Cars

Mr Mercer – Day 52 – May 7, 2020

There is a Canadian alternative rock band from Tsawwassen called 54-40, named after the longitudinal line of 54’40°… where in the 1840s, U.S. President James Polk wanted the border. That whole dispute is a long story on its own, but suffice it to say, “we” won — otherwise, places like Prince Rupert, Terrace, Prince George… and everything south of that — would be American territory. A tiny part — the southern tip of the Alaska Panhandle — is all that’s left of that line.

That 54’40° line is very far north of Tsawwassen, but just south, literally bordering it, is the 49th parallel, the agreed-upon resolution to the aforementioned dispute. Another long story, but the short of it was that west of somewhere, the 49th parallel would define the Canada/U.S. border. It was a lengthy back-and-forth, and pretty-much the last thing settled was the exception of the southern tip of Vancouver Island. Before that, the border sliced right across it, but that didn’t make a lot of sense, and it was the final concession granted. But nobody noticed till after, the tiny (less than 5 square miles) little peninsula that’d been chopped off and isolated… and when they did, they just decided to leave it for another day. Probably the U.S. would just cede it back to Canada, and that would be that, right? Wrong.

And that is why there is a tiny U.S. enclave, completely landlocked by Canada. It has an official border crossing, and while its residents are officially living in the U.S., it’s Canadians who make up the vast majority of visitors, to buy cheap gas and access “Suites” (really, just P.O. Boxes) to take delivery of items that won’t ship to Canada, but will to the U.S. Ironic, of course, is that all of those goods must go through Canada to get there.

Way back when, that border crossing was little more than a formality. Those 54-40 guys rode their bikes in and out of there and barely waved at the border guard. You could go down to the beach, draw a line in the sand, and jump back and forth between countries. Before 9/11, you didn’t need a passport. And while technically, you’re supposed to declare everything you buy down there, apart from liquor and cigarettes, nobody cares. But, on that note, funny story.

At some point in the late 80s, I was flying down to Chile to visit family. My uncle and aunt who lived down there smoked a very unique brand of smokes that was only available in the U.S., so he asked me to bring him “as many as you can”. I told him that it would be way over the limit and the duty on it would be ridiculous, but he said not to worry about it. He’d pay me back everything. And furthermore, if I did it right, I could get those duty payments back when I left the country with the cigarettes.

So a couple of days before my flight, I headed down to Pt. Roberts, went to that one big gas station/store and picked up all of the “Now” brand menthol cigarettes they had. Seven cartons (not packs — cartons) — so 70 packs of cigarettes. I think 1,400 cigarettes is probably over the “out of the country for 20 minutes” limit, but I had no intention of smuggling them — I was going to be paid back, whatever it was.

The look on the guy’s face was pretty good though… anything to declare? Yeah, cigarettes. How many? Seven cartons. That got him to sit up straight. He made me pull over and get out. He looked at my backseat, packed with cartons. He looked at the receipt. He told me to come inside. So I went into his tiny hut. There was a hockey game playing in the background, on a postage-stamp-sized black & white TV. His first question was, “What are you doing?”

I explained the whole thing to him, how I’m happy to pay the duty, how all of those cartons would be leaving the country in 48 hours, how I don’t mind paying, but I want to make sure I can get that money back. Yes… he said, that’s all correct. OK.

He pulled out a huge stack of paper. He let out a big sigh. On TV, Tony Tanti scored a goal. He picked up the pen, put it down, looked me straight in the eye and asked, “Do you promise me you’re taking all of these out of the country?” “Yes!” “Ok, get out out of here”.

Apart from the technicality of it being part of the U.S., it may as be Canada. This friendly American enclave is a great place to “live” in Canada but still “live” in the U.S., if you know what I mean. For residency purposes, many Canucks and Grizzlies have lived there.

Back in grade 10, a new band teacher showed up — Mr. Mercer — fun, jolly American guy, who lived in Point Roberts, worked in Vancouver, and proudly announced how he paid taxes in neither. Music was a big part of my life, so I spent a lot of time in the band room, and was having lunch there one day with some friends when a couple of guys in dark suits showed up looking for Mr. Mercer. I guess they eventually found him, because he was never seen nor heard from again. Staff wouldn’t talk about it, except to say he’d had some legal issues and wouldn’t be back. Nice guy — I hope the Club Fed he was thrown into wasn’t too bad. And as an interesting coincidence, to loop things around, a few of those school bands I played in was alongside a guy called Dave Genn… who in 2003 joined 54-40 and has been their lead guitarist ever since.

And speaking of looping things around… way back in the day, we used to go down to Pt. Roberts to a place called The Breakers… it was a happening place in the early 90s — always a fun experience. I was usually the designated driver for such outings, but on this particular night, I’d had a bit too much… so someone else took the wheel. We all piled into the rickety VW van for the trip home, being loud and obnoxious as you might imagine, but as always, getting quiet at the border. We drove up to the border crossing little hut, that night inhabited by a tired-looking near-the-end-of-his-career border guard. The old guy stuck his head in the window and looked back at us, all staring at him.

“You boys been drinking?”, he asked.

“Well — they have, but I haven’t”, replied our driver, pointing his thumb back at us.

“OK, off you go, drive safe.”

And that was that… back to whooping and hollering… but suddenly (queue the Twilight Zone music), things didn’t look right. It’s a straight line from the border to highway 17, cutting straight through Tsawwassen, but that’s not where we were. We were on some winding road in the middle of a forest. What just happened?

We’re all screaming “You idiot!” “Turn around” “What are you doing?” “Where are we?” — but on we go… and suddenly… more Twilight Zone music… up ahead is the same border crossing we’d just crossed 10 minutes earlier. Don’t ask me. I mean, obviously, he’d somehow turned left, then left again, and entered Point Roberts through some back road… and we’d looped back and… here we were.

Now we were terrified. “Stop!” “Don’t stop!” “Pull over!” “Don’t pull over, that looks suspicious!”. Well, we drove straight up to the same little hut, same old guy. And he stuck his head in the window and looked back at our petrified faces.

“You boys been drinking?”, he asked, with the exact same tone as before.

“Well — they have, but I haven’t”, replied our driver, giving the same thumb gesture as before.

“OK, off you go, drive safe.”

The rest of the (careful) ride home was silent.

What’s the deal with Point Roberts these days? Is that border all locked up like the rest of the 49th? There’s no hospital or pharmacy down there, and American citizens are not allowed into Canada except when it’s essential. I couldn’t find much about it, but I have to assume a medical emergency would count as essential. Unless you’re symptomatic, then what? I hope the have it figured out. Especially since 99% of the money spent in Pt. Roberts comes from Canada, and that’s dropped to near zero for now.

Point Roberts is part of Washington State, and there’s not much bad to say about Governor Jay Inslee’s handling of this difficult situation. President Trump told him, “You’re on your own”, and they’re rolling with it. I hope that includes a plan for Point Roberts.

Yes, it occurs to me there’s not much tie-in here with our present pandemic except this: this whole topic of Pt. Roberts came up because of the wonky Detroit/Windsor border, and how different Ontario and Michigan are in handling things. I’ll once again go on the record to state my appreciation for our local neighbours to the south. We, here, have a lot more in common with our American counterparts than they do over in Ontario, something that will become more and more relevant as things open up. B.C. and Washington are in agreement on most things, and on the same page about how phased re-openings should look. Works for me. And them.

 

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Day 48 – May 3, 2020

In 2012, I was in L.A. to visit a movie set. The hotel was in a nice part of town; the set, perhaps not so much. I ordered an Uber, and a black SUV showed up. The destination (call it “Z”) was already entered into the app, so off we went. It was interesting to note that this driver had his car set up with at least four different phones or devices dangling from the windshield and dashboard. Uber, Nav, Music, actual phone… I don’t know.

But at one point, one of them went out of sync… and he asked, “I thought we’re going to Z”
“That’s right”, I replied.
“Well… this says we’re going somewhere else”

Odd.. some glitch… one of his devices was pointing to some location maybe 20 blocks away from Z. Call it X.

“No… not sure why. It’s Z”
“OK, because I can’t take you to X”
“No worries”

Curious though… so I asked…. “Just wondering, why can’t you take me to X?”
“Sir, I can’t take you to X”
“I understand, and we’re not going to X… I am just wondering what’s the big deal with X and if I wanted to, why you wouldn’t you take me there?”
“Sir, I told you, I will not take you to X”
“I don’t want to go to X. I want to go to Z. I am just curious… if I wanted to go to X, why wouldn’t you take me?”

He pulled the car over.
“I can’t take you to X. I can drop you here and you can find another Uber”
“I don’t think you understand. I don’t want go to X. I’ve never heard of X. I don’t know where or what it is. I am simply wondering what’s so bad with X that you wouldn’t drive me there”
“Sir, you’ll have to get another Uber”

We sat there for a moment, me trying to figure this out. This wasn’t a language issue; he spoke English perfectly. This was just a guy that couldn’t wrap his head around a hypothetical situation. Those two words, which are my favourite when put together… the two words that have led to all of the innovation that’s ever happened in history, when posed by somebody…”What if…” — this guy couldn’t process it; there seemed to be no version of “What if” in his world. I sat there imagining what it might be like to be playing chess against this guy. He moves a piece, you take it. “Oh, darn”. He moves another, and you take it too. “Oh, hmm, you’re good at this”. Well, I’m ok, but it sure helps that I can think ahead more than zero moves. Like I can propose a hypothetical situation in my mind, evaluate it, do that several times and come up with something useful.

But this guy… he just didn’t get it. And maybe he couldn’t.

“Yeah, ok, forget X. Let’s just go to Z”.

And off we went. But there was no more conversation after that, and as much as I really wanted to, I didn’t ask him the same question for the 10th time when we finally arrived. What was the point? He wouldn’t get it. And further to that, I guess the conversation bothered him, because my Uber rating dropped from a perfect 5 stars down to 4.92 after that.

I remember another time a friend sent around an email, asking us to answer a few simple math questions, and explain how we did them in our head. His son was having trouble with math at school, and he was looking for different ways of explaining things. Like, what’s 9+9. I was so surprised to see some answers that came back. Like, for me, it’s just 18. I just know that. But some people were saying… add 1 to each 9, that makes 20, then subtract 2. In their head, they were doing (9+1)+(9+1) – 2. Or 15+8, which for me is just 23, was somehow turned into (15+5)+3 for one person, and (15+10)-2 for another.

There’s obviously nothing wrong with thinking differently. Whatever works for you. But what happens when it doesn’t work?

This was brought to light (and it reminded me of these two examples) by a friend who commented on a recent post of mine, the one about Covidiots. That maybe calling them that was a little harsh; that maybe they not only don’t know any better, but perhaps they *can’t” know any better. Like it’s actually beyond them. There’s possibly some truth to that, and since I’m the biggest proponent of letting people live their lives with freedom and their own particular pursuit of happiness, what’s the big deal… the usual golden rule of “do unto others as you would have them do unto you” is actually a bit better if you change it slightly: “don’t do unto others as you wouldn’t have them do unto you.” It’s better because instead of imposing on others what you think is right, this un-imposes anything on anyone, as long as it’s not hurting you.

But that’s the thing. A bunch of people ignoring intelligent, well-thought-out and proven directives… has the potential to affect us all — drastically, and we’re no doubt going to see the results of it in different places.

The state of Oklahoma is opening up; they think they’re in a position to handle things, and reading their planned phase re-opening, I guess it might look good on paper. Oklahoma has a population of 4 million, compared to B.C.’s 5 million. They also have twice as many confirmed cases and twice as many deaths. They’ve already opened up hair salons, barbershops, spas, nail salons. Two days ago… restaurants, movie theatres, entertainment venues, gyms, spotting venues… the list goes on.

In trying to balance out the greater good of business vs. public health, the officials in Oklahoma made it mandatory for clients of the aforementioned businesses to wear masks. As we know, wearing a mask protects others more than it protects you, and it would make sense for the benefit of the workers of all these places that people wear masks. If they’re going to be subjected to hundreds of people, their safety needs to be taken into account.

That mandate lasted about 3 hours before it had to be lifted… as threats, violence and guns all made appearances… as a lot of people who perhaps aren’t quite clear on exactly what the constitution of their country actually says, protested that their rights were being violated. What’s becoming abundantly clear is that there is a group of people incapable of understanding. Their preconceived notions and/or brainwashing seems to preclude any sort of rational thinking. And it’s also clear that there will never be a way to convince them. And that, unfortunately, is putting everyone around them in danger. So let’s leave it at that… you’re free to do whatever you want, but if your ridiculous actions have the possibility of affecting me, then you’re a Covidiot.

A brief note about today’s numbers — there was a huge spike in Quebec’s numbers, apparently due to a computer error that had neglected to count 1,317 cases from the past. Not counting those, their 892 actual new cases for the day looks a lot better… but that jump obviously affects our national numbers as well. And, it’s quiet day in B.C. — I will correct my guess with tomorrow’s real data.

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Day 45 – April 30, 2020

On my list of lifetime achievements, there’s one I’m particularly proud of… because it’s one that many people have attempted, but very few have succeeded… and it’s this: I fought a speeding ticket in court, and won. Not because the cop didn’t show up; he did, and we had a nice chat before we went in to the courtroom. I outlined exactly what I was going to say to the judge, and the cop listened thoughtfully to everything I said… and then unilaterally decided to drop the case. We walked into the court, he announced that that crown had chosen not to proceed on these charges, and aside from a rather curious look from the judge (I guess this doesn’t happen that often), that was it. Case dismissed, and I walked out of there 3 points and $138 wealthier than when I walked in.

I had a lot of arguments that I threw at the cop, but I think the one that resonated most was this… that while I was indeed speeding as measured against the number painted on the sign at the side of the road, so was everyone else. In fact, when he stopped me, I asked him… why me? Everyone is going the same speed here. And he agreed; he even said so… “I could’ve pulled over any one of you”.

If you assume, for the most part, that the majority of people aren’t idiots, then you can rightfully assume that, for the most part, people, when acting in their own self-interest, might be mirroring what’s in the best self-interest of the greater good. Yes, I do understand the other point of view… because I often feel it while driving… that guy who’s driving slower than you: idiot. That guy that speeds past you: maniac. Those are the two types of drivers that exist, besides you, who’s the only one doing it properly. But the reality is that at any given point, we’re someone else’s idiot or maniac… and when you average it all out, most of us are in the same boat.

If the speed limit is 50 — well, actually, forget the posted limit for a moment. Granville St. on a quiet sunny Sunday morning at 7am in the middle of Summer… vs. Granville St. at 6pm on Friday in the Winter when it’s dark, maybe icy and cold and rainy and everyone is trying to rush to get home but traffic is a mess. In the first case, mostly open road, it might not feel out of place to be driving 80. In the second case, it’s hard to be going faster than 30, and possibly not safe to do so. In both cases, the posted limit is still 50, but it’s possible in neither case for that to be the appropriate speed at which to be driving.

Indeed, back to the initial crucial point. At any given point on Granville St, measure the average speed that everyone is going over a period of 10 minutes. That’s probably the safest speed. Set that as the speed limit, for the moment, and ticket everyone exceeding it by 20km/h or more. And also, ticket everyone going more than 20km/h slower than that. In my opinion, someone who’s going 30 on Granville and causing an angry back-up of traffic is far more dangerous than one guy who speeds by. Speed differential is the key thing… not just measuring it against an arbitrary number that someone came up with, and which coincidentally is the same speed limit as a tiny side-street a block away. Yeah, the speed limit one block east or west of Granville is 50km/h. Granville is 6 lanes, but a side-street is two at most, with parked cars and oncoming traffic having to wait for you to go by. Try driving 50 there… see how safe that feels; it doesn’t, so people don’t.

And so it is with 3 territories, 10 provinces, 50 states and 200 countries all giving conflicting directives as to how to behave. Many people in places with questionable directives have taken it upon themselves to govern themselves according to what makes sense to them. The state says it’s ok to go to gyms and bowling alleys and nightclubs? Nice, but I think I’ll stay away. The country says going to pubs and restaurants and church is no big deal? Sure, but maybe we’ll keep a social distance and not take grandma with us.

There’s still a lot of emerging data and opinion as to what’s safe and what isn’t. The “better safe than sorry” playbook, now shifting to “cautious optimism” has been very successful here in B.C., and our reward is an emerging opening-up — one we’ve earned, and will get to enjoy as long as we follow the rules we have in place which, at least around here — fortunately — make a lot of sense.

I’ll drive 30 when it makes sense, and I’ll drive 70 when it makes sense… not because I’m happy to go about breaking laws, but because it’s what reasonably makes sense to me at that time, and I’m happy to explain my reasons, and I’m happy that there are people around here who’ll listen to reason and go along with it. And if all 5 million people in B.C. and 38 million people in Canada think that way, we’ll be ok. And to be clear, I’m not suggesting you go speeding everywhere. But if everyone around you is “speeding” and if everyone is choosing to not gather in large groups or go to gyms — if you’re not sure how it’s supposed to work, look around. Most of us are OK drivers. And most of us understand what we need to do these days. Just go with that.

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Day 43 – April 28, 2020

Our local numbers shot up a bit today, but it’s a lot less concerning that in might have been a month ago, because we know exactly where and why this is happening… almost entirely due to known clusters playing themselves out — and play themselves out they do… some clusters have vanished, some care homes are down to zero and, for the most part, we have a really good handle on things. Things are on their way to re-opening.

Let’s also talk about some different numbers today, and what they imply.

In general, people talk about the stock market being up or down. Also, in general, it’s well understood that it’s good when the market is up, and and bad when it’s down. How does that apply to what’s going on these days?

First of all, let’s quickly define what we mean by “the market”. Everyone has heard of “The Dow”, and how it goes up and down.

The Dow (which refers to the Dow Jones Industrial Average — which is important to note, because there are other “less famous” Dow Jones averages) is an index that tracks, in real-time, the stock prices of a variety of big American companies, including Apple, McDonald's, Exxon, Boeing, Pfizer, Nike, Visa,, Walmart and Coca-Cola. That’s a little cross-section of the bigger mix… a variety of big industry. There are 30 companies that comprise the index, and you have heard of all of them. They are industry leaders, and how they’re doing is a reflection on the economy as a whole, at any given moment. On some days, when things are good and everything is way up, and the Dow will reflect that. Or the opposite, of course.

Today is a good day to use as an example, because it’s a mixed bag. Technology stocks (Microsoft, Apple, Google, Facebook) are all down. Financials (JP Morgan, Bank of America, Morgan Stanley, American Express) are all up. Consumer retail shares are a mix (Walmart, Proctor & Gamble are up, Amazon is down). Telecomm is also mixed bag (AT&T is up, T-Mobile is down, Verizon is flat).

Average it all out today, and the Dow is up… a little bit. There are other indexes to look at; the S&P 500 is the next most-commonly known, and it has a broader inclusion of the top 500 listed companies. It’s perhaps the best representation of the market as a whole. It’s also up a little today. Its little cousin, the S&P 100, which lists an arbitrary sample of those 500, is slightly down today.

At any given moment, what defines the price of an individual stock? It’s the equilibrium point where at that exact point in time, someone thinks buying those shares at that price is a good idea… while someone else thinks it’s the right time and price to sell. And these days, that someone is just as likely to be a big, intelligent computer.

Tens of thousands of shares are being traded every second, so when things get quiet (from a broad market price point-of-view), it’s an interesting oasis of calm before the next storm. Like, briefly, for a moment, everyone knows where things are at. Or, think they do…

Imagine you’ve been sitting on a little seesaw in the park, quietly enjoying smooth ups and downs with your friend. Suddenly, instantly, the seesaw grows to 20 metres long… and your friend is replaced by some gigantic bully that seizes his end of the seesaw and starts slamming it up and down, as hard as he can. You hold on for dear life, understanding that jumping off may hurt you more than just hanging on… and you just hope this giant jerk will eventually tire and go away, hopefully leaving you gently on the ground. This is what it’s felt like to be an investor these days.

The all-time high for the Dow was recent… before things came crashing down. On Feb 12th, the Dow closed at 29,551. From there began a bumpy ride that saw it lose 5,000 points over the next couple of weeks, before bouncing back up a bit. Then, in early March, all hell broke loose, and the wild swings of thousand-point gains and losses began, bottoming out at the lowest of lows, hitting 18,214 on March 23rd. And from there, it shot-up to 22,500. It’s presently sitting at 24,100… still well-off the high, but also significantly higher than that bottom. A 20% “off the high” is still alarmingly awful in such a short time, but it’s twice as good as the 40% bottom from a month ago.

Many people are saying it shouldn’t have dropped that far. Many are saying it should have dropped a lot further, and still could. Many are saying there’s no reason it should have recovered this much already. As per above, for everyone who thinks it should be higher, someone else thinks it should be lower. Those two people are presently buying/selling to/from each other, and that’s why it’s exactly where it’s at.

What caused these drastic moves? Unexpected news, rumours, fear… and, of course, real-world disclosures regarding the long-term effects of shutting down significant parts of the economy. And everyone absorbing that information, independently interpreting it and acting accordingly.

When things move that quickly, it rarely has anything to do with fundamentals. Nobody is looking at price:earnings ratios or dividend streams… more like trying to figure out market sentiment and just riding it out till things settle down.

At some point, when it’s fallen that far, a bounce is not just expected, but possibly predicted. The technical traders — those who care nothing about underlying companies but just analyze the numbers themselves… they love to pick resistance points… and identify trends in the market by when prices bounce off a price, or power through it. One of the most famous ones is based on the Golden Ratio — a relationship found all over nature. Flowers, pine cones, sea shells, dolphins, penguins… all have proportions and other fundamental constructs based on it. The magic numbers there are 61.8% and its converse, 38.2%… and whenever a market tanks, the first thing to look for is a “bounce off the 618” — which is exactly what happened to the Dow in my example above. Which further leads me to accurately assume that really, nobody knows what’s going on fundamentally, so when trying to figure out when to buy back in, “let’s just go with that”. When the Dow hit that 618 retracement, a lot of buying stepping in.

There is another index… it’s called the VIX… and if you Google VIX, you can instantly pull up a chart of it and how it looks. The VIX measures volatility, ie just how wildly things are swinging. The bigger the number, the wilder the ride.

The VIX never broke 20 in all of 2019… like you and your friend on the seesaw, quiet ups and downs. When the insanity began last month, that VIX shot up and broke 80 at one point, and has consistently been over 50 most of March. It’s recently started coming down, which is optimistically implying that things will settle down, at least to the point where maybe there’s some idea of what’s really going on. Call it cautious optimism as places start opening up and life shows some promise of taking its first steps towards normality.

And that’s market sentiment in a nutshell — nobody knows. Especially these days. Even in the best of the quietest times, there are always people on both sides of the seesaw. But the level of “unknown” these days is unprecedented… but I will tell you this, with certainty. The market will be hitting new highs… when? I don’t know. I will say September of 2022. But it could also be a lot sooner than that. Or, it could be a lot later. See what I mean?

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Day 42 – April 27, 2020

Purely for the sake of creating examples, I am going to once again virtually kill a lot of people. Please don’t be sad… this is all made up as I go along.

  • Older lady, sheltering with family. All of them became a little sick, but not sick enough to get tested. Some fevers and coughs. She dies in her sleep, but doesn’t get tested. A few weeks later, the family is tested and they’ve all had it.
    – Young man, smoker, high blood pressure. Has a heart attack and dies. Tested and found to have had the virus.
    – Elderly man, tested positive, was doing ok at home, but breathing is becoming difficult. Gets in the car, speeding to the hospital, blows a red light and gets T-boned by a truck. Killed instantly.
    – Young man who, as a result of the lockdown, lost his business and is now losing his home, history of depression, commits suicide. Tests negative.
    – Same example as above, but tests positive.
    – Middle-aged man has a heart attack, rushed to hospital, but massive delay at ER… and dies while waiting for admission. Tests positive. Or negative. Whatever.

    I can come up with lots of “edge cases”, but perhaps they don’t serve much purpose other than to spark an interesting conversation. Some of these are obvious, some are not, and some, one could argue, should be… but aren’t.

    The question you might think I’m about to pose is… what counts as a COVID-19 death… and yes, that’s part of it… but trying to answer just that question… can be quite problematic.

    At the moment, there is confusion and disagreement with respect to what counts and what doesn’t. There is a certainly a big difference between dying of COVID-19, and dying with it. And there’s a lot of grey area in-between the obvious cases.

    To compound the confusion, different jurisdictions have different ways of counting things… and many of them have changed their method as time has progressed. On April 14th, the state of New York changed what counts as a COVID-19 death, adding 3,700 to their count. More recently, Pennsylvania made adjustments that lowered their number by 200.

    My examples above are only a tiny fraction of the sorts of cases one could argue one way or the other, and my examples are pretty superficial. When it comes to categorizing deaths where there were pre-exisitng conditions, it requires real medical knowledge, and even then… one lung is full of fluid but the other is not, patient was positive but that’s an unusual presentation of the virus, plus this, minus that… it’s up for debate among medical professionals, let alone everyone else who may have a vested interest in that number being higher or lower.

    It’s complicated. And, obviously, necessary to standardize in the long run so everyone can be talking about the same thing. But in the meantime, there’s another number that’s very telling and, to a great extent, indisputable.

    If you want to shut up the “it’s just a seasonal flu” crowd, and the “the death rate is like 0.04% because everyone already has it” crowd… look no further than excess deaths.

    Excess deaths is exactly what is sounds like… if in a certain place, on average, N people die in the month of March, and historically that’s held quite accurately as X% of the population, then you have a pretty good argument for COVID-19 deaths when that number is N+2,000. Even if the official tally says only 1,500 virus deaths, you know it’s been understated by up to 500… which would indicate undercounting by 33%

    You can then set aside the differences between states and countries as to what counts and what doesn’t, because after you factor out the obvious ones such as accidents, you have a bunch of deaths that are generally unaccounted for, with no category. There’s a good chance that this virus is their category.

    This has been going on long enough that we can actually start looking at those numbers, to see if they reveal anything of value.

    Note that there are times when averages are worth talking about… and there are times when they are not. Averaging the ages of passengers on a school bus full of kindergarten kids and their grandparents… tells us little. The average of 20 5-year-olds and 20 people aged 68 to 82… is about 40. And nobody on that bus is anywhere near that age. Two averages tell us a lot more… like one average is 5, and the other is 75.

    Keeping that in mind… is there any consistency with respect to excess deaths?

    Europe is a good place to look, with its diversity of population and experience during this pandemic. The average excess death percentage across 13 countries is 49%… which means for every two documented COVID-19 deaths, there was an additional one that flew under the radar.

    As one might expect, the hardest hit places were Italy (90%) and Spain (51%). Those are two places where things got out of control quickly… and also where there is already enough data to make sweeping generalizations. If you look at graphs of what this looks like, The Financial Times, at ft.com, has an article titled “Global coronavirus death toll could be 60% higher than reported” with lots of little graphs, per country, to look at.

    Note that this still isn’t apples to apples, because Spain and Italy were first, and are much further along their pandemic trajectory than others. In comparison, you might be tempted to look at other countries and think it doesn’t look so bad, but this is something to revisit in the future, when more than one month of data is available. Those graphs, per country, all show a series of flat, grey lines (previous years) and then the red 2020 line… which goes along quietly on top of the others and then suddenly spikes, sharply and quite alarmingly in most cases. What’s interesting to see is that these spikes are like ocean waves… and there’s no way to tell if that wave is crashing, or whether it’s the first part of the wall of a tsunami. Ideally, it spikes right back down again… and Spain and Italy may well be doing that. The others; the jury is still out. The England/Wales number is “only” 37%, but that graph looks ready to continue to rise, and/or at least continue to fill a long red section. As do many others.

    And when you drill down to certain, known areas of concern… New York City — forget the official stats… they have a 300% excess death-rate to look at. London, 96%. Paris, 122%. Stockholm, 75%. And if you look at Northern Italy, specifically the hard-hit Bergamo province… 464%.

    He are some raw and indisputable numbers of how it looks when things don’t get clamped down. Lots more people die, directly or indirectly, as a result of this virus.

These places seems distant and irrelevant to some of us here, lucky enough to live in a place with 39 new cases yesterday and only 11 today. And that’s a result of doing things right. It’s not just luck.

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Day 40 -April 25, 2020

When I was a kid, I used to ride my bike all over the place… without a helmet. Also, when I was a kid, I was taken to many soccer practices and games in the back of a station wagon — the coach’s car served as a sort of team bus… and since I was near the end of the “bus route”… I’d end up thrown in the back, along with the soccer balls and oranges… all of us bouncing along to the endless rhythm of a creaky suspension. And… quick right turns and pot holes… often, the trip to and from the field bruised me up more than the soccer itself.

Such was the spirit of how it was in the late 70s, so it won’t surprise anyone to learn that flying in those days was also a little more lax. On family trips where the plane’s seating configuration was 3-4-3, we would be in that middle section… my parents on the aisles, my sister and I trapped in the middle… and that was ok, because on long flights, one of us would curl up on the two middle seats, and the other on the floor. And, to be honest, I preferred the floor. There was more room there… and sometimes, if we had the bulkhead, we’d both wind up there… sleeping on the floor, for hours. Seatbelts? LOL. The flight attendants would provide us extra pillows and blankets and smile at the cute little kids sprawled out on the carpet.

Back then, you could smoke on planes, and many people did. In my earliest memories, the entire plane was one large smoking pit. But I have an excellent memory of when they instituted a no-smoking section, at the back of the plane. My parents booked seats back there, but when got to our four seats, every other seat around us was already occupied, many of them with people smoking. My father found a flight attendant and asked… aren’t these supposed to be no-smoking? “Oh sorry… yes….” she replied, and then proceeded to velcro onto our four headrests these little fabric “No Smoking” logos. Perfect… problem solved.

I remember that flight in particular… because I sat there, unable to sleep, and inhaling 2nd-hand smoke for 8 hours. And I remember that whole charade of the the no-smoking nonsense…. like, forget the ridiculous and meaningless logos attached to our seats, ironically perhaps, given that we were the only people within 3 rows either way who didn’t smoke… but, seriously, what difference is it going to make anyway. If one single person on this plane is smoking, we’re all smoking. It’s not like we can open a window, and there’s only so much recirculated air filtering can do with that volume of smoke. On top of that, we were so far back, we couldn’t see the movie… which was one big crappy projection screen 30 rows ahead of us, blocked by 100 heads, faded and scratched with time, barely visible through the haze of smoke… and the sound wasn’t electronic headphones but rather these plastic tubes that conducted sound via air, not electrons. The whole thing sucked.

It’s ludicrous to imagine that, with a straight face, an airline can offer a no-smoking section… like rows 10 to 29 are smoking, but 30 to 50 are not. The guy in row 31 has a pretty valid complaint when he says he didn’t sign up for this.

Similarly, today… the guy who lives in Alabama, but near the Georgia border…

OK, let’s back up a bit and expand my little airplane metaphor. What if this 50-row plane was… umm, “governed” by 50 different flight attendants. And each flight attendant could make their own rules about what gets to happen on their particular row. Row 11 is no smoking, but free drinks. Row 14 is smoking but no drinking. Row 17 allows smoking, but only cigars and pipes. Row 20 was promised as no smoking and no drinking, but the raucous from the 10 rows in front of it are making it an unpleasant journey for those folks.

To a great extent, when everyone booked their seat, they really didn’t know what rules would apply, nor did they realize that they might change “on the fly (haha)”, but many are complaining that it’s not fair that row 25 gets this, but row 29 does not. The plane hasn’t even taken off yet, and it’s chaos… and, typically, when there’s confusion in the cabin, the flight attendants look to the captain and co-pilot for guidance… but let’s not go there again.

Back on the ground, the state Georgia, as of yesterday, is back in business. Some of it, anyway… including gyms, fitness centers, bowling alleys, body-art studios, barbers, cosmetologists, hair designers, nail care artists, estheticians and massage therapists. It’s a curious list… gyms? Fitness centres? Bowling alleys? Places where lots of people breathe hard, touch common surfaces and are in close quarters? Should be fine.

Since there is no relevant leadership at the federal level, and no federal guidance… it’s up to the 50 states to decide what they want to do. Given the individual differences and motivations and lobbying efforts at the state level (Gyms? Bowling alleys?), things will be 50 versions of different. And that can turn out to be a pretty serious problem, because the cigarette smoke from Georgia will most certainly drift into Alabama. And Florida, and Tennessee, and the Carolinas.

There is understandably a tremendous amount of pressure to get things going again. Around here, there’s a plan in place, based on what we’re seeing and expect to see in the near future. Today’s jump in numbers in B.C. can be attributed largely to the breakouts in known clusters, in this case, a correctional facility. That’s one number to look at, but just as important are hospitalizations and ICU cases. There’s no jump there. And generally speaking, across the country today, encouraging signs that the trend continues to show a slowing of growth. TTD numbers used to be a few days… and now they are a few weeks. This is exactly what we want to see to line things up for re-opening the province… and the country.

But doing so requires a coordinated effort, with buy-in from everyone.

Looking below the 49th, doing it differently all over the place guarantees one thing: everyone, doing something different, can’t all be right. Which means in some places it will be wrong… how wrong, and the effects of that… remain to be seen.

Fasten your seatbelts, my American friends… there’s turbulence ahead. Rest assured, the plane will eventually land safely… but it’ll be a bumpy ride.

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Day 37 – April 22, 2020

I left the house yesterday, for the first time in a while. Some things need to be done in person… I drove downtown to my bank’s main branch, one of the few that’s open. With all of it pre-arranged, I put on a mask, gloves… walked in, put down a piece of paper, grabbed some cash and left. It took less than 2 minutes. I’d like to pretend the mask was so they wouldn’t know who I am, and the gloves so I wouldn’t leave fingerprints. The piece of paper would’ve been a stick-up note, of course… I was alone, so I just went back to the car and drove home… but I wish I’d have had a driver, so I could’ve jumped into the car and screamed, “Step on it!!” — because that whole episode was about as close as I’ll ever come to robbing a bank.

The drive home reminded me of when I got my first car in 1986. Driving up and down Granville St. in the middle of the day with so little traffic — that’s what it used to feel like driving here 30+ years ago. It also reminded me of how I used to drive in those days… in an effort to always be able to speed off with no traffic in front of me. Like, if you’re on a road with two lanes going your way and you’re approaching a red light, and there’s a car stopped there in one of the lanes, you change to the open lane. Or if there are already two cars there, pick the one that’s likelier to go faster than the other, so you can find that space to go around both of them. Switch lanes to follow the faster car. When one is a truck and the other is a Ferrari, it’s easy. Or when the guy in the left lane is turning… or the one in the right lane is turning, but there are pedestrians. Whatever the case, pick the lane that’ll open up quicker.

But what happens when both are the same car, like identical? And you didn’t notice which one approached the light quicker. It could go either way… so you have to make a simple guess. And if someone behind you is also approaching the light, and they think the same way you do, they’ll see two cars in one lane and one in the other, and simply pick the emptier one. Now that guy is next to you, and neither of you knows who’s going to go faster.

What’s interesting about that situation is that you got to go first in making your decision… but it might not be to your advantage. You zigged, so he zagged in response. You acted, he reacted. Going second is often the easier choice, especially if there’s something to learn from the guy who went first… but even if there’s nothing to learn, the guy going first isn’t always right, and when he’s wrong, you get to be right. And when you do get to learn something… well, imagine a game of Rock-Paper-Scissors where you get to go second… a moment after your opponent has thrown their move. Not much of a game.

It’s generally accepted that going first in chess gives you an advantage, at least initially. White gets to go first, and most chess players prefer white. That was easy. But when it comes to handling the huge unknowns of a global pandemic… things aren’t as simple as Chess Club.

The world has given us plenty of examples. There’s a “let’s learn from the others” club. Canada is part of that club. New Zealand as well, one of its proudest members.

There’s the “we’ll do it our way” club, with the U.K. as the charter member, and Sweden joining in later, even after the founding nation cancelled its membership.

There’s the “we’re too unorganized to respond properly, for a variety of reasons”, where the U.S. is the predominant member, but others are scrambling to join.

There is also the “we knew what was coming and saw all of the examples but still didn’t respond properly” club, and its newest member is Mexico. They are suddenly realizing a lot more could have (and should have) been done, but now it’s looking like that lack of flattening the curve will lead to a situation where their medical infrastructure can’t handle it. Or, conversely, as other sources claim, there’s no problem that can’t be handled. And into the mix, no mandatory isolation… and public fighting between the private sector and the government, with some business leaders demanding the country stay open and urging people to ignore suggestions from the health minister. Throw into the mix the drug cartel, who themselves are handing out care packages to people (rice, pasta, cooking oil, toilet paper) with pictures of “El Chapo” on them… against the expressed wishes of the government. The model where everyone is pulling in different directions, to better serve their own individual needs or beliefs… has not worked well. Here comes one more member for that particular club… one you don’t want to join.

Closer to home… there was a spike in new cases, but it was to be expected. The outbreak in the poultry facility is just one cluster where testing is catching up to the outbreak… so we may see bigger numbers in the coming days, but they don’t necessarily reflect a bad trend; in fact, hospitalizations and ICU cases are at their lowest levels for the month. But… it does imply… we have a ways to go before the real openings can begin. These numbers need to go down, steadily… not just keep level. Let’s all keep doing what we’re doing… as fruitless as it sometimes seems, because things are going so well around here; it’s because of what we’re doing that they are… and let’s not wreck it. We’re getting there. But you want it to be over now, and I get that too. Join the club.

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Day 36 – April 21, 2020

The answer to the question…. “Where are you finding all this time to research and write?” — is every simple. All the time I spent driving, parking, walking… from meeting to meeting to lunch to meeting to meeting to whatever… well, when all of that travel can be measured in centimetres and the time it takes in seconds… here we are. These scribbles are the result of free time that never used to exist. Also, the length of many of these meetings now can quickly be trimmed… well, jeez darn it, looks like the WiFi is crapping out, gonna have to let you go, my people will call your people, yeah ok, bye.

I don’t do a lot of that… I’m too polite. That’s never really an option when it’s in person, but when you’re behind a screen and keyboard… it’s tempting. In any event, you can always check your brain out of a meeting, and that often happens when I’ve lost interest… which sometimes happens right off the bat. I listen to a lot of ideas and proposals, but certainly one way to get me to hang up my brain is to throw lots of buzzwords at me.

“Hey Horatio, thanks so much for taking the time to talk to me. I know you’re busy so I’ll get right to it. What our app intends to do is to disrupt the market, to shift the blockchain paradigm by leveraging existing synergies in the deep learning space and employing best practices to scale-up the mission-critical algorithms that’ll fuel the next generation of mobile.”

Dude, you’re a paragraph in, and you’ve already lost me.

And this is the same filter I’m using while trying to wade through the colossal amount of information with which we’re being bombarded these days. More than three buzzwords in one breath equals nonsense.

Self-serving, bias-conforming, buzzword-infested “reports” that magically wind up at the conclusion that perfectly aligns with the author’s intended audience, political beliefs, click-bait potential… whatever. If you want to believe that this virus was caused by reptilian aliens who’ve arrived on earth, and who’ve activated it with their nefarious 5G signals so as to expose Bill Gates’s agenda of GMO’ing vaccines because he’s just a pawn for big pharma who already have the vaccine because they’re in cahoots with the aforementioned aliens… yeah, I guess there’s not much I can say that’ll change your mind. That’s an extreme example of the crap that’s out there… but since it’s on a well-designed website with a very trustworthy-looking font… well, it might be true, right? Yeah… no… why don’t you just take that paradigm and shift it, if you know what I mean.

But once in a while, credible reports — from credible sources — arrive at similar conclusions, having started at very different points. And those are always interesting because they, unless they’re referencing each other, might offer some unbiased, independent… dare I say it… truth.

There’s this famous Stanford report that’s buzzing around these days… claiming that recently, while Santa Clara county had only 1,094 confirmed cases, antibody tests suggest that the number was somewhere between 48,000 and 81,000. The range of that number is wide enough that it makes one wonder about the inherent problems of the test sample. I have no idea, but that’s a pretty big error range. Nevertheless, let’s go with it and just pick the average… 48+81 = 129….. 129k ÷ 2 = 64,500…. and 64,500 ÷ 1,094 = 59x. If we apply a 59x factor here in B.C., that’s 59 x 1,724 cases… which is around 100,000… which is 2% of our population of 5,000,000.

Independently, the WHO have announced that they’ve found that 2% to 3% of the population they’ve tested has antibodies.

And independent of that, a study in the Netherlands of 7,000 blood donors found that 3% had antibodies.

Which brings up the discussion of one of the buzzwords-of-the-day: herd immunity.

Herd immunity is where enough people of a population are immune; immune enough that the infection will not spread within that group. The more infectious a disease, the higher that percentage has to be. For example, mumps is very contagious… Rø of 10 to 12, meaning every infected person will infect, on average, 10 to 12 others. Left unchecked, this would lead to 95% of the population getting infected. The other 5% inherit the benefit of the herd immunity that provides, because eventually there’s no one to catch it from. That herd-immunity threshold can only be reached via vaccination because allowing everyone to catch it is not an option. It’s a horrible disease, and these days, completely preventable.

For COVID-19, the Rø number is much lower… around 3, which implies a herd immunity percentage of around 70%. Which unfortunately, is well above the natural 2% to 3% that may be occurring.

Germany claims the “cases in the wild” number to be higher than that… a little over 10%. Better, but still far from what’s needed… which is a vaccine, which would launch that number into the high 90s and that would be the end of this pandemic.

Until that happens, the best thing to do is not catch this and/or give it to someone else.

BUT — and this is a big but, in two parts… IF you are already one of those 3% and IF having antibodies grants you immunity, then your individual life going forward does look a little different. For one thing, you can stop worrying about catching it.

There is no general agreement yet on how much immunity these antibodies confer, but some… for sure. What concentration you need in your blood, how long it lasts… all of that remains to be seen. I’m not sure who gets those antibody tests and when, but they’ll be arriving here in B.C….. soon. Sign me up.

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Day 35 April 20, 2020

On the evening of March 23, 1989, Captain Joseph Hazelwood retired to his stateroom for the night, leaving his ship, the 987-foot, 240,000-ton Exxon Valdez, in the less-than-capable hands of his (unlicensed) 3rd mate. Shortly after midnight, the oil tanker fetched up on Bligh Reef, cracked open and, over 3 days, spilled almost 11 million gallons of crude oil into the pristine waters of Prince William Sound, contaminating more than 1,000 miles of coast line, 200 of it very badly… damage still evident today. Hundreds of thousands of animals — fish, birds, otters — lost their lives, in what must have been viewed from their eyes, their own hellish pandemic. A literal Black Death oozing towards them, like some Stephen King horror swamp creature brought to life.

Captain Hazelwood was crucified in the press and public opinion. Every bad story needs its villain, and he took the hit. Ultimately, the captain is responsible for his ship, period… but for things to go so wrong, there’s usually more to it… and there was, but that didn’t stop the finger pointing, and all of those fingers pointed to him.

More recently, like yesterday at around 4:30pm, The Spirit of Vancouver Island, a B.C. ferry, had a bit of a hard landing in Tsawwassen after its 90-minute journey from Victoria. The ship was slightly damaged, but no oil was spilled and no injuries were reported, and other than the hassle for some people having to wait up to 4 hours to disembark (and completely wrecking the day’s schedule for sailings), that was pretty much it.

I wasn’t on that ferry (and unless you had some urgent business, you shouldn’t have been either), but I can imagine what was going on after that happened. An announcement… “Sorry folks, as I’m sure you realize, blahblahlah, we’ll sort it out”. After that, for the people who were stuck on board, more “sorry” and free juice. At the time it happened, on the bridge, right after that veritable “Oh… shit” moment, someone saying “Sorry… so sorry, my bad”. As the last cars and trucks finally drove off, I’m sure there were more waves from the crew, and “sorry”. After the fact, B.C. Ferries put out at statement saying… yeah, you guessed it.

It is such a Canadian thing; we are known as the kings and queens of sorry, to the extent it may have lost its meaning. You might be standing in the street minding your own business, and some idiot buried in his phone will walk right into you, and you will find yourself saying, “Sorry!” You might be standing in some grocery aisle trying to decide which brand of maple syrup to purchase, and some fool will run his shopping cart into you, causing you to drop your maple-leaf-shaped bottle… but for some reason, you will say “Sorry!” Not too long go, I found myself saying sorry to a door that I’d just bumped. How very Canadian.

But Captain Joseph Hazelwood… he didn’t say sorry. I remember watching an interview when this happened more than 30 years ago, this guy getting grilled by the reporter, and the last question… “Are you sorry?”

You could see it in his eyes, his quivering lip… he desperately wanted to, but couldn’t. Like, of course he was sorry. That’s what he wanted to say… a long, heartfelt apology to the people of Alaska, to his family, to Exxon, to the planet… for screwing up, at least to the extent that he was responsible. But no, because no doubt… some lawyer, before the interview, told him… no matter what… no matter what, Joseph… do not say sorry.

The reason is pretty straightforward… the legal implications. Sorry means: “I know I messed up and therefore it’s my fault and therefore I’m responsible and therefore you may sue me.” This is in the United States, where most certainly, when you screw up and when you’re liable, you will get sued.

Around here, we actually have a law… we needed a law… to allow us to continue to be Canadian, and say sorry, and not incur any liability in doing so. It’s so Canadian, you’d think we’d cover it federally, but we don’t. Each province and territory (except Quebec and the Yukon) have their own version of an Apology Act, which basically lets you say “Sorry!” to anyone and everyone, and not incur the sort of blame that would stand up in court.

South of the border, though… not many apologies and lots of lawsuits. As things continue to go… south… in certain jurisdictions, the finger-pointing will get more aggressive. The blaming will get louder. The alternative-facts will become entrenched and indistinguishable from reality. And there will be lawsuits; many of them. As people die and businesses fail, someone is going to have to take the blame, and it’s always someone else. Cities will blame counties, counties will blame states, states will blame the federal government. But the leader of the executive branch of the federal government is not well known for apologizing or taking blame; indeed, he’s well known for lashing out at anyone who blames him for anything… so where will it lead?

I have no idea, culturally, what “sorry” implies in China. But I do know that a class-action lawsuit (based in the U.S., of course) involving 10,000 claimants from 40 different countries is seeking 6 trillion dollars in damages from China, because the virus is, you know, all their fault. Maybe if that goes through, we can all go after Spain next. With 100 years of interest on top of it.

Six trillion dollars.. I can’t even begin to describe how much money that is, but here’s a visualization. Take a stack of $100 bills… we can all visualize $1,000… just 10 bills. A thousand of those stacks is a million dollars. That stack would be about a metre tall. So a billion dollars would be a stack 1,000 times bigger… a kilometre. And by the way, that’s a pretty good “wow” of just how much bigger a billion is than a million. But a trillion? That’s a stack of bills 1,000km high. That gets you to the International Space Station and back again to the ground and then another 200km back up. Oh, and it’s 6 trillion… a 6,000km stack of $100 bills.

Apologizing went out of style with President Trump, and lawsuits have always been in style… and nobody wants to be the one holding the bag at the end of colossal losses being incurred by a situation that, ironically, perhaps has no nexus of blame. Which means lawsuits, for decades. And no apologies.

For what it’s worth, 20 years later, in 2009 (after all the legal entanglements had been unravelled, and whatever relevant statutes of limitations had expired), Captain Hazelwood did indeed offer a heartfelt apology.

OK, while I’m here… an update on numbers… B.C. is really looking good, on track for some of the mid-May relaxations we’ve been told about if these trends and numbers hold. Let’s wait till 2 weeks after the long weekend to make that judgement. So far, so good… keep at it… that finish line, in whatever form it initially takes… is getting closer.

Finally… like I’ve said before, when I sit down to write this… the intention is to talk about some relevant aspect of the pandemic, but sometimes I’m not really sure where it’s going to wind up. Sometimes it’s current and sometimes it’s thought-provoking and sometimes it’s relevant and sometimes it’s… well, what can I say if it’s none of the above… if you read all that and now wish you had those few minutes of your life back………. sorry!

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Day 31 – April 16, 2020

The B.C. number was published minutes after I posted this at 5pm, so I’ve just updated it… and it’s a good one, only 14 new cases. Great to see after yesterday’s spike… and although one day doesn’t make or break anything, that’s the direction we love to see.

Ontario’s growth continues to remain consistent, around 6% — which is a TTD of 12 days. Quebec is probably in a similar range, maybe less (ie better) — but is more volatile. They had a bit of a jump in today’s new cases, but that could be for many reasons. I’ll have a lot more to say about B.C. tomorrow after the modelling presentation… which you should watch, if you can… at 11am.

A couple of shoutouts while I’m here — to the staff and residents at the South Granville Park Lodge… my grandfather, who passed away many years ago… lived his last few years at that residence, and it was a peaceful and happy time, after a 94-year life full of extreme highs and lows. The staff was exemplary, and they unfortunately now find themselves a cluster of COVID-19 cases. I wish them all well.

And… a family friend in Montreal — who I’ve known my entire life… in fact, our families go back close to 80 years of knowing each other… 4 generations now… had been struggling in the ICU with COVID-19, on a ventilator for two weeks with a high fever that would come and go but never go away… well, as of this morning, I’m incredibly happy to report… no more fever and no more ventilator. He’s going to be ok, after a hellish 2-week nightmare. He is my age, my demographic, and at least as healthy as me. That struck very close to home… this thing is serious and this thing can hit anyone. But in this particular case, I probably can’t find the right words to express my relief. Whatever else, it’s been a great day.

And to radically shift gears, the rest of this post will serve as a bit of a public service announcement… these days, scammers, who may also be locked up in isolation, also need to make a living and are trying all sorts of new things, one of which is scary enough that a few people have reached out to me to ask if it’s for real.

You may have received an email where the subject line contains your password… and when I say your password, I mean some password you used somewhere, at some point in the past. And if it happens to be your current online banking password, that can indeed be really scary. I really hope that it’s not a password you use everywhere, because while things aren’t as scary as you think, you do have a bit of a hassle on your hands. But let’s break this down into little bits, and solve each piece of it.

  • how did they get my password and/or name and/or email address?
    – what else do they have?
    – how real is the threat?
    – what do I do?
    – what do I not do?First thing, relax. No matter how bad you think it is, it’s not.

    The email has your actual password, which is certainly enough to get your attention… and it then goes on to say that they’ve seized control of your computer and camera, have a complete log of you sitting in front of your computer doing whatever you do there, and a list of all the sites you’ve visited and all of your contacts. And unless you send them some amount of Bitcoin, they will send that video and list of websites to all of your contacts.

    Rest assured, nobody has taken control of your computer or your camera or your contacts or anything else. There is no video. It’s all complete bullshit. The scary aspect of your password sitting on the subject line means that somewhere, some site where you used that password got compromised… and if you use that password anywhere else, you really should change it… though I will point out that if it’s your “junk” password, it barely matters. I can assure you, some Bulgarian hacker has no interest in fiddling with your subscription preferences to “Turnip Harvester Weekly”. That being said, it’s always suggested you have unique passwords for everything, specifically for this reason — if some database gets hacked (which unfortunately happens more often than it should), that’s the only site and password-reset you have to worry about.

    Huge lists (with millions of names) exist for purchase on the DarkWeb where your name, email address and that associated hacked password are available. These lists sell for cheap, and anyone with some time and a bit of knowledge on how to merge a database with an email template can put together an email like the one you got, and send it to a million people. It is like casting a million little fishing lines into the ocean, and seeing what bites. Usually the email address it came from isn’t even valid, and the email will say — don’t bother trying to contact me. Or reply for proof that I have your contact lists. On that note, if it is valid, do not reply… because that might actually get you onto a list of “live ones”, which only means you’ll now be getting 10x the number of those scam emails in the future. And if you replied and if they did have a list of your contacts, again… relax… it didn’t come from your computer. At the end of all that, the scammer wants you to send some Bitcoin, and if you do, he’ll delete the video and leave you alone forever.

    So… they got your password from a hacked site. If you use that password anywhere important, go change it now. If they sent you a list of contacts to prove they know who you know… they probably got it from Facebook, which has an option that lets people find you via your email address. This is a security hole that everyone should adjust, because if they can find you on Facebook with your email address, and you have your friends list open to the world… then that’s how they know all these people you know. Fix that now… go to Facebook, under Settings, under Privacy… there is a section called “How People Find and Contact You” — settings for who can find you via your email and who can see your friends list and who can look you up via phone number. None of those should be set to “Everyone”. At worst, “Friends of Friends”. Just “Friends” is better. “Only me” might be best. That’s up to you, but lock it up so that random strangers can’t find you or your friends.

    The scammer wants you to send Bitcoin because it’s anonymous. Incidentally, if you need any further proof that this is all nonsense, consider that he’s sending the same Bitcoin wallet address to everyone. If you send him money, he actually has no way of knowing the money came from you. He’s hoping some of those one million little fishing lines will bite, and the Bitcoin wallet will just magically fill up from victims around the world.

    It’s always occurred to me that anyone who’s intelligent enough to be able to figure out how to purchase Bitcoin and then send it — probably wouldn’t fall for this in the first place. But that password thing is a little scary… so maybe it got you thinking in that direction. No worries.

    Summary of action items:
    – if you use that password anywhere, change it
    – review your Facebook settings as per above and adjust as needed
    – google your email address and see if that pops up any information you wouldn’t want out there
    – delete the email

… and stop worrying.

 

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