Daily Tech News show is made possible by its listeners. Thanks to all of you, including Miranda Janell, Justin Zellers, and Pepper Geesey. Coming up on DTNS, the U.S. ready to build a force meta to pay for news. Your feedback on the challenges facing autonomous trucking, and John C. Dvorak tells us whether he likes paying a subscription for heated seats or not. This is the Daily Tech News for Tuesday, December 6th, 2022 in Los Angeles. I'm Tom Merritt. And from Studio Redwood. I'm Sarah Lane. I'm the show's producer, Roger and joining us, technology and sub-stack columnist, co-host of the No Agenda show and DHN plugged podcast, John C. Dvorak. Welcome, my friend. That would be me. Congratulations on being you. And congratulations. You're far as showing up this time. I was on the show before. You know, like, well, it's true.  So here we are. There's something to be said. Yeah, there we go. I'm glad we've put that all behind us. Let's start with the quick hits. Apple expanded itself service repair program to Belgium, France, Germany, Italy, Poland, Spain, Sweden and the UK. This will provide parts and repair guides for common fixes on iPhone 12 and 13 models and Apple Silicon Mac notebooks. Apple also announced a karaoke feature called Apple Sing. That's coming to Apple Music later this month with a catalog of tens of millions of songs. So get those New Year's Eve parties ready. Yeah, just in time. TSMC plans to build a second chip fab close to the plant that's already under construction in Arizona, bringing their total investment at the site to $40 billion. TSMC will reportedly announce that the new plant will produce three nanometer chips by 2026. The report also reiterated previous reports that the fab already under construction will shift from five nanometer to four nanometer chip production. Starting in 2023, Microsoft will raise the price of its major first party title from $60 to $70 at launch. The company says regional pricing may differ, but it didn't offer any more specifics than that. Sony, Ubisoft and Take Two Interactive also announced $70 price points for some new game. Meta's oversized, oversized board. Well, it might be oversized, but it's also called the oversight board released a report on Facebook and Instagram's cross check system. That's not an exercise regimen. It's a system for double checking when an algorithm decides to moderate something posted by a high profile public figure. So you or I might get our post taken down right away. But if you're an actor or a politician, your post gets looked at by a human first, which could leave it up for up to five days. The board found that the program appears more directly structured to satisfy business concerns, and it also found that the system quote allows content which would otherwise be removed quickly to remain up for a longer period, potentially causing harm. The board recommended making posting publicly what criteria are used to determine who gets to be on that special cross check list. It also recommended hiding posts marked as high severity while in review. Google rolled out continuous scrolling for desktop English language search in the US, which was something available on mobile since October of 2021. If you're like, didn't they already do this? Well, they did in some capacities, but there's more now. The company says users can now see up to six pages of results with pages marked by a loading indicator as you scroll. The company said in mobile search users typically found what they were looking for within four pages. All right. There we go. Well, I think it's wonderful that we could all come together to talk about a bipartisan US bill that pleases not only both sides of the aisle, but even the media, everybody on the same side, right? The Journalism Competition and Preservation Act would let news organizations collectively negotiate with online platforms to increase their share of ad revenues. Right now, they can't do that. News organizations have to negotiate individually with Facebook, with Google. A similar kind of law passed in Australia, it's pending in New Zealand, Canada, the UK and the EU as well. These kinds of things to force the platforms to pay news organizations. And of course, as you might expect, most media companies, including Microsoft, which isn't necessarily a media company, but it's on the side of believing that this law will help raise revenues to protect local journalism. Well, on the other side of this, Meta is opposing the bill, arguing that news companies put their content on Facebook because it benefits them and their bottom line. And Facebook shouldn't have to pay extra on top of that. Meta spokesperson Andy Stone posted on Twitter, which is ironic, but whatever, that if the bill is passed, Facebook, quote, will be forced to consider removing news from our platform altogether and quote. Facebook made the same statements in Australia and Canada previously. In Australia, it pulled down news pages temporarily and then restored them after the Australian law was amended to include a provision or arbitration. But it's not just the usual suspects Meta and Google, you know they would be against this, but Meta has some unlikely supporters or at least you might think they're unlikely. 26 organizations, including the Wikimedia Foundation, the Internet Archive, Public Knowledge, the Electronic Frontier Foundation, and the United Church of Christ Ministry all signed on to an open letter opposing the bill. The letter argues among other things that an agreement could force platforms to carry extreme content because they negotiated the deal and they have to carry the content and might even set a precedent that would require payments in exchange for using facts. The Journalism Competition and Preservation Act was sent to the Senate floor on September 15th, still waiting on a vote, appearing possible that it might get added to the National Defense Authorization Act, which is expected to be passed by the end of this month. Yeah, so lame duck Congress might just dangle it on to an omnibus bill, which is a thing that Congress does at the end of the year in the United States quite often. John, do you like this bill? Of course not. Now let's go tell us more. For one thing, yes, tell us more. For one thing, non-partisan is a bit much. The only people in the Republican side that support this bill and co-sponsored it include, besides the sponsor by the way is Amy Klobuchar, Democrat. It includes Lindsey Graham, who is submarine the 2022 midterms by introducing needlessly an anti-abortion bill to get the vote out for the Democrats. So he's no good. Susan Collins is another one and she's always been kind of a Democrat more than a Republican and voted for the impeachment of Trump, one of the few Republicans who did so. So this is hardly a non-partisan thing until I see Rand Paul's name on there. I'm not buying it. The other thing is this should have been renamed a screw Facebook bill.  This bill is designed to, Facebook looks like the future of, I'm not going to say journalism, but the future of advertising because of its ability to entirely target. And the money it's taking away, it's taking away from the mainstream media and they hate this company. And the other thing is, if you look at the people that are signed on to this bill, there's 14 of them, all Democrats, with the exception of a couple Republicans and John Kennedy for some reason. These guys are saying to Facebook, hey, where is the lobbying money from you guys? We got it out of Google some years ago. They're throwing a lot of money at these politicians. You guys aren't throwing as much as you should be. So we're going to keep going after you until you start doing that, which I think is really the basis for this thing, because they don't care about the mainstream media that much. This is nonsense.  And it was introduced in 2021, first in March, I believe. And it's been reintroduced because Facebook never came around with the lobbying money that these politicians wanted. Well, the media companies are also lobbying too, and they're lobbying in Australia. They're lobbying in Canada. This is something that media companies have been pushing to the point in Australia. They were trying to make it illegal for them not to take the money or to not link. They're trying to say, you have to pay us to link to us. You also have to link to us. You have to link, yeah. And that's why the EFF and Public Knowledge and Wikimedia and Internet Archive are all lined up against this, because they're saying this is not how the internet should work. It's an anti-link law. And we've seen this since the beginning in the early 90s, mid 90s. There's right away. There are these anti-link. Oh, you can't link to us.  I mean, that's what it's all about. Yeah, that's how it works. The web is the web. The internet is a separate thing. But the way the web works is all links. So the idea of not only having to link, but then having to pay to link is unbelievable. And the fact that this bill has even gotten this far is beyond me. I will say the US one is a little watered down compared to the some of the others. It just says we're going to give you leverage. We're not going to like mandate the linking. But the knock-on effect would likely be the same. It also tries to cap the companies that can participate in the negotiation to those with 1,500 employees to try to make it look like it's helping smaller organizations, but then exempts broadcasters. And broadcasters are also owners of big publications. So it exempts Comcast. It exempts Disney. And in that case, it ends up being dominated by the big companies. It's the Anti-Facebook Act. And Google. Let's throw them in there. Why not? Well, Google's already been kind of in and out of this washing machine. But even Google has is threatened by Facebook in terms of the kind of income they can generate. Facebook has got a marvelous system. I will say that I do have some shares in Facebook. So I want to get that out of the way. But I am not a Facebook user and I would never sign up for a Facebook account. I don't like the way they how they operate. But the way they operate is a moneymaker. And that's what these big companies don't like to see. Yeah. And honestly, I think they're milking a very old cow. It's not out of milk yet. But like they're going to they're going to get this thing taken care of about the time Facebook begins its decline. Yeah, right. That's probably true. Yeah. Yeah. Well, thank you for those, John. We got a few emails from folks in the trucking business in response to our discussion yesterday about Embark's financial difficulties and just the future of autonomous trucking in general. And Professor Karen Levy's interview with the Verge expressing skepticism that autonomous trucking can't even handle the non driving parts very well, like safety checks and security. Joshua wrote in he's been trucking since 2006 pointed out that another limitation seems to be the kinds of trailers. So autonomous trucks are usually shown pulling 53 foot drive and trailers. Joshua says quote trailers can also vary in length from the short 24 foot pup trailers to 53 foot trailers. Also with proper permits, you can have trailers that are wider and or longer than normally allowed. And you don't see the autonomous systems handling all variations. At least they don't demonstrate them that way. Yeah. In fact, we got quite a bit of feedback. And thanks to everybody who wrote in James pointed out the unpredictability of actual driving, including fading lane markings, weather, construction, many factors come into play here. James writes the hallmark of a good truck driver is adaptability and the Achilles heel of AI is unexpected conditions. And we recently had James Thatcher on talking about logistics. Big Jim, he doesn't drive a truck himself, but he works in logistics. And he pointed out most trucking that I work with is what we call drop and hook where the tractor comes in with a trailer and swaps it out for another trailer. Doing this with autonomous trailers and autonomous tractors would get very, very expensive, very, very quickly in his opinion. Yeah. In fact, Wired published an excerpt from Karen Levy's book detailing these exact issues. She notes that one idea is to pass the baton. The computer drives the truck in most conditions, but hands over driving to a human when needed. Most autonomous trucking companies are dogging this with hubs. Autonomous trucks take the easy controlled access routes between hubs. Human drivers pick up cargo for the last mile. So you got the humans to do some difficult stuff that the autonomous trucks might get confused about. But that last mile could even be operated remotely, something that Starsky robotics developed. Getting back to the financial problems that we discussed yesterday, each one of these compromises reduces the potential cost savings of autonomy, which then makes companies less inclined to try it, which then makes it harder to get to the scale needed to make it profitable, which then causes valuations to fall. So here's an attempt at a solution. Developed for the military. Hey, it worked for the internet. After all, Kodiak Robotics received $50 million to develop autonomous vehicles for reconnaissance, surveillance, and high risk missions for the US Army's robotic combat combat vehicle program as part of a 24 month agreement. The vehicles will be designed to operate in quote unquote GPS challenged environments. So they're going to try to develop these things to be able to work without lane markers and GPS and all of that sort of thing, with the ability to be remotely operated if needed, which will probably be needed. Kodiak previously developed autonomous freight trucks using human safety drivers, so they have done this, they have experience with it, but they're moving out of the consumer market into the into the government contract market. John, where do you fall on autonomous trucking at all? Well, I think it's actually basically a good idea. What's needed are separate lanes, separate roads, separate freeways. If you've ever been to Rio de Janeiro, actually, Sao Paulo, anywhere in Brazil, you'll find they have these special lanes for buses, because they got these buses with these. It's like not the one, two bendy buses, like three, the things a mile long. And you can't go in that lane ever. In fact, I think in many cases you can't even get into the lane. If you have special lanes for these trucks, I don't have a problem with it. And if we're going to take that kind of thinking, I think we should extend it a little bit more. Instead of having like they do in Oregon, you can have doubles and triples, I think with these. They're carrying a lot of a lot of these things. And then they end at the border. They have to get out. But how about making the maybe the truck 100 cars long and just putting a couple big motors in the front and then maybe taking the whole thing is make a separate roadway, maybe in the form of two tracks, 100 cars on the two tracks with a big motor in front. And then you haul it around there. It doesn't get in the way of the normal. Sounds like the tracks are expensive though with it. Would it be cheaper than payment? Funny thing is there's a bunch of tracks already laid for these guys. It's already been done. So why don't we just go there and put the trucks on these tracks? So you're on the side of autonomous trains? Yeah, which actually not an idea. Anyone goes to them from the New York airport to yeah. I mean autonomous trains work pretty well in lots of places already. Yeah. I definitely think, I don't know if we're still 40 years away like Karen Levy said in the Verge interview yesterday. But I think she's on the right end of how far we are. I think these are all solvable problems if companies want to sink the money into them. What's happening is the funders are not wanting to sink the money into them anymore. And we always, you know, it's always left out of the conversation is vandalism. Vandalism will avoid vandalism as a topic. And in fact, we have other examples of vandalism getting involved and never being formulated into the final results.  I mean you can get, you can have a lot of fun if you think vandalism is fun, vandalizing these, any autonomous vehicle. And people have already done this with changing stop signs to, you know, just putting a sticker on top of the stop sign or just blanking it out. Yeah, yeah. Go right through the stop sign. There's a lot of problems in the society that make it difficult to do these these robotics. I don't know how much of a real threat that is. Vandalism is a problem for human driven stuff too. But but it's definitely something that needs to be addressed, right? Because it is going to happen. You're absolutely right. Folks, what do you think? You got you got a thought on this or anything else we talk about on the show? One way to let us know is our subreddit. You can submit stories and vote on them at DailyTechNewShow.Reddit.com. Two weeks ago, Mercedes-Benz announced a $1,200 per year subscription service. I said bend by accident. I think you'll see why in a second. It's Mercedes-Benz. It's new Mercedes EQ EV line that increased unlocked performance for torque and acceleration. Bending the rules perhaps? Bending something to get you to pay $1,200 for it. This this isn't a new thing. Tesla has been selling access to its beta version of self driving features for years over the summer. BMW caught a lot of heat in the US for something it wasn't yet bringing to the US functions on demand. It's a service in Korea and a few other European countries. I think South Africa might even have it too, where you pay a subscription to unlock a feature that's already in your car. The one that got all the attention was heated seats. They also have one that turns the driver assistance camera into a dash cam so it can record. Function on demand has been a product in for BMW since 2020. The announcement of the heated seats being added to it this past July is what caused a lot of the uproar. This isn't new. It doesn't seem to be going away. It's just the car company is trying to battle the public perception about it. John, what do you think? Is there anything in a car you would pay a subscription for? No, but of course I'm on the show as a negative Nelly that just says poo poo everything. Is there anything you like, John? Yeah, there's a lot of stuff I like, but none of this. But none of this. Yeah. Yeah. What about it? What about an internet connection? This is software as a subscription. Yeah. Turn it into your automobile. I mean with Microsoft, you know, okay, so I pay a yearly subscription to get Microsoft Office. And throughout the year, they upgrade things, they do things, they improve things, they change things a little bit here and there. It's all part of the subscription. That's what I expect the subscription to deliver. I don't expect to get the whole package. And then they release features from something I already own after the fact. And that's what I'm paying for. This is a scam. So do you have a problem with paying for internet access if there's internet access coming to your car? Do you have a problem paying with that? So you're going to use the argument. No, no. Well, hold on. Just answer that.  Well, it's costing them more on the back end. And they have to do it on the back end. They don't do it. I'm not getting 100 megabits per second. That's actually not where I was going with that. If you're okay, I think the dividing line is a lot of people say, okay, I'll pay for 5G access in my car. That's fine. I understand that I have to pay for it for my cell phone to where they get upset is but the heated seats are in my car. I bought the car and the heated seats are in there. You're not charging me to deliver a service. You're charging me to use a thing that's already in there. Yeah, this is an old IBM scan, by the way. They did this with one of their printers back in the 50s. It was very notorious. They upgraded the, I think it was a chain printer or a belt printer, some sort of printer. And it was for the big mainframes. And they upgraded all of them by sending a technician over there to basically flip a switch. It was already capable of doing these higher speeds and they changed something in the thing. You already had this, which brings me to the problematic aspect of this particular car story, which is, again, like I mentioned vandals, let's talk about hackers. What kind of, what does it take for somebody to hack this thing at the shop and flip on the heated seats? And I'm driving around with heated seats now. Is it checking in constantly? And there's ways around that, by the way. You're talking jailbreaking. It's what they used to do with the iPhones. Yeah, you have to jailbreak your car to turn on the heated seats. Totally. People are absolutely going to do that. Absolutely. In fact, only smart money will have that done. They'll pay for it. I mean, if there's any, I don't know, way to look at this in a way that's at all positive. And I really am with you, John, if there's something that is capable in my car that should be turned on, why, why charge me a subscription service to turn it on later? However, for example, my car has heated seats, heated steering wheel, very nice, great in the winter, six months out of the year, don't need it. You know, if I had a fixed, you know, a fixed finance fee that, you know, could, you know, where I was paying a little bit less, and I would just sort of pay for it the way I might pay for an HBO max subscription for a couple of months, because I wanted to watch something specific and then dip out of it. I could see where this could be sort of attractive to somebody. Yeah, I can see where the hacker would be more attractive. I could find the hacker who can fix this so I can do it turn on when I want. By the way, the funny thing about heated seats, my wife's a big fan of these things. So I was never, what to who cares, you know, it's not where it gets that cold. But I have heated seats in this car of mine and it's, it's actually kind of comfortable when it's really cold. Well, it doesn't get really cold in California. I'm not subscribing to them, that's for sure. Yeah, yeah, yeah. Hey, I live in California and trust me, I need my heated seats. You get a cold up there. All right, fair enough. Yeah, absolutely. I do, I do start to waver when I think about, oh, I've got a LiDAR system, and they'll, they'll add some software to turn it into a dash cam. Then I start to feel like, well, okay, maybe you're giving me something that isn't already there. I'm not being charged for the existence of the camera. You're just saying I'm game for that. Yeah, yeah. If it's not there, and they have to go through a rigmarole to get it there. And that's like, like a software upgrade. It's not, it's not flipping a switch. It's only the idea that it's there and you have to pay to have the flip, the switch flipped by somebody remotely. When you could do it, you should be able to do it yourself. It's abhorrent. These companies should be ashamed of themselves. And I think BMW, and they're both German companies curiously enough, I don't see any Japanese companies proposing this. I think we just stopped buying their cars. What about car sharing or rental? Like if there's a zip car, or they're just going to Hertz and they say, you know, check, check back these features, it's an extra dollar or two to get them on. Like what? Give me an example.  And they're like, great, it's $20 for the day. Oh, you want heated seats, $21. Do you want the Yeah, the lane assist. Another. Yeah, yeah, that's $22. They do this. They have no, I'm just saying, what if they, what if they used this for that? I wouldn't, I would, I wouldn't go to them. I'd go to some other company. You want it all inclusive. Yeah, yeah. All right. I mean, if it's already there, now I know that some of these car rentals will give you a, they'll give you a car specifically with a navigation system in it. Okay. Who needs that? It's not like they all have it. And so I, in that case, I think I, yeah, I'm okay. All right. Well, let's see, let's see if we can, we can cheer up John with some nostalgia, Sarah. John, I think you might like this one because Wired has an article up called how to start a cassette collection in the 21st century. Because cassettes making a return like vinyl did in years past. Record stores apparently have cassette sections again, depending on the record store you're going to obviously, full of shrink wrapped new releases. Cassette sales are even up expected to rise even more next year. And you say, well, why? I mean, cassettes are not the greatest form of media, right?  They don't do well in heat movies like stranger things, Guardians of the galaxy have featured cassettes of their own artists like the weekend and Taylor Swift have released their albums on cassettes. So if you say, hmm, interesting, I like a good cassette, I'd like to get back into it. Wired does have a guide with tips on where to find players and where to find the cassettes themselves. We will link to that in our show notes because yeah, you're not just going to go get a bunch of, you know, DRX tapes at your local Walgreens these days, but they can be found. I stocked up. Yeah. Hey, me too. I got, I got some old DAC cassettes that I never used from way back in the day. I, I am astounded at the ability for every new generation to rediscover old technology that the generation that grew up with it no longer it likes. Like everybody in Generation X is like cassettes, hiss, they melt all that stuff and get one melt. I'll tell you, there's a couple of advantages. I do like cassettes. I don't use them, but I do like them. And there's a couple of advantages. For example, you can have a tape that plays 60 minutes on each side and it reverses us to hours of recording. You can't get that on an audio CD. My old Sony Walkman does that exact thing. In fact, I got a cassette in it right now. Look at you. Don't even remember what's on this, but somebody made me a mixtape and it's still a mixtape. The cultural mixtape is now missing. You can't even give people a mixtape. You can't do that. Well, and, you know, and thank the cassette for the whole mixtape thing.  All came from cassettes. Yep. It all came from Memorex. Well, good. I'm glad cassettes could finally bring us all back together. Me too. Let's check out the mailbag. Let's do it. That Charlie dude wrote in and said, that Charlie dude is a teacher said, I haven't seen any AR generated code turned in by my students. At least I don't think I have coding is like writing an essay or a story. It's personalized. Programmers have a distinctive style or a voice, just like authors do. So I think it would be easy to tell if a student's programming style changed suddenly. It's one of the ways that programming teachers look for cheating. If a student style changes on a project, it's a clue. They didn't write that code themselves. Charlie dude says, in my opinion, using AI for coding is the same as looking up answers. The answer is on the internet. For most of our college classes, the answers are on the internet already. Even if instructors write their own material, those questions and answers show up pretty fast online. If a student wants to cheat with AI, they'll be caught. Maybe not all of them, but certainly some of them will. I'd rather see students use AI to learn concepts, have AI help them debug and show them where they went wrong. In other words, use it as a learning experience. As an instructor, I wouldn't consider that cheating. Well, there you go. I think that's a good perspective. I'm with that. Use the algorithm as a tool. It's not a replacement for what the student's doing. It's just another tool like a calculator or anything else, right? I'll take the negative side on this one. Really? Yeah, really. So here's the deal. What happens when this coder gets out into the real world? That's what he's going to be doing. He's going to be especially the JavaScript guys. All they do is pick and match. They take this piece of code and that piece of code. They scramble it up and they put it in a package. Who's doing real coding nowadays? Most people are doing that. And to start learning that skill in college may not be a bad thing. Well, I'm with you actually. I think using the algorithm as a way to help you identify what did the algorithm get wrong? Because these things aren't perfect. How do you do it right? Use that as an example. If you got the proper teacher, like that Charlie dude, then you are using it to help them learn to code. But I agree, they shouldn't be just replacing the actual ability to code with that. I'm with you there. Finding good coders nowadays is impossible. Maybe not impossible. Well, you know what's not impossible? Finding good guests for Daily Tech News Show because we did it again today. Indeed, we did, Tom. John C. DeVorek, it was such a pleasure having you on the show today, even if you like to take the other side of things. That's why we love you. Let folks know where they can. Take the reasonable side of things. That's what's not fully understood. Well, yeah. So if people want to hear more about the reasonable side of things, where can they keep up with your work? Well, you can always go to DH Unplugged, which is where I talk about stocks with Andrew Horowitz, or The Big Show, which is the No Agenda show, which is on twice a week, NoAgendaShow.net or NoAgendaShow.com will get you there. We have, look at that beautiful art. This show is, we have a lot of, it's a very popular podcast, and we deconstruct news stories that people normally just gloss over or fail to understand fully. And it's very easy to do, it turns out, because the mainstream media stopped doing its job about 25 years ago. And it's always a surprise when we go back further and find the scams that go on today or went on back in the day during the Walter Cronkite era. So that's what we do. Well, we're so glad to have you on the show. You go to Dvorak.Substack.com and read my old essays. I've got a few more to put up. Yeah, yeah. And The Real Dvorak on Twitter as well. John C. Dvorak, such a pleasure to have you on the show. Also a pleasure to thank one of our lifetime supporters, Ronald Huss. That is you today. Thank you, Ronald, for all the years of support. And thanks to everybody who supports us on Patreon. Speaking of patrons, stick around for our extended show. Good day, internet. We're rolling right in after DTNS wraps up. Just a reminder, we do the show live and you can catch it live Monday through Friday at 4 p.m. Eastern 2100 UTC. Find out more at dailytechnewshow.com slash live. We're back doing it all again tomorrow with a tech gift guide for those folks who are hard to shop for. With Scott Johnson and Richard Miro, talk to you then.


What is going on? Happy Tuesday. Happy Tuesday morning afternoon depending on where you're tuning in from My name is Ryan Hammer here with Fandle and we are with the man the myth the legend again John Ross. Welcome back, sir How are you? I'm great brother. How you doing? I'm good I know you're better now after your experiences right before the NCAA tournament the first day game from Albany to New York City But the Albany staff helped you out, right? They helped me out. It was the epitome of brutality Thanks for to Dwayne killings the head coach of Albany shout out to the great Danes for getting me back for the start of Michigan In Colorado State again, you think that things are going to be really really bad You think it's worse than losing a by game and it's the epitome of brutality You don't know anything until you're sitting on a tarmac and you're stranded in your helpless And you can't get to a TV and you can't get back to New York City It's honestly a shame that people don't know who David Roddy is sitting next to you like they It's crazy that people don't know who he is and going into the turn it but it kind of is what it is It's the life we live it is what it is man It is what it is but that problems in the rear of your mirror And now we look forward through the windshield to the sweet 16 and what a sweet 16 it should be. Oh, yeah, precisely It's gonna be awesome. We've got a ton of upsets ton of great story lines out of the tournament I want to start with you out of what you pegged as the region of vulnerability out of the bottom right with Iowa Richmond we go to Midwest the Kansas, right? Let's go to the bottom of the region first I think we talked about how whist go and Auburn like maybe they could get an easy path out But they're not they're probably a weaker of the two and three seats How do we how these teams got out any major things that you saw from the weekend and big takeaways from it? Well, we start in the region of vulnerability, you know, Iowa State's offense is offensive But it's defense is elite, you know, I mean you don't see many teams Able to advance to the sweet 16 when they only average about 56 and a half points per game But Iowa State was able to do that, you know I thought they played an LSU team that again was a team without a compass because we'll wait it said coach was fired Right before the NCAA tournament, then you look at obviously Miami. I liked Miami in this tournament You know, I thought it was a 50-50 game against USC But I thought the guard play of Miami would put them in a situation to potentially advance We saw obviously that guard play shine and you know I am a big fan of the Rocky series and I remember in Rocky 3 when Apollo Creed is trying to get Rocky ready to fight club Or Lang he told him the way to get it back is to go back to the beginning When you look at Miami under Jim Laranega when this program has really had success and had success at the beginning of his tenure They did it by blending quality high school players with transfers And they got away from that the last couple of years and recruited guys like DeWon Huell and Bruce Brown and Lonnie Walker Miami has now gotten back to its original fabric and think about this three sweet 16 appearances for Miami under Laranega 2013-2016-2022 the common trait and the common thread in all of those at least two of the teams top four scores have been transferred That's I think we thought about transfer before the tournament also like across the board have been awesome I think we're really keen to see how they perform in the tournament And I think I was to your point transfer has been a huge season with the COVID year the extra year eligibility have been awesome This game I would say Miami just like you said like they couldn't be two more Maybe not completely opposite teams because I was to realize in a couple guards as well But Miami runs on a fast pace they run the score up and I always they'd like to control the pace and slow the game down Do you think Brock and to entire each hunter? And do you think I would say defense can slow down Miami's offense in the guards. It's a great contrast and styles It's a contrast and styles. I think that's really really fascinating on a number of different levels I mean look I think if they can Miami can get to 60 points They're winning the game and they're playing in the elite eight and then you look at this region And I named it the regional vulnerability for you know a reason Kansas needed everything it had to beat a Creighton team that didn't have Ryan That didn't have obviously Ryan them hard who broke his wrist, you know a couple of weeks ago The big East freshman of the year he needed everything it had to beat Creighton I think Providence has an outstanding chance as good a chance that you can have to get to an elite eight And if they get to an elite eight They're playing either an 11 or a 10 to get to a final four So I think that if the game right now and they're playing with house money And I wrote about that in my daily column today the breakfast buffet. They're playing with house money But I do think that a Providence can get by Kansas, you know, it's gonna have a changing outstanding chance to get to a final four Yeah, and this is probably one of the upset like we talked about the jackrabbit South Dakota state in the first round I know you were on them I was in them most of the country was probably on them for a big upset 13 over four in the first round and after problems took care of business and Absolutely dismantled Richmond and really really took care of business there if they can get past Kansas Like you said like they're gonna be proven some haters wrong Maybe people will still say they're running is relatively easy But if they beat Kansas and go to the final four There's nothing you can say other than Ed Cooley and that team is Deserving and maybe we did overlook them throughout the season a little bit the American dream Ed Cooley What more could you want from this basketball team? And again, you're pacing you're playing Kansas But it's a vulnerable Kansas team in Chicago So I would expect a lot of Providence fans are going to be eating deep this year over the next couple days Exactly, so we'll see what happens that in that region We'll go up to the last game of the weekend errors and probably one of the best if not the best Arizona versus TCU When I thought I was gonna be able to go to sleep early one I don't know about yourself and then TCU made a comeback and all of a sudden I'm watching overtime until 12 31 o'clock in the morning on the East Coast here, but that region looks awesome I think Michigan has proven that their talent Maybe they still have that town and they've revitalized and they're not really an 11 seat They're not playing like one at all after just beating Tennessee and you got four really really good teams Potentially coming out of the south here, right? Yeah I mean I've named this the region of prospects and you looked at the region of prospects and you saw obviously what Hunter Dickinson did against Tennessee You saw what Ben Matherin did against Houston, you know, our six against TCU You know, I've said time and time again that Ben Matherin was going to explode like a volcano in the NCAA tournament and Ben Matherin really made America feel the lava the other night against TCU I mean the shot that he hit to tie the game in regulation at 75 was an all-time NCAA tournament shot But now you don't get really get ready for a sweet 16 game Against Houston. You're getting ready for a fight. So I'm fascinated this to me when I look at, you know The totality of all four regions. This is the best doubleheader in the sweet 16 when you're looking at one site Yeah, 100% I think the Michigan Villanova game is gonna be close to our boy I think it's a five-point spread right now, but Michigan like we said is not playing up to the caliber and 11 11 It's just not 11 versus 2. This is an even game as you can get Villanova, I think experience is carrying them more than anything else They obviously have a good team and Jay right fortune 500 of course But when Ohio State took shots and maybe hit a couple hit a couple jabs of them Villanova kept stretching lead out They never really get let them get too close or take the lead from them And I think that that could propel them far against a team like Arizona with a first-time head coach Your first year head coach a lot of sophomores didn't get a lot of PT last year And then you look at guys like Mitch teams like Michigan and Houston who do have the experience as well How do you think the inexperience from Arizona versus the experience teams don't have to play against in the South? We'll kind of face up there. Well, you know I think that Villanova has an edge in terms of experience just because of Colin Gillespie at the most important position on the floor I don't know if Houston has enough offense to counter Arizona Houston's going to have to make this game Into an ultimate fighting type situation I mean, I think you know, you're gonna have to put this game into the octagon or whatever So I look at the scenario with that and I think, you know Houston's gonna have to generate enough offense are gonna have to have a big game at a Taj anymore who's been incredible But you know, we'll see from there I like Villanova and Arizona to advance and then I think we've got a tremendous tremendous regional final But to me the most intriguing game out of this region is Arizona against Houston because you have a team That's been decimated by injuries, but it's not decimated on hard by any stretch of the imagination Against the team in Arizona that I would say, you know, again has the highest ceiling right now left in the tournament Yep, I guess fair and I guess we'll see how that matches up I think the athletic and versatility of the defensive Houston does match up well against Arizona because we saw like behind Matherin and Christian Coloco like you need physical dominance to compete with them And but we'll see no I don't think any first-time head coach has made to the final four since about 889 or 90 We'll see if Tommy Lloyd in Arizona can do that can be the first in the last 20 or 30 years It will go over to the West to Gonzaga the overall favorite. They had a very good game versus Memphis I think everyone wanted to watch the chat versus Jalen Duran match up Just the athleticism on Memphis Then we get Arkansas Texas second Duke chalked up into this week's team the one through four But I think a lot of people kind of saw that coming for the most part. Who'd we like besides Gonzaga? Let's go. Let's start with a head of Gonzaga in the West Well, Gonzaga, Arkansas an interesting game. I obviously give us the edge to Gonzaga I think Ryan Nemhardt is Andrew Nemhardt's playing at extremely high level right now You saw that against Memphis Texas Tech and Duke Is a fascinating contrast because you've got the older more experienced the tougher team in Texas Tech Against the team that is brimming with five-star prospects and Duke and even though Texas Tech is extremely physical Even though the Texas Tech is extremely older than Duke I'm still taking the Blue Devils in this game because of the emergence of Mark Williams Mark Williams has blocked ten shots in the first two NCAA tournament games that Duke has played He's averaging about fifteen point seven and a half rebounds five blocks to the first two games of the tournament You are looking at somebody again who I think can change the ceiling for the Blue Devils I see a Duke Gonzaga rematch here and again I think that we're gonna see at least for one more round the Mike Shashevski retirement tour take us and look This is really really down the road and I don't know if it's going to happen But there is a chance just based on momentum. I'm not saying it's gonna happen Yeah, if you look at the left side of your bracket We could see in Coach K's final season a Duke North Carolina National semi-final which would be absolutely incredible That like between that and also if they had to play Gonzaga a rematch of the game from earlier in the year and all the Stars of the power and two of the best teams coming into the season if they had to play Gonzaga and then North Carolina I mean and then they end up winning the title of that is something you make a movie about for coach K in his last year But I guess we'll see if that happens I think Texas Tech does poise a really really good matchup against them I think Texas Tech is favorite by one point right now So it's basically even but like you said Mark Williams has been a huge anchor Texas Tech smashing the board has been master for them I think Kevin O'Banner had 12 or 13 rebounds per game in the first couple games But we'll see how that matches up well Arkansas. We like Arkansas. They have played they played two doubles It's to get to where they are. It's obviously gonna be tough against Gonzaga But Eric Musselman two back-to-back sweet 16s We'll see if you can get further than that down to the east like you mentioned North Carolina Then let's talk about the North Carolina Baylor game at first because to me that was my personal favorite game of the weekend Maybe because I was rooting for Baylor and they had the 25 point comeback and I was so excited But it was awesome I think it had everything were there a lot of missed calls or referees and mishaps like that Yes, but I definitely want to hear your thoughts in that game North Carolina Baylor was one of the wilder games that I've seen in the past couple years in the NCAA tournament But again, it goes back to me The same you know theme is you know Brady manic and I know that he got ejected from the game But the change in North Carolina season has occurred when Brady manic has been a guy who has been you know Regular all-ACC caliber player. I mean Ryan think about this this season when North Carolina gets double figure Contributions from Brady manic the Tar Heels are 22 and 4 and then you look at the other side of that region and you have no bigger David and Goliath match up Yeah, Purdue against St. Peter. This is a rematch of the 2011 NCAA tournament when Purdue beat the Peacock's when they were coached by John Donne but Purdue now who is in a final for a bus type scenario and have been really since this team all Decided to come back Purdue's a team that you look at and you see him you say wow They're a team that you know you kind of look at and they say Kentucky's gone Baylor's gone. We know that things are aligned for us to go to a final for this is as good of a chance as Matt Painter has had to go through a final for and they have st. Peter's the darling Cinderella Peacock's of Jersey City, New Jersey out here I mean it was awesome to watch them It's one of the bit one of the better Cinderella's you can I can remember the third 15 seed to go to the sweet 16 second in a row after all Roberts and max ace miss last year to me like st. Peter's with their zone there It's just like with Shaheen. Howie what he has there their system that in a scheme that they have in place They're one of the better Cinderella's I can remember in recent times since teams like VCU Loyola, Florida Gulf Coast Because they're so well set up They're not just riding a hot hand of a max ace miss or something like that to get to where they are Do you think say what is your chances? We've given a percent chance st. Peter's to be Purdue because I think it's it's definitely I'm not doing that because I didn't because I didn't think that st. Peter's gonna win the Mac conference tournaments I'm not doing that. I'm not gonna do that. I look at This now and I'll say this St. Peter's is probably if they win this next game the most unlikely Elite 8 participant in the history of the NCAA tournament Yeah, and I think that's one thing that you know We need to kind of take into consideration because there's been other 15 seeds that have reached the sweet 16 So let's make that clear. I mean last year we saw with oral Roberts But oral Roberts had max ace miss so it had a dynamic score to lean on that was obviously a household name and Florida Gulf Coast in 2013 when in advance as far under Andy Enfield you have to remember It's a lot easier to recruit to Fort Myers, Florida than it is to Jersey City, New Jersey and the limitations That's around st. Peter's so if st. Peter's wins this next game They will be the most like the least likely participant the elite 8 in the history of the NCAA tournament Yeah, I think we I think most of the nation is on st. Peter's side the peacocks think we all want to see it See because no one wants to root against Cinderella no matter your your fan in the brackets I think everyone's on that unless you're a Purdue fan obviously But if you had to choose someone to come out of this bracket, who would you choose out of the east? I would take Purdue That's fair. I would do I mean the UCLA Carolina when I mean look UCLA is a little bit of a forgotten team here. They went to the final four last year nearly beacon zaga They have five starters back. We've got to find out, you know, Jaime Haca's situation and so on and so forth He's dealt with ankle injuries before I mean UCLA Carolina is a all-time You know NCAA tournament game because we're going to have two great brands going against each other in the sweet 16 UCLA is gonna have to do a really really good job obviously on Armando Baycott and Brady Maddox to win this game UCLA is a team though, you know again That was fortunate to beat Akron and then I thought played a really really good final 30 or 35 minutes against St. Mary So we'll see what the Bruins have and score at store here on Friday night in Philadelphia Yeah, and I think Haca's practice a little bit yesterday worked out. So he hopefully he's gonna be okay. I find it Unlikely that he doesn't play if there's any little like if he's if he can play at all He's gonna play I think a hundred percent But I guess we'll see with that but then you know if they say that UCLA their first game against Akron Like you mentioned if you can't win you're in your worst performance You're not going to tournament, but they did and they survived in advance. That was it about they really took care of business But St. Mary's and I think you're right Like I think they're kind of forgotten with the experience and plethora of scores that they have tournament experience from last year Nick Cronin's gonna have them set up if they win this game. That's my pick to come out of the region for the record East I'm gonna take UCLA. I think this UCLA North Carolina game is gonna be awesome Like you said probably one of the better ones Maybe behind like Arizona Houston and a couple of games in the sweet 16 But I'm really really excited and for me, this has been the best region from the start top to bottom They have so many lower seats and high seats all around that are good here. We are with st. Peter's obviously I also am with you I thought mom if I was gonna win that final two before I had Iona so that kind of is what it is Are there any other major storylines from the first weekend that you want to share about you want to share thoughts about anything That you were really really keeping an eye on Yeah, it's interesting, you know, you look and you reflect right now on so many different things You know, I thought that Yukon at late in the season was like a dark horse final for team I thought that was a massive massive upset, you know Chris Jans is gonna be the head coach of Mississippi State whether or not he won that game or not But obviously a great a great moment for him I think that you know and I know People are probably like not really looking forward to the 22 23 season yet But I am but if TCU can keep their nucleus together That's a team that I think will start next season in the top 15 and be a potential contender for a big 12 regular season title great respect For Kelvin Samson and Houston I think that I would say that and I've said this and I've tweeted it and I've said it on television if I could pick one coach To lead a program and to build the program of all resources were equal I would pick Kelvin Samson over any other coach in college basketball And I think you're seeing that more and more and look if they can be A player in this, you know sweet 16 and get to get you know to an elite 8 without Marcus Sasser and Tramon mark. I think it further cements his legacy, you know, it looks at the The job that he's done at Houston that Houston was losing games by 30 and 40 points when he got there There was apathy in the building and he didn't just make Houston a final 14 He didn't just make Houston a high seed in the NCAA tournament in the top 25 team Houston is now a team that's going to the big 12 He's completely changed that program. So yeah, I mean I asked him about this, you know, a couple of months ago if You know, he had given a thought I think he's 66 right now as to when he was going to stop coaching I for one hope he does it for a much longer period of time because I want to see Kelvin Samson again in the big 12 Yeah, and I mean he's 66, but he doesn't act like in a good way I say this because when he took his shirt off and was celebrating the locker room I mean, it looks like he's got 20 more years on him at least right there All I hope he does I pray for him there But they I feel like we're seeing a lot of the coaches the same coaches to be successful What you've seen for a long time, but newer coaches kind of emerged you mentioned Jim Laranega before we've seen bill Self-tube before obviously Kelvin Samson after last year's run and then this year's little even this mini run If they were to lose to Arizona, he's still proven his his success consistently Jay Wright Obviously you go down the line mark few as can consistent with winning even mark Adams could be stepping into that and coach K Yeah, exactly It seems like we're gonna we're seeing that and the big 12 thing is interesting because like I don't think it's next year I think they'll go in the year after if that's correct, right? Yes. Yes. One more year in the American conference, right? So I'm gonna resources if resources were even when they go to the big 12 with the recruiting and the funding that they'll be able to get in The big 12 all Houston's gonna be electric and even next year with all the guys that they return in a couple of a five-star and a four-star recruit They're bringing in this could be a preseason top five top 16 for sure in the country and contend for a national title Next year. I agree with him. I agree with you. And again, like I'm gonna do obviously my 45 I do the Rothstein 45, you know, and I do it every every Monday during the season like and I'm gonna be ready Obviously to have that out, but I'm gonna be changing it every day because you never know with eligibility. What's gonna happen this year? Yeah, that's good point. Another team. I would say he's gonna be really good next year It's creating they're gonna have a lot of guys back you mentioned Ryan Neymar the freshman of the year in the big He's got hurt Arthur Kaluma seems like he could be a really good breakout candidate next year He won't be a guy that probably get strats of this year, but he showed 24 and 12 versus Kansas He was expanding his three ball his outside shot So I think creating is gonna be a team another team because watch out for in the big East I agree with you. And I think that if Ed Cooley didn't have the the year that he's had worrying You know, I think he's been clearly the national coach of the year I think that Greg McDermott would have been the biggest coach of the year with what he's done He's been incredible absolutely incredible. Yeah, that's fair And we'll see how these teams go next year obviously in the coaching carousel and everything's kind of changing But on this bracket, we talked about kind of teams that you like to get out of the final four Do you think it's it is Gonzaga's to lose? I think it is a consensus thing Do you think Gonzaga Wednesday if you had to pick a winner a national title national winner now that we've seen teams play a whole weekend of games Who would you choose? I'm not going away from Arizona because of Ben Matherin I think that Ben Matherin is the player in the tournament and I said that before the tournament And I think you know, he lived up to it against TCU and you know, Arizona again Here's the thing I think that's you know The two things that's difficult and we saw it in the TCU game TCU was good enough to rebound with Arizona and was good enough obviously because Arizona is so physically imposing To be in a situation to negate what they did well and they were also, you know I thought very impressive offensively that they were able to trade blows with them I don't know if Houston is going to be able to get into the 70s and the 80s with Arizona because let's face it You look at the backcourt. You have Jamal shed Kyler Edwards and Tajé Moore Houston to me is going to have to make this an overwhelming physical challenge for Arizona to get anything near the rim And again, I said this, you know, Villanova's had obviously the best culture in college basketball for a long time Houston's 1a they're 1a and I've been in their practices I've been around their program and talking to their staff after they beat Illinois They sent a message to me and they said, you know, look, we won this game in October. We didn't win it today I think that speaks volumes That does that's actually really interesting. I think people we don't like a lot of people don't see the insides like that back October they're training somebody then understand the true cultures and that ties right back into like the same coaches succeed all the time And we're seeing that Jay Wright is a guy like maybe they are under talented compared to a lot of their teams But they still won the biggest they still got a two seed and they're still in the sweet 16 Hopefully gonna go further So you would you take Arizona versus Gonzaga in the finals or is it Arizona versus someone else? I'm staying with Arizona Gonzaga. That's what I said at the start of the tournament Okay, I think that is probably the matchup that we we would all want the top two seeds We saw it last year Gonzaga and Baylor the top two season of tournament But that would be some kind of matchup some next level West Coast matchup big for West Coast basketball Especially after last year with Gonzaga and you say making the final four neither then being able to win the national title It'd be awesome to see a kind of West Coast. I think Mather is awesome as well I think he's gonna be potentially to play the tournament and colloquial has been great as well But this Houston game is gonna be good like you said and I think if Houston could keep them to maybe under 70 They have a chance, but it is gonna be near impossible not impossible But it's gonna be very very tough to do so But Kelvin Samson and the redemption if anyone's gonna do it could probably redemption the Houston redemption it spreads There you go. It does it of course does kidding me But yeah, I think I would roll it's hard to go against Gonzaga at least coming out of the top left I think I want to see Arizona Villanova more than anything and I think whoever comes out of there I would focus my national champion. I'll stick with Nova because of the culture and the experience of I've been on J Right for a while. So that's gonna be my pick is Nova But we will see how that South plays out all the regions because that is gonna be the best one for sure There's those two any lead a game and again a lot would have to happen here But you could you could have another game It would be in the final four between Villanova and Providence and then you could also maybe again the Duke You can have Duke, North Carolina. You could have Duke UCLA. There's a lot of fascinating matchups still left I mean you look at it right now and I think you know, they're Miami, Iowa State and St. Peter's are the only non Heavyweight team that's really remaining. So I think 13 out of the 16 all carry a lot of cash. Yeah Yeah, I think that's fair and I would say that every team on here You know not gonna put say the St. Peter's can't win national title But like you said that there are 13 teams on here that you could very well see Playing in the final four and four national title Which is I think is awesome and and with all the upsets and contentious contended games like TCU Arizona We see that that higher seats are not that far away from everyone else I think everyone is kind of mushed together So it's gonna mold up for a really really good weekend this weekend just like last weekend. Absolutely And then you say Arizona Houston is your favorite game of the weekend before we head out Are there any other like a second and third favorite games you're looking forward to this weekend? Carolina UCLA, I think if you're a college basketball fan is fascinating Kansas Providence for sure I just think there's so much intrigue with you know, the dream season for Ed Cooley in Providence now We've got Duke in Texas Tech. I think those are the ones that I'm really really looking at Yep, I think that's fair. The Duke Texas Tech one is is is awesome It's it's gonna be and I would hope I would imagine that's gonna be Gonzaga coming out But Arkansas never doubted the must-bust and Eric Musselman, but we shall see But John, I appreciate you coming on again. It's always hope you have a great weekend watching all the games Hopefully your picks your pre see your pre turn of the picks Arizona Gonzaga. Maybe it'll maybe it'll all come true I Appreciate spending some time with you again Ryan and four important words to remember we sleep in May. Yes, sir That is correct. All right. We'll catch y'all. Appreciate you turning in. Thanks, buddy. See ya


In this presentation, we will take a look at the bonds market rate versus contract rate. Support accounting instruction by clicking the link below giving you a free month membership to all of the content on our website broken out by category further broken out by course. Each course then organized in a logical, reasonable fashion making it much more easy to find what you need than can be done on a YouTube page. We also include added resources such as Excel practice problems, PDF files and more like QuickBooks backup files when applicable. So once again, click the link below for a free month membership to our website and all the content on it. Remember that the bond is going to be similar to a note is basically a type of note. But there's a difference between a normal note that we get from a bank and the bond. The note that we get from the bank, we will typically adjust with our market negotiation when we're negotiating over the terms of the note. The thing that we usually negotiate is the interest amount. When we're getting a loan from the bank, for example, we want a hundred thousand dollar loan from the bank, then we're going to haggle over the interest on the 100,000. What rate of interest are we going to have to pay back in a bond? However, if the bond has already been made, then we cannot change the interest rate and we can't change the amount of the bond. They're already made. So then the question is, well, how can we trade this bond if the market rate of interest is different, the contract rate here being different than the market rate? Well, we can't change the rate. So what we can do is we could sell the bond for more or less than the face amount of bond. So remember what a bond means. It means just like a note, it says, you know, we're going to get so much money now and we're going to pay it back in the future, whatever term of the bond is, whatever the maturity date of the bond is, plus we're going to pay some type of interest on it. Now typically, if we got a hundred thousand dollar note, we would then pay back the hundred thousand at the end of the note, at the end of the loan, plus any interest on it. This is not the only way that this could work, however. We could, of course, say that we're going to accept something other than a hundred thousand now and we're going to pay you back one hundred thousand in the future. In other words, we may say give us a hundred one thousand now and we'll pay you back one hundred thousand at the end of the maturity date of the maturity date of the bond or pay us something less than a hundred thousand now and we'll pay you back a hundred thousand at the maturity date. Why would you do that? Why would anybody accept that because of the difference in interest rates? The difference is going to be made up by the fact that the market rate is currently different than the rate that's stated here on the bond. So what would that look like? Well, that's going to give us three types of options within a bond. The first one's going to be the easiest option and that's where the contract rate is going to be equal to the market rate. So if the contract rate is equal to the market rate, then we can just issue the bond with no discount and no premium, meaning it's going to be very similar to just a normal loan type of transaction because the rate that is stated on the bond is, in essence, correct. You can think of it as being exactly what the market rate is. This would only happen if we issued the bond right at the same time we made the bond and issued it. If there's a time delay between the creation of the bond and the issuance of the bond, it's more likely that the contract rate on the bond will not match the market rate. These other two scenarios, which could be that if the contract rate, the rate on the bond, it's printed on the bond, is greater than the market rate. And remember that the market rate is kind of an unknown. We know the market based on the market, what other things are doing, what other securities are doing, which are similar to this security. And therefore, so this isn't printed anywhere, in other words. The contract rate is on the contract, it's on the bond. So if the contract rate is greater than the market rate, that would mean that the bond is a good deal. So if we had a $100,000 bond, and we're going to say that the contract rate on our bond, we're paying more interest than other types of bonds are in a similar situation within the current market situations, therefore, we're going to issue the bond for a premium, meaning if we have a $100,000 bond and we have interest on the bond at 10% that we're paying, and the market rate for similar bonds is only 5%, then we're not just going to sell the bond for $100,000 because we're paying a lot more in interest. We can't change the percentage rate to 5% because it's already printed on the bond. What we can do is say that we're going to sell you the bond for something over $100,000. And therefore, we'll take more than $100,000 now, we'll make up the difference by paying you more in interest in the meantime, and then we'll just give you the $100,000 back at the end. The other possibility is that the contract rate is less than the market rate. So remember that the contract rate is printed on the bond. The market rate is something that just we assume or we figure out what the market is currently doing. So this is an actual rate written down. This rate is what we think the market rate is based on what other securities in a similar area are doing at the current time. So if this is the case, then we're going to contract where the rate on our contract is paying less than the market rate. And what that would mean is that if we couldn't change the rate, if we couldn't change anything, no one would give us money for our bonds because we wouldn't be able to sell them because they can go somewhere else, give the same amount of money if we had a $100,000 bond and they put the $100,000 into our bond, they would get less earnings, less interest than they could going elsewhere. We can't change the interest rate. We can't increase. We can't say, hey, we'll pay you more because it's already printed on the bond. The face amount and the interest are already on the bonds. What can we do then? Well, we can say we'll accept something less than $100,000 and issue the bonds at a discount. So we'll say, yeah, we're going to give you $100,000 at the end of the bond, but we'll accept something less than $100,000 now. We'll pay back $100,000 at the end. We'll accept something less than $100,000 now. Why? Because the interest we're going to pay you during the time period is a little bit less than the current market rates are. And therefore, that will make up the difference between the amount that we're going to receive now and the amount that we're going to give back at the end. Note that when we talk about a loan, on the other hand, the loan, the thing we negotiate on is the market rate. We're going to say, OK, we want $100,000, and we'll negotiate on the amount of interest we're going to pay back. The amount of earnings you're going to get on the $100,000. Because here, again, on the bonds, we can't adjust the rate to agree with the market rate. We can't adjust the contract rate to agree with the market rate. The bonds have already been produced. Therefore, the thing that we can change will be the amount of money we will receive at the front end for the bonds and then make up the difference between the difference and the rates through issuing the bond at a premium or a discount. So just note that these premiums and discounts, then, are a result of this difference between the rates, a result of the difference between the true rate, the market rate, and the rate that's on the bond, the contract rate. So when we deal with these premiums and discounts in the future, how are we going to account for them?  They're going to relate to interest, meaning we're going to be reducing the premium and discount and recording it to the other side, the income statement account of interest income as the bond is going through the process towards maturity as interest payments are made.


The Navy has three Paralympic warriors participating in the Paralympics in Sochi, Russia. Hospital corpsman 2nd class Tyler Burdick, cryptologic technician 1st class Kevin Burton and Lieutenant Commander Dan Kenosin are competing for gold in their respective events. Burdick is competing in the snowboarding event and has achieved five top 10 performances in previous World Cup events. Burton, who has a degenerative eye disease and is legally blind, is competing in the biathlon event. The biathlon is a winter sport combining cross country skiing with rifle shooting. Kenosin, the only double amputee Navy seal in history, is competing alongside Burdick in the biathlon event. To watch these sailors go for the gold, visit the Paralympic website for a live stream of the games. From Defense Media Activity, I'm Petty Officer Jen Blake.


Item number SCP-368. Object Class. Safe. Special Containment Procedures. SCP-368 is not yet warranted any need for containment, though it has the movement patterns and behavior common to a normal bird. Neither it nor any of its copies have shown any desire to migrate from the offices in which they are stored. Description. SCP-368 is an animate origami crane folded from ornate heavy stock paper. Left to its own devices, it will perch, preen, fly from platform to platform, groom, and occasionally construct a makeshift nest out of nearby office supplies. It responds to human touch affectionately, much as a domesticated bird would. The item's demeanor is, on the whole, friendly, and it has been observed to perch on the shoulders of various SCP personnel. Though the item needs no source of nourishment, it appears to sleep at night, in that it places its head under its wing. Studying the physical properties of SCP-368 is proven difficult. The item seems to interpret attempts to capture or contain it as a game, and has displayed considerable agility and resourcefulness in evading the most focused attempts of containment. How SCP-368 stays airborne and maintains its stability while airborne are still not known. History. SCP-368 was discovered in an office building in Japan in 19- Now employed as 14-1158, a former employee at the aforementioned building, found the item in a closet full of office supplies. Upon discovery of SCP-368, 14-1158 managed to gain its trust in order to move it to a more secure location. Psychological evaluations of 14-1158 indicated her to be of sufficient mental stability and acuity to warrant a position within the SCP organization. Cross SCP Warnings. It is recommended that SCP-368 be isolated from SCP-529 and SCP-530, as contact will almost certainly alarm all three SCPs. Addendum 022. On date undisclosed, while housed in Research Sector 15, SCP-368 began displaying unusual behavior. Instead of its normal routine of human interaction, grooming, and play, it began hovering over a photocopier, flattening itself whenever SCP Personnel approached. Dr. Wang placed SCP-368 into the photocopier and made a copy, upon which another sheet of paper of identical pattern but different hue emerged from the copier and promptly folded itself into a shape mimicking that of the original. SCP-368 in the new specimen, referred to as SCP-368 Alpha, resumed usual behavior. Since then, SCP-368 has displayed similar behavior at intervals varying between two and four years, while the copies have shown no such behavior. Though initially Overseer O, disallowed any employee from aiding in the reproduction of SCP-368, and Dr. Wang was reprimanded for his action, remarkably high employee morale at Research Sector 15 led to the introduction of the progeny of SCP-368 at further SCP facilities. Item Number SCP-350 Object Class Safe Special Containment Procedures When not under experimentation, SCP-350 should be contained within a locked storage unit. No personnel other than those undergoing experimentation with SCP-350 should be allowed to sign SCP-350, no matter what might be offered in exchange. Those who have signed SCP-350 should be allowed to fulfill the terms of SCP-350 until the terms conflict with Foundation interests, at which point they should be restrained or terminated as necessary. Any staff member above level 3 caught signing SCP-350 for any reason must be immediately terminated. Description SCP-350 appears to be a single-page contract followed by 49 blank sheets. The contract outlines a basic exchange of a good or service, in exchange for a small amount of money wired to a numbered account at Bank in Zurich, Switzerland. The wording of SCP-350 is different to every reader prior to signature, and the good or service offered is always something the subject has expressed great desire to obtain. The document is also always in the native language of the reader, and conforms to the laws of the nation in which the subject makes their primary residence. Attempts to use video or photography to get an objective image of SCP-350 at this stage have failed, as the text continues to vary from person to person. Upon signing of SCP-350, the variable language property of the contract ceases, and the text of the contract stays in the language of the owner of the signature on the document to all readers. The subject will invariably find the object or proof of service shortly after exiting SCP-350's containment unit, always in a location without direct surveillance. Should the signatory of SCP-350 fulfill the terms of the contract, and wire the money to the bank account, SCP-350 begins to add new amendments and terms starting from the second page, most of which demand a minor service of some form from the signatory. However, the complexity of the terms and demands increases with the number of amendments fulfilled, eventually reaching extremes including but not limited to the murder of staff members, the removal of SCP-350 from Foundation containment, and even data expunged. Should the signatory not fulfill the original or new terms of SCP-350 for any reason for a full week, they will begin to feel unnoticeable urge to complete the current task. This grows into a compulsion on the order of the ticks of those suffering from severe obsessive-compulsive disorder. Should the subject be prevented from completing the terms at this point, the subject will begin to lie, steal, kill, and take other extreme actions to attempt to fulfill the demands of the contract. Psychological analysis at this point reveals nothing, as the subject is utterly fixated on completing the task, to the exclusion of all else. If the subject is restrained from completing the task, the subject will resort to constant escape attempts, refusing to eat, drink, or sleep. Subjects will die unless placed on intravenous fluids and forced into a chemically induced coma. At this point, their metabolism and bodily functions will begin to speed up until the subject dies from either a heart attack or the inability of intravenous therapy equipment to keep up with the metabolism. Item number SCP-211 Object Class Safe Special Containment Procedures Because of the suburban location of SCP-211, the surrounding neighborhood has been vacated through intentional introduction of pollutive industry and redistricting to promote nimby sentiment. In addition, the property surrounding SCP-211 is currently under foundation management and an armed guard has been stationed in the buildings. Unauthorized personnel entering the area are to be terminated on site. A series of explosive charges has been set within SCP-211 and is to be examined every day for degradation. Should SCP-211 become overtly hostile or neutralization is otherwise requested, it is to be terminated by detonating these charges simultaneously. To avoid inadvertent activation of SCP-211's defense mechanisms, extraction of SCP-211-1 should take place at a rate of fewer than f***ing pages per hour. Description SCP-211 is a two-story building located in an abandoned district of Indiana. Records from undisclosed archives heavily suggest that the building was originally a middle-class dwelling belonging to GS since deceased of natural cause. Since then, all furnishings have disappeared, save standard light fixtures and a radiator pictured above. Note that several of these light switches have not been discovered, rendering them useless. Additionally, the building's topography has been nearly completely covered with an estimated f***ing sheets of paper, hereafter collectively designated as SCP-211-1. Given these facts, SCP-211 itself is in remarkably poor condition. Severe mold and grime contamination are threatening to collapse a large section of the second floor, and the attempted May 4th demolition has left a large hole in the south wall of the building. Recovered sheets of SCP-211-1 may be of various aspects and origins. Blank, depicting various images, ripped pages from books, most often encyclopedias or novels, printouts from the internet, etc. The paper may be of any color. In fact, the above picture is of the only hallway in which all sheets are printed on white paper. Entire stacks of paper have been discovered in the building's basement, whose individual sheets bear little or no relation to each other. Their only real identifying characteristic is that individual sheets' edges are unusually sharp, and that should a portion of SCP-211-1 be removed, more sheets appear from unknown origin as replacement. Research is pending, but so far, individually. SCP-211-1's constituent parts seem to have little purpose, beyond and defense. Document 211-01 SCP status for SCP-211 was established after the building was condemned and scheduled for demolition on the 4th of May, 2001, when the building attacked the team, hereafter labeled Incident Zero. The following is an interview of ER, one of four survivors, conducted by Dr. Spinoza. Begin log. Dr. Spinoza, please state your name and occupation. Interviewee. ER. Employed at- construction. Well, former employee. Can't exactly do my job with one crippled leg, now can I? Dr. Spinoza, my sympathies. Please discuss the events involving the attempted destruction of data expunged. ER. Well, we... construction, that is. We're commissioned to destroy that thing, so we set about finding the best way to do it. We pretty much ruled out undermining for some reason. Something to do data expunged. Main thing is management decides to just use a couple of bulldozers to level the thing. Dr. Spinoza, was there any action on the part of the building before you attempted demolition? ER. Not really. We went in there after all, making tests and all that. Found the mold, joked about all that paper all over the place. Only thing that really happened before we started was... Yeah, when we were in the basement and someone else, I forget who. Started ripping pages from the wall, just to check how bad the mold was. Big stack of the stuff suddenly drops from the ceiling, out of nowhere, on top of the guy, and he gets a nice bunch of paper cuts. Thing that got us, though?  I mean, clothing, hat, glasses, what have you?  Damn good thing he was wearing those glasses, I tell you. Dr. Spinoza, and then... ER. Well, we didn't like being in a big house of knives, you know? So we got him out of there. Other than that, besides, well, you know, nothing else happened. Dr. Spinoza, and on May 4th... ER. Well, we had everything set up, and started driving a pair of bulldozers towards the house, when all of a sudden all that paper on that one wall, outside, right? Well, it all just falls off by itself. Now, I should tell you, that day there wasn't a breeze in the air at all. So we thought that, well, the building's destroying itself and stuff, and we decided to help it along, and all of a sudden there's a big rumble, one you can hear over the bulldozers, and all that paper flies into the air by itself, and tears up everything in sight. End of interview. End log. Document 211-02. Subsequent to incident zero, testing was taken to determine the responsiveness of SCP-211. D-class personnel were issued a video camera, in order to interact with SCP-211 in various ways. Video log 1. Subject D-19905 ordered to approach and explore SCP-211. Result. No response. D-19905 interacted with SCP-211-1 without threat. Building map of first floor made with camera footage. Video log 2. Subject D-19905 ordered to approach and extract a sheet of SCP-211-1. Result. No response. Page appears to be- Video log 3. Subject D-19905 ordered to approach and extract a pile of SCP-211-1 near SCP-211's entrance. Result. Before extracting the target, D-19905 hesitates and examines a large poster on the wall near it. When questioned, D-19905 remarks that it's a painting that he made while incarcerated at- and proceeds to pick it up without incident. When D-19905 picks up the target, a pile of SCP-211-1 falls over, landing on him. D-19905 emerges, suffering lacerations to arms, legs, and face, but manages to extract the collection from SCP-211. Video log 4. Subject D-19905 ordered to approach SCP-211 and explore second floor. Result. D-19905 enters building via Incident Zero Hole without incident. Upon entering contaminated area, D-19905 steps on a weakened part of the floor, which collapses. D-19905 exits building with a broken leg. Well, at least we know we can destroy it if we need to. Dr. Spinoza. Video log 5. Subject D-21938 issued a pack of matches and ordered to light a sheet of SCP-211-1 within SCP-211 on fire. Result. Data expunged. Remains removed from door, but main entrance to SCP-211 is now blocked, leaving the Incident Zero Hole as the only entrance. Let's not try that one again, all right. I mean, ugh. Dr. Spinoza. Addendum 211-01. Since collection of SCP-211-1 has begun, several specific books have become identified as their origin. Examples of these are as follows. A 19-word copy of Hitler's Mein Kampf, found in an undisclosed public library. A Java data structures book, printed in 19... discovered in a used bookstore near Site-17. Currently stored in the United States Library of Congress. Three printouts of Japanese broadcasts decoded during the Magic Crypt Analysis Project in World War II. The drawing in document 211-02, etc. No documents regarding the foundation have been discovered as of yet. However, security has been increased as a mild informational security threat. Addendum 211-02. Recent unexplained phenomena regarding SCP-211 have provoked further study. On the 28th of March, three individual sheets of SCP-211-1 were found in SCP-211's entrance. Examination of these sheets proved to be Foundation Protocol Memoranda, addressed to Dr. Spinoza, the interviewer of the previously mentioned ER. Upon questioning, Spinoza, who had been at Site-17 regarding another project, noted that the notices had disappeared soon after he received them, adding that data expunged. Since this date, there have been other data security breaches involving SCP-211-1, several of which involve SCP-211 as subject material. Upgrade to Euclid status pending. Item number, SCP-175. Object Class, SAFE. Special Containment Procedures. SCP-175 is to be kept in a metal safe when not undergoing testing. The safe is to be secured in a storage room at Site-1 with other low-maintenance SCPs. The room will be guarded by two security guards at all times, in accordance with Security Protocol data expunged. Description. When not active, SCP-175 resembles a yellowed piece of parchment, slightly larger than a standard piece of paper. The edges are torn, and it appears weathered in brittle. However, SCP-175 is actually quite supple and is indestructible, despite its worn appearance, having resisted all attempts to remove pieces for testing. The more interesting properties of SCP-175 are revealed when moved in relative proximity to a buried object. The proximity range seems to vary under unknown parameters. SCP-175 has become active in distances from as short as 30 meters to as far as several kilometers. However, on average, the distance ranges between 100 and 200 meters. When SCP-175 becomes active, its appearance changes to become either a map, a set of directions to the buried object, or some hybrid thereof. Though the approximate size and shape of SCP-175 remains constant, its appearance may change to resemble various other paper and parchment varieties, and the writing or drawing implement in style vary as well, seemingly based on the mindset of the individual or individuals who buried the object. If the buried object is dug up, or the map is removed from the proximity of the object, SCP-175 reverts back to its normal state. Document No. 175-08 Partial list of barriers, buried objects, and appearances of SCP-175. All experiments took place at data-expunged, unless otherwise stated. Dr. Wrook buried a wooden box. SCP-175 became a piece of graph paper with a pencil-drawn map of the surrounding area, complete with a legend in the bottom left. The location of the treasure was clearly marked. Dr. Wrook remarked that the handwriting on SCP-175 looked identical to his own. The 5-year-old female child of said doctor was instructed to bury a wooden box with a couple of her toys in it. SCP-175 became a crayon-drawn map of the surrounding area, on a white piece of paper, clearly modeled on the style of a normal child of that age. The 10-year-old male child of Agent Wrook was instructed to bury a box containing some of his comic books. SCP-175 became a list of instructions on lined yellow paper, based on several landmarks in the area. Trees, rocks, etc. The instructions included where to start and how many paces to take to the next landmark, the direction to turn, and eventually, where to dig. The instructions were complete with misspellings appropriate for the knowledge of a child of that age. A well-respected professional landscape artist was instructed to bury an empty wooden box. SCP-175 became a canvas, with an accurately painted overhead view of the surrounding area, with an X to mark the spot where the box was buried. A professional puzzle maker and crossword puzzle maker was instructed to bury a wooden box. SCP-175 became a piece of graph paper, with several inked crossword and various other word puzzles, along with a meta puzzle. Solving the smaller puzzles was necessary to find the letters to solve the meta puzzle, which was a list of instructions for where to find the buried object. Agent Wrook, who remembered a box with various objects that he had buried in his backyard at the age of eight, traveled with a research team to data expunged. SCP-175 became a pencil-drawn map of the surrounding area, along with labels that did not match his current handwriting, but did match his handwriting from papers his parents had kept that he had done at that age. Most remarkably, the map included several trees that had been cut down in the years since the box was buried. A D-class personnel who had been a professional architect before his conviction as a serial killer was instructed to bury a wooden box. Data Expunged During transport of SCP-175, along with numerous other safe SCPs to data expunged, one of the guards in the truck reported a high-pitched wine coming from the crate containing SCP-175. As per protocol, the truck was stopped and evacuated, and the nearest task force, Mobile Task Force Omega-7, Pandora's Box, was sent to investigate after being briefed on the contents of the crate. According to the debrief, they found a sheet of metal which was emitting the wine, and the sound increased in pitch and volume as they neared a specific location. Digging in this area uncovered SCP-175, at which point, the metal sheet reverted to the inactive state of SCP-175. Addendum 175-13 On a D-class personnel who had been a professional architect prior to his conviction as a serial killer, was instructed to bury a wooden box. The intended purpose of this experiment was to see what SCP-175 would look like when buried by an architect. When Dr. White looked at SCP-175, once the box was buried, he immediately screamed, dropped to his knees, clutching his head with both hands, dropping SCP-175 to the ground, luckily face down. Agent White, who was standing by the side of said doctor during this experiment, reported a flickering mass of color and a sense of extreme nausea at a glimpse of SCP-175 before it drifted to the ground. He quickly dug up the box in order to reset SCP-175. Dr. White went into a coma after this incident. An intense psychological screening of the D-class subject revealed a well-hidden schizophrenia and sociopathy. Since this experiment, strict protocol has been put in place to protect the mental health of researchers. Thank you for watching, and don't forget to like, comment, and subscribe to our channel.