Mark Pincus Blog

Outside appl store fridayTo play video messages sent to email, QuickTime® 6.5 or higher is required. Visit www.apple.com/quicktime/download to download the free player or upgrade your existing QuickTime® Player. Note: During the download

1st iphone customer. b4 nytimes got himTo play video messages sent to email, QuickTime® 6.5 or higher is required. Visit www.apple.com/quicktime/download to download the free player or upgrade your existing QuickTime® Player. Note: During the download

To play video messages sent to email, QuickTime® 6.5 or higher is required. Visit www.apple.com/quicktime/download to download the free player or upgrade your existing QuickTime® Player. Note: During the download

To play video messages sent to email, QuickTime® 6.5 or higher is required. Visit www.apple.com/quicktime/download to download the free player or upgrade your existing QuickTime® Player. Note: During the download

How ny is like burning man

Leaving your apartment for a day in ny feels oddly like preparing for a day on the playa (especially in summer). You prepare for weather elements like heat and rain, make sure you're well equipped with money, umbrella, blackberry and charger. You find refuge (bathrooms, ac, water) in the various offices you visit and truly appreciate hotels which feel like well placed oasis's much like a cool friendly tent. Sent wirelessly via BlackBerry from T-Mobile.

Open letter to lawrence lessig

I read in nytimes today that you're changing your focus to fixing our political system. This is a passionate cause for me as well.

We can't have any real voice or choice until we create a level playing field. One in which money can't buy elections or policies. The real culprit behind enron was a corrupt system not a few bad apples.

I'd love to understand how we all can help. Sent wirelessly via BlackBerry from T-Mobile.

Obama Live in NY

heard obama last night. here's my take on him, his chances and how he needs to change to win.

first, he had great charisma. i give him a 9.

the problem i see is that there will be a lot of people like myself showing up who are interested but undecided. we will need to hear more than 100,000 foot platitudes. also, where he does indicate policy directions they all sounded pretty old dem 60's socialist fare. universal healthcare and (from his book) making the rich pay 'their fare share'. classic tax and spend.

now i'd love to see a new young guy like obama come in and get rid of the corrupt old white men who run the place. one big problem is that obama is probably going to be funded by the same rich old white men who have funded winning (and losing) candidates for decades.

even if that's the plan, his platform needs a LOT of work. clinton got in by appealing to the mainstream. that is also an old playbook that remains open. fiscally conservative (lower taxes) and socially liberal (ie. joining this century).

i spoke with a friend after who is involved with the campaign. he defended obama's platitudinal platform by saying it wasnt written for mark pincus but to appeal to (the proverbial) factory worker in ohio. aside from my disguntalement that everyone always wants to serve this same guy in ohio and not me, i dont even think he wants to hear about universal healthcare. when i pointed out that he already pays for his healthcare and is likely more concerned with paying even higher taxes (because we all know by now that 'the rich' usually means people making over $100k), my friend said, "oh, good point."

here's my advice to obama.

• join the dialog and be specific. the time of big rahrah 'born in a town called hope' speaches is way past. if you want younger voters, you better talk to them and with them. hold the paper up and talk about how different the world will be with you and ask for their input in many ways. point to policy ideas and discussions that came from your participation in the blog world. 
• positive future vision - obama needs to put forth a vision for where this country can go mainly economically. he needs to remind us all that we created the internet, the hedge fund and the blockbuster movie and talk about how we will continue to lead the world and broaden the surrounding economies to more parts of the country. cleantech can be another leg as well. 
• economy - this will likely remain people's real first concern. reagan proved that supply side economics works. dems from johnson to carter proved that tax and spend kills the economy. come out clearly that you wont raise taxes. people focus on taxes when they vote.
• social - be a clear, strong voice that the nixon era was 40 years ago and we wont tolerate torture, wire tapping, prison camps or religious fundamentalism in our govt.
• iraq - yes you can bash bush on iraq, but what's the point? acknowledge there is no easy solution and talk (as you did) about how we get the world back on our side (without throwing israel under a bus).
• corruption - you have to acknowledge how corrupt our current govt is on both sides and the poisonous effect of lobbying. you will never have credibility with younger voters if you dont.   

Buy VLO

Supposed to earn $ 10 per share next year. another low pe bet (7x) on oil.
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Short aapl

I agree with fred hickey (in current midyear barons roundatble) that it could be a good trade to short aapl witht the launch of iphone, as stock may peak with excitement.
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Another enron exec goes to prison

It still amazes me that despite a preponderance of evidence and admissions of guilt by former enron execs, I hear people complain that corporations like enron were merely victims of over zealous prosecutors.

In todays nytimes, another former exec, ken rice, who ran the internet and broadband divisions admitted guilt saying to the judge, "what got me here is, I lied over about a two year period, on a number of occasions, to the investing community. I wasn't raised that way, and I'm ashamed of that."

I believe his division housed some of the businesses which were used to book profits on the unrealized gains from the present value of future business operations. These accounting tricks included deals like a blockbuster joint venture to distribute movies direct to homes.

Enron accountants would 'mark to market' enabling them to claim that that venture was already worth tens or hundreds of millions on paper because of the expected future profits.

Enron was a house of cards. I'm sure its execs knew exactly what its cfo and managers were doing. What ceo is unaware of the reality behind his major numbers? And why would a disparate group of underlings all decide independently to impliment massive accounting fraud when they had the least to gain?

America needs to set clear guidelines and penalties for its corporate managers. Why does bernie ebers have to spend the next 20 yrs in jail cell while other former execs of public companies guilty of mas accounting fraud walk free?

I have stated many times on this blog that there is a straight forward way to create a single standard that could be meted out consistently, broadly and inexpensively, and most importantly, enabling immediate payback to the injured investors.

I'm referring to the idea for insider profit return. The sec should create a new reg requiring any insider or affiliate who sold stock during a period of accounting fraud (or significant restatement) to disgorge profits (plus penalties if there was fraud) to former investors.

Todays system while feeling good to politicians and journalists actually further punishes investors. Look at the poor shlubs who actually bought the bullshit and invested in aol post time warner. Their reward for believing numbers (which were later found to include huge accounting 'irregularities') was to foot the bill for massive penalties.

Let's get this straight. I buy aol stock in 2000 from the executives who are promoting the deal. Later I find out that the historical numbers (and then future guidance) were mis-stated *and* I pay the penalties assessed for that?? Sounds like buying a lemon car that has illegal emissions and then getting fined for driving it.

The sec already has a similar rule (I believe 13g) which requires insiders to disgorge profits on short swing trades. Why not add one for bad accounting trades?

And does it really make sense to lock por bernie up for 27 yrs? Doesn't that sound like the modern equivalent of being sent to the tower of london? Is society really safer now that the former football coach is locked up?

Strip these men of their money and power. Some will be more broken by the shame of having to recreate their resumes and look for low level jobs. Some, like michael milken, wil seek redemption and try to spend the rest of their lives doing good works. (Granted milken didn't lose all his money.)

Anything would be better than today's system of arbitrary justice meted about by politically motivated prosecutors where some large donors remain pilars of society while others due to media attention and perhaps leser political capital rot in cells.
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