Musk's Voter Lottery Sparks Legal Debate

ELECTION
Musk's Voter Lottery Sparks Legal Debate

Elon Musk’s recent promise to give away $1 million a day to voters in swing states has raised legal concerns. His “lottery,” aimed at those who sign a petition from his political action committee, appears to target potential Trump voters. While Musk claims this is to support free speech and the right to bear arms, many worry the giveaway could violate federal law, which prohibits offering incentives to register to vote or cast a ballot.

The legal question centers on whether offering a financial reward to registered voters is considered an illegal incentive. Critics argue that since the contest is open only to voters in key swing states like Pennsylvania, Georgia, and Michigan, it may cross the line. David Becker, from the Center for Election Innovation & Research, pointed out that even seemingly small incentives, like Ben & Jerry’s giving free ice cream to voters, have been deemed problematic.

There’s ambiguity, however, because Musk isn’t explicitly rewarding people for voting but for signing a petition. Legal experts suggest that while there may be grounds for investigation, it’s unlikely the issue will be fully addressed before the November 5 election. If the Department of Justice intervenes, Musk could face fines or other legal consequences.
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S&P500
Goldman Predicts S&P 500 Underperformance

Goldman Sachs analysts warn that the S&P 500 is heading into an era of significantly lower returns, following a decade of exceptional performance. They predict that over the next ten years, the index could deliver an annualized return of just 3%, with a worst-case scenario of a negative 1% return and a best-case of 7%. Even the high end pales compared to the 13% returns of the last decade.

Goldman analysts attribute this gloomy outlook to factors like U.S. GDP contractions, which they estimate will occur about 10% of the time over the next decade, and the risk posed by a market heavily concentrated in a few large companies. The top 10 companies in the S&P 500 now make up over a third of the index, which could limit overall growth as these companies’ profitability slows.

Additionally, Goldman sees a 72% chance that the S&P 500 will underperform bonds and a 4% chance of posting a negative absolute return. Their forecast, which is below the consensus of 6% returns expected by other investors, suggests that long-term investors, including pension plans, may be too optimistic about future stock market performance.
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CUBA
Cuba's Power Grid Crisis Deepens

Cuba’s power grid collapsed again, leaving 10 million people without electricity, deepening one of the country’s worst crises. The failure stems from deteriorating infrastructure, compounded by fuel shortages worsened by Hurricane Milton, which has disrupted vital fuel deliveries. Cuba’s reliance on fuel imports, particularly from Venezuela, has left the island vulnerable as shipments have decreased. Mexico and Russia have also cut exports. The collapse follows months of rolling blackouts, and despite measures to reduce power consumption, the outlook remains bleak.

Cuba’s economic troubles began during the pandemic, with inflation rising and tourism plummeting. U.S. sanctions imposed during Donald Trump’s presidency exacerbated the situation. The lack of electricity and food shortages has fueled public anger, with protests erupting earlier this year. Desperation has led many Cubans to migrate to the U.S., with an estimated 10% of the population leaving in the past three years.
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CRYPTO
Crypto Con Artist Sentenced to Prison

Chirag Tomar, an Indian national, was sentenced to 60 months in prison for orchestrating a scam that stole over $20 million in cryptocurrency from Coinbase users. Tomar ran a "spoofing" operation, creating a fake Coinbase website resembling "Coinbase Pro" by slightly altering the URL. This tricked victims into entering their login credentials, allowing Tomar and his team to access their crypto wallets. In some cases, scammers posed as Coinbase customer service representatives, convincing victims to provide two-factor authentication codes or even control over their computers via remote desktop software.

Once Tomar accessed the victims’ accounts, he swiftly transferred the crypto to wallets under his control, converting it into various forms of cryptocurrency before cashing out. The stolen funds were used to finance his lavish lifestyle, including luxury cars, expensive watches, and extravagant vacations.

Tomar was arrested in late 2022 at Atlanta airport and charged with wire fraud and money laundering. The scam, which started in June 2021, also raised concerns about Google's role in promoting fraudulent websites through Google Ads, which made Tomar's site more visible to potential victims.
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Meme of the day

Word of the day
Betwixt

Betwixt is a synonym of between that lends an old-fashioned feel to both speech and writing. It is sometimes used in the phrase "betwixt and between" to mean "in the middle" or "neither one thing nor the other."

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