Ed’s Daily Notes for February 26th   5 comments

Financial Times: Bitcoin exchange fears $400m theft

If you need a reason to avoid Bitcoins, here you go:

Bitcoin is facing the biggest test of confidence in the nascent virtual currency, after its oldest and most famous exchange went dark and customers feared the loss of $400m worth of Bitcoin.

Mt Gox – a contraction of Magic the Gathering Online Exchange, after its origins as an exchange for the trading cards game – suddenly deleted its Twitter history and then pulled its website offline on Tuesday, prompting a swirl of rumour and recrimination.

In the hours that followed, a document circulated online alleging that the exchange had lost 744,000 Bitcoins – equivalent to almost 6 per cent of the 12.44m coins in circulation – in what the document referred to as “theft” by outside hackers.

Calls and emails to Mt Gox spokespeople seeking comment on the allegations were not returned, but while it remains unclear exactly what has happened, the exchange’s customers were coming to terms with the likelihood that they will not see their funds again.

Mt Gox had suspended customer withdrawals last month, but continued to allow trading, even as concerns mounted. It blamed the restrictions on a “bug” in Bitcoin, which allowed fraudsters to make it difficult for exchanges to track transactions, but other exchanges said they had implemented fixes for the problem.

Weekly Standard: Obama Says Supporters Doing ‘God’s Work’

This is hilarious:

President Obama thanked the group that used to be his reelection campaign, Organizing for Action, in event tonight in Washington.

“The work you are doing is God’s work,” Obama told supporters.

“God’s work”, huh? I wonder who God would happen to be in his mind?

Seriously, this reminds me of when Goldman Sachs CEO Lloyd Blankfein said he was “doing God’s work”. Is this the new meme in Washington and Wall Street? It doesn’t matter how much of a liar or thief you are, as long as you can pass off responsibility to God…

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5 responses to “Ed’s Daily Notes for February 26th

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  1. Here’s a last minute addition:

    http://finance.yahoo.com/news/yandex-google-form-advertising-partnership-083441260.html?l=1

    This news makes Yandex (YNDX) worthy of my watchlist. It is already undervalued, most likely because it’s a Russian stock. This news makes it worthy of consideration.

  2. This is what I keep telling you folks. The stock market is overpriced:

    http://blogs.wsj.com/moneybeat/2014/02/26/morning-moneybeat-valuations-still-look-pricey/

    • Doesn’t mean the market is going down. We may be at much higher prices before we see a correction.

      • Seems to me if the bears were correct more often the bulls the S&P would be closer to zero than 1845. And yes, the bears are correct some time, just like the clock on my wall with its dead batteries.

      • I agree. The market always looks either “high” or “low” based on “value.” There have been many times over my 49 years in the market where many predictions have been very wrong. Momentums made by the institutions come and go. This seems to be one of those times. Since I am not very good at predicting the future, I’ll predict that this will be a flat year with lots of ups and downs along the way. Watch out for rising rates, both bonds and taxes.

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