Watch a Black Student Assault White Teen Because His Dreadlocks Are Cultural Appropriation

BonitaA San Francisco State University student of color harassed and assaulted a white student earlier this week, accusing him of stealing her culture—because he had dreadlocks. 

The encounter took place in the Cesar Chavez Student Center, and was captured on video. The video clearly shows a black female student, identified as Bonita Tindle, confronting a dreadlocks-wearing white male named Cory Goldstein. Tindle is accompanied by a black male: both insist to Goldstein that his dreadlocks are tantamount to cultural appropriation. 

Goldstein responds by insisting that his look is Egyptian, and doesn’t belong to them. They counter by demanding to know whether he is Egyptian. 

“You’re saying I can’t have a hairstyle because of your culture?” asks Goldstein. “Why?” 

“Because it’s my culture,” asserts Tindle. 

Goldstein eventually says, “You know what, girl, you have no right to tell me what I can and cannot wear.” He then attempts to leave the area. Tindle grabs his arm and physically restrains him. After being pushed around for a few moments, Goldstein separates himself from Tindle wand walks off. The self-proclaimed cultural enforcer then notices that she is being recorded by a third-party, and demands to know why. 

“For everyone’s safety,” says the person shooting the video. 

Tindle then appears to attack the cameraman just before the clip ends. 

When I first watched this video, I was suspicious that it was staged: it just seems too ridiculous. But Goldstein posted about it on Facebook and said it really happened. “I just got physically assaulted because I have dreadlocks woe,” he wrote. 

What’s more, the campus police responded to the incident, according to  press release: 

University police were called to the scene of the incident when it occurred. The two individuals involved in the incident are not San Francisco State University employees. Further, no criminal charges have been pressed at this time to the University’s knowledge.  

San Francisco State University promotes the rights of the campus community to engage in free speech, but does not condone behavior that impedes the safety or well-being of others.  We are taking the matter seriously and will promptly and thoroughly investigate this incident through applicable University channels, including our campus student conduct procedures. 

I don’t know whether Goldstein or someone else called the police, who did not immediately respond to a request for comment. If he doesn’t want to press charges, that’s his choice. But Tindle’s thuggish behavior was completely inappropriate, and she deserves plenty of derision—partly for her awful views on cultural appropriation, but mostly because she used violence to back up her opinion. 

Given how obsessed universities are with creating safe spaces for students, I’m surprised SFSU isn’t taking more decisive action. What good is a safe space, after all, if it does not guarantee actual physical safety? 

In any case, shame on Tindle for going full Melissa Click on someone she disagreed with. To borrow a phrase from student-activists, perhaps she needs some mandatory cultural sensitivity training.

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Merrick Garland, Extremist: New at Reason

Merrick Garland’s been called a “moderate” by a lot of people, but that’s only because he tends to side with the government irrespective of who happens to be in charge.

A. Barton Hinkle writes:

Garland’s reputation for moderation rests partly on his experience as a former federal prosecutor who, as Painter notes, “has aggressively and thoroughly prosecuted terrorists”—including the Unabomber and Timothy McVeigh. And perhaps because of that background, Garland is exceedingly friendly to law enforcement.

A New York Times analysis examined 14 criminal cases in which Garland voted differently from other judges. In 10 of them, Garland sided with the government—a record that “has contributed to his image as a moderate,” the paper notes. 

But then, when has Garland not sided with the government?

View this article.

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As Net-Long Positions Near Records, Is The Oil Rally Overdone?

Submitted by Nick Cunningham via OilPrice.com,

Since February, major investors have predicted that oil prices were poised for a huge rally. Hedge funds and money managers piled into bets on rising oil prices, going long on the crude rally.

Short sellers were squeezed, and the stampede become too much for many, resulting in a large liquidation of shorts. The short selling drove the rally, increasing oil prices by about 50 percent since early February.

That has fueled optimism that the worst of the oil bust is over. And there is good reason to think that a rally is justified. U.S. oil production is off by about 600,000 barrels per day since the April 2015 peak. Disruptions in Nigeria and Iraq have caught the markets by surprise, knocking off another several hundred thousand barrels per day. Gasoline demand is at record highs in the United States, and OPEC is a few weeks away from meeting to discuss its production freeze deal, which may not cut into oversupply, but has nevertheless given the markets some hope.

But there are warning signs on the horizon. The fundamentals are still very weak. Inventories are at record highs in the U.S. and still rising, and global oil production continues to exceed demand. As I wrote last week, the rally could be overdone.

Barclays backed that hypothesis up in a recent report, warning that several commodities could be poised for declines as the recent two-month price rally exceeds what the fundamentals suggest is merited. In other words, the reason that oil faces downside pricing risk is that there is a disconnect right now between the fundamentals and market sentiment.

On the one hand, you have incredibly bullish speculators. John Kemp at Reuters writes hedge funds and money managers have cobbled together a near-record high in net-long positions as of March 22, as shorts were closed out and investors bet that oil prices were on their way up. Net-long positions have surged to the equivalent of almost 579 million barrels, double the volume of net-long positions recorded at the end of 2015.

The last peak in net-long positions was 572 million barrels, about a month or so before oil prices began declining. For context, the record before that was the 626 million barrels in long positions posted in June 2014 when ISIS emerged and took over swathes of Iraqi territory.

Barclays analyst Kevin Norrish says that commodities prices have surged in 2016, but the recent rush into bullish bets may have gone as far as they can realistically go. “However, in the absence of any concerted fundamental improvements, those returns are unlikely to be repeated in the second quarter, making commodities vulnerable to a wave of investor liquidation,” Norrish wrote in the bank’s latest report, referring to commodities in general, though that includes crude oil. Hedge funds may have overshot on the upside, meaning the risk of oil prices going in the other direction are now more pronounced.

“Key commodities markets such as oil and copper already face overhangs of excess production capacity and inventories, but also now face another obstacle in the recovery process, that of positioning, which is now approaching bullish extremes,” Norrish said.

Just as the rally was supercharged by short sellers abandoning their positions, the oil markets are at risk of snapping back in the other direction in the next few weeks as net-long positions are undone. If speculators start to get the sense that the market is changing directions, they will start to unwind their net-long positions. But, of course, these things tend to move quickly. Once the herd starts to see the market heading down, a stampede for the exits could ensue.

While it may seem like arcane market idiosyncrasies, the potential for speculators to shift their money back to the short side would have huge influence over the oil price. In fact, as Kemp of Reuters details in an interesting chart, oil prices and hedge fund positions are closely correlated.

 

In short, oil prices will only rally when the fundamentals show much more of a balance, which appears to still be a few months away.

Perhaps the rush has just begun?


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Trump, Cruz Rip Up GOP Unity Pledges Amid Wife Wars

Well, the remaining three Republican presidential candidates held a town hall meeting hosted by CNN and Anderson Cooper on Tuesday evening and while the hours-long spectacle scored a “zero” on substance it clocked in at a solid “nine” on entertainment value.

Arguably, the two high points (or low points, depending on how you look at it) came when Cooper first pressed Cruz on his now famous “Muslim patrols” then later asked Trump to weigh in on the completely absurd “war of the wives”. “He started it,” Trump told the crowd. “With all due respect sir, that’s the argument of a five-year-old,” Cooper remarked, incredulous.

Anyway, if there was a meaningful takeaway from the event it was that all three candidates either explicitly or implicitly reneged on their promises to unite behind whoever the GOP nominee ends up being.

Asked if he still intended to pledge his support for a Republican nominee other than himself Trump said the following: “No, I don’t anymore. I have been treated very unfairly by the establishment.”

Cruz attempted to dodge the question when asked by Cooper if he would support Trump should the billionaire get the nod. The Texas senator initially responded by saying the frontrunner would not be the nominee anyway so the question was largely asinine, but when pressed he said he “is not in the habit of supporting someone who attacks [his] wife and family.”

“Let me tell you my solution to that,” Cruz said. “Donald is not going to be the GOP nominee. We’re going to beat him. “Nominating Donald Trump would be an absolute train wreck,” he continued. “I think it would hand the general election to Hillary Clinton.”

For his part, John Kasich tried to preserve his generally positive demeanor (which he hopes will set him apart from Trump and Cruz in the hearts and minds of voters) but did admit that he likely couldn’t bring himself to back a Trump nomination. “If the nominee is somebody who’s hurting the country and dividing the country I can’t stand behind him,” the Ohio governor said, a clear shot at the brazen real estate mogul.

“The Republican National Committee pledge was initially conceived last year as an thinly veiled attempt to push Trump to rule out a third party bid,” Bloomberg wrote this morning, adding that “as Trump cemented his lead in the race, the gambit appeared to have backfired.” 

Yes, it certainly does “appear to have backfired,” and the RNC knows it. Here’s GOP pollster Frank Luntz:

Perhaps “dead” is too strong. “Down for the count,” might be more accurate, but at the end of the day, the GOP is probably being a bit disingenuous with regard to Trump. While the likes of Carly Fiorina probably mean it when they say things like “he doesn’t represent my party,” the establishment is largely hiding behind phony moral grandstanding and vacuous platitudes about “values” when the real reason they don’t support Trump is that they don’t think he can beat Hillary Clinton.

And maybe they’re right. But it’s probably time they recognize that no matter what the latest national polls say, the idea that Ted Cruz or John Kasich are going to best Clinton in the national election is a joke. Trump, on the other hand, might just be crazy enough to pull it off. 


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Bonds Are Getting Battered

After yesterday’s super-strong day in Treasuries, following Janet’s jawboning into uber-dovish-land, it appears the world is in panic-selling mode and is dumping the long-bond by the most in 7 weeks.

 

30Y yields have spiked from 2.59% to 2.68% – one-week highs – as illiquidity rears its ugly head once again.

 

As the curve steepens dramatically….

 

2s30s biggest 2-day steepening since May 2015…

 

Given Yellen’s green-light, we suspect much of this outsize move in the long-bond is due to rate-locks ahead of major issuance.


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SCOTUS Delivers Big Win for Criminal Defendant in 6th Amendment Case, Rejects Pre-Trial Freezing of Non-Tainted Assets

Today the U.S. Supreme Court delivered a significant victory for both property rights and for the 6th Amendment right to counsel in “all criminal prosecutions.” By a vote of 5-3 in the case of Luis v. United States, the Supreme Court held that the federal government’s efforts to freeze the non-tainted assets of a criminal defendant before trial violated that defendant’s constitutional rights. “The defendant in this case,” the Court observed, “has a Sixth Amendment right to use her own ‘innocent’ property to pay a reasonable fee for the assistance of counsel.”

The dispute in Luis v. United States began in 2012 when Sila Luis was indicted in Florida on charges of defrauding Medicare of upwards of $40 million. The federal prosecutor in her case sought and obtained a pre-trial order freezing her assets. The reason this matter ended up before the Supreme Court is that the prosecutor sought to freeze not only her “tainted” assets, meaning those assets that can be arguably traced back to the alleged underlying crime, but the prosecutor also sought to freeze Luis’ undisputedly legitimate assets, which amount to some $15 million that cannot be connected in any way to any alleged criminal activity.

Sila Luis has not been convicted of any crime connected to this matter and her case centered on why the Sixth Amendment protects her right to use her wholly legitimate assets to mount her legal defense. The federal government took the opposite position, maintaining that the Sixth Amendment should not stand in the prosecutor’s path. In the government’s view, because all of Luis’ assets could potentially be subject to forfeiture if she is ultimately convicted, federal prosecutors should not be prevented from freezing all of her “forfeitable” assets before she goes on trial.

Today the Supreme Court vindicated Luis’ rights and rejected the federal government’s position. “The Government cannot, and does not, deny Luis’ right to be represented by a qualified attorney whom she chooses and can afford,” the Court said. “But the Government would undermine the value of that right by taking from Luis the ability to use the funds she needs to pay for her chosen attorney.” The property at issue in this case, the Court noted, “is not loot, contraband, or otherwise ‘tainted.’ It belongs to the defendant.” Furthermore, the Court noted, “to permit the Government to freeze Luis’ untainted assets would unleash a principle of constitutional law that would have no obvious stopping place.”

Today’s 5-3 decision divided along unusual lines. Justice Stephen Breyer, joined by Chief Justice John Roberts and Justices Ruth Bader Ginsburg and Sonia Sotomayor, voted against the federal government and in favor of Sila Luis’ 6th Amendment rights. Justice Clarence Thomas concurred in that judgment, though he wrote a separate opinion whose “reasoning rests strictly on the Sixth Amendment’s text and common-law backdrop.” Those five justices comprised the majority. Writing in dissent, Justice Anthony Kennedy sided with the government, joined by Justice Samuel Alito. Justice Elena Kagan filed an additional solo dissent of her own.

The Supreme Court’s opinion in Luis v. United States is available here.

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Fed’s Flip-flopping Causes Technicians To Lose The Plot

Three weeks ago, in the aftermath of the initially disappointing market reaction to the ECB’s lack of further NIRP euphoria which sent stocks (at first) lower, various technicians came out with calls that the bear market rally is over, perhaps most notably Evercore ISI’s Rich Ross who said “My Bullish tactical call is over. While we have repeatedly highlighted 2030 as our upside target, the rapid post ECB reversals in the cross asset technicals dictates that we abandon our tactical view at this time in favor of a far more defensive posture. Our structural Bear Market call with downside to 1,670 remains intact.”

What a difference three weeks and a complete flipflop by the Fed makes. Just hours ago, the very same Rich Ross is now stumped by the market’s action, which in retrospect is perfectly understandable considering Yellen’s latest prerogative appears to once again be to inflate the market bubble in a world where “bad news is once more great news for stocks” with the S&P500 now trading above 2,070, or just 50 points from its all time highs, even as corporate earnings are tumbling and PE multiples, both GAAP and non-GAAP are soaring.

Confused? You’re not alone. Here is Ross trying to make some sense of what is going on.

The S&P 500 is up over 3% since we removed our tactically Bullish call on March 10th and the dollar continues to weaken across the board while volatility and spreads collapse into quarter end. Moreover, the short term technicals continue to improve and build momentum as they enter the strongest month of the year for the Dow (+1.9%). Importantly on Monday we mistakenly cited (The Stock Trader’s Almanac) that April’s Election Year performance drops from 1 (+1.9) to 11 (-.9) when in fact that performance remains strong at +.9% (3).  

 

Clearly we have underestimated the Dollar’s weakness in recent weeks which singlehandedly holds the potential to be a game changer should that weakness persist as the short term technical would suggest. In previous notes we have highlighted the 2077-2086 as an area above which we would be forced to rethink our preexisting views, and while we have little confidence based upon recent price and policy developments that these levels will hold, there is no reason to abandon this tactical framework at this point.

 

The good news as it pertains to the cautious view is that you are getting paid to be defensive as bond prices continue to surge driving bond proxies higher along with cyclicals and growth. Only banks, biotech and energy to a degree remain noticeably absent from the recent leg of the advance. I would only add that even if one were Bullish at this point, which is perfectly reasonable (not my call, but reasonable), that with almost 94% of stocks above their 50 day ma while volatility, currencies and inflation expectations have surged into levels which coincided with prior inflection points across the risk spectrum, a consolidative pause and pullback remains on the table. 2077-2086 stop.   

 

 

* * *

While Ross has our condolences, we have repeatedly said that the failure first of fundamentals as well as charts to have any predictive value is no surprise: just yesterday when looking at historical and extrapolated monthly returns, we said that while historical relationships may have been relevant once upon a time, “this was “in the absence of activist central bankers”, which unfortunately will not be the case until the grand reset, and as a result there is absolutely no way of knowing what will happen either in April or for the rest of 2016, now that the Fed has given up pretending it is “data-dependent” and admits it is all about propping up the inflated stock bubble as long as possible.”


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Crude Pops As US Production Tumbles To 16-Month Lows

Following last night's API-reported near-expectations build in crude, DOE reports a smaller-than-expected 2.3mm build (against expectations of a 3.1mm build) and draws in Cushing, Gasoline, and Distillates. Oil prices surged on this. Production is more in focus now as it has fallen 9 of the last 10 weeks to its lowest since Nov 2014.  Crude prices dropped pre-data, then spiked,. but are struggling to maintain gains.

 

Of course, crude is soaring on the heels of Yellen's dove-tardiness.

API Details:

  • Crude +2.64mm (+3.1mm exp.)
  • Cushing -319k (confirming Genscape)
  • Gasoline -1.94m
  • Distillates -95k

DOE Details:

  • Crude +2.3m (+3.1m exp.)
  • Cushing -272k (-500k exp.)
  • Gasoline -2.5m
  • Distillates -1.075m

This is the 7th weekly build in inventories in a row…

 

The oil rally "is to do with external factors — a weaker dollar and increased risk appetite following Fed Chair Yellen’s statements,” says Commerzbank commodity strategist Carsten Fritsch.

“The API number was not far away from market expectations, so not much repositioning necessary,” says Fritsch; the market is watching U.S. crude production…

Production had dropped 9 of the last 10 weeks…

 

The reaction in crude…

 

Charts: Bloomberg


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A Podcast Packed with Paranoia

Aaron Ross Powell and Trevor Burrus recently interviewed me for Free Thoughts, a podcast produced by the Cato Institute. The broad topic was my 2013 book The United States of Paranoia; the specific subjects ranged from Tipper Gore to They Live to the suppression of imaginary slave revolts in the antebellum South. Enjoy:

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Obama Screws, Skewers the Media, But They Do Love Him So

Earlier this week, President Barack Obama castigated the press (again) not only for trafficking in the patently “false equivalence” of “he said/she said” journalism and failing “to probe and to question and to dig deeper” but for abetting the rise of (an unnamed) Donald Trump and creating “the current climate” of political vitriol.

The proper response to this is: Are fucking kidding me? Or, as Politico’s Jack Shafer wrote, “Spare me your hypocritical journalism lecture, Mr. President.” In fact, Obama has not just been hostile to the way he says wants the press to operate, he’s sicced more legal dogs on reporters than any wary property owner ever sicced on bill collectors. From Shafer summary of some of the president’s actions:

“Obama hates the press,” New York Times national security reporter James Risen said not long ago, “and he hates leaks.” AP Washington Bureau Chief Sally Buzbee has decried the “day-to-day intimidation of sources” by the Obama administration, judging it worse than the Bush administration on that score. And in a 2013 piece, POLITICO’s Jim VandeHei and Mike Allen documented Obama’s mastery of “limiting, shaping and manipulating media coverage of himself and his White House.”…

Obama holds infrequent news conferences, and he wastes reporters’ time by refraining from answering questions with any candor. He claims to helm “the most transparent administration in history,” while bending government policies and practices toward secrecy.

All of that (and more) is bad enough, writes Shafer, but things get positively unbearable when the president layers on all the vapid, banal, Hallmark greeting-card level praise of the press:

What makes Obama’s speech so unstomachable is the way he praises reporters at an award ceremony by calling their work “indispensable,” “incredible,” “worth honoring” and essential to democracy while simultaneously blocking honest press queries with all the formidable energies of his office.

Read the whole thing.

Ironically enough, the president was speaking at the award ceremony for the Toner Prize, given annually by Syracuse University to honor “the best national or local political reporting in any medium or on any platform.” This year’s recipient is Alec MacGillis of ProPublica, a watchdog group, Shafer notes, that has reported that at 

the same time the Obama administration has been paying lip service to protecting whistleblowers, it has pursued national security leaks to the press with a vehemence unmatched by any previous administration, using the Espionage Act to prosecute whistleblowers who leak to journalists more times than all previous administrations combined.

I’ve been a working journalist basically my entire professional life. I respect the field but don’t think it warrants the often-overwrought mythic vision presented by Hollywood (see Spotlight for a recent, semi-hagiographic example) and journalists themselves. Obama’s speech isn’t simply hypocritical and diversionary (though it is both those things). By stroking the press’s collective ego, he allows us both to pump up our significance in self-flattering ways that have little connection to reality or the news we’re supposed to cover. Hence, The New York Times’ Nicholas Kristof’s genuinely awful Sunday column, titled, “My Shared Shame: The Media Helped Make Trump.” 

Screw you, buddy, I didn’t—and neither did anyone at Reason, for that matter. Nor did we help “make” Geroge W. Bush, or Hillary Clinton, or Saddam Hussein. It’s interesting that folks at places such as The Times, which never fails to put itself in a different league when it comes to its reputation, start trading in collective responsibility the minute things go south. The fact is, there in no single media and to talk about the tens of thousands (if not more) or news-gathering and free-expression-enabling outlets and platforms under such a term conceals more than it clarifies.

And it also smudges a fact that many reporters or newsgatherers or journalists or whatever you want to call us have never pushed back against Barack Obama because they have been in the tank for him. That is perhaps the most disturbing aspect of the Toner lecture delivered by Obama: The very people he excoriates—and that he had thrown in jail on occasion and threatened with all sort of legal and other actions—lap it all up with a spoon.

Then there’s what Reason TV’s Todd Krainin has called the “reality show presidency” of Barack Obama. Forget Donald Trump’s roots in The Apprentice. On top of all his other sins against transparency and freedom of the press, there’s this:

“The White House has effectively become a broadcast company,” says Michael Shaw, publisher of Bagnewsnotes.com, a site dedicated to the analysis of news images. Shaw explains how strategically composed photos, taken by official White House photographers, travel from social media sites that are controlled by the administration to the front pages of newspapers around the world.

The press publishes the official White House photographs because independent photographers and videographers are increasingly barred from covering the president. This practice has diminished the power of the independent media as an exclusive distribution channel while empowering official photographers such as Pete Souza, who are on the presidential payroll. 

And so, says Shaw, the public has been fed a steady diet of whatever kind of president the news cycle demands. When conspiracy theorists questioned Obama’s patriotism, we saw images of Obama the American everyman. To celebrate the anniversary of Rosa Parks’ 1955 refusal to move to the back of a public bus in Montgomery, Alabama, we saw Obama reenact her famous image. Time and again, we see Obama striking poses out of John F. Kennedy’s repertoire. The official White House photographers have created a presidential identity for every conceivable occasion — as long as the image is flattering, and almost always, larger than life.

Watch Krainin’s video to get a full sense of how Obama is not dissembling to reporters or threatening them and playing fast and loose with them. He’s actually tightly controlling what images are allowed to be published of him and carefully staging photo-ops and other fake press events in ways that erase their own falsity.

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