
Ohio State has brought home championship wins in all three of the biggest men’s sports: basketball, football, and baseball. Stanford University
With an impressive record in virtually every varsity sport, this Ivy League school holds the top ranking among sports colleges. Florida State University
Florida State is a top contender in a number of college athletics programs, including football, basketball, softball, soccer, volleyball, swimming, and diving. University of Southern California
Southern California is best known for its varsity football team, which has won 11 championships, but also excels in basketball and a host of other college athletics.
6. Whether you follow college baseball, football, gymnastics, volleyball, soccer, or other varsity athletics, these are some of the top universities to beat:
1. They finished 5th in the 2009-2010 NACDA reckoning of sports colleges, placing them in the top 5 for the first time.
2. The school is also known for victories in men’s diving, swimming, golf, track, gymnastics, men’s and women’s fencing, and more.
College sports have captured the hearts of millions of Americans, from loyal students and alumni cheering on their schools to local businesses and fans. University of Virginia
The Cavaliers raced to top positions in women’s rowing and men’s soccer in the past year, among the school’s other sporting achievements.. The Gators are also known for their strong contenders in football, men’s basketball, and women’s golf, soccer, football, tennis, and volleyball.
With a staff of over 100 coaches and assistants, 34 varsity sports, and about 300 athletic scholarships, it’s no wonder this school presented 49 athletes in the 2008 Beijing Winter Olympics and has over 9,000 students enrolled in intramural sports in any given semester.
With the widespread popularity of college sports teams, and the consistent successes of each of these colleges on the field and in the stadium, it’s no wonder these top 10 sports schools garner the support and spirit of students and fans all over the nation.
10. University of Texas
This Texas school has won more titles than any other school in the Big 12 League since it was founded in 1996. The university is known for its basketball team, as well as women’s soccer, women’s field hockey, and men’s lacrosse.
8. 9. Stanford has brought home the NACDA Director’s Cup award for Division I sports for the past 15 years, qualifying it as best overall for collegiate sports in the United States.
5. UCLA is also renowned for its women’s sports performances, with the softball, track, gymnastics, and rowing teams excelling in 2009-2010.
4. University of North Carolina
North Carolina has won 51 titles and 34 national championships in 6 different sports, making its mark as one of the top sports colleges in the United States. University of California Los Angeles (UCLA)
One of the country’s most widely recognized sports schools, UCLA was the first university to win over 100 NCAA championships, making the Bruins a fixture among the top basketball schools. University of Florida
Florida is renowned in a number of varsity sports, notably excelling in women’s swimming and men’s track and field in the 2009-2010 season
In this way the bookmakers wagering demand can be met and the initial deposit and sign up bonus can be withdrawn with little loss.
Shop arbitrage (sharbing)
Arbitrage betting involves relatively large sums of money for 98% of arbitrage opportunities return less than 1.2%. The practice is usually detected quickly by bookmakers, who typically hold an unfavorable view of it, and this can result in half of an arbitrage bet being canceled. They offer the following Fixed-odds gambling on the outcomes of the event:
In Britain, a practice has developed in which highly experienced “key men” employ others to place bets on their behalf, so as to avoid detection and increase accessibility to retail bookmakers and allow the financiers or key arbitragers to stay at a computer to keep track of market movement.
The bookmaker’s return rate is 1-(1.25*3.9)/(1.25+3.9)=5.34%displaystyle 1-(1.25*3.9)/(1.25+3.9)=5.34%, which is the amount the bookmaker earns on offering bets at some event. In case outcome 2 comes out, one could collect r2=$36.67*3.9=$143displaystyle r_2=$36.67*3.9=$143 from bookmaker 1. a tennis match – either Federer wins or Henman wins), the two bookmakers have different ideas of who has the best chances of winning. Bonus sport arbitraging is a form of sports arbitraging where the bettor hedges or backs their bets as usual, but since they received the bonus, a small loss can be allowed on each wager (2-5%), which comes off their profit. TBR. Arbitrage using back and lay side is possible if a lay bet on one exchange provides shorter odds than a back bet on another exchange or bookmaker. This discrepancy can be used to obtain a profit.
Betting exchanges such as Smarkets have opened up a new range of arbitrage possibilities since on the exchanges it is possible to lay (i.e. While making deposits is usually made easy and quick, making withdrawals often requires proof of identity in the form of passport/driver license, copies of which need to be shared with the bookmakers via fax/email or even postal mail, which causes additional identity theft risks. Many bookmakers may now be using shared security servers in order to pinpoint people suspected of arbitrage betting; they can simply limit stakes to make arbing unprofitable and even close accounts without honoring a bet that was placed. Accordingly, profits accumulated through 20-40 successful arbitrages can be lost on a single failed bet.
Won arbitrages realized via betting exchanges are typically subject to a commission fee of about 4-5%. However, frequent punters may be subject to a discount of up to 60%, i.e. They typically demand that this amount is wagered a number of times before the bonus can be withdrawn. In some sports different bookmakers deal with outcomes in different ways (they differ in their handling of – for example – player withdrawal due to injury in tennis, overtime in ice hockey), meaning that both “legs” can lose. Arbitrage using only the back or lay side might occur on betting exchanges. Those errors might temporarily have an important impact. Many jurisdictions allow bookmakers to cancel bets in the event of such a “palpable” ["obvious"] error in the quoted odds This is often loosely defined as an obvious mistake, but whether a “palp” in fact has been made is often the sole discretion of the bookmaker.
So for 2 odds o1displaystyle o_1 and o2displaystyle o_2, where o1-1+o2-1<1displaystyle o_1^-1+o_2^-1<1. Scalping relies on liquidity in the markets and that the odds will fluctuate around a mean point. A key advantage to scalping on one exchange is that most exchanges charge commission only on the net winnings in a particular event, thus ensuring that even the smallest favorable difference in the odds will guarantee some profit.
Reducing the risk of human error is vital being that the mathematical formula is sound and only external factors add “risk”. High street bookmakers however, offer their odds days in advance and rarely change them once they have been set. Since most bookmakers offer these bonuses this can potentially be exploited to harvest the sign up bonuses.
While often claimed to be “risk-free”, this is only true if an arbitrage is successfully completed; in reality, there are several threats to this:
In case outcome 1 comes out, one could collect r1=$100*1.43=$143displaystyle r_1=$100*1.43=$143 from bookmaker 2. This usually leads to unprofitable arbing as the most successful bookmakers are so adept at identifying arbitrage bettors.
Stake reviewal: Some bookmakers are known to accept only very small stakes by default, while requiring larger stakes to be manually reviewed before being accepted, which basically makes it difficult for an arbitrage better to determine if a leg was completely accepted or not, until it may be too late.
Bet cancellation: If a bettor places bets so as to make an arbitrage and one bookmaker cancels a bet, the bettor could find himself in a bad position because he is actually betting with all the risks implied. Bookmaker 1 will in this example expect to earn 5.34% on bets on the tennis game. all outcomes) of an event, whose implied probabilities add up to less than 1. In the bettors’ slang an arbitrage is often referred to as an arb; people who use arbitrage are called arbers.
This type of arbitrage takes advantage of different odds offered by different bookmakers. It is in principle the same as the arbitrage using different bookmakers. More often profits exists around the 4% mark or less.
Arbers’ dedicated email addresses are subject to advertising campaigns from third parties which suggests that client data may be resold behind the scenes.
Bookmakers who encourage responsible gambling will close accounts where they see only large losses, unaware that the arbitrage trader has made wins at other books.
Capital diffusion is serious; many bookmakers make it very easy to deposit funds and difficult to withdraw them (requiring lots of additional information, and documents as proof of identity, i.e. The table below introduces a number of variables that will be used to formalise the arbitrage models.
As well as spending time physically matching odds from various bet sites to exchanges, the other draw back with bonus bagging and arbitrage trading in this sense is that often the free bets are “non-stake returned”. Arbitrage betting is almost always insufficiently profitable due to detection, unreliable betting websites, limiting of stakes, hackers, and scammers that use high percentage arbitrages to trick bettors into providing security credentials.
Placing a bet of $100 on outcome 1 with bookmaker 2 and a bet of $100*1.43/3.9=36.67displaystyle $100*1.43/3.9=36.67 on outcome 2 at bookmaker 1 would ensure the bettor a profit.
Disappearance of arbitrage: Arbitrages in online sports markets have a median lifetime of around 15 minutes, after which the difference in odds underpinning them vanishes through betting activity. 9.
^ Keynes, Milton. Retrieved 19 March 2014.
^ “How quickly is temporary market inefficiency removed?” Ben R. As many bookmakers require a certain turnover of the bonus amount, matching money from different bookmakers against each other enables the player to in effect quickly “play free” the money of the losing bookmaker and in effect transfer it to the winning bookmaker. However, repetition of this stroke of luck is unlikely, assuming the bookmaker has calculated the odds so they make a profit. For an example of an event with only two possible outcomes (e.g. Websites and bet placement interfaces differ between bookmakers, so that arbitrage bettors need to be familiar with different web interfaces. In some cases the situation arises when there are very high potential payouts by the bookmaker, perhaps due to an unintentional error made while quoting odds. Although arbitrage betting has existed since the beginnings of bookmaking, the rise of the Internet, odds-comparison websites and betting exchanges have made the practice easier to perform. However, the commission charged by the bookmakers and exchanges must be included into calculations.
For instance if one places a bet on outcome 1 at bookmaker 2 and outcome 2 at bookmaker 1:
For an individual bookmaker, the sum of the inverse of all outcomes of an event will always be greater than 1. Usually these gaps will be in the order 8 – 12%. 1. Marshall The Quarterly Review of Economics and Finance 49 (2009) 917-930
Retrieved from “https://en.wikipedia.org/w/index.php?title=Arbitrage_betting&oldid=734162141″
Shop arbitrage (also known as sharbing or shop-arbing) is the process of using a betting shop’s coupons and a betting exchange to create an arbitrage position. One would have invested $136.67, but have collected $143, a profit of $6.33 (4.6%) no matter the outcome of the event.
1.1 Using bookmakers
1.2 Back-lay sports
1.3 Bonus sports
1.4 Shop arbitrage (sharbing)
Other potential problems include:
The amount required to bet on each possibility in order to ensure profit can be calculated by
Stake in outcome 1
Stake in outcome 2
Odds for outcome 1
Odds for outcome 2
Return if outcome 1 occurs
Return if outcome 2 occurs
Bookmakers generally disapprove of betting arbitrage, and restrict or close the accounts of those who they suspect of engaging in arbitrage betting. Loss of deposited money into a bookmaker could occur. Numerous online arbitrage calculator tools exist to help bettors get the math right. If one wishes to place stake s1displaystyle s_1 at outcome 1, then one should place s2=s1*o1/o2displaystyle s_2=s_1*o_1/o_2 at outcome 2, to even out the odds, and receive the same return no matter the outcome of the event.
Or in other words, if there are two outcomes, a 1/1 and a 2/1, by covering the 1/1 with $500 and the 2/1 with $333, one is guaranteed to win $1000 at a cost of $833, giving a 20% profit. a minimum commission rate of 3%).
Smaller betting exchanges may not be able to deal with consistently winning punters.
Mathematics of bookmaking
^ Cortis, Dominic (2015).
Back-lay sports arbitrage is often called “scalping” or “trading”. The idea is to find odds at different bookmakers, where the sum of the inverse of all the outcomes are below 1, meaning that the bookmakers disagree on the chances of the outcomes. Mathematically arbitrage occurs when there are a set of odds, which represent all mutually exclusive outcomes that cover all state space possibilities (i.e. Thus, the risk of seeing bets revoked is also often much higher for arbitrages found via such tools than for arbitrages found manually, that are not shared with other arbitrage bettors.
Arbing often involves making use of bookmaker bonuses which usually require substantial transactions before being eligible for withdrawal, thus reducing total liquidity.
Foreign currency movements can wipe out small percentage gains and can make quick calculation of stakes difficult.
Transferring funds between bookmakers and ewallets may create additional costs at some point; most bookmakers and/or ewallets limit deposits to certain amounts per month.
Withdrawals are often limited to a certain amount per month or to a certain number of free withdrawals per month
Withdrawals are often charged for, not just on the side of the bookmaker, but sometimes also on the ewallet side (transfer to the bettor’s bank account).
In some countries, additional costs are imposed by government taxes, so that the final profit is further reduced by a fixed percentage of say 5% (Germany/Europe).
Professional arbitrage betting may eat up considerable time and energy and requires lots of experience and liquidity, as well as sufficient funds to recover from inevitable losses that will happen sooner or later due to the aforementioned reasons.
Typically, arbitrages have a profit margin of only 2-5% – many other arbitrages are regarded as “high risk” (“palps”). For example, the appropriate stakes may be incorrectly calculated, or be placed on the wrong “legs” of the arb, locking in a loss, or there may be inadequate funds in one of the accounts to complete the arb. On the other hand, these changes also made it easier for bookmakers to keep their odds in line with the market, because arbitrage bettors are basically acting as market makers.
By signing up to various bookmakers, it is possible to turn these “free” bets into cash fairly quickly, and either making a small arbitrage, or in the majority of cases, making a small loss on each bet, or trade. By avoiding most of the turnover requirements in this way the player can usually expect a 70-80% return on investment.
Many bookmakers offer first time users a signup bonus in the range $10-200 for depositing an initial amount. 1.25-1+3.9-1=1.056displaystyle 1.25^-1+3.9^-1=1.056 and 1.43-1+2.85-1=1.051displaystyle 1.43^-1+2.85^-1=1.051
There are a number of potential arbitrage deals. However, it is relatively time consuming to find close matched bets or arbitrages, which is where a middleman service is useful. This effectively reduces the odds, in decimal format, by 1. In the context of sports arbitrage betting a scalping trader or scalper looks to make lots of small profits, which in time can add up. For example, arbitrage calculators can handle calculations for both book arbitrage (“back/back” or “lay/lay”) and “back/lay” arbitrage opportunities on an intra-exchange or inter-exchange basis, and is free.
For arbitrages involving three outcomes (e.g. For example, one could actually make more money by placing the “wrong” bet where the outcome happens to be beneficial, though not justified by the arbitrage calculation. Below is an explanation of some of them including formulas and risks associated with them. a game which can be won, lost or drawn) having the odds o1displaystyle o_1 for Outcome 1, o2displaystyle o_2 for outcome 2 and o3displaystyle o_3 for outcome 3 with their respective bids being b1displaystyle b_1, b2displaystyle b_2 and b3displaystyle b_3 and sum of the bids being B.
From Wikipedia, the free encyclopedia
Betting arbitrage, miraclebets, surebets, sports arbitraging is a particular case of arbitrage arising on betting markets due to either bookmakers’ different opinions on event outcomes or plain errors. Expected Values and variance in bookmaker payouts: A Theoretical Approach towards setting limits on odds. These arbitrages can have a lifetime of several hours.
Hackers: Due to the large number of accounts that have to be created and managed (containing personal details such as email, name, address, ewallet, credit card information and often even a copy of the bettor’s ID/passport or driver’s license), arbitrage traders are highly susceptible to cyber fraud, such as bank account theft. This is made possible because online prices change quickly to close these positions and betting shops are slower to change the prices on their printed coupons.. Therefore, in order to reduce “losses” on the free bet, it is necessary to place a bet with high odds, so that the percentage difference of the decrease in odds is minimised.
Arbitrage is an extremely fast-paced process and its successful performance requires lots of time, experience, dedication and discipline, and especially liquidity.
The advantage over usual betting arbitrage is that it is a lot easier to find bets with an acceptable loss, instead of an actual profit. In theory a trader could turn a small investment into large profits by re-investing his earlier profits into future bets so as to generate exponential growth. to bet against) as well as to back an outcome. The bettor can repeat the bet that has been cancelled so as minimize the risk, but if he cannot get the same odds he had before he may be forced to take a loss. a passport/ID copy). Traders are often attracted to high odds comparison sites that yield high percentage profits per stake (5-30%); this is often used by hackers to lure a high number of arbitrage bettors that then place large sums of money on these arb’s, only to lose all of the profit and even entire savings in bank accounts to hackers or untrustworthy websites, which may further use the gathered data to sell personal data to criminals.
Making errors as an arber: In the excitement of the action and due to the high number of bets placed, it is not uncommon to make a mistake (like traders on financial markets). Journal of Prediction Markets. Without rapid alerting and action, it is possible to fail to make all the “legs” of the arbitrage before it vanishes, thus transforming it from a risk-free arbitrage into a conventional bet with the usual risks involved. Matching terms for all bookmakers is time consuming, requires lots of expertise and experience, while still being fairly error-prone.
Detection: There are very few bookmakers who openly tolerate arbing. Scalping is not actually arbitrage, but short term trading. When conditions allow, by placing one bet per each outcome with different betting companies, the bettor can make a profit regardless of the outcome. In the long term, the benefit will depend on the odds. Making a return involves many bets spread over typically many bookmakers and keeping track requires good record-keeping and discipline.
Responding to an available arb may require transfer of funds from one bookmaker to another, through one or more ewallet accounts with each withdrawal requiring special approval.
While there are commercial software products and web services available to help with some of these tasks, they are complicated and may involve significant initial investments and monthly subscription fees.
Arbitrage bettors using software tools or web services to find arbitrages will often make an existing arbitrage even more prominent and obvious to the bookmaker because of the number of arbitrage bettors placing bets on the same outcome, so that the lifetime of an arbitrage found via such tools is often even much shorter than the average 15 minutes. “Reward without Risk? An Introduction to Arbitrage Betting and the Asian Handicap”
First, Weiss said, the cash flows did not match the profits even after many years which should have raised a red flag. Higher capital requirements and less leverage reduce the danger of a catastrophe.
“The basic answer is that a common shareholder only gets paid if everyone else has been paid,” he said. “You probably could have gotten benefit of Sarbanes Oxley with a smaller law that avoided the pitfalls that companies complain about.”
Sen. “The outright fraud of the type that was the core of Enron’s ultimate collapse — bogus transactions that generated accounting entries but not real profits — was contained after Enron (even if other frauds, like Madoff’s arose).”
In 2006, Skilling was convicted of 19 criminal counts, including one count of insider trading, related to his role in the massive fraud. But we still built, and we’re still building, too many fragile financial structures that fail too often.”
Olympus managed to hide losses for two decades and admitted only recently to doing so. Many in the business community say business regulation is doing more harm than good for an already fragile economy.
“Just because it’s a big respectable bank, don’t think they’re not into gambling,” Gibney said.
“The risks that traders take pose risks for all of us,” he said.
2. Carl Levin, D-Mich., chairman of the permanent subcommittee on investigations which reported on the role of Enron’s board and investment banks’ response to lessons learned from Enron, said the Enron scandal did not put an end to corporate malfeasance..
Elkind said companies must clearly disclose the risks they are taking and regulators need to require them to do so.
Peter Elkind, editor at large with Fortune magazine, investigative reporter and co-author of Smartest Guys in the Room: The Amazing Rise and Scandalous Fall of Enron with Bethany McLean, said business, especially the financial world, can’t be left to regulate itself.
Alex Gibney, filmmaker who produced “Enron: The Smartest Guys in the Room,” said the big lesson that wasn’t learned was Enron was aided and abetted by the most important investment banks in America and around the world.
Former Enron CEO Jeffrey Skilling reportedly led the company’s risky bets to revolutionize the market for natural gas and commodities trading. Skilling was sentenced to 45 years in prison and fined $45 million.
8. Today banks have refused to devalue their troubled assets, say some economists.
Elkind said regulatory agencies need to have the weapons and funding to closely monitor new, ever more powerful financial instruments.
The company’s 20,000 employees lost not only their jobs and medical insurance but retirement savings in company stock. We didn’t, but we still could and we still should.”
10. Excessive leverage is as dangerous as a bad bet
“The changes made after Enron did little to avoid the shocking failures at AIG and other financial companies,” he said. Many say regulators need teeth to enforce rules and weed out shady accounting. Enron allegedly made prepay deals worth billions of dollars, such as pretending to engage in energy swaps with other companies but they were actually dealing with offshore companies that were banks, in essence to receive loans. “And they could do this and make a fortune, and no one could copy it? How was it shown on their financial statements?”
“When you pass these laws, it adds a level of complexity that is hard for many companies, especially small companies,” he said. Enron executives Kenneth Lay, Jeff Skilling and Andrew Fastow — all convicted of white collar crimes — emblemized the bad side of the one percent before the term existed.
Weiss said at the most basic level, the key lesson from the South Sea Bubble, Enron, and Madoff Ponzi scheme is knowing whether a business itself makes sense.
“We muddled through and avoided more Enron-type frauds and collapses, which isn’t bad.
Enron allowed its chief financial officer, Andrew Fastow, to set up a fund called LJM and engage in suspect deals that made Enron’s books look better, Levin said. history. Unlike Enron, Olympus came clean on its own.
7. Names like AIG and WorldCom may have replaced Enron in the vernacular when referring to corporate meltdowns and greed. Regulators and the regulated continue their dance
“We did learn some lessons and people were more careful, but greed creeps back in again,” said Lawrence Weiss, professor of international accounting at Tufts University’s Fletcher School of Law and Diplomacy.
That’s the good news, Roe said.
“Some people like them a lot, but they’re just so complex. In 2001 Enron employees lost $1.2 billion in retirement funds and $2 billion in pension funds while Enron’s top execs cashed in $116 million in stock, according to the film, “Enron: The Smartest Guys in the Room.” The average severance pay was $4,500 while the top executives were paid bonuses totaling $55 million.
9. Okay, but how did these people create the wealth? What exactly were they doing? Trading energy, trading weather futures, trading broadband,” he said. Instead of the massive amount of documents can’t we do one thing at a time, isolate and make it clear, so we have a sense of the repercussions?”
Ten years after the energy and commodities firm Enron collapsed under the weight of a massive fraud, much has changed about how corporate America does business and much, unfortunately, has remained the same, with new frauds and excessive risk-taking exposed all too frequently.
“We could have taken a deep look at the special purpose vehicles, derivatives, repos, and the rest of the ‘new’ finance that was core to Enron’s business model, in order to see what needed to be done better,” Mark Roe, professor at Harvard Law School, said. Skilling was alleged to have dumped $15.5 million in Enron stock in an insider trade more than two months before the company declared bankruptcy. “Often that means they don’t get paid at all. Lawyers, bankers, auditors and many employees saw stuff that they knew was wrong or was suspicious and said little or nothing. “This then begs the question of whether it was obvious at the time. “At some level, we might be better off with a simple cigarette-style warning — this investment is not guaranteed; you could lose all of your money — than the phone book style SEC reports that are currently distributed to investors.”
Weiss said one could not understand how Enron valued things, or management had discretion in the valuations which allowed management to choose their profit number.
“One lesson we haven’t learned from Enron is that corporations will engage in conflicts of interest, and some won’t stop until action is taken,” he said.
Before the bankruptcy of WorldCom in 2002, Enron’s bankruptcy was the largest in U.S. Preferred stockholders get preferred treatment
“They employed brilliant people. In Enron, and more recent cases like GM and Lehman, this really seemed to surprise some investors. In the years after Enron was exposed, companies like Goldman Sachs and Citibank set up synthetic CDOs, sold shares in them to clients, and then made money betting against their own clients.
“After Enron, we could have, but didn’t, take the opportunity to re-think what’s the core of what’s economically valuable in managing risk in the derivatives business and financing firms via repos and special purpose vehicles,” Roe said. Corporate leadership makes all the difference in the world–for good and for bad
Examples include Bear Stearns and Lehman Brothers in the run-up to the financial crisis and MF Global’s implosion just recently, he said.
“One of the things most people forget about Enron, it wasn’t an outlier,” he said, explaining that it engaged in risky activities with venerated banks.
Stephen Lubben, law professor at Seton Hall University School of Law, said recent years have also shown the limits of the ever-increasing disclosure obligations imposed on companies.
Many transactions — ultimately at the collapse of the company — involved some of the largest banks in the country.
“These frauds don’t happen in a vacuum,” Weiss said in agreement. Important names make mistakes too
Corporations still use accounting tricks to hide debt. “We could have taken the opportunity to preserve the valuable in the new finance and carve out the excess. Obviously this is a problem in all bankruptcy cases, but it is especially acute in a situation where a big, well-known company fails will little warning.”
“If it looks too good to be true it probably is, or people’s inherent greed often gets the better of their judgment,” he said.
3. It was his CFO, Andrew Fastow, allegedly idolized Skilling, and did his part to cook the books, hiding billions of dollars in debt.
Opinions over the role of regulators are mixed. We need to create the right incentives to keep people honest – or at least not afraid to speak out.”
Weiss said the same could be said of the Dodd-Frank Act, or Obama’s healthcare plan.
Lubben said the recent financial crisis showed that small investors still do not fully understand where shareholders stand in the priority line — the “food chain” — of large corporations.
Once the darling of Wall Street, Enron was the country’s seventh-largest company with a soaring stock price that grew more than 100 percent in 2000. I would argue that at best, the firm smelled very bad.”
“You’re not so far out on the ledge,” he said.
6. The company collapsed in a matter of months as the media and the public became aware of its faulty accounting and business practices.
“Conflicts of interest will continue to plague Wall Street until regulators use the new Dodd-Frank provisions to prohibit them,” he said.. Next, it was difficult if not impossible to understand exactly how the firm made money.
Given the lopsided votes in favor of the law, Weiss said it was likely not well-read by lawmakers before it was passed.
“For Enron, the firm was growing at a fantastic rate and the question was how were they doing it? The answer, one knows with hindsight, was they were committing massive fraud,” he said. “Lots of people were aware or should have been aware. Conflicts of interest continue to occur
If you increase capital requirements for financial institutions, you decrease risk, Elkind said. Still building fragile financial structures
Weiss said the Sarbanes Oxley Act, which created new standards for accounting firms, boards and management, was a “clear overreaction” to the Enron scandal, which is “understandable.” Weiss said good and bad came as a result of its passage in 2002.
That can range from a penny to several hundred dollars. Those who follow basic strategy can reduce the house edge to 0.5 percent or less, making it the closest thing to an even-money game the casino offers. This was a friendly table, he said, and he or the other players would be happy to help a novice. Never bet with money you need for the mortgage or medical bills. As a rule of thumb, the easier a game is to play, the higher the house edge.
Blackjack is the most popular card game by far. Some folks are comfortable eating at a chain restaurant and catching a matinee. She put out the $10 minimum bet and was dealt a two-card 20 for her first hand. Slot manufacturers spend millions of dollars to make machines that entice people play longer. About 27 percent of Americans visit a casino at least once a year, according to the American Gaming Association, and that number grows as legalized gambling continues to expand beyond the traditional centers of Las Vegas and Atlantic City. Slot players don’t have to worry about making the “right play” or doing something that could affect other gamblers. With slots, the outcome is determined by a computer program called a random number generator, or RNG. In some games, all the players on a group, or “bank” of machines might share in a bonus round. “Run! Run for the hills while you’re ahead!”
Many books and Web sites teach basic strategy for blackjack. The vast majority won’t. In other words, for every $100 put into machines throughout the casino, the machines return an average of about $90 over the long run. Slots can account for 70 percent or more of the money casinos make from gambling.
The challenge for bettors is to find a game that they enjoy and that has a house edge they’re comfortable with. Some casinos offer games that pay 6-to-5 for a blackjack. A rule of thumb is that the higher the base denomination, the less the house advantage. At that game, the player with a blackjack gets paid only $12 for a $10 bet. The machine itself is the entertainment. Take what you are comfortable spending. Since blackjacks will come at the same rate at each type of game — once in about every 21 hands — playing at 6-to-5 table costs you about $6 an hour.
Games with a low house edge include:
A penny machine is a misnomer. They’re generally easy to learn and play.
Slot machines are the easiest and most popular form of casino gambling. You should be mentally prepared to lose it all.
Many people making their first casino trip or trying out a new game are like that uneasy blackjack player. Casinos have evolved into one of the country’s premiere entertainment options. Some machines let you choose the value of a credit, such as 25 cents, 50 cents, $1 or $2. It’s all pure luck, as opposed to skill games such as blackjack and poker. Although each credit is worth only one cent, players can wager as much as $3 a spin by playing multiple pay lines and more than one credit per line.
Casinos offer a variety of games to entice everyone from those dreaming of a life-changing jackpot to people simply enjoying a night out.
Slot machines appeal to people looking for a pressure-free way to pass the time. So if the dealer’s up-card is weak — especially a Four, Five or Six — it’s better for a player to stand on a “stiff” hand of 12 through 16 than trying to hit and get closer to 21.
If you find yourself ahead after a couple of hours of fun, then remember the dealer’s advice for the nervous blackjack player: Run for the hills!
Blackjack, if you take a few minutes to learn the basic strategy of when to hit or stand.
Video Poker, if you make the effort to look for good pay tables and learn simple guidelines for which cards to keep and throw away.
Baccarat, including the “mini” form found on the main casino form.
Craps, a game that looks more complicated than it actually is.. The card makes you eligible for offers of discounted or free food, hotel rooms or other amenities based on the amount of your play. The RNG’s sole function is to spit out groups of numbers. Those include Three Card Poker, Let It Ride Blackjack Switch and Spanish 21. Some want a four-star restaurant and a live musical.
Regardless of what you might hear elsewhere, there is no strategy for winning at a slot machine. Each number corresponds to a specific symbol on the display. Many are tied to popular movies, TV shows or musical artists – think “Lord of the Rings” or “Pawn Stars” or Dolly Parton – or even games such as Wheel of Fortune, Monopoly and Battleship. A few favorites: www.WizardOfOdds.com, www.bj21.com, www.BJInsider.com, and authors Stanford Wong, Henry Tamburin and Arnold Snyder.
However, that doesn’t mean you should just throw your money away on long shots. Some games have surround-sound chairs for what manufacturers call “immersion” gaming.
Finding yourself amid the thousands of games, dealing with the noise, lights and other casino distractions, and ogling the vast amounts of money and chips can intimidate anyone.
When you enter any casino for the first time, head to the players club booth and join. If you “bust” by going over 21, you lose even when the dealer also busts, because the dealer is the last to act. Sure, some players will win big. Slot players put their cards into the machine; table game players present their cards to the dealer.
The black-haired woman nervously thumbed through her purse as she took the end seat at the blackjack table. That’s not right. They want to gamble but they’re not exactly sure what to do.
Whether you’re a beginner or a veteran, the most important fact about a casino is this: The house always has the edge, no matter what game you play. Her blackjack fling started with a victory.
READ: 6 Mistakes to Avoid When Paying Off Debt
Before you put money into a slot, check the machine’s display to see how much one credit is worth. Dollar machines pay out more than quarter machines, and quarter machines pay out more than nickel machines.
Poker is popular, but it differs from all other games because you play against other gamblers rather than against the house. The casino gets its cut by collecting a “rake,” typically $4 or $5, out of every pot.
READ: Tips and Tricks for Traveling to Las Vegas
The house advantage on slots can vary by casino, but typically it’s about 10 percent. Use your players club card whenever you gamble there. The number combination generated at the instant you hit the spin button determines what symbols will be displayed and whether you win or lose.
“You know what you should do now?” the dealer asked, barely suppressing a smile as he prepared to deliver the punch line. Over the long run, the casino will win because of how the games are structured.
Just bear in mind that you’re there to have fun. The goal is to beat the dealer. You could hit a big jackpot or you could lose your buy-in within a few minutes.
READ: The Downsides of Winning a Powerball Jackpot
Casinos also offer a variety of “carnival games” that are variations of poker and blackjack. Many players mistakenly think the object of blackjack is to get a hand as close as possible to a total of 21 without going over. In the short run, anything can happen.
“No problem,” he assured her. A cynical adage holds that casino executives figure that whatever you bring through the door is theirs – you just happen to be holding it for the moment. Players have the option of hitting or standing, while the dealer must follow specific rules — generally, he must hit if the total is 16 or less and stand with a total of 17 through 21. She pulled out three $20 bills and gingerly placed them on the felt, confessing to the dealer this was her first time playing the game.
One question all casino visitors ask themselves is how much money to take. Casinos make more money from slots than from any other game. If you go out for dinner and a show, you know how much that’s worth to you. Smart gamblers find a game they enjoy and learn the strategies that reduce the house edge as much as possible.
When you plan a casino trip, figure out how much you’re willing to spend for that night’s entertainment.
One of the built-in advantages for a player is that blackjacks traditionally pay 3-to-2, or $15 for a $10 bet. The process is simple: Push a button; win or lose; repeat. Never play them. The answer depends on your own assessment of how much you’re willing to spend for a night at a casino
Well, you have a problem here; as a rule, cruisers don’t carry firearms – something about ending up in 3rd world prisons seems to dissuade most people. While you can attempt raids on land-based strongholds, this is not generally a good idea as these tend to be guarded by survivalist who shoot first, ask questions later. Your better bet is to get creative with what you will likely find: flare guns, the occasion spear fishing setup, and lots and lots of little tiny pocketknives. Consider creating oars that double as weapons by attaching knife blades to them. Don’t dismiss the value of a good whack with a frying pan, either.
Ah yes, zombies. They love the night, hide in unexpected places, and desperately seek to consume your flesh – but they don’t swim. The most dedicated might, perhaps, walk along the riverbed to get across, but they’re slow; also, I’ve never seen them crossing large bodies of water, like oceans. As long as you’re in the ocean you could easily pull up anchor to escape once you saw the throng heading into the waves towards your anchored vessel. Give it at least one good growing season so you can trade your fish for some tasty zucchini.
Small or large, your sailboat will have a place to sleep. Granted, it may be a little small, or require a gymnastics background to get in to, but it’s there. Keep your sailing range to the equator and you won’t even need blankets. More talented sailors will choose to move up and down their chosen coastline to take advantage of the best weather. It’s always possible that a hurricane has cleaned a coastal area of zombies and you’ll have time to go ashore and stretch your legs before the inland zombies repopulate the area.
Look for small islands that never had people to start with. Of course this means they’re either uninhabitable, or wildlife refuges. Go for the refuge, but watch out for the ranger if you do. It would totally suck to let down your guard only to find that some randomly infected/affected park ranger is roaming the island hoping for careless sailors. This is a good place to test the ‘zombie bait’ plan.. Search any abandoned boats you come across for the rusting cans of beans they all carry. Just get the good stuff and the beans.
Once you find that “clean” island to live on, you’re golden. All you have to do is wait for all the zombies on the continents to die out and you can head back home. You might want to give some consideration to the animalistic mentality that will be prevalent among survivors and try to calculate how long it will take for civilization to re-establish itself. Plenty of seaweed is edible, and you can always plan raids on areas that appear to be zombie free. You’ll have plenty of time to hang out offshore and watch for activity.
The wind powers your home, and you don’t need to go ashore to get it. Your sailboat should be equipped with a spare set of sails and a good sewing machine to keep the boat’s power source in optimum condition. If you do need to refill the engine now and again, most marinas have a fuel dock with no house nearby for zombies to hide in. A quick trip in to fuel up, maybe grab some water, and you are off, away from the dangerous shoreline. Another advantage is that docks are usually clear so you’ll see the zombies coming as soon as their feet hit the wood.
It’s hard to rank these with regard to importance as some are interdependent while others are advantageous, but not critical. It is also difficult to be sure that all the most common concepts are covered, such as, what if your sailboat is on a lake? Should you be more worried about survivors swamping your boat trying to escape land or zombies walking along the lake bottom? Most of the most critical ideas can be modified for lake survival and perhaps adapted to escaping down a river. If you will be considering a river escape, you’ll want a powerboat, since zombies won’t be inclined to open draw bridges for you. Get yourself a sailboat once you’ve reached the shore, and apply the following concepts:
If you’ve been able to save some friends along with yourself, you had better really like these people. Even when you’ve managed to trade your way up to something giant that sails, your living space will still be pretty danged small when compared to the houses you all used to live in. With enough people, though, you could always do sort of a “Survivor” plan and have secret alliances that choose who will be used as bait, should you miscalculate and run into some serious zombie action. Maybe seeking out nests of survivors would be a good idea after all.
No self respecting zombie would ever choose to live in a boat, so every marina you come across will be filled with abandoned boats just waiting for you to strip them of all the necessary gear. A few things, like radios, won’t be of much use, unless you believe there are pockets of survivors calling out their locations. I can’t imagine any of them would be giving you weather reports so unless you’re looking for survivors (and I would highly recommend against that as there always seems to be one or two infected people amongst them) don’t worry about a radio. Being able to distance yourself from the horde of undead is only one reason to plan on using your sailboat to survive the apocalypse.
The one thing cruisers have in abundance is movies. Sailing gives you a lot of free time and you can only watch the waves for so long. The downside is that people that live on sailboats tend to be cheap, which means that most of your viewing selections (from your vessel, and salvage from abandoned vessels) will be the bad, bad slasher-type DVDs commonly found in the $1 bin at discount stores. The ghost-of-the-psychopathic-ice-climber-taking-out-the-teenagers-one-by-one type of movies. Of course, many zombie DVDs also fall into this category, so perhaps you’ll have access to a lot of training videos. Bonus!
It might not be the most exciting diet, but you’ll be able to eat all the fish you can catch. With no other people fishing, the sea life will increase rapidly and your chances of actually catching something will improve greatly
It’s hard for thinking, feeling human beings to understand the true nature of someone who is unable to love and unable to empathize. Then last, but by no means least, a grandmother who lived nearby who could suck the life out of a room with just one or two vicious comments.
Whether Male or Female, The Narcissist is a Nightmare
They say that 75% of Narcissists are men. It does not occur to them. It wasn’t so much a breakup as a dismissal. I got a first hand glimpse at a female narcissist and it took about a year into our two-year relationship for me to start wondering whether I was actually losing my mind. Most of us have filters, and we know when we’re hurting someone and try to make amends. Everything I believed about myself was called into question: How I looked, how I ate, how I functioned – normally quite well thank you – but not when I’m under siege. A father who is a compulsive gambler and liar – someone who takes self interest to a whole new level. The other 25% are women, and they are just as deadly. I grew up surrounded by them. We try to modify our behavior so that we don’t make the same mistakes. . While it’s slowly dawns on you that you weren’t quite paying attention, they’ve already moved on. I started to ask questions, set boundaries and I was not cooperating to her satisfaction, so I was dismissed. Our official break up occurred almost a year ago. Those of us who know them intimately have become masters of looking the other way, of making excuses, of refusing to see ugly when ugly is standing right in front of us waving an enormous red flag..
Who Are We? The Ones Who Get Sucked In?
How do they weave their spell? How does a strong, intelligent and grounded woman or man get sucked into the black hole of someone else’s insatiable psyche? It’s easy, if you’re used to Narcissists. There is no experience quite as humbling as giving your all to a relationship and discovering that the other person was not remotely committed to you or the relationship. A narcissist doesn’t understand the concept of making amends, because they truly are never wrong. A mother, who I love dearly, but would best be classified as a benign narcissist