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Supreme Court Won’t Hear Arguments Title 42 Case As Planned

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WASHINGTON — The U.S. The Supreme Court has announced that it will not hear arguments on March 1 in a case involving a Trump-era immigration policy that has been used millions of times to quickly turn away migrants at the border over the last three years.

The justices removed the case involving Title 42, which justified the quick deportation of migrants on public health grounds, from their calendar on Thursday. The case has not been dismissed, according to a court spokeswoman. The court’s action follows the Biden administration’s legal filing stating that the case will soon be moot.

Government lawyers cited President Joe Biden’s recent announcement that the COVID-19 pandemic emergency declarations will expire on May 11. According to the administration, the end of the public health emergency also means the end of Title 42.

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Supreme Court Justices Were Deeply Divided

Republicans and some Democrats in border states have criticized Biden’s efforts to repeal Title 42. They claim that the U.S. is unprepared for the expected influx of people crossing the border with Mexico once the policy is lifted.

In December, the Supreme Court justices were deeply divided when they agreed to keep the policy despite a judge’s order and set the case for argument. Five justices agreed, while four others — three liberals and conservative Neil Gorsuch — disagreed. The case concerned states’ ability to intervene in a policy-related lawsuit.

The policy dates back to March 2020, when the Centers for Disease Control and Prevention director issued an order limiting migration at the country’s borders with Mexico and Canada, citing the need to reduce the virus’ spread. According to the supreme court to order, the facilities where migrants are detained are not intended to quarantine people or allow for social distancing.

Title 42 of the Public Health Service Act provided the authority for that order, which grants federal health officials extraordinary powers to limit infectious disease transmission during a pandemic.

Under Title 42, officials have expelled 2.5 million asylum seekers from the United States.

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SOURCE – (AP)

 

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Fallen Crypto Mogul Sam Bankman-Fried Sentenced To 25 Years In Prison

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NEW YORK — Sam Bankman-Fried, a cryptocurrency entrepreneur, was sentenced to 25 years in jail on Thursday for orchestrating a major fraud on hundreds of thousands of consumers that culminated in the collapse of FTX, previously one of the world’s most popular platforms for exchanging digital currency.

U.S. District Judge Lewis A. Kaplan delivered a blistering critique of Bankman-Fried and his offenses before imposing a sentence that was half of what prosecutors wanted and less than a fourth of the 105 years recommended by the court’s Probation officers.

bankman-fried

Fallen Crypto Mogul Sam Bankman-Fried Sentenced To 25 Years In Prison

“There is absolutely no doubt that Mr. Bankman-Fried’s name right now is pretty much mud around the world,” Kaplan said of the 32-year-old man who once appeared to be on top of the cryptocurrency world before his businesses collapsed in November 2022, leaving customers, investors, and lenders out of over $11 billion, which the judge ordered him to forfeit.

He was convicted of fraud and conspiracy in November, following a period of success that featured a Super Bowl advertisement and celebrity endorsements from quarterback Tom Brady, basketball player Stephen Curry, and comedian Larry David.

Kaplan issued the punishment in the same Manhattan courtroom where Bankman-Fried testified four months earlier that his objective was to transform the burgeoning bitcoin business with innovative and altruistic ideas, not to steal. The judge ruled that Bankman-Fried had frequently committed perjury by telling lies on the witness stand.

According to Kaplan, the sentence implied that “there is a risk that this man will be in a position to do something very bad in the future.” And it is not a little danger at all.” He said it was “to disable him to the extent that can appropriately be done for a significant period.”

Kaplan also advised the Federal Bureau of Prisons to transfer Bankman-Fried to a medium-security prison near San Francisco because his reputation, association with huge money, autism, and social awkwardness would make him especially susceptible in a high-security facility.

Assistant U.S. Attorney Nicolas Roos had recommended a 40- to 50-year prison sentence, saying it was the only way to assure “the defendant doesn’t do it again.”

“The defendant victimized tens of thousands of persons and businesses across numerous continents over several years. He stole money from clients who trusted him, lied to investors, forged paperwork for lenders, illegally donated millions of dollars to our political system, and paid foreign officials. “Each of these crimes deserves a lengthy sentence,” prosecutors stated in a court filing.

Prosecutors claimed Bankman-Fried misappropriated billions of dollars to fuel his quest for influence and dominance in the new industry and illegally used funds from FTX depositors to cover his expenses, which included purchasing luxury properties in the Caribbean, bribes to Chinese officials, and private planes.

Kaplan agreed with prosecutors on Thursday that Bankman-Fried should not be granted leniency only because certain investors and customers may receive compensation for their losses. He described the reasoning as “logically flawed” and “speculative.” He stated that customers lost approximately $8 billion, investors lost $1.7 billion, and lenders were shorted $1.3 billion.

Given the opportunity to speak, Bankman-Fried stood and apologized in a meandering remark: “A lot of people feel terribly let down. And they were quite disappointed. And I apologize for that. I apologize for what happened at every stage.”

He continued, “My productive life is probably finished. It’s been over for a while, since before my arrest.

sam bankman-fried

Fallen Crypto Mogul Sam Bankman-Fried Sentenced To 25 Years In Prison

Bankman-Fried, dressed in his khaki prison uniform and chained at the ankles, appeared to become emotional as he spoke for approximately 20 minutes. He expressed regret for “a lot of mistakes” while shifting part of the blame to others. His customary unkempt and bushy hair had returned after the trimmed look he showed at trial.

The court then condemned his words, claiming he displayed “never a word of remorse for the commission of terrible crimes.”

Defense attorney Marc Mukasey stated that his client was misunderstood.

“Sam was not a ruthless financial serial killer who set out every morning to hurt people,” Mukasey stated in a press release. “Sam Bankman-Fried makes decisions without malice in his heart. He makes decisions using math in his thoughts.”

Bankman-Fried’s attorneys, friends, and family had pleaded for leniency, claiming he was unlikely to re-offend again. They also asserted that FTX’s investors had largely recovered their investment capital, but FTX, its creditors, and bankruptcy lawyers all refuted this.

“Mr. Bankman-Fried continues to live a life of delusion,” wrote John Ray, FTX’s CEO, who has been cleaning up the bankrupt company. “The ‘business’ he left on November 11, 2022 was neither solvent nor safe.”

Mukasey attacked a probation office suggestion of 105 years in jail two weeks earlier, calling such a sentence “grotesque” and “barbaric.”

He encouraged the judge to sentence Bankman-Fried to five to six and a half years in jail, which Mukasey claimed was a reasonable interpretation of federal sentencing guidelines.

Bankman-Fried was worth billions of dollars on paper as the co-founder and CEO of FTX, once the world’s second-largest cryptocurrency exchange.

bankman-fried

Fallen Crypto Mogul Sam Bankman-Fried Sentenced To 25 Years In Prison

FTX enabled investors to purchase dozens of virtual currencies, ranging from Bitcoin to more obscure ones like Shiba Inu Coin. Bankman-Fried, flush with billions of dollars in investor funds, purchased the naming rights to a Miami arena and ran a Super Bowl advertisement to promote his business.

However, the decline of cryptocurrency values in 2022 took a toll on FTX, eventually leading to its demise. FTX’s hedge fund affiliate, Alameda Research, has purchased billions of dollars in various cryptocurrency bets that lost significant value in 2022. Bankman-Fried attempted to fill the gaps in Alameda’s balance sheet with FTX client monies.

Three additional members of Bankman-Fried’s close circle pled guilty to related charges and testified throughout his trial.

The most well-known of the three was Caroline Ellison, Bankman-Fried’s former lover. Ellison described Bankman-Fried as a calculated individual who was aware that directing the use of customer monies was likely a criminal act. Gary Wang and Nishad Singh, two additional former Bankman-Fried buddies, testified that they believed they were encouraged to conduct fraud by him.

SOURCE – (AP)

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Why Is Costco’s Hot Dog Still $1.50 When Everything Has Become So Expensive?

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Inflation has affected almost everything over the last two years, including Trader Joe’s 19-cent banana. However, Costco’s hot dog-and-soda combo price remains unchanged.

Costco’s hot dog deal, available in its food courts, remains at $1.50, the same price as in 1985, before the Great Recession, the housing crisis, the pandemic, and the most recent about of decades-high inflation.

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Why Is Costco’s Hot Dog Still $1.50 When Everything Has Become So Expensive?

According to the Bureau of Labor Statistics, consumer prices have increased about 20% since the pandemic began. Many crucial industries, such as housing and groceries, have seen even higher price increases.

If Costco’s hot dog sale had kept up with inflation, it would be three times as expensive now, nearly $4.50. But Costco’s $1.50 combo is a deliberate decision, also known as a loss-leader: The firm is willing to lose money selling the hot dogs at that price — inflation be damned — as long as it helps Costco attract and retain consumers.

“It’s branding,” explained Scott Mushkin, a retail analyst at R5 Capital. The $1.50 offer fosters client loyalty, he noted. “It reminds customers of who Costco is.”

Costco loses money on more than 100 million hot dogs yearly, but it counters these losses by raising prices on other products. Costco has raised the prices of pizzas and other goods in its food courts.

However, Costco has a unique business plan allows it to keep costs low: it makes almost all of its money from memberships, selling things on its warehouse floor for practically cost – and occasionally less.

In a recent interview, Richard Galanti, Costco’s longstanding financial chief who retired this month, stated that the $1.50 pricing was “probably safe for a while.”

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Why Is Costco’s Hot Dog Still $1.50 When Everything Has Become So Expensive?

declining inflation and declining prices
Most businesses need the benefit of a membership model like Costco. They can’t afford to sell the majority of their items for a small profit — or to lose money on products that sell 100 million units each year.

Inflation has fallen significantly since its peak of 9.1% in June 2022. To reduce inflation, the Federal Reserve implemented 11 severe rate hikes designed to crush demand and discourage spending.

According to the Bureau of Labor Statistics, total consumer prices increased by 3.2% in February.

While we may want reduced prices, decreasing prices are a red flag indicating that the economy is in bad shape. We’re not there yet, so don’t worry.

Companies have reported unusually high profitability in recent months owing to strong consumer spending. Even when companies like Costco must hike prices (even on hot dogs in some circumstances), Americans continue to spend.

Consumer spending is the most powerful engine driving the US economy. When individuals spend less money, firms prefer to lay off employees, which can lead to even lower spending and more layoffs. This cycle has the potential to drive the economy into a recession, but again, this is not occurring yet.

“A lack of demand causes price declines. “That means we’d be in a recession,” said Gus Faucher, chief economist at PNC.

“If you raise the effing hot dog, I will kill you.”
Costco’s hot dogs fought inflation from the outset.

Costco’s hot dog offering originated in the company’s early days. Costco added a Hebrew National kiosk to its second warehouse store in Portland, Oregon, shortly after it opened in 1983.

To keep hot dogs’ pricing consistent, Costco found ways to cut other costs in the food court, such as switching from 12-ounce soda cans to cheaper 20-ounce fountain drinks.

costco

Why Is Costco’s Hot Dog Still $1.50 When Everything Has Become So Expensive?

Costco sold kosher hot dogs in its food courts until 2009 when meat supplies began to run low. Recognizing the value of low-cost hot dogs, the business moved production in-house and launched its Kirkland Signature brand. Costco’s factories generate around 388 million non-kosher hot dogs annually for both food courts and retail sales.

Jim Sinegal, Costco’s co-founder, famously threatened former CEO Craig Jelinek, “If you raise the effing hot dog, I will kill you.” “Figure it out.”

“I know it sounds crazy making a big deal about a hot dog, but we spend a lot of time on it,” Sinegal told the Seattle Times in 2009. “We’re recognized for our hot dogs. That is something you do not mess with.

Last year, Costco sold over 130 million hot dog-soda combos worldwide, totaling around $195 million.

SOURCE – (CNN)

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Krispy Kreme Donuts Are Coming To McDonald’s.

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Customers at McDonald’s will soon be able to pair Krispy Kreme doughnuts with their morning McCafe, thanks to a new food alliance that aims to expand both brands but may harm them.

McDonald’s outlets will begin selling three types of Krispy Kreme doughnuts later this year: original glazed, chocolate iced with sprinkles, and chocolate iced “kreme” filled, the firms told CNN on Monday.

Krispy Kreme stock soared over 18% on Tuesday morning. McDonald’s shares fell 0.2%.

This is not the first time two contestants have partnered together. For example, Wendy’s added Cinnabon to its breakfast menu early this year. According to some studies, brand alliances can lead to new customers, brand expansion, and innovation. However, some retail experts believe that alliances might be dangerous and undermine the respective brand names.

krispy kreme

Krispy Kreme Donuts Are Coming To McDonald’s.

According to Truist analysts, the Krispy Kreme doughnut delivery strategy must determine how to successfully serve rural McDonald’s locations more than 20 miles from an urban hub.

Customers have also criticized McDonald’s when the prices of its other menu items climb. McDonald’s chief financial officer, Ian Borden, stated earlier this month that some lower-income Americans are choosing to cook at home rather than dine at its restaurants. In February, CEO Chris Kempczinski addressed McDonald’s “affordability” issue, indicating that the business might reduce prices on certain menu items.

To commemorate the collaboration, Krispy Kreme will give away a free glazed doughnut to guests who visit a donut location between 5 and 9 p.m. on Tuesday.

Adding a Krispy Kreme doughnut to McDonald’s breakfast orders began as a test in 160 Kentucky stores. The doughnuts will be accessible countrywide at participating eateries by the end of 2026, following a staggered deployment that begins later this year. Trust experts say the extensive testing period decreases risk for both sides.

krispy kreme

Krispy Kreme Donuts Are Coming To McDonald’s.

The donuts will be available individually or in six packs, beginning at breakfast and continuing until supplies run out.

The company have fewer outlets than McDonald’s, which had about 13,500 in the United States in 2022. However, customers can purchase Krispy Kreme doughnuts at other locations, including Walmart and other grocery stores. The collaboration could broaden Krispy Kreme’s reach, as the company has been increasing its supply chain to meet its promise of delivering fresh dough daily.

“By making Kreme Krispy (sic) accessible to fans nationwide through this partnership, we expect to more than double our points of access by the end of 2026,” stated Krispy Kreme President and CEO Josh Charlesworth.

Krispy Kreme has centered its business activities around its doughnuts. The Charlotte-based corporation also owns Insomnia Cookies but said in 2023 that it is considering other possibilities, such as selling the cookie brand.

krispy kreme

Krispy Kreme Donuts Are Coming To McDonald’s.

The company returned to the market in 2021 with an initial public offering (IPO). However, its stock remains trading below its IPO price of $17.

“What does this signify for the company’s previously announced aspirations to expand its locations? How will it affect an existing point of access from a McDonald’s down the street? Truist analysts stated.

SOURCE – (CNN)

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