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    <title><![CDATA[[SecurityRatty] tag: front-line]]></title>
    <link>http://securityratty.com/tag/front-line</link>
    <description></description>
    <pubDate>Mon, 27 Oct 2008 20:20:21 +0000</pubDate>
    <generator>iRatty Engine</generator>
    <docs>http://blogs.law.harvard.edu/tech/rss</docs>
    <item>
      <title><![CDATA[Stampede Death at Wal-Mart]]></title>
      <link>http://securityratty.com/article/a5436ad4dbabae1cfd63a3bda7bfbafd</link>
      <guid>http://securityratty.com/article/a5436ad4dbabae1cfd63a3bda7bfbafd</guid>
      <description><![CDATA[The death of a Wal-Mart employee on Black Friday in New York should never have been allowed to happen

The Police are said to be reviewing tapes to see if they can identify who was responsible for...]]></description>
      <content:encoded><![CDATA[The death of a Wal-Mart employee on Black Friday in New York should never have been allowed to happen.<br /><span id="fullpost"><br />The Police are said to be reviewing tapes to see if they can identify who was responsible for trampling the poor man to death.  What will that achieve?  Obviously it was not done on purpose.  The findings are bound to result in an "accidental death" determination. <br /></span><br />Getting back to; who is responsible?  I think that is quite clear.  Wal-Mart has to accept responsibility.  UNLESS...they really did hire an outside security company and the employees of that company did such a poor job organizing that mob of "door busters", that they lost control of the situation.<br /><br />One thing is a given.  The family of the employee who lost his life is bound to bring a civil law suit against Wal-Mart.  If I were them, the first thing I would look to find out would be who(if anyone)was providing security on Thanksgiving night outside of the front door?  <br /><br />Unfortunately, many clients do not take the function of security very seriously and they delegate the responsibility to those with no security training or experience.  We have consulted for clients at arenas and found that ordinary ushers will be given a fluorescent vest or jacket with "SECURITY" written on the back and asked to provide security.  This is a libility claim waiting to be filed.<br /><br />If Wal-Mart did in fact outsource their security to an outside company, was the company allowed to provide an adequate number of officers to ensure that shoppers lined up in an orderly fashion?  One security officer to a couple of hundred people is another liability suit waiting to be filed.<br /><br />Next, they should be looking at the training that the security officers (Wal-Mart better hope that shelve stockers were not given the task)receieved.  Because it was Thanksgiving night, there is the possibility that the company couldn't get anybody else to work and used untrained and inexperienced personnel.  If that turns out to be the case, hopefully the company was legal and had adequate insurance coverage.<br /><br />Whatever happens regarding a civil law suit, one thing will remain unchanged.  A man lost his life in an incident that should have been prevented.  It is obvious that not everything was done to ensure the safety of the shoppers who traditonally lined up to get the best bargains when the store opened on "Black Friday".<br /><br />Whether it was Wal-Mart or the security company who may have been hired to prevent this very incident from happening - somebody failed to do their job. Whichever one it was, they should step up to the plate and apologize to the grieving family for letting them down.<div class="blogger-post-footer">Visit Sexton Executive Security at www.sextonsecurity.com</div>]]></content:encoded>
      <pubDate>Mon, 01 Dec 2008 01:12:00 +0000</pubDate>
      <category domain="http://securityratty.com/tag/provide">provide</category>
      <category domain="http://securityratty.com/tag/provide security">provide security</category>
      <category domain="http://securityratty.com/tag/security">security</category>
      <category domain="http://securityratty.com/tag/security company">security company</category>
      <category domain="http://securityratty.com/tag/wal-mart">wal-mart</category>
      <category domain="http://securityratty.com/tag/company">company</category>
      <category domain="http://securityratty.com/tag/security officers">security officers</category>
      <category domain="http://securityratty.com/tag/wal-mart employee">wal-mart employee</category>
      <category domain="http://securityratty.com/tag/death">death</category>
      <source url="http://www.thebulletproofblog.com/2008/11/stampede-death-at-walmart.html">Stampede Death at Wal-Mart</source>
    </item>
    <item>
      <title><![CDATA[Chairman Tata Surprised by Tricky Terrorists]]></title>
      <link>http://securityratty.com/article/7b4520b092d5aedad18be187c5cd3069</link>
      <guid>http://securityratty.com/article/7b4520b092d5aedad18be187c5cd3069</guid>
      <description><![CDATA[Chairman Rata Tata, whose company owns the Taj hotel in Mumbai, gave a frank and honest interview to CNN. I would imagine that the Tata Group's PR people and General Counsel are scrambling at the...]]></description>
      <content:encoded><![CDATA[Chairman Rata Tata, whose company owns the Taj hotel in Mumbai, gave a frank and honest interview to CNN.  I would imagine that the Tata Group's PR people and General Counsel are scrambling at the moment trying to do as much damage control as possible. <br /><span id="fullpost"><br />The sad part of this unfolding story is the feeling one gets that the terrible loss of life at the hotel may have been prevented or at least mitigated had proper security measures been implemented and if the security that had been in place prior to the attack had not been removed.  <br /></span><br />One eye witness who stayed at the hotel a week before the terrorist assault spoke about metal detectors and baggage being checked.  The same witness then went on to say that those security measures had been removed within the last week, allowing people to enter without being checked.<br /><br />The most surprising news to surface must be the Chairman's comments regarding the terrible event. Unbelievably, he actually said; "They knew what they were doing and they did not go through the front.  All of our arrangements were on the front entrance".<br /><br />Who is Tata's security advisor, a kitchen worker?  Actually, he might have been better off if that were the case since the terrorists entered the hotel through the rear kitchen door.  ANNOUNCEMENT TO ALL CHAIRMEN AND CEO's; Terrorists are Tricky.  That is their job.  They are watching your businesses and will do the opposite to what you expect.  <br /><br />In the case of the TAJ HOTEL, you made it easy for them.  Did nobody in Mumbai ever stop to think that a bad person can go through the back door?  It is one thing for a cafe in a pedestrian area to be attacked as anyone can walk right by or walk through the front and open fire, but how can a major landmark that attracts Western vistors drop their security measures AFTER they have received terrorist alert warnings that the hotel may be the target of terrorsit attacks?  <br /><br />I don't know if it was the case with the Taj Hotel, but cutting corners where security is concerned is common place in corporate culture.  Security is often seen as a necessary evil and usually the first department to experience budgetary cutbacks.  It is very difficult to convince some clients that nothing happening is really a good thing and that by cutting out security may open the door to evil.<br /><br />This appears to have been the case with the Taj.  There is no doubt that the terrorists had conducted hundreds of hours of surveillance in and around Mumbai.  Was it a coincidence that the attack occurred the week after security measures had been removed?  What might have been the result if security had remained tight (if you could call watching the front entrance and disregarding the back as "tight security")?  Maybe the terrorists would have held back another month or two...maybe in that time they would have been detected...<br /><br />One thing is for certain, places like the Taj Hotel have to get serious about security.  Mr. Tata's claim that; "If I look at what we had...it could not have stopped what took place", must be replaced by more progressive, proactive thinking.  If the Tata Group had spent an adequate amount of funding on ensuring that a strict security policy was in force - if only for the period in question - then they might not now be facing a 5 Billion Rupee reconstruction bill.  Who knows how high the civil suits against the Taj will run when compensation and punitive costs are calculated.         <br /><br />Kudos though to Chairman Tata for at least recognizing that the Indian authorities may not be able to handle the situation on their own.  "These attacks underscore the need for Law Enforcement to seek outside expertise for training, equipment and strategic operations", he said.<br /><br />We agree Mr. Tata.  We also hope that you will recognize the need for the Tata Group to seek similar outside expertise to assist you with your security planning and training.<div class="blogger-post-footer">Visit Sexton Executive Security at www.sextonsecurity.com</div>]]></content:encoded>
      <pubDate>Sun, 30 Nov 2008 22:29:00 +0000</pubDate>
      <category domain="http://securityratty.com/tag/security measures">security measures</category>
      <category domain="http://securityratty.com/tag/proper security measures">proper security measures</category>
      <category domain="http://securityratty.com/tag/tata">tata</category>
      <category domain="http://securityratty.com/tag/security">security</category>
      <category domain="http://securityratty.com/tag/security advisor">security advisor</category>
      <category domain="http://securityratty.com/tag/chairman tata">chairman tata</category>
      <category domain="http://securityratty.com/tag/chairman rata tata">chairman rata tata</category>
      <category domain="http://securityratty.com/tag/taj">taj</category>
      <category domain="http://securityratty.com/tag/taj hotel">taj hotel</category>
      <source url="http://www.thebulletproofblog.com/2008/11/chairman-tata-surprised-by-tricky.html">Chairman Tata Surprised by Tricky Terrorists</source>
    </item>
    <item>
      <title><![CDATA[RIAA Lawsuits May Be Unconstitutional]]></title>
      <link>http://securityratty.com/article/93a6a6f47d9d5b1467dbe190bc929894</link>
      <guid>http://securityratty.com/article/93a6a6f47d9d5b1467dbe190bc929894</guid>
      <description><![CDATA[Harvard law professor Charles Nesson is arguing , in court, that the Digital Theft Deterrence and Copyright Damages Improvement Act of 1999 is unconstitutional: He makes the argument that the Digital...]]></description>
      <content:encoded><![CDATA[<p>Harvard law professor Charles Nesson is <a href="http://techdirt.com/articles/20081030/0203582685.shtml">arguing</a>, in court, that the Digital Theft Deterrence and Copyright Damages Improvement Act of 1999 is unconstitutional:</p>

<blockquote>He makes the argument that the Digital Theft Deterrence and Copyright Damages Improvement Act of 1999 is very much unconstitutional, in that its hefty fines for copyright infringement (misleadingly called "theft" in the title of the bill) show that the bill is effectively a criminal statute, yet for a civil crime. That's because it really focuses on punitive damages, rather than making private parties whole again. Even worse, it puts the act of enforcing the criminal statute in the hands of a private body (the RIAA) who uses it for profit motive in being able to get hefty fines.

<blockquote>Imagine a statute which, in the name of deterrence, provides for a $750 fine for each mile-per-hour that a driver exceeds the speed limit, with the fine escalating to $150,000 per mile over the limit if the driver knew he or she was speeding. Imagine that the fines are not publicized, and most drivers do not know they exist. Imagine that enforcement of the fines is put in the hands of a private, self-interested police force, that has no political accountability, that can pursue any defendant it chooses at its own whim, that can accept or reject payoffs in exchange for not prosecuting the tickets, and that pockets for itself all payoffs and fines. Imagine that a significant percentage of these fines were never contested, regardless of whether they had merit, because the individuals being fined have limited financial resources and little idea of whether they can prevail in front of an objective judicial body.</blockquote></blockquote>

<p>Another <a href="http://www.usatoday.com/tech/news/2008-11-16-music-downloading_N.htm">news story</a>. </p><div class="feedflare">
<a href="http://feeds.feedburner.com/~f/schneier/fulltext?a=5mEhN"><img src="http://feeds.feedburner.com/~f/schneier/fulltext?i=5mEhN" border="0"></img></a> <a href="http://feeds.feedburner.com/~f/schneier/fulltext?a=u1zCN"><img src="http://feeds.feedburner.com/~f/schneier/fulltext?i=u1zCN" border="0"></img></a>
</div>]]></content:encoded>
      <pubDate>Wed, 19 Nov 2008 10:33:11 +0000</pubDate>
      <category domain="http://securityratty.com/tag/digital theft deterrence">digital theft deterrence</category>
      <category domain="http://securityratty.com/tag/fines">fines</category>
      <category domain="http://securityratty.com/tag/deterrence">deterrence</category>
      <category domain="http://securityratty.com/tag/hefty fines">hefty fines</category>
      <category domain="http://securityratty.com/tag/theft">theft</category>
      <category domain="http://securityratty.com/tag/criminal statute">criminal statute</category>
      <category domain="http://securityratty.com/tag/statute">statute</category>
      <category domain="http://securityratty.com/tag/objective judicial body">objective judicial body</category>
      <category domain="http://securityratty.com/tag/body">body</category>
      <source url="http://www.schneier.com/blog/archives/2008/11/riaa_lawsuits_m.html">RIAA Lawsuits May Be Unconstitutional</source>
    </item>
    <item>
      <title><![CDATA[National Security Perspectives A Post-Election Insider View]]></title>
      <link>http://securityratty.com/article/caa8257ee971993e58e1b834379f8c71</link>
      <guid>http://securityratty.com/article/caa8257ee971993e58e1b834379f8c71</guid>
      <description><![CDATA[Recently I participated in an event entitled National Security Perspectives held at the famous Congressional Country Club in Maryland . The featured panelists had impressive credentials from the NSA ,...]]></description>
      <content:encoded><![CDATA[<p>Recently I participated in an event entitled National Security Perspectives held at the famous <a href="http://www.ccclub.org/" target="_blank">Congressional Country Club in Maryland</a>. The featured panelists had impressive credentials from the <a href="http://www.nsa.gov/" target="_blank">NSA</a>, <a href="http://www.dhs.gov/" target="_blank">DHS</a> and the <a href="https://www.cia.gov/" target="_blank">CIA</a>. The topics of discussion ranged from Current Geopolitical Threats and Evolving Technology Demands to predictions about the New Administrations Intelligence, Defense and Homeland Security focus.</p>
<p>The panelists were:<br />
<a href="http://en.wikipedia.org/wiki/National_Security_Agency" target="_blank">William P. Crowell</a> – former Deputy Director of the National Security Agency<br />
<a href="http://www.whitehouse.gov/government/m_jackson-bio.html" target="_blank">Michael P. Jackson</a> – Deputy Secretary, Department of Homeland Security<br />
<a href="http://en.wikipedia.org/wiki/Jose_Rodriguez_(intelligence)" target="_blank">Jose A. Rodriguez, Jr</a>. – former Director CIA, National Clandestine Service &amp; CIA, DCI Counterterrorist Center</p>
<p>Overall, it was a very nicely arranged event on a brisk fall evening with about 100 CXO attendees; mostly large but some small government contractors and a few product companies like ScienceLogic that conduct business with military, intelligence and the public sector.</p>
<p>No surprise, given the financial crisis the economy is suffering from that the panelists said we also have a <a href="http://obsidianwings.blogs.com/obsidian_wings/2008/11/defictits-actua.html" target="_blank">crisis coming on the Federal budget front</a>. This will put enormous pressure on the way Administration thinks, and how and where to spend the $$.</p>
<p>Obama’s tone regarding the issues he will be confronting in the world during the election was encouraging. Make the world more non-partisan and take on the threats that we have in front of us head-on!</p>
<p>The panel was very upfront about current threats. William Crowell said,</p>
<blockquote><p>“It is highly imprudent to believe that there will not be another 9-11. We have to fund and support the work to stop other attacks. We can only mitigate risk but we can’t eliminate risk. We have to try to absorb the sense of urgency and wake up every day looking at the intelligence screens as if 9-11 happened within the last couple of months.”</p></blockquote>
<p>He added,</p>
<blockquote><p>“They (the intelligence community) need the innovation, sense of commitment and urgency that comes from the private sector – a sense of mutual commitment to that mission.”</p></blockquote>
<p>Predicted Priorities for investment for DHS:</p>
<ol>
<li>Cyber attack as the top issue</li>
<li>Nuclear threats including dirty bomb</li>
<li>Chemical and biological attacks</li>
<li>Explosive attacks against critical infrastructure with maximum # of lives and or financial disruption / loss.</li>
<li>Large scale natural disasters – hurricane + earthquakes</li>
<li>Border penetration - identity management and border management issues</li>
</ol>
<p>An <a href="http://www.barackobama.com/index.php" target="_blank">Obama administration</a> will spend dollars around these threat vectors. They will want to spend $$ to help state and local governments. Grants to state and local governments should significantly increase with the Obama administration, so think about how you will increase your focus on the state and local government spending initiatives.</p>
<p><a href="http://lawprofessors.typepad.com/immigration/2008/11/pressure-on-oba.html" target="_blank">Secure border investments</a> – the panelists believe that the new administration will feel compelled to invest here. Michael P. Jackson bluntly said, “You have to make investments in border tools to get meaningful immigration reform.”</p>
<p>Panelists agreed that the 1<sup>st</sup> year will be an intense period of scrutiny about fundamental directions. We can’t afford it all at DHS; it is dramatically under budgeted. At TSA/DOT and then at DHS, we spent about $4 Billion on technology investments since 9-11; those investments are now reaching the end of the original service life.</p>
<p>One gripe from the panel that I found humorous: “We don’t have a group of people who think like entrepreneurs.” It is insane how long things last when you buy things in the government. As an example, we are still replacing vacuum tubes in some of the very old FAA gear… this is well beyond what any reasonable person would think these initial investments should/would last.</p>
<p>Final Thoughts:<br />
I actually think that the Obama Administration will be quite favorable to COTS software products, SaaS offerings, and creative financing initiatives from the private sector. The government just won’t have the capital budget to do everything it wants to accomplish. I would say if you look at how intelligently and aggressively <a href="http://www.concurringopinions.com/archives/2008/11/obama_and_techn.html" target="_blank">Obama used technology</a> to assist his campaign, the odds are good that this new breed of IT talent (which is already really comfortable with SaaS products, blogs, wiki’s, hosted/outsourced Cloud solutions… this team really understands the latest technology trends) will quickly work to bring these new IT paradigms to the Federal marketplace. Clearly the private sector can help the Government achieve more with lower capital budgets – beginning to provide services rather than transaction-based selling. Another clear idea is to think about leasing as a better way to work with the government which going forward will have increased budgets restrictions.</p>
<p>They will likely be in confrontation with members of Congress that won’t change fast enough, however the future of our nation’s ability to fight terror lies in becoming more efficient and effective. It requires the government be flexible enough to figure out what <a href="http://blogs.techrepublic.com.com/hiner/?p=880" target="_blank">jobs and IT functions to outsource</a> in a nimble and smart way. My prediction: this is great news for Service Providers. Overall the next 4 years should be great for our business as well as the Managed Service Provider/SaaS industry!</p>
<p><em><span style="color: #333333;"> </span></em></p>
]]></content:encoded>
      <pubDate>Tue, 18 Nov 2008 11:13:25 +0000</pubDate>
      <category domain="http://securityratty.com/tag/secure border investments">secure border investments</category>
      <category domain="http://securityratty.com/tag/investments">investments</category>
      <category domain="http://securityratty.com/tag/government contractors">government contractors</category>
      <category domain="http://securityratty.com/tag/government">government</category>
      <category domain="http://securityratty.com/tag/threats">threats</category>
      <category domain="http://securityratty.com/tag/government achieve">government achieve</category>
      <category domain="http://securityratty.com/tag/initial investments shouldwould">initial investments shouldwould</category>
      <category domain="http://securityratty.com/tag/obama administration">obama administration</category>
      <category domain="http://securityratty.com/tag/current threats">current threats</category>
      <source url="http://blog.sciencelogic.com/national-security-perspectives-a-post-election-insider-view/11/2008">National Security Perspectives A Post-Election Insider View</source>
    </item>
    <item>
      <title><![CDATA[Security Manager's Journal: Progress at last on the patching front, and a new priority]]></title>
      <link>http://securityratty.com/article/278410ef3b910202811390025f6ed114</link>
      <guid>http://securityratty.com/article/278410ef3b910202811390025f6ed114</guid>
      <description><![CDATA[A corporate policy on patching is about to become a reality, so it's time to put that project on the back burner and look at the...]]></description>
      <content:encoded><![CDATA[A corporate policy on patching is about to become a reality, so it's time to put that project on the back burner and look at the budget.<br style="clear: both;"/>
    <a style='font-size: 10px; color: maroon;' href='http://www.pheedo.com/hostedMorselClick.php?hfmm=v3:01a365c740dc21a4bb0dc365378f42b7:CMIbKHRG4mFAzYrq11B3v%2FjQrhXZAuEpm8B4Z7loydJhiPDFO9pQCG3Ilufmbp3n7KNY%2FyOBb1iU'><img border='0' title='Add to digg' alt='Add to digg' src='http://www.pheedo.com/images/mm/digg.gif'/></a>
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      <pubDate>Mon, 17 Nov 2008 02:00:00 +0000</pubDate>
      <category domain="http://securityratty.com/tag/reality">reality</category>
      <category domain="http://securityratty.com/tag/project">project</category>
      <category domain="http://securityratty.com/tag/time">time</category>
      <category domain="http://securityratty.com/tag/policy">policy</category>
      <category domain="http://securityratty.com/tag/budget">budget</category>
      <category domain="http://securityratty.com/tag/burner">burner</category>
      <source url="http://feeds.computerworld.com/click.phdo?i=3c03bcd49aa16c2101f76e7e6724e393">Security Manager's Journal: Progress at last on the patching front, and a new priority</source>
    </item>
    <item>
      <title><![CDATA[Spring Web Flow 2: A boon to JSF developers]]></title>
      <link>http://securityratty.com/article/498deacdfd28d38e47b46e4cf3d75828</link>
      <guid>http://securityratty.com/article/498deacdfd28d38e47b46e4cf3d75828</guid>
      <description><![CDATA[Spring Web Flow 2 seems tailored to the needs of JSF developers, and it smoothes out Spring MVC on the front end. Dr. Xinyu Liu explains how new support for Ajax, validation, persistence, and security...]]></description>
      <content:encoded><![CDATA[Spring Web Flow 2 seems tailored to the needs of JSF developers, and it smoothes out Spring MVC on the front end. Dr. Xinyu Liu explains how new support for Ajax, validation, persistence, and security facilitates the development of rich Web applications using SWF 2. ]]></content:encoded>
      <pubDate>Mon, 10 Nov 2008 21:00:00 +0000</pubDate>
      <category domain="http://securityratty.com/tag/web flow">web flow</category>
      <category domain="http://securityratty.com/tag/jsf developers">jsf developers</category>
      <category domain="http://securityratty.com/tag/rich web applications">rich web applications</category>
      <category domain="http://securityratty.com/tag/xinyu liu explains">xinyu liu explains</category>
      <category domain="http://securityratty.com/tag/support">support</category>
      <category domain="http://securityratty.com/tag/front">front</category>
      <category domain="http://securityratty.com/tag/mvc">mvc</category>
      <category domain="http://securityratty.com/tag/validation">validation</category>
      <category domain="http://securityratty.com/tag/persistence">persistence</category>
      <source url="http://www.networkworld.com/news/2008/jw-11-intro-to-swf2.html?fsrc=rss-security">Spring Web Flow 2: A boon to JSF developers</source>
    </item>
    <item>
      <title><![CDATA[Stop Me if This Sounds Familiar]]></title>
      <link>http://securityratty.com/article/07468c09eca48cc8bfe532a83b3d394a</link>
      <guid>http://securityratty.com/article/07468c09eca48cc8bfe532a83b3d394a</guid>
      <description><![CDATA[My favorite book from last year was Charlie Munger's &quot;Poor Charlie's Almanack&quot; , there are so many fascinating parts in the book I can't go into them all here. Charlie Munger is Warren Buffett's...]]></description>
      <content:encoded><![CDATA[<p><a href="http://www.poorcharliesalmanack.com/index.html" style="float: left;"><img alt="Cover3rd" class="at-xid-6a00d83451c75869e2010535d3d4a3970c " src="http://1raindrop.typepad.com/.a/6a00d83451c75869e2010535d3d4a3970c-120wi" style="margin: 0px 5px 5px 0px;" /></a>
 My favorite book from last year was Charlie Munger&#39;s <a href="http://www.poorcharliesalmanack.com/index.html">&quot;Poor Charlie&#39;s Almanack&quot;</a>, there are so many fascinating parts in the book I can&#39;t go into them all here. Charlie Munger is Warren Buffett&#39;s partner at Berkshire Hathaway, the book is a collection of a number of his speeches, and serves as a great backdrop for today&#39;s events, an &#0160;investing education, and a way to think through complex problems (&quot;invert! always invert!&quot;). It goes without saying that I think you should buy this book.&#0160;</p><br /><div>Chapter Three is a collection of Munger&#39;s unscripted remarks at Berkshire Hathaway and Wesco annual meetings. The below sections were transcribed by <a href="http://www.tilsonfunds.com/">Whitney Tilson</a>, &#0160;from annual meetings around the 2003-4 time period, and are pretty interesting given our current financial predicament.</div><br /><blockquote class="webkit-indent-blockquote" style="margin: 0 0 0 40px; border: none; padding: 0px;"><p><span style="font-weight: bold; ">Warnings About Financial Institutions and Derivatives</span></p><p><span style="font-weight: bold; ">Risks of Financial Institutions</span><br />The nature of a financial institution is that there are a lot of ways to go to hell in a bucket. You can push credit too far, do a dumb acquisition, leverage yourself excessively---its not just derivatives [that can bring about your downfall].</p><p>Maybe it&#39;s unique to us, but we&#39;re quite sensitive to financial risks. Financial institutions make us nervous when they&#39;re trying to do well.</p><p>We&#39;re exceptionally goosey of leveraged financial institutions. If they start talking about how good their risk management is, it makes us nervous.</p><p>We fret way earlier than other people. We&#39;ve left a lot of money on the table through early fretting. It&#39;s the way we are -- you&#39;ll just have to live with it.</p><p><span style="font-weight: bold; ">Derivatives</span><br />The system is almost insanely irresponsible. and what people think are fixes aren&#39;t realy fixes. It&#39;s so complicated I can&#39;t do it justice here - but you can&#39;t believe the trillions of dollars involved. You can&#39;t believe the complexity. You can&#39;t believe how difficult it is to do the accounting. You can&#39;t believe how big the incentives are to have wishful thinking about values and wishful thinking about ability to clear.</p><p>People don&#39;t think about the consequences of the consequences. People start by trying to hedge against interest rate changes, which is very difficult and complicated. Then, the hedges make the [reported profits] lumpy. So they use the new derivatives to smooth this. Well, now you&#39;ve morphed into lying. This turns into a Mad Hatter&#39;s Tea Party. This happens to vast, sophisticated corporations.</p><p>Somebody has to step in and say, &quot;We&#39;re not going to do it - it&#39;s just too hard.&quot;</p><p>I think a good litmus test of the mental and moral quality at any large institutions [with significant derivative exposure] would be to ask them, &quot;Do you really understand your derivatives book?&quot; Anyone who says yes is either crazy or lying.</p><p>It&#39;s easy to see [the dangers] when you talk about [what happened with] the energy derivatives - they went kerflooey. When [the companies] reached for the assets that were on their books, the money wasn&#39;t there. When it comes to financial assets, we haven&#39;t had any such denouement and the accountings hasn&#39;t changed so the denouement is ahead of us.</p><p>Derivatives are full of clauses that say if one party&#39;s credit gets downgraded then it has to put up collateral. It&#39;s like margin - you can go broke [just putting up more margin]. In an attempt to protect themselves, they&#39;ve introduced instability. Nobody seems to recognize what a disaster of a system they&#39;ve created. It&#39;s a demented system.&#0160;</p><p>In engineering people have a big margin of safety. But in the financial world, people don&#39;t give a damn about safety. They let it balloon and balloon and balloon. It&#39;s aided by false accounting. I&#39;m more pessimistic about this than Warren is.</p><p><span style="font-weight: bold; ">Accounting for Derivatives</span><br />I hate with a passion GAAP [Generally Accepted Accounting Principles] as applied to derivatives and swaps. JP Morgan sold out to this type of accounting to front-end revenues. I think it&#39;s a disgrace.</p><p>It&#39;s bonkers, and the accountants sold out. Everyone caved, adopted loose [accounting] standards, and created exotic derivatives linked to theoretical models. As a result, all kinds of earnings, blessed by accountants, are not really being earned. When you reach for the money, it melts away. It was never there.</p><p>It [accounting for derivatives] is just disgusting. It is a sewer, and if I&#39;m right, there will be hell to pay in due course. All of you will have to prepare to deal with a blowup of derivative books.</p><p><span style="font-weight: bold; ">Likelihood of a Derivatives Blowup</span><br />We tried to sell Gen Re&#39;s derivatives operations and couldn&#39;t, so we started liquidating it. We had to take big markdowns. I would confidently predict that most of the derivatives books of [this country&#39;s] major banks cannot be liquidated for anything like what they&#39;re carried on the books at. When the denouement will happen and how severe it will be, I don&#39;t know. But I fear the consequences could be fearsome. I think there are major problems, worse than in the energy field, and look at the destruction there.</p><p>I&#39;ll be amazed if we don&#39;t have some kind of significant [derivatives-related] blowup in the next five to ten years.</p><p>I think we&#39;re he only big corporation in America to be running off its derivative book.</p><p>It&#39;s a crazy idea for people who are already rich - &#0160;like Berkshire - to be in this business. It&#39;s a crazy business for big banks to be in.</p><p>Yo would be disgusted if you had a fair mind and spent a month really delving into a big derivative operation. You would think it was Lewis Carroll. You would think it was the Mad Hatter&#39;s Tea Party. And the false precision of these people is just unbelievable. They make the worst economics professors look like gods. Moreover, there is depravity augmenting the folly. Read the book F.I.A.S.C.O., by law professor and former derivative trader Frank Partnoy, an insider account of the depravity of derivative trading at one of the biggest and best-regarded Wall Street firms. This book will turn your stomach.</p></blockquote><br /><div>These are very blunt warnings from a legendary investor over many years, yet no one listened. It does explain why it is so hard for Infosec to make its case for building margins of safety into the system.</div><br /><br /><br />]]></content:encoded>
      <pubDate>Sun, 02 Nov 2008 19:30:30 +0000</pubDate>
      <category domain="http://securityratty.com/tag/derivatives book">derivatives book</category>
      <category domain="http://securityratty.com/tag/book">book</category>
      <category domain="http://securityratty.com/tag/derivatives">derivatives</category>
      <category domain="http://securityratty.com/tag/derivative books">derivative books</category>
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      <category domain="http://securityratty.com/tag/derivatives blowup">derivatives blowup</category>
      <category domain="http://securityratty.com/tag/derivatives operations">derivatives operations</category>
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      <category domain="http://securityratty.com/tag/favorite book">favorite book</category>
      <source url="http://1raindrop.typepad.com/1_raindrop/2008/11/stop-me-if-this-sounds-familiar.html">Stop Me if This Sounds Familiar</source>
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      <title><![CDATA[How to set up a cross-platform network]]></title>
      <link>http://securityratty.com/article/da1c704e0be1bf4edcc34e034ca9d5c2</link>
      <guid>http://securityratty.com/article/da1c704e0be1bf4edcc34e034ca9d5c2</guid>
      <description><![CDATA[Your business--and the computers that power it--may have started with an idea that popped into your head while you sat in front of your laptop, freeloading off of the local coffee shop's wireless...]]></description>
      <content:encoded><![CDATA[Your business--and the computers that power it--may have started with an idea that popped into your head while you sat in front of your laptop, freeloading off of the local coffee shop's wireless network. But you can't work out of the Java Hut forever.<br style="clear: both;"/>
    <a style='font-size: 10px; color: maroon;' href='http://www.pheedo.com/hostedMorselClick.php?hfmm=v3:611e197a85322f1fe64e58532ec9b94b:ImWTBhoFss6SkUUnxABuNGuO8Z%2F81mxpWRqqES%2BAS%2BqxEp5uMrQbcQCs9W9v3HJ3L15T3ZGtFoWv'><img border='0' title='Add to digg' alt='Add to digg' src='http://www.pheedo.com/images/mm/digg.gif'/></a>
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<br style="clear: both;"/>  <img alt="" style="border: 0; height:1px; width:1px;" border="0" src="http://www.pheedo.com/img.phdo?i=3dadfc9de11ebbc4fcb4beeabb3c5b05" height="1" width="1"/>
<img src="http://www.pheedo.com/feeds/tracker.php?i=3dadfc9de11ebbc4fcb4beeabb3c5b05" style="display: none;" border="0" height="1" width="1" alt=""/>]]></content:encoded>
      <pubDate>Thu, 30 Oct 2008 01:00:00 +0000</pubDate>
      <category domain="http://securityratty.com/tag/java hut forever">java hut forever</category>
      <category domain="http://securityratty.com/tag/local coffee shop">local coffee shop</category>
      <category domain="http://securityratty.com/tag/wireless network">wireless network</category>
      <category domain="http://securityratty.com/tag/laptop">laptop</category>
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      <source url="http://feeds.computerworld.com/click.phdo?i=3dadfc9de11ebbc4fcb4beeabb3c5b05">How to set up a cross-platform network</source>
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      <title><![CDATA[Tech tricks and treats of 2008]]></title>
      <link>http://securityratty.com/article/9747102c31db42acf46c0e653969b7bd</link>
      <guid>http://securityratty.com/article/9747102c31db42acf46c0e653969b7bd</guid>
      <description><![CDATA[Growing up, you probably loved Halloween: Dressing up as your favorite superhero or princess, telling ghost stories, eating so much candy that your mom warned you your teeth were going to fall out. Of...]]></description>
      <content:encoded><![CDATA[Growing up, you probably loved Halloween: Dressing up as your favorite superhero or princess, telling ghost stories, eating so much candy that your mom warned you your teeth were going to fall out. Of course, there was the trick side of the equation--the eggs you'd see slimed across some streets the morning after or the paper in someone's front-yard tree. Aahh, those were the days.<p><A href="http://ad.doubleclick.net/jump/idg.us.nwf.rss/remote;sz=468x60;ord=7751?">
<IMG src="http://ad.doubleclick.net/ad/idg.us.nwf.rss/remote;sz=468x60;ord=7751?" border="0" width="468" height="60"></A>
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      <pubDate>Tue, 28 Oct 2008 21:00:00 +0000</pubDate>
      <category domain="http://securityratty.com/tag/front-yard tree">front-yard tree</category>
      <category domain="http://securityratty.com/tag/favorite superhero">favorite superhero</category>
      <category domain="http://securityratty.com/tag/ghost stories">ghost stories</category>
      <category domain="http://securityratty.com/tag/eggs">eggs</category>
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      <source url="http://www.networkworld.com/news/2008/102908-tech-tricks-and-treats-of.html?fsrc=rss-security">Tech tricks and treats of 2008</source>
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      <title><![CDATA[Sniffers class for the ISSA Kentuckiana]]></title>
      <link>http://securityratty.com/article/8ea74add13ca2d1aebf8eb66f54d28e6</link>
      <guid>http://securityratty.com/article/8ea74add13ca2d1aebf8eb66f54d28e6</guid>
      <description><![CDATA[I'm teaching another free class for the ISSA, hope some of my readers can make it. Here are the details: Who : Presented by Adrian Crenshaw of IronGeek.com What : &quot;Using Sniffers Effectively&quot; -...]]></description>
      <content:encoded><![CDATA[I'm teaching another free class for the ISSA, hope some of my readers can make it. Here are the details:<br/><B>Who</B>: Presented by Adrian Crenshaw of IronGeek.com<br/><B>What</B>: "Using Sniffers Effectively" - hands-on workshop with network analyzers such as Wireshark and Cain.<br/><B>When</B>: Sat, November 8, 2008 9:00 AM - 12:30 PM<br/><B>Where</B>: Louisville Technical Institute - Room 364, 3901 Atkinson Square Drive, Louisville KY 402018 (502) 456-6509<br/><B>Directions</B>: From 264 East get off on 1st Newburg Rd exit, Turn RIGHT at Bishop Lane, Turn RIGHT at Atkinson Dr./Atkinson Square Dr., Go .2 miles, Turn right at LOUISVILLE TECHNICAL/INTERIOR DESIGN INSTITUTE. Park in front parking lot. Go in Main Lobby to sign in.<br/><B>Why</B>: ISSA Kentuckiana's mission is to be the Louisville Leader in Information Security and Awareness. We want to provide relevant educational opportunities to members that enable learning, career growth, and should enable certification and technical advancement. <br/><B>Cost</B>: FREE! - Bring your own laptop or use one of the classroom PC's<br/><B>How to sign up</B>: send email to education (at) issa-kentuckiana (dot) org
<p><a href="http://feedads.googleadservices.com/~a/NzgSH-IM3cBWm_VnvqM5mNuYrR4/a"><img src="http://feedads.googleadservices.com/~a/NzgSH-IM3cBWm_VnvqM5mNuYrR4/i" border="0" ismap="true"></img></a></p><img src="http://feedproxy.google.com/~r/IrongeeksSecuritySite/~4/qKS-TigPx0o" height="1" width="1"/>]]></content:encoded>
      <pubDate>Mon, 27 Oct 2008 20:20:21 +0000</pubDate>
      <category domain="http://securityratty.com/tag/atkinson square drive">atkinson square drive</category>
      <category domain="http://securityratty.com/tag/atkinson square">atkinson square</category>
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      <category domain="http://securityratty.com/tag/louisville technical institute">louisville technical institute</category>
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      <category domain="http://securityratty.com/tag/issa kentuckiana">issa kentuckiana</category>
      <category domain="http://securityratty.com/tag/louisville leader">louisville leader</category>
      <category domain="http://securityratty.com/tag/free class">free class</category>
      <source url="http://feedproxy.google.com/~r/IrongeeksSecuritySite/~3/qKS-TigPx0o/">Sniffers class for the ISSA Kentuckiana</source>
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