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By Tyler Durden

Submitted by Claire Bernish via The AntiMedia.org,

A hacker in Florida exposed security vulnerabilities in one county’s elections web domains so officials could fix the problem — but, instead, he ended up behind bars.

Hacker David Michael Levin, owner of Vanguard Cybersecurity, was arrested on Wednesday after the Florida Department of Law Enforcement received a referral from the Lee County Sheriff’s Office after his apparently misguided attempt to help prevent election fraud by pointing out online vulnerabilities.

After spending six hours in jail, where he was held on $15,000 bond, Levin now faces three counts of gaining unauthorized access to a computer, network, or electronic instrument — despite the fact he had not only been doing his job, but also alerted the county to a potentially serious security concern.

To hack the Lee County Elections Office and the Division of Elections in Tallahassee, Levin performed Structured Query Language (SQL) injection attacks – which he documented on video and later uploaded to YouTube. According to the somewhat redacted police report, Levin’s associate, Daniel Sinclair, sent a security report about the SQL vulnerability – including details of the security flaw and a screenshot — to “an employee within the Department of State, Division of Elections.”

That employee then forwarded all the information to Special Agent Christopher Tissot, and the investigation began.

“The FDLE came to Dave, and then to me about the case,” Sinclair said. “We believed they were investigating the holes in the servers and the Gross Negligence. We both gave them the only information they have now that is accurate. While interviewing me, and Agent Chris Tissot kept cutting me off when I answered his questions.”

“I quickly realized Tissot was not investigating any of the claims. His sole goal was to find an obscure law they could hit Dave with, to discredit the information Dave went public with (after he helped them fix the holes).”

Though superficially, the case appears to be one of an unwelcome security breach despite that it was attempted for otherwise laudable purposes. But some aspects of what led to Levin’s arrest deserve further consideration.

Levin’s associate, Sinclair, is currently running against incumbent Sharon Harrington, Lee County Supervisor of Elections – whose name and password were used in the SQL hack. In the YouTube video about the attack, Levin and Sinclair explain how they obtained data from the elections website, which wasn’t even encrypted.

The possibility Levin chose Harrington’s account to perform the SQL injection as a publicity stunt to make Harrington’s job performance appear untenable must be taken into consideration. That being said, Levin’s foray into the elections data had not been undertaken with the appropriate permission — and because he didn’t alert the authorities as soon as he discovered vulnerabilities, law enforcement is required to be blind to his good intent.

However, in Levin’s defense, the privacy concerns of millions of voters — and any other potential issues with unencrypted and unsecured information — on the official Elections website should perhaps trump the strictures of law. Levin cooperated …read more

Source: Hacker Arrested And Jailed After Exposing Flaws In Election Website

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By Michael Snyder

As the U.S. economy slows down, we would expect to start to see evidence of this in the employment numbers, and that is precisely what has begun to happen.  During the week before last, initial claims for unemployment benefits jumped by 17,000, which was the largest increase that we had seen in over a year.  Well, last week we witnessed an even bigger spike.  Seasonally adjusted initial claims shot up 20,000 more to a total of 294,000.  Of course it makes perfect sense that more Americans are applying for unemployment benefits, because firms are laying people off at a much faster pace these days.  Just a couple days ago I reported that job cut announcements at major firms are running 24 percent higher this year compared to the first four months of last year.  So we should fully expect that the number of Americans seeking unemployment benefits will continue to accelerate.

Personally, I am a bit surprised by how quickly these numbers are getting worse.  The following comes directly from the Department of Labor…

In the week ending May 7, the advance figure for seasonally adjusted initial claims was 294,000, an increase of 20,000 from the previous week’s unrevised level of 274,000. This is the highest level for initial claims since February 28, 2015 when it was 310,000. The 4-week moving average was 268,250, an increase of 10,250 from the previous week’s unrevised average of 258,000.

For a long time, initial claims for unemployment benefits were running quite low, and this was one of the few bright spots for the U.S. economy.

Unfortunately, that is now changing, and this is just more confirmation that a significant economic slowdown has already started.  For many more numbers that back up this claim, please see my previous article entitled “11 Signs That The U.S. Economy Is Rapidly Deteriorating Even As The Stock Market Soars“.

But whether the economy has been doing good or bad in recent years, the long-term trend of the decline of the middle class in America has continued unabated.

This week, we got even more evidence that the middle class is steadily disappearing from the Pew Research Center…

The American middle class is losing ground in metropolitan areas across the country, affecting communities from Boston to Seattle and from Dallas to Milwaukee. From 2000 to 2014 the share of adults living in middle-income households fell in 203 of the 229 U.S. metropolitan areas examined in a new Pew Research Center analysis of government data. The decrease in the middle-class share was often substantial, measuring 6 percentage points or more in 53 metropolitan areas, compared with a 4-point drop nationally.

Do you understand what that is saying?

It says that the middle class got smaller in 203 out of 229 U.S. metropolitan areas between 2000 and 2014.  This means that the death of the middle class is very widespread and it is happening all over the country.

But it isn’t just the middle class that is suffering.  According to that same report, household incomes have been falling for …read more

Source: Unemployment Claims Spike Again As We Get More Scientific Evidence The Middle Class Is Shrinking

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By Tyler Durden

Submitted by Lance Roberts via RealInvestmentAdvice.com,

Stop Blaming Consumers, They Can’t Help It

Since 2009, mainstream economists, the media, and the Fed have continued to prognosticate a resurgence of economic growth. Yet each year, as shown in the chart of Fed forecasts below, such predictions have repeatedly overstated reality.

Since the economy is almost 2/3rds driven by consumption, it was only a function of time before these same individuals, consistently wrong, lash out at those directly responsible for their shortcomings – the consumer. As noted by Robert Samuelson via The Washington Post:

“American consumers aren’t what they used to be — and that helps explain the plodding economic recovery. It gets no respect despite creating 14 million jobs and lasting almost seven years. The great gripe is that economic growth has been held to about 2 percent a year, well below historical standards. This sluggishness reflects a profound psychological transformation of American shoppers, who have dampened their consumption spending, affecting about two-thirds of the economy. To be blunt: We have sobered up.”

While Robert is correct about consumers not being what they used to be, he is wrong about the reasoning why.

Yes, the economy has created 14 million jobs since the last recession but it has not been the economic nirvana that such a number would seemingly reflect. This is because the majority of the jobs created have been in lower wage-paying industries which has suppressed overall wage growth which is lower today than it was in 2000. Furthermore, while 14 million jobs have been created, the working-age population has grown by 17 million.

Of course, the problem becomes more apparent when you realize that 1-in-5 families have ZERO members employed. In other words, it is not a lack of a desire to consume but an inability to do so.

This problem is exacerbated by the lack of wage growth since the turn of the century. As shown in the chart below, the 2-year average of median incomes in the United States, as reported by the Census Bureau, has fallen since the turn of the century and is now only slightly higher than it was in 1995.

Simply, it is hard to consume MORE, when you are earning less.

Inflationary Reality

Of course, earning less is only one part of the problem. If you are earning less but the cost of maintaining a “standard of living” is rising, the deviation between incomes and outflows becomes more problematic.

There has long been a realization that inflation, as reported by the Government via the Consumer Price Index, is flawed. For the majority of Americans, the cost of living has historically been substantially higher than what the government reported it to be as rising healthcare and insurance costs, college tuition and taxes have sapped what bit of discretionary income may have been available.

Just recently Rob Arnott and Lillian Wu via Research Affiliates discussed this exact problem.

“Surveys suggest that the average …read more

Source: Stop Blaming Consumers, They Can’t Help It!

    

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By Tyler Durden

The oil headline scanning algos have completely lost it. While in the past it used to be just oil “production freeze” headlines that sent crude surging, now any old headline will do. Case in point, the price action since noon today.

Just around 12:37pm Eastern, Bloomberg blasted the following machine-readable headlines:

• IRAQ DEP. MIN. SEES CRUDE PRICE RISING ON INCREASE IN DEMAND
• IRAQ SEES RENEWED TALKS ABOUT OUTPUT FREEZE AT OPEC MEETING

Which as we promptly noted, pushed oil instantly from $46 some 20 cents higher.

Here we go again. Oil bounce on every algo’s favorite headline: IRAQ SEES RENEWED TALKS ABOUT OUTPUT FREEZE AT OPEC MEETING

— zerohedge (@zerohedge) May 12, 2016

This was to be expected.

What however caught us and oil traders completely off guard is what happened precisely one hour later, at 1:36pm, when the very same Bloomberg, quoting the very same Iraq, blasted a headline which not only refuted what Iraq had “said” before, but suggested even more oil was about to flood the market. Some 1.2 million barrels in fact.

• IRAQ CRUDE OUTPUT IS 3.8M B/D, SAME AS IN APRIL: DEP. OIL MIN.
• IRAQ PLAN TO BOOST CAPACITY TO 5M B/D DEPENDS ON OIL PRICE

In a world of “logic”, Gallium Arsenide or otherwise, one would imagine that the second headline would undo the impact of the first one. Nope.

What happened instead is that as the first headline sent oil – expectedly – higher, so did the second one!

In other words, we just had a “market test” according to which algos buy oil on both “production freeze” and “production boost” headlines, confirming that algos not only don’t even scan the headlines, they just look for only one key words, in this case “Iraq”, which then proceeds to unleash yet another momentum-igniting buying spree.

Trade accordingly.

…read more

Source: Oil Algos Have Completely Lost It: Now Buy Crude On Both Production "Freeze" And "Boost" Headlines

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