Chicago PMI Plummets To 11 Year Low As Orders, Production Plunge

Chicago PMI Plummets To 11 Year Low As Orders, Production Plunge

Tyler Durden

Fri, 05/29/2020 – 09:52

That wasn’t supposed to happen.

Various other cherry-picked sentiment surveys have been soaring against expectations in recent days but Chicago PMI just plummeted to its lowest level since 2009, notably below expectations…

Against expectations of a bounce back to 40.0 from 35.4, Chicago PMI tumbled to 32.3 in May…

  • Prices paid rose and the direction reversed, signaling expansion

  • New orders fell at a faster pace, signaling contraction

  • Employment fell at a slower pace, signaling contraction

  • Inventories rose and the direction reversed, signaling expansion

  • Supplier deliveries rose at a slower pace, signaling expansion

  • Production fell at a faster pace, signaling contraction

  • Order backlogs fell at a faster pace, signaling contraction

Of course, this important sentiment signal will be shrugged off because stocks are higher this month.

via ZeroHedge News https://ift.tt/2Mcx2M2 Tyler Durden

George Floyd Worked Security At The Same Nightclub As The Officer Who Killed Him

George Floyd Worked Security At The Same Nightclub As The Officer Who Killed Him

Tyler Durden

Fri, 05/29/2020 – 09:36

Authored by John Vibes via TheMindUnleashed.com,

A bizarre twist in the murder of George Floyd was reported on Thursday night, as a former club owner in south Minneapolis revealed that Floyd worked at her club as a security guard, alongside recently fired police officer Derek Chauvin, the man who killed him.

Club owner Maya Santamaria says that the two both worked the same security shift at El Nuevo Rodeo club on Lake Street, before the business was sold a few months ago.

“Chauvin was our off-duty police for almost the entirety of the 17 years that we were open. They were working together at the same time, it’s just that Chauvin worked outside and the security guards were inside,” Santamaria told KSTP.

However, Santamaria said that she can’t be certain that Chauvin and Floyd knew each other, because often over a dozen security guards working at the club on any given night.

Still, they did work overlapping shifts, and the fact that one man ended up killing the other should justify further investigation into whether or not the two had a prior relationship.

If Chauvin and Floyd were not meeting for the first time in the moments before Floyd’s death, that could potentially mean that there was a deeper motive behind the murder.

If true, this could make the difference between a manslaughter charge or a murder charge.

As of right now, no other evidence of a prior relationship has been revealed, but this is an extremely strange coincidence, which would be cause for serious suspicion in any other circumstance.

Santamaria says that she did not realize that the men in the video were her former employees until a friend told her.

“My friend sent me (the video) and said this is your guy who used to work for you and I said, ‘It’s not him.’ And then they did the closeup and that’s when I said, ‘Oh my God, that’s him.’ I didn’t recognize George as one of our security guys because he looked really different lying there like that,” Santamaria said.

People around the country are calling for Chauvin to be charged with murder, but thus far no formal charges have been filed against any of the officers involved in Floyd’s death.

All four of the officers who were on the scene at the time of the incident were fired from the police force, but Floyd’s family says that is not enough, and the city’s mayor agrees.

Minneapolis Mayor Jacob Frey has called for criminal charges against the police officer who killed George Floyd.

“I’ve wrestled with, more than anything else over the last 36 hours, one fundamental question: Why is the man who killed George Floyd not in jail. If you had done it, or I had done it, we would be behind bars right now,” Frey said.

When asked about which specific charge he would want to see for the officer, Mayor Frey declined to comment, but many legal experts have speculated that Chauvin could face manslaughter charges considering the video evidence against him.

via ZeroHedge News https://ift.tt/2Afq4mB Tyler Durden

“Corona and the Constitution” on Zoom, Plus SCOTUS Jeopardy!

Yesterday I gave a presentation to the Chicago Federalist Society Chapter on “Corona and the Constitution,” via Zoom. I’ve embedded the video below. Here, I’d like to offer some thoughts about giving presentations to Lawyer groups over Zoom.

First, for any group greater than 10 or 15 attendees, I would recommend Webinar mode. Through this mode, attendees keep their cameras and microphones off by default. Attendees do not see the Brady Bunch grid. Attendees only see the presenters, full screen. This approach avoids the awkward moment where someone forgets to mute his mic, or inadvertently turns her camera on at the wrong moment.

Second, you should still try to find ways for attendees to speak and get involved. Tonight I tried SCOTUS Jeopardy! I created a powerpoint of ten Supreme Court trivia questions. The hearty lawyers of the Chicago chapter got 9 out of the 10 questions correct. You can see the questions here. Here is the question that stumped everyone. The fact that it stumped everyone reaffirms that he is the most underrated framer.

After I read the question, I asked people in attendance to raise their blue hands once they figured out the answers. Zoom automatically sorts people based on when they raise their hands, so the system provides some fairness. When I finished reading the question, I could call on the the first person in the queue. I can either “enable” their microphones, which lets them quickly speak. Or I can make them a “panelist,” which lets them broadcast their camera to the entire Zoom room. I chose the former tonight. I think this format may in fact work for lecture classes. Staring at a grid of 36 people is distracting. I don’t know why students need to see their classmates during the session. They should be focused on paying attention to the lecture and taking notes; not starting at their classmate’s puppy. (Yes, lots of students have dogs on their laps during class.) All they need to see is me, and the student who is asking/answering questions at any given time. I may experiment with this approach in the fall.

Also, as a perk, we were able to give a copy of my new book to each person who correctly answered a question. (I was originally slated to do a book signing in Chicago on May 28, but, alas COVID).

Third, presentations should be kept shorter. Attention spans are tight with Zoom. When I have a solo slot, I usually plan to speak for about 40 minutes. Today I spoke for about 25 minutes. Indeed, Jeopardy filled up nearly 18 minutes.

Fourth, there are different ways to handle text Q&As. Some people like to type questions into the cheat feature. Those messages are visible to everyone. Some people like to type questions into the Questions & Answers feature. Those message are only visible to the host. My preference is to disable the chat. To be frank, some questions are not worth answering, and can distract everyone else. I would much rather that the questions will only be visible to the host, who can separate the wheat from the chaff. For example, I can summarize a question, if it is too long, or skip over other questions that are a waste of time. (Something a moderator cannot do in real life!)

Fifth, I much prefer people to ask questions by raising their blue hands. I then call on them to speak. This breaks up the monotony, and livens up the event.

Sixth, the quality of web cameras suck. Truly, they do. Even the most expensive 1080p camera is equivalent to an iPhone 5. We all have stunning cameras on our smart phones, but they cannot easily be used as web cameras. I have begun to research using a mirrorless DSLR camera as a web camera. The process is complicated–and even tougher on Macs. Plus Zoom will block several hardware workarounds. For example, the Zoom desktop app will not work with the Canon DSLR link. You have to use the Chrome browser version. I am not sure what I’ll do with the fall semester. I think that higher-quality streams (think of your favorite YouTube star!) will be easier to watch. But getting the right setup requires a very expensive game of trial-and-error.

Seventh, my new eight-monitor setup worked well, though I tweaked it. I had planned to use my laptop screen for Zoom, and the mini-monitor for lecture notes. I flipped it. I put Zoom on the mini-monitor, and put the reading materials on my laptop screen. This approach let me keep my eyes at a far more natural position during the broadcast.

Finally, here is the video of my Corona event.

My hair keeps getting bigger as the lockdown continues. I think I’ve gained about 3 inches in height! Compare with a video I recorded shortly after the lockdown began.

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Trump Blasts “CHINA!” After Kudlow Says US “Furious” With What Beijing Has Done

Trump Blasts “CHINA!” After Kudlow Says US “Furious” With What Beijing Has Done

Tyler Durden

Fri, 05/29/2020 – 09:18

At this point, Fox Business should just give Larry Kudlow a set 20 minute slot every morning. During his latest appearance, which comes just hours before President Trump delivers a widely-hyped statement on China’s latest abrogation of Hong Kong’s political freedoms, Kudlow said the president is “furious” over what Beijing has done “in recent days, weeks and months.”

He added that Trump will have “a lot of comments” and “a lot of ideas” about how to hold China accountable, which he will present to the press later on Friday.

Not long after Kudlow’s appearance, President Trump – who, in addition to dealing with the pandemic, is also battling with Twitter and monitoring the situation in Minneapolis – tweeted a typically terse burst of rage.

It’s still not clear when today’s press briefing will be held.

As of 0920ET, the White House calendar only had one live press event – a 4pm roundtable with industry execs – on the agenda.

via ZeroHedge News https://ift.tt/3eAlKgJ Tyler Durden

“They Motherf**kers Need To Go Home!” – Locals Rage At Rioters As Minneapolis Burns

“They Motherf**kers Need To Go Home!” – Locals Rage At Rioters As Minneapolis Burns

Tyler Durden

Fri, 05/29/2020 – 09:09

Well, by now, social unrest in Minneapolis, worsening by the day, has become an international story. The world is watching as protesters breached the Minneapolis 3rd Police Precinct building and set it ablaze on Thursday night. 

The police station on E. Lake Street, across from the Target that was looted and burned on Wednesday, has been the center of demonstrations this week as people demand justice after the death of George Floyd, who died in police custody on Monday. 

On early Friday morning, Minneapolis Mayor Jacob Frey explained his reasonings to evacuate officers from the 3rd Police Precinct.

As police officers were evacuated from the precinct, some reports said by a helicopter, the Minneapolis National Guard entered the city with 500 armed soldiers and fully armored Humvees. 

h/t StupidTootles

One Twitter user captures a video of “multiple Humvees probably from the Minneapolis-Saint Paul Air Station are headed to the 3rd Precinct.”

An up-close shot of National Guard Humvees on Minneapolis streets. 

More video of the National Guard mobilizing on city streets as social unrest spirals out of control. 

So here’s where shit hit the fan on Thursday night. Unicorn Riot Newsdocumented the moment, via live stream when protesters stormed the Minneapolis 3rd Police Precinct building. Video from inside the police station shows protesters igniting fires, and at one point, someone lights a weapon storage closet on fire, and ammunition can be heard exploding. 

Protesters cheer in front of the police station as it burns.

h/t Twitter

Video of the police station burning.

Unicorn Riot News tweeted: “Minnesota National Guard w Humvees, rifles and fire truck posted up at an intersection a few blocks away from 3rd Precinct.” 

h/t Unicorn Riot News

Despite President Trump’s ongoing battle with social media companies, and signing an executive order on Thursday afternoon to punish these companies for their treatment against conservative media, Twitter accused the president of violating its rules by “glorifying violence,” after he tweeted, looters at protests in Minneapolis would be shot. 

As for the chaos and destruction, here’s what happened last night along with raging fires and looting that continue into Friday morning: 

Jim Roberts, editor in chief at Cheddar, reports that “170 buildings damaged or looted” in the overnight hours.

Fires are still raging into the early morning.

Smoke from fires are so dense, local weather radar is picking up on the “15-mile smoke plume.” 

Fires continue to rage as daybreak arrives. 

Perhaps what is most notable about the whole farce is the fact that many local residents – not just white ones – are furious at what the “thugs” are doing.

As Summit News reports, a video clip shows a black woman and former NAACP chapter president trying to collect medication for her daughter outside a Target store in St. Paul telling rioters “these motherf**kers need to go home!”

“Leave this shit alone – “these motherf**kers need to go home!” she shouts, “these people don’t give a damn about George Floyd.”

The woman subsequently identified herself as Diane Binns, former president of the NAACP St. Paul from 2016-2018.

Critically, for the narrative-minded among you, she says she attended the initial protest against the killing of Floyd but after 30 minutes realized “it was going to be a riot, so I left.”

America is quickly descending into chaos as social unrest could spread to other major cities this weekend. Wealth inequality in many inner cities is at record levels. More than 40 million people are unemployed with a crashed economy, and people are already furious about virus lockdowns. This all suggests a perfect storm of unrest could flare up across the country. 

We warned of the possibility of this in late March, “West Faces “Social Bomb” As Pandemic Sparks Unrest Among Poorest.”  

via ZeroHedge News https://ift.tt/36I9c46 Tyler Durden

Schiff: Over-Leveraged Zombie Companies Threaten Economic Recovery

Schiff: Over-Leveraged Zombie Companies Threaten Economic Recovery

Tyler Durden

Fri, 05/29/2020 – 08:45

Via SchiffGold.com,

There seems to be mounting optimism that the US economy will rebound relatively quickly as states begin opening up and there is progress toward a coronavirus vaccine. But the optimism ignores deep problems in the US economy the existed before the pandemic  – chief among them staggering levels of debt and the proliferation of zombie companies.

In the last couple of years, corporate debt has blown through the roof. So much so that the Federal Reserve issued warnings about the increasing levels of corporate indebtedness late last year.

Borrowing by businesses is historically high relative to gross domestic product (GDP), with the most rapid increases in debt concentrated among the riskiest firms amid weak credit standards.”

The government shutdowns in response to COVID-19 have only exacerbated the problem. The Federal Reserve’s prescription has been to encourage even more borrowing. Companies have obliged. As Bloomberg recently reported, “many of the companies hardest hit by the coronavirus outbreak have priced billions of dollars of bonds and loans in recent weeks.”

Never mind that profits have been wiped out, and that their business operations aren’t viable right now or likely anytime soon. As long as they’re propped up by the Fed, investors are willing to lend.”

Analysts say net corporate debt issuance could approach as much as $1 trillion this year. And according to Bloomberg, creditors are also waiving or loosening financial markers on existing debt, allowing companies to kick payments on current debt down the road.

This raises the specter of defaults and bankruptcies in the future.

Howard Marks, co-chairman of Oaktree Capital Group, told Bloomberg TV that there will be plenty of debt defaults and bankruptcies when corporate borrowers start running out of cash in the months ahead.

There are large, highly levered companies and investment vehicles that the government and Fed rescue program is not likely to reach and take care of.”

Even the companies that do get “taken care of” may well find themselves in dire straights when the debt payments come due.

It’s the march of the zombie companies.

A zombie company’s operating profits can’t cover even the interest payments on its debts, much less repay the principle. According to the Bank of International Settlements (BIS), the number of zombie companies was already above pre-2008 crisis levels in the spring of 2018.

This has important implications for the labor market. Millions of Americans have lost their jobs in the last nine weeks. Even with optimism about the economy opening up, companies have continued to shed jobs. Another 2.4 million Americans filed jobless claims last week. In just nine weeks, 38.6 million people have filed for initial unemployment aid. That’s 23.7% of the March US labor force. Peter Schiff asked the operative question during a recent podcast: why are we still losing millions of jobs if we’re close to turning the economy back on.

Wouldn’t some of these companies be getting a jump on it? Wouldn’t they be bringing back some of their workers? Or at least stop laying them off? The fact that we can still keep losing jobs by the millions in the span of a week just shows you that we’ve got a lot more to this downturn than people think.”

And when these zombie companies start going under, it will mean even more lost jobs.

According to a CNBC report based on data from Arbor Research, zombie companies control more than 2 million jobs.

Despite the fact that many of these companies were already leveraged to the hilt, the coronavirus crisis has made it easier for them to take on even more debt. As a result, their stock prices have rebounded aggressively.

This hints at the disconnect between the stock market and the actual economy. These companies are no sound, but investors assume they will be fine because the central bank is backstopping them. According to CNBC, were it not for the Fed, a lot of these companies would have shuttered already.

Even if the massive Fed intervention keeps some of the zombies alive, some analysts think it will still put a drag on the economy. Deutsche Bank’s Torsten Slok told Bloomberg, “The Fed and the government are interfering in the process of creative destruction,” and he warned that it could weigh on the overall potential for growth of the economy and on productivity.

You are misallocating capital to businesses that are not productive and in some sense taking resources away from companies that have high growth.”

The bottom line is that the Federal Reserve and the US government are playing a massive game of kick the can down the road.

The zombies will limp along for a while, but eventually, many will succumb to the inevitable and go belly-up.

That will mean more job losses and an even bigger drag on a struggling economy. The scenario was already in the cards. Coronavirus has sped up the process.

via ZeroHedge News https://ift.tt/2AhHIpO Tyler Durden

US Spending Crashes By Most Ever Despite $3 Trillion Government Handout-Driven Income Surge

US Spending Crashes By Most Ever Despite $3 Trillion Government Handout-Driven Income Surge

Tyler Durden

Fri, 05/29/2020 – 08:39

After spending collapsed (and incomes dropped) in March, April was expected to see even worse but there was a surprise!

While spending collapsed 13.6% MoM (the biggest drop on record), incomes soared 10.5% MoM (the biggest surge on record) as we assume that this reflects massive government transfer payments…

Source: Bloomberg

And on a YoY basis, the shift is massive… an 11.7% surge in incomes and 3.1% slump in spending…

Source: Bloomberg

The surge in incomes is entirely due to massive government transfer payments…

Here is that percentage change put in absolute context… basically, the government has added $3 trillion in annualized income… from $3.348TN in March to $6.367TN in April (both annualized)

As private and government wages collapsed…

Consumer spending decreased in April, reflecting decreases in both goods and services.

Within goods, the leading contributor to the decrease was spending on food and beverages data. Spending on prescription drugs
also decreased.

Within services, the leading contributor to the decrease was spending on health care, based primarily on employment, hours, and earnings data as well as credit card data. Other contributors to the decrease in services were spending on food services and accommodations.

And finally, The Fed’s favorite inflation indicator – Core PCE Deflator – collapsed to 9 year lows…

Source: Bloomberg

The surge in incomes and plunge in spending sent the savings rate to record highs…

The question is – what happens when that government transfer runs out? Are people changing their behaviors? Is the uncertainty forcing a desire to save more and if so, will that wind up having a lasting effect on consumer spending? That has to be watched out for.

via ZeroHedge News https://ift.tt/36IVpKp Tyler Durden

“Corona and the Constitution” on Zoom, Plus SCOTUS Jeopardy!

Yesterday I gave a presentation to the Chicago Federalist Society Chapter on “Corona and the Constitution,” via Zoom. I’ve embedded the video below. Here, I’d like to offer some thoughts about giving presentations to Lawyer groups over Zoom.

First, for any group greater than 10 or 15 attendees, I would recommend Webinar mode. Through this mode, attendees keep their cameras and microphones off by default. Attendees do not see the Brady Bunch grid. Attendees only see the presenters, full screen. This approach avoids the awkward moment where someone forgets to mute his mic, or inadvertently turns her camera on at the wrong moment.

Second, you should still try to find ways for attendees to speak and get involved. Tonight I tried SCOTUS Jeopardy! I created a powerpoint of ten Supreme Court trivia questions. The hearty lawyers of the Chicago chapter got 9 out of the 10 questions correct. You can see the questions here. Here is the question that stumped everyone. The fact that it stumped everyone reaffirms that he is the most underrated framer.

After I read the question, I asked people in attendance to raise their blue hands once they figured out the answers. Zoom automatically sorts people based on when they raise their hands, so the system provides some fairness. When I finished reading the question, I could call on the the first person in the queue. I can either “enable” their microphones, which lets them quickly speak. Or I can make them a “panelist,” which lets them broadcast their camera to the entire Zoom room. I chose the former tonight. I think this format may in fact work for lecture classes. Staring at a grid of 36 people is distracting. I don’t know why students need to see their classmates during the session. They should be focused on paying attention to the lecture and taking notes; not starting at their classmate’s puppy. (Yes, lots of students have dogs on their laps during class.) All they need to see is me, and the student who is asking/answering questions at any given time. I may experiment with this approach in the fall.

Also, as a perk, we were able to give a copy of my new book to each person who correctly answered a question. (I was originally slated to do a book signing in Chicago on May 28, but, alas COVID).

Third, presentations should be kept shorter. Attention spans are tight with Zoom. When I have a solo slot, I usually plan to speak for about 40 minutes. Today I spoke for about 25 minutes. Indeed, Jeopardy filled up nearly 18 minutes.

Fourth, there are different ways to handle text Q&As. Some people like to type questions into the cheat feature. Those messages are visible to everyone. Some people like to type questions into the Questions & Answers feature. Those message are only visible to the host. My preference is to disable the chat. To be frank, some questions are not worth answering, and can distract everyone else. I would much rather that the questions will only be visible to the host, who can separate the wheat from the chaff. For example, I can summarize a question, if it is too long, or skip over other questions that are a waste of time. (Something a moderator cannot do in real life!)

Fifth, I much prefer people to ask questions by raising their blue hands. I then call on them to speak. This breaks up the monotony, and livens up the event.

Sixth, the quality of web cameras suck. Truly, they do. Even the most expensive 1080p camera is equivalent to an iPhone 5. We all have stunning cameras on our smart phones, but they cannot easily be used as web cameras. I have begun to research using a mirrorless DSLR camera as a web camera. The process is complicated–and even tougher on Macs. Plus Zoom will block several hardware workarounds. For example, the Zoom desktop app will not work with the Canon DSLR link. You have to use the Chrome browser version. I am not sure what I’ll do with the fall semester. I think that higher-quality streams (think of your favorite YouTube star!) will be easier to watch. But getting the right setup requires a very expensive game of trial-and-error.

Seventh, my new eight-monitor setup worked well, though I tweaked it. I had planned to use my laptop screen for Zoom, and the mini-monitor for lecture notes. I flipped it. I put Zoom on the mini-monitor, and put the reading materials on my laptop screen. This approach let me keep my eyes at a far more natural position during the broadcast.

Finally, here is the video of my Corona event.

My hair keeps getting bigger as the lockdown continues. I think I’ve gained about 3 inches in height! Compare with a video I recorded shortly after the lockdown began.

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Section 230 Bootleggers and Baptists

Economics Professor Bruce Yandle developed the concept of “Bootleggers and Baptists.” Often, different groups with different motivations favor the same regulation. For example, who favors prohibition laws? Baptists, because they are morally opposed to alcohol. And Bootleggers, who stand to profit from selling moonshine on the black market. Independently, each group may not be able to advocate for prohibition laws. But when the coalition works together, they can achieve results. Yandle writes, “[Baptists] take the moral high ground, while the bootleggers persuade the politicians quietly, behind closed doors.”

We are seeing a strange “Bootlegger and Baptist”coalition with respect to Section 230. President Trump and other Republicans have called for the repeal of that seminal law. As have Joe Biden and other progressives. Indeed, advocates for revenge porn laws placed a target on Section 230’s back many years ago. They seek to repeal Section 230 for very different reasons. The conservatives think Twitter is biased against conservatives, and is shadow-banning their tweets. And progressives think Twitter is shielding abusive content that affects marginalized groups.

The coalition to support Section 230, I fear, is dwindling. The ACLU is not what it used to be. And tech companies are not particularly sympathetic plaintiffs.

The next Congress may be able to muster bipartisan votes to kill Section 230. But I am skeptical they can adopt far-reaching privacy legislation. Once the preemption argument is gone, states will adopt their own European-style privacy laws. Tech companies would face a patchwork of fifty-one extremely imperfect solutions.

I’ll let you decide which group is the Baptists, and which group is the Bootleggers.

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Court Orders: Stop Tweeting About Your Ex-Friend’s Criminal Conviction—Though Tweets Didn’t Use the Man’s Name

From Craft v. Fuller, decided Wednesday by the Florida Court of Appeal (written by Judge Craig Villanti, joined by Judges Morris Silberman and Matthew Lucas); that court has compiled a pretty good record in recent years of reversing such overbroad orders. The facts:

Craft and Fuller are former friends and business partners who had a falling out of some sort several years ago. Since the falling out, they have filed petitions for injunction against stalking against each other at various times. In October 2018, they agreed to leave each other alone, and they voluntarily dismissed their respective injunction petitions.

Nevertheless, shortly thereafter, Craft began posting tweets on his own personal Twitter feed using the hashtag “spoofingschmuck.” Some of these tweets contained other comments as well, but none of them referenced Fuller by name. Fuller does not follow Craft on Twitter; however, some of Fuller’s friends and family told him about Craft’s tweets, and Fuller believed that those tweets were a direct reference to him because he had been arrested in the past for spoofing.

{Wikipedia defines “caller ID spoofing,” which is what Craft tweeted about in this case, as “the practice of causing the telephone network to indicate to the receiver of a call that the originator of the call is a station other than the true originating station. This can lead to a caller ID display showing a phone number different from that of the telephone from which the call was placed.” Florida law makes caller ID spoofing a crime under certain circumstances.}

In response to being notified of these tweets, Fuller filed a new petition for injunction against Craft. In that petition, Fuller alleged that Craft’s tweets using the “spoofingschmuck” hashtag were directed at him and that as a result of these tweets, he had suffered substantial emotional distress. At a hearing on the petition, Fuller testified that while he does not follow Craft on Twitter, the fact that friends and family notified him of Craft’s tweets demonstrated that other people believed the posts to be about Fuller. Fuller also testified that because of his prior arrests for spoofing and the prior antagonism between the parties, he had suffered substantial emotional distress over the tweets, including losing the ability to sleep and eat.

For his part, Craft denied that the tweets were in reference to Fuller. Instead, he testified that he was annoyed by spoofing in general and that he was using this hashtag to track spoofed calls to his phone in a way that would allow him to express his annoyance and disdain for anyone who would make spoof calls. He also testified that he enjoys posting tweets and uses it as a means of entertainment.

After considering this evidence, the trial court concluded that Craft’s tweets were “directed at” Fuller and that a reasonable person in Fuller’s position, i.e., one who had been arrested several times for spoofing, would suffer substantial emotional distress over the tweets. The court also concluded that Craft’s tweets served no purpose other than harassment. Based on these conclusions, the court entered a five-year injunction against Craft, which he now appeals.

The law (emphasis in original):

Section 784.0485(1), Florida Statutes (2014), provides that “[f]or the purposes of injunctions for protection against stalking under this section, the offense of stalking shall include the offense of cyberstalking.” Section 784.048(1)(d) defines cyberstalking as “engag[ing] in a course of conduct to communicate, or to cause to be communicated, words, images, or language by or through the use of electronic mail or electronic communication, directed at a specific person, causing substantial emotional distress to that person and serving no legitimate purpose.” Harassment is “a course of conduct directed at a specific person which causes substantial emotional distress … and serves no legitimate purpose.” § 784.048(1)(a). Thus, cyberstalking is harassment via electronic communications.

The court concluded that the “directed at a specific person” requirement wasn’t satisfied, partly because Fuller wasn’t named and partly because Craft’s tweets were only about Fuller, rather than being sent to him:

[T]o be entitled to the injunction, Fuller was required to prove that Craft’s tweets were “directed at a specific person,” namely him, that a reasonable person would have suffered substantial emotional distress as a result of the tweets, and that the tweets served no legitimate purpose….

This court and others have held that postings on one’s own social media page do not constitute actions “directed at a specific person” as a matter of law. For example, in Horowitz v. Horowitz (Fla. 2d DCA 2015), this court held that postings on the defendant’s own Facebook page were not “directed at” his ex-wife….

Similarly, in Logue v. Book (Fla. 4th DCA 2019), the Fourth District held that tweets and other social media posts, even though they clearly referred to the petitioner, did not constitute conduct “directed at” the petitioner because such tweets and posts are available for all to see and therefore are directed at a broad audience, of which the petitioner is only one. And in David v. Textor (Fla. 4th DCA 2016), the court held that “where comments are made on an electronic medium to be read by others, they cannot be said to be directed to a particular person.” See also Chevaldina v. R.K./FL Mgmt., Inc. (Fla. 3d DCA 2014) (“Angry social media postings are now common. Jilted lovers, jilted tenants, and attention-seeking bloggers spew their anger into fiber-optic cables and cyberspace. But analytically, and legally, these rants are essentially the electronic successors of the pre-blog, solo complainant holding a poster on a public sidewalk in front of an auto dealer that proclaimed, ‘DON’T BUY HERE! ONLY LEMONS FROM THESE CROOKS!'”); compare United States v. Cassidy (D. Md. 2011) (comparing Twitter postings to papers tacked to a bulletin board and noting that unlike the case with a telephone call, letter, or email specifically addressed to and directed at another person, “[o]ne does not have to walk over and look at another person’s bulletin board”).

Here, the evidence at the hearing established that the disputed tweets were posted on Craft’s own personal Twitter feed. These tweets did not reference Fuller by name, and Craft did not “tag” or otherwise draw Fuller’s attention to the tweets. Instead, the tweets were simply expressions of Craft’s annoyance with whomever may have been spoofing him.

As tweets posted on Craft’s own Twitter feed, they were not “directed at” any specific person but were instead directed at his entire collection of followers, which notably did not include Fuller. And even if one or more of the tweets may have been an indirect reference to Fuller, such indirect references posted on a private Twitter feed are insufficient as a matter of law to support a conclusion that the tweets were “directed at” Fuller. Therefore, Fuller failed to prove, as a matter of law, that Craft’s tweets constituted a course of conduct “directed at” Fuller for purposes of the cyberstalking statute….

The court also concluded that the substantial-emotional-distress element wasn’t satisfied:

In addition to showing that the tweets were “directed at” him, Fuller was also required to prove that an objectively reasonable person would have suffered substantial emotional distress as a result of the tweets… Case law shows that the bar for establishing that a reasonable person would suffer substantial emotional distress is set fairly high….

Here, the record shows that Craft’s tweets were neither threatening nor menacing nor hostile nor, frankly, even embarrassing. They did not mention Fuller by name, they did not tag Fuller so as to single him out, and they did not occur in response to some otherwise threatening event that might have changed their character. No objectively reasonable person—not even one with a prior arrest for spoofing—would have suffered “substantial emotional distress” as a result of these tweets. Therefore, Fuller’s evidence was insufficient to prove this element as well….

And the court concluded that the no-legitimate-purpose element wasn’t satisfied, either:

Fuller was also required to prove that Craft’s tweets served no legitimate purpose, i.e., that they served no purpose other than to harass Fuller. The trial court concluded that the tweets had no legitimate purpose based solely on its earlier finding that the tweets were “directed at” Fuller. Again, the court did not apply the proper legal standard….

In this case, the only evidence on the issue of the purpose of the tweets was Craft’s testimony that they were a way for him to log the prank calls he received and that it was entertaining for him to do so in this fashion. The trial court rejected this explanation, finding that it was not credible. And having rejected Craft’s testimony, the court then found that his tweets had no legitimate purpose solely based on its earlier ruling that the tweets were “directed at” Fuller. This ruling is in contravention of the law for two reasons.

First, the trial court misapplied the applicable burdens of proof. Regardless of how misguided Craft’s tweets may have been, Fuller had the burden to prove that they served no purpose other than to harass Craft. Craft did not have the burden to prove that his tweets had a legitimate purpose; Fuller had the burden to prove that they did not. This he failed to do.

Second, the mere fact that tweets or other communications are “directed at” an individual does not establish, as a matter of law, that they have no legitimate purpose. As long as there is a reason for the communications other than harassment, the communications will have a legitimate purpose even if they are directed at someone who does not welcome them. See O’Neill (communication to advise person of a documentary was a legitimate purpose); Goudy (communications about dance team activities had a legitimate purpose); Alter (communications about a loan repayment had a legitimate purpose). The court could not simply rely on its finding that the tweets were “directed at” Fuller to also conclude that they ipso facto had no legitimate purpose. And the evidence presented here supports no such conclusion.

The court closed with this:

We also take this opportunity to remind the parties that injunctions “are not a panacea to be used to cure all social ills. In fact, nowhere in the statutory catalog of improper behavior is there a provision for court-ordered relief against uncivil behavior.” The parties agreed in 2018 to go their separate ways and leave each other alone. It would behoove them to honor this agreement….

 

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