AOC Says Border Patrol “Sexually Threatened” Her, Trump Confirms ICE Raids Will Resume Soon

Just as Alexandria Ocasio-Cortez shared her latest alarming claim about conditions in detention centers for illegal migrants crossing into the US, President Trump insisted on Monday that his administration still plans to carry out the mass ICE raids of migrants who have been given notices to leave the country.

AOC

As the controversy balloons over a Facebook group where border patrol agents reportedly shared sexually explicit depictions of AOC – including a cartoon allegedly showing her sucking off a migrant – AOC accused border agents of carrying out “psychological warfare” against detained migrants, whom AOC claimed were forced to drink toilet water.

AOC’s latest twitter rant follows reports that  agents used a secret Facebook group to share lewd posts about her another far-left progressive Democrat. CBP said it was aware of the group and was investigating the matter, while Trump said Monday that he was unaware  of the situation.

But “Sandy from the Bronx” wasn’t the only Dem to make the salacious claim about migrants drinking from toilets. California Rep. Judy Chu made a similar claim, while Pennsylvania Rep. Madeleine Dean said conditions at the detention centers were “far worse than we ever could have imagined,” according to Bloomberg.

And just as she can take criticism, AOC proved during this trip that she can dish it out, too. According to a reporter from the Washington Examiner, AOC “screamed” at federal law enforcement agents during the trip “in a threatening manner.”

All three lawmakers traveling with a group organized by the Congressional Hispanic Caucus to visit detention centers in El Paso and Clint, Texas, and do some investigating following  a series  of reports about the lack of access to “safe and sanitary” conditions in both towns.

During a televised press conference at Clint, AOC was ambushed by Trump supporters.

The uproar has caused border agents in El Paso to warn about the risk of riots by migrants being held in the overcrowded cells.  According to Reuters.

Border Patrol agents “remained armed in the holding areas because of their concerns with the overcrowding that potentially could result in volatile situations (riots etc.)” or hunger strikes, the documents attached to the Office of Inspector General report revealed.

Meanwhile, according to CNN, Trump said he expects massive raids to round up migrants who have been issued notices to leave the country will be carried out soon after this weekend’s Fourth of July holiday, which could pair nicely with Trump’s promised but still not fully planned “Salute To America” military parade.

Trump shared his latest thoughts on the crisis at the border during an interview Monday from the Oval Office.

In a tweet last weekend, Trump delayed the raids – planned for 10 major American cities – for 2 weeks “at the request of Democrats,” ostensibly to give them time to try and hash out “a solution to the Asylum and Loophole problems” with Republicans.

Last week, the House passed a $4.6 billion aid package intended to ease the “humanitarian crisis” at the border, despite opposition from both Nancy Pelosi and Trump.

But once the raids happen, imagine how AOC and her band of far-left progressives will react? This could be the push that sends her over the edge in openly calling for revolution.

via ZeroHedge News https://ift.tt/325FKT1 Tyler Durden

Welcome to the Busing Election!

Who had school busing in the betting pool for poll-moving Democratic presidential debate controversies? And yet here we are.

Well, if it’s racial discord and school choice that you want to talk about, then that’s exactly what you’ll get on today’s Editors’ Roundtable edition of the Reason Podcast. Katherine Mangu-Ward, Nick Gillespie, Peter Suderman, and Matt Welch talk about their own personal histories with school integration, preferred remedies for helping disadvantaged students receive a better education, and what these debates mean for the modern Democratic Party.

Also under discussion today are shake-ups to the Beltway foreign policy consensus, the beating of Quillette writer Andy Ngo, whether it’s healthy for restaurants to deny service to Trumpites, and why Yoko Ono was the most underrated Beatle.

Audio production by Ian Keyser.

Forgiven not Forgotten‘ by Jahzzar is licensed under CC BY-SA 4.0

Relevant links from the show:

Some Democrats Ditch Biden After First Round of 2020 Debates,” by Elizabeth Nolan Brown

Harris-Biden Busing Spat Shows Democrats Can’t Have an Honest Conversation About Racial Issues,” by Jacob Sullum

Joe Biden Is Probably Running for President. He’s Got a Lot of Baggage,” by Christian Britschgi

Booker Expresses Tepid Support for Charter Schools While Sanders Seeks To Stifle Them,” by Billy Binion

Teachers Union President Thinks You’re a Racist if You Yank Your Kids from Their Crappy Schools,” by Scott Shackford

How to Fix ‘One of the Most Segregated Public School Systems In the Nation,’” by Jim Epstein

Charles Koch, George Soros Help Fund Think Tank Opposed To ‘Endless War,’” by Nick Gillespie

Antifa Mob Viciously Assaults Journalist Andy Ngo at Portland Rally,” by Robby Soave

A Social Media Platform Has Banned Support of Trump,” by Katrina Gulliver

from Latest – Reason.com https://ift.tt/2NAsume
via IFTTT

Female Athlete Alleges Retaliation By Coach Over Complaints About Transgender Policy

Authored by Connor Ellington via The College Fix,

Losing ‘visibility necessary to attract the attention of college recruiters’

Boys are competing in girls’ track and field events in Connecticut, at the direction of the Connecticut Interscholastic Athletic Conference, so that transgender students don’t feel invalidated.

They are often winning, and the girls are afraid to publicly object for fear of “retaliation,” according to Selina Soule, one of the female competitors.

That’s why Soule and two of her unnamed female peers are asking the U.S. Department of Education to investigate CIAC for Title IX violations.

They contend CIAC’s new policy allows “boys who are male in every biological and physiological respect—including unaltered male hormone levels and musculature—to compete in girls’ athletic competitions if they claim a female gender identity,” according to the Title IX complaint filed on their behalf by the Alliance Defending Freedom.

The decision to let biological males compete has “deprived many girls of opportunities to achieve public recognition, a sense of reward for hard work, opportunities to participate in higher level competition, and the visibility necessary to attract the attention of college recruiters and resulting scholarships,” states the complaint, filed in mid-June.

This policy already has resulted in negative outcomes for Soule and the other unnamed minors in the complaint.

Two biologically male students, Andraya Yearwood and Terry Miller, have dominated the sport since they were allowed to compete against biological females. The two of them together have won as many women’s state championship titles (15) as did 10 girls who identify as girls in 2016, according to the complaint.

Yearwood and Miller have also “taken more than 40 opportunities to participate in higher level competitions from female track athletes in the 2017, 2018, and 2019 seasons alone.”

Soule shared her frustration with The Daily Signal in May. Two biologically male competitors took the spots ahead of her in the 55-meter dash, preventing her from competing in the New England regionals in front of college coaches.

“Everyone is afraid of retaliation from the media, from the kids around their school, from other athletes, coaches, schools, administrators,” said Soule, who alleges official retaliation against her for speaking out in the complaint.

“They don’t want to drag attention [sic] to themselves, and they don’t want to be seen as a target for potential bullying and threats,” she said.

Coach allegedly threatened to badmouth dissident female athlete to recruiters

The CIAC policy on transgender students differs from the NCAA’s, which requires males to take testosterone-suppressing hormones for at least a year before competing in a female sport. The only requirement in CIAC policy is that a student subjectively identify as the opposite sex.

The complaint features more than a dozen tables listing competition results and times for female athletes, and how biologically male athletes affected their placements. It says these are only “examples.”

It notes that Miller did not place in boys’ track competition in 2017 and winter 2018. Miller went on to great success only after competing in female track events starting that spring.

Biological males took first place in 13 out of 14 events for females, and 23 out of 28 when including second-place awards, in seven state-level competitions. They won “51 opportunities to participate in a higher-level state competition,” compared to 31 for girls.

The girls who filed the complaint also allege that the CIAC has participated in intimidation and retaliation against those who oppose the male-inclusive policy.

One of the mothers of the unnamed complainant repeatedly complained to the CIAC about the “discriminatory impact” that the new policy had on her daughter. The CIAC did not provide a “substantive response,” and Connecticut school officials attempted to dissuade her from filing a Title IX complaint, according to the complaint.

Soule contends that her mother’s outspoken opposition to the policy led her coaches to mistreat her.

Her track coach made her perform workouts that are uncommon for short-distance sprinters like her, “and has forbidden her from competing in any high school track and field event unless she completes them,” the complaint reads.

Another coach told Soule and her father that if a college recruiter asked about her, “he would not be able to give a good report about her.”

The complaint cites an anonymous female student quoted in The Daily Signal on her fear of retaliation for speaking out.

“There’s really nothing else you can do except get super frustrated and roll your eyes, because it’s really hard to even come out and talk in public just because … just immediately you’ll just be shut down,” she said.

The feds already approved transgender policy?

The complaint asks the government to forcibly overturn CIAC’s transgender policy, and ban it from letting students compete in girls’ athletics who are “in all physiological and hormonal respects males.”

Soule and the other two complainants also want records of past races to be revised to retroactively disqualify biologically male students from the female events. CIAC should also be ordered by the government to issue a press release giving credit to every female who would have placed if not for the policy.

Finally, the Department of Education should declare that CIAC’s policy violates Title IX. The complainants asked for a quick investigation so girls do not lose any more opportunities to boys in their competitions starting this winter.

CIAC did not respond to The College Fix’s request for comment. But Glenn Lungarini, its executive director, told The Hartford Courant that it discussed the policy language with both the Boston office of the Department of Education’s Office for Civil Rights and Connecticut’s human rights commission.

Yearwood and Miller, the biologically male athletes identified in the complaint, attacked the complainants in a statement to the Courant.

“I am a girl and I am a runner,” Miller said.

“I participate in athletics just like my peers to excel, find community and meaning in my life. It is both unfair and painful that my victories have to be attacked and my hard work ignored.”

Yearwood highlighted the “discrimination that I face as a young black woman who is transgender. … Every day I train hard — I work hard to succeed on the track, to support my teammates, and to make my community proud.”

Miller is also black. Their lawyers at the ACLU emphasized their race, which is objective, as well as their gender identity, which is not, in a statement to the newspaper.

via ZeroHedge News https://ift.tt/2J2Yvid Tyler Durden

Guadalajara Hit By Freak Hail Storm; Cars Buried, Hundreds Of Structures Damaged

Guadalajara, Mexico was struck by a freak hail storm on Sunday, burying vehicles and trapping residents in ice pellets up to two meters (6.5 ft) deep, according to AFP

“I’ve never seen such scenes in Guadalajara,” said state governor, adding “Then we ask ourselves if climate change is real. These are never-before-seen natural phenomenons.” 

“It’s incredible!” 

Guadalajara, located north of Mexico City and with a population of around five million, has been experiencing summer temperature of around 31 Centigrade (88 Fahrenheit) in recent days.

While seasonal hail storms do occur, there is no record of anything so heavy.

At least six neighborhoods in the city outskirts woke up to ice pellets up to two meters deep. –AFP

As children threw rock-hard ice balls at each other, Mexican Civil Protection personnel and state soldiers cleared the roads using heavy machinery.

Approximately 200 hopes and businesses reported hail damage, while around 50 vehicles were swept away in mountainous regions. Some were buried completely under the deluge of pellets. 

No casualties were reported, however two people exhibited “early signs of hypothermia” according to the Civil Protection office. 

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

Welcome to the Busing Election!

Who had school busing in the betting pool for poll-moving Democratic presidential debate controversies? And yet here we are.

Well, if it’s racial discord and school choice that you want to talk about, then that’s exactly what you’ll get on today’s Editors’ Roundtable edition of the Reason Podcast. Katherine Mangu-Ward, Nick Gillespie, Peter Suderman, and Matt Welch talk about their own personal histories with school integration, preferred remedies for helping disadvantaged students receive a better education, and what these debates mean for the modern Democratic Party.

Also under discussion today are shake-ups to the Beltway foreign policy consensus, the beating of Quillette writer Andy Ngo, whether it’s healthy for restaurants to deny service to Trumpites, and why Yoko Ono was the most underrated Beatle.

Audio production by Ian Keyser.

Forgiven not Forgotten‘ by Jahzzar is licensed under CC BY-SA 4.0

Relevant links from the show:

Some Democrats Ditch Biden After First Round of 2020 Debates,” by Elizabeth Nolan Brown

Harris-Biden Busing Spat Shows Democrats Can’t Have an Honest Conversation About Racial Issues,” by Jacob Sullum

Joe Biden Is Probably Running for President. He’s Got a Lot of Baggage,” by Christian Britschgi

Booker Expresses Tepid Support for Charter Schools While Sanders Seeks To Stifle Them,” by Billy Binion

Teachers Union President Thinks You’re a Racist if You Yank Your Kids from Their Crappy Schools,” by Scott Shackford

How to Fix ‘One of the Most Segregated Public School Systems In the Nation,’” by Jim Epstein

Charles Koch, George Soros Help Fund Think Tank Opposed To ‘Endless War,’” by Nick Gillespie

Antifa Mob Viciously Assaults Journalist Andy Ngo at Portland Rally,” by Robby Soave

A Social Media Platform Has Banned Support of Trump,” by Katrina Gulliver

from Latest – Reason.com https://ift.tt/2NAsume
via IFTTT

No, Russian Bots Didn’t Cause Trump’s Poll Numbers To Increase 1 Percent Per 25K Retweets

Here is an accurate description of a new study‘s conclusions: “As Donald Trump secured greater support from Republicans and as the 2016 general election neared, pro-Trump content produced by a Russian bot got more attention on Twitter.”

The paper compares the popularity of Trump’s candidacy to the popularity of more than 700,000 English-language tweets sent by various accounts linked to the Russian-based Internet Research Agency (IRA). The study’s authors found that every 25,000 retweets of IRA-run Twitter accounts correlated to a 1 percent uptick for Trump in presidential election polls.

Correlated being the key word there. Because if you ignore the distinction between correlation and causation, you might end up drawing a conclusion like this:

Or like this

Those are good ways to fire up the #Resistance, but both are misleading interpretations of the study, which was published today by First Monday, a peer-reviewed journal dedicated to studying internet phenomena.

The study’s authors themselves point out the limitations inherent in their analysis, which was intended to test “prediction, not causality.” Indeed, they stress that “it seems unlikely that 25,000 re-tweets could influence one percent of the electorate in isolation.

More to the point, they caution that “any correlation established by an observational study could be spurious.” Despite a strong correlation between Trump’s popularity and increased Twitter-based interest in the Russian bot accounts, “There could still be a third variable driving the relationship between IRA Twitter success and U.S. election opinion polls,” they write. “We controlled for one of these—the success of Donald Trump’s personal Twitter account—but there are others that are more difficult to measure; including exposure to the U.S domestic media.”

It would hardly be surprising to learn that more Americans became more engaged in politics as the 2016 election drew nearer, or that there would be a larger audience for pro-Trump content on Twitter as the primaries concluded and inter-GOP opposition to Trump’s candidacy subsided. Indeed, the study find that one major spike in both Trump’s popularity and the attention received by IRA-run Twitter accounts was associated with the 2016 Republican National Convention. Historically, pretty much all presidential candidates have seen an increase in support after being officially nominated.

Now, it’s certainly possible that Russian tweets changed some Americans’ minds about who to support in 2016—though there’s no reason to think those tweets were any more potent than content created by regular Americans or the campaigns themselves.

Blaming Trump’s election on the magical power of Russian Twitter bots is seductive because it gets Americans off the hook for elevating an obviously unqualified candidate to the most powerful office in the world. If understanding Trump’s victory was as simple as adding up the number of retweets on pro-Trump Twitter accounts, we’d be spared the more difficult task of dealing with the political and cultural forces—domestic ones—that put him in the White House.

from Latest – Reason.com https://ift.tt/2Xhj3aK
via IFTTT

America’s Concealed Crisis: Fifty Years Of Economic Decline, 1969 To 2019

Authored by Charles Hugh Smith via OfTwoMinds blog,

If we consider the long term, it’s clear America’s economy and society have been declining for the average household for 50 years.

What if the “prosperity” of the past 50 years is mostly a statistical mirage for the bottom 80% of households? What if whatever real gains (adjusted for real-world loss of purchasing power) accrued only to the top of the wealth-power pyramid, those closest to financial and political power? What if the U.S. economy and society shifted from “everybody wins” to “winner takes all” or at best, :winner take most”?

These are not “what if”, they’re reality. The working class, which as I have recently noted, now comprises the entire working populace other than the upper-middle class Misplaced Pride: Most of the “Middle Class” Is Actually Working Class (June 14, 2019), has lost ground over the past 50 years, from 1969 to the present.

The keys to understanding the concealed crisis of decline are purchasing power relative to wages/earnings–how many goods and services can wages buy? For the average American household, wages have risen modestly while the purchasing power of those wages has plummeted.

Furthermore, the quality of goods and services has in many cases declined sharply, so that even if prices have dropped, what you get for your money has fallen even further, effectively reducing the purchasing power of your wages.

Case in point: appliances were once designed and built to last a generation or longer. Refrigerators, washers and dryers lasted for decades. Now the average appliance fails within a few years, and the electronic board–costing roughly a third of the entire appliance price–fails and must be replaced. With labor, the cost of the repair is so high, consumers often send the almost-new appliance to the landfill and buy a new (and soon to fail) appliance.

Net-net, low quality reduces purchasing power even if price has declined.

Then there’s the big-ticket items: rent, housing, college, healthcare.Anecdotally, I’ve been told a young engineer in Silicon Valley could earn $20,000 a year and rent a modest apartment for $200. Now the young engineer makes $100,000 but rent for the modest flat is $2,500 per month: wages rose five-fold but rent rose 12-fold.

This is a staggering loss of purchasing power.

As for college, tens of millions of students completed their university training with zero debt–student loan debt as we understand it today simply didn’t exist because it was unnecessary.

The scarcity value of that college diploma has fallen precipitously over the decades, rendering most degrees that aren’t part of artificial scarcity schemes essentially valueless.

As for healthcare: we now have $100,000 operations that work miracles on one side and people being bankrupted by costs on the other, and tens of thousands dying of opioid drugs promoted by the status quo as “safe” and non-addictive. Where metabolic disorders (lifestyle diseases such as diabesity) were once a relative rarity, now up to a third of the entire population is at risk of chronic lifestyle diseases that are difficult and costly to manage–but oh so profitable to those delivering the meds and care.

Bottom line: how much housing, higher education and well-being does the average wage buy now compared to decades past? Not much. The statistics are bleak: wages are basically unchanged from the high water mark 50 years ago, which coincidentally was also the high water mark of U.S. energy production until very recently. Adjusted for purchasing power and quality, the average paycheck buys far less than it did 50 years ago.

Wages’ share of the national income has plummeted since the last secular expansion of wages in the Internet boom of the late 1990s.

The average households’ ownership of productive capital, and thus of financial security, has declined. There’s fewer assets within reach and those that are in reach have been reduced to a casino of booms and busts that wipes out all but the most agile gamblers.

If we consider the long term (la longue duree), it’s clear America’s economy and society have been declining for the average household for 50 years.Nobody wants to admit this because it’s politically inconvenient, to say the least. What do we make of a society in which only the top 5% have prospered in terms of their earnings buying more goods and services?

Meanwhile, everyone else has compensated for the sharp decline in purchasing power by going ever deeper into debt while the nation has decayed into a landfill economy.

*  *  *

Pathfinding our Destiny: Preventing the Final Fall of Our Democratic Republic ($6.95 ebook, $12 print, $13.08 audiobook): Read the first section for free in PDF format. My new mystery The Adventures of the Consulting Philosopher: The Disappearance of Drake is a ridiculously affordable $1.29 (Kindle) or $8.95 (print); read the first chapters for free (PDF). My book Money and Work Unchained is now $6.95 for the Kindle ebook and $15 for the print edition. Read the first section for free in PDF format. If you found value in this content, please join me in seeking solutions by becoming a $1/month patron of my work via patreon.com. New benefit for subscribers/patrons: a monthly Q&A where I respond to your questions/topics.

via ZeroHedge News https://ift.tt/2FIr6ar Tyler Durden

No, Russian Bots Didn’t Cause Trump’s Poll Numbers To Increase 1 Percent Per 25K Retweets

Here is an accurate description of a new study‘s conclusions: “As Donald Trump secured greater support from Republicans and as the 2016 general election neared, pro-Trump content produced by a Russian bot got more attention on Twitter.”

The paper compares the popularity of Trump’s candidacy to the popularity of more than 700,000 English-language tweets sent by various accounts linked to the Russian-based Internet Research Agency (IRA). The study’s authors found that every 25,000 retweets of IRA-run Twitter accounts correlated to a 1 percent uptick for Trump in presidential election polls.

Correlated being the key word there. Because if you ignore the distinction between correlation and causation, you might end up drawing a conclusion like this:

Or like this

Those are good ways to fire up the #Resistance, but both are misleading interpretations of the study, which was published today by First Monday, a peer-reviewed journal dedicated to studying internet phenomena.

The study’s authors themselves point out the limitations inherent in their analysis, which was intended to test “prediction, not causality.” Indeed, they stress that “it seems unlikely that 25,000 re-tweets could influence one percent of the electorate in isolation.

More to the point, they caution that “any correlation established by an observational study could be spurious.” Despite a strong correlation between Trump’s popularity and increased Twitter-based interest in the Russian bot accounts, “There could still be a third variable driving the relationship between IRA Twitter success and U.S. election opinion polls,” they write. “We controlled for one of these—the success of Donald Trump’s personal Twitter account—but there are others that are more difficult to measure; including exposure to the U.S domestic media.”

It would hardly be surprising to learn that more Americans became more engaged in politics as the 2016 election drew nearer, or that there would be a larger audience for pro-Trump content on Twitter as the primaries concluded and inter-GOP opposition to Trump’s candidacy subsided. Indeed, the study find that one major spike in both Trump’s popularity and the attention received by IRA-run Twitter accounts was associated with the 2016 Republican National Convention. Historically, pretty much all presidential candidates have seen an increase in support after being officially nominated.

Now, it’s certainly possible that Russian tweets changed some Americans’ minds about who to support in 2016—though there’s no reason to think those tweets were any more potent than content created by regular Americans or the campaigns themselves.

Blaming Trump’s election on the magical power of Russian Twitter bots is seductive because it gets Americans off the hook for elevating an obviously unqualified candidate to the most powerful office in the world. If understanding Trump’s victory was as simple as adding up the number of retweets on pro-Trump Twitter accounts, we’d be spared the more difficult task of dealing with the political and cultural forces—domestic ones—that put him in the White House.

from Latest – Reason.com https://ift.tt/2Xhj3aK
via IFTTT

GoFundMe For Journalist Beaten By Portland Antifa Hits 300% Of Goal In One Day

A GoFundMe campaign for a conservative journalist who was beaten and robbed by members of Portland’s Antifa cell has raised nearly 300% of its $50,000 goal within 24 hours – currently standing at $149,590 as of this writing.  

Ngo, a journalist and editor at Quillette, was covering a Portland Antifa rally when he was beaten and soaked in liquids which police believe contained quick-drying cement. He was hospitalized after the attack, in which he claims that his GoPro camera was stolen. 

The GoFundMe was set up by conservative author and commentator Michelle Malkin.

 

“There were reports of individuals throwing ‘milkshakes’ with a substance mixed in that was similar to a quick-drying cement. One subject was arrested for throwing a substance during the incident,” according to the Portland police. 

That said, BuzzFeed‘s Joe Bernstein says he did not see any concrete being poured into the milkshakes – which doesn’t discount them pouring it in right before the attack. 

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

Surprise Rate Spike In Overnight Repo Stuns Traders

Back on January 2, we showed what was arguably the strangest move that took place on the last trading day of 2018, when the overnight general collateral repo rate shot up from 2.5% to as high as 6.125% on Monday, Dec. 31,  the biggest one day move on record, bringing overnight GC repo to the highest level since January 2001.

To be sure, while violent year-end moves are well-known in the overnight funding markets, the magnitude of the Dec. 31 surge was simply unprecedented, and commenting on the GC Repo surge, Scott Skyrm, EVP at Curvature Securities said that “the cash never came in,” noting that while “funding pressure should be about 50 basis points” and yet what we got was “350 basis points.”

Numerous theories emerged to try and explain this unprecedented move, with most agreeing that this was a case of aggressive quarter and year-end liquidity (mis) management by banks, with Bloomberg pointing out that as banks “tidy their balance sheets at year-end when regulatory surcharges are calculated… As part of their bid to lessen these regulatory imposts, banks tend to pare their exposure to repo, which in turn makes it more expensive for borrowers.” Others also blamed such artifacts of the increasingly broken market as shrinking reserves, regulatory requirements and year-end window dressing.

“It was an atypical but typical year-end, because bank balance sheets were even more scarce than people thought,” TD Securities analyst Gennadiy Goldberg said, adding that it “isn’t a funding issue, it’s balance-sheet scarcity that was worse than expected.”

We bring this up because this morning we saw precisely the same overnight funding spike in the repo market strike again, only this time with a twist.

As repo market expert, Scott Skyrm, once again first noted, about half way through the morning, there was a major back-up in rates. “At first it appeared as though it was a dislocation between collateral sellers and buyers, but quickly it was apparent some cash did not yet return to the market after quarter-end”, Skyrm noted.

No doubt it was a combination of quarter-end carryover, traders on vacation, and the $41 billion in net new issuance settling today. But the magnitude of the move is very surprising.

The chart below shows just how surprising the intraday GC repo surge truly was:

But what was even more surprising than the repo spike which was a carbon copy of the market shock observed on Dec 31, if slightly lower in magnitude, is that unlike back then, the June “quarter-end” cash dislocation did not occur on quarter-end this time around; instead it occurred the day after, sparking even more questions about what caused this delayed aftershock, and confirming that whatever liquidity plumbing and funding issues existed at the turn of the year, they have not gone away.

The good news, according to Skyrm, is that while the market is expecting some continued carry-over pressure with GC priced at 2.55%-2.52% for tomorrow, he expects rates will be back to normal on Wednesday; probably opening at 2.47%-2.45%. In other words, the funding market may be broken, but at least it is so for just one or two days (for now) per year.

And in totally separate news, today’s auction of 3-Month Treasury bills priced at 2.145%, notably higher than the 2.085% previous week. According to Bloomberg, “the backup in yield at Monday’s three-month Treasury bill auction suggests some investors are starting to consider the impending debt-ceiling deadline, since that’s when the Treasury could potentially exhaust its current borrowing authority.”

And so, for those who keep tabs on objects in the market’s wall of worry, they can now add the Technical Default of the US Treasury to the list of catalyst that will keep pushing the S&P well above 3,000 for the next few months.

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