Moderna Says COVID-19 Vaccine Won’t Be Widely Available Until 2021 As US Deaths Near 200,000: Live Updates

Moderna Says COVID-19 Vaccine Won’t Be Widely Available Until 2021 As US Deaths Near 200,000: Live Updates

Tyler Durden

Fri, 09/18/2020 – 11:07

Eight months after the coronavirus infected the first person on US soil, America is heading toward a morbid new milestone: the number of deaths attributed to the coronavirus is on track to pass 200,000 as soon as Monday.

With a total of 197,696 deaths, the US could cross the threshold on Sunday if deaths spike over the weekend. If the pace of deaths slows, however, more time will likely be needed.

Meanwhile, the number of confirmed cases in the US is nearing 6.75 million, with 6,677,516 cases in total. The US reported more than 44,000 cases yesterday, a sign that numbers are climbing again as more students head back to classrooms, and more states – including Texas and Hawaii – unveil plans for more reopenings of gyms and restaurants.

Globally, the world officially passed the 30 million mark, as we noted yesterday.

A surge of new cases in India has pushed the global daily figures back above 300,000.

While global deaths are on the cusp of topping 950k, with 5,456 counted yesterday.

After releasing a tome-like report yesterday outlining the protocols for the company’s ‘Phase 3’ trials of a COVID-19 vaccine, Moderna on Friday revealed (via press reports) that the company expects to have between 500 million and 1 billion vaccine doses manufactured by the end of next year, but only 20 million by the end of 2020.

President Trump earlier this week insisted that a coronavirus vaccine will be widely available within ‘weeks’, even as the head of the CDC said that while data and approval might come later this week, most Americans won’t have access to a vaccine until the middle of next year.

With the UK reporting more than 3k new COVID-19 cases a day, the highest rate since HMG finished reopening the country, Boris Johnson is reportedly weighing a plan to impose short-term nationwide restrictions across England, what he is tentatively calling a “circuit breaker”.

The UK’s reproduction “R” number, a measure of the rate of spread, found that the rate of new infections in the country has risen to a range of 1.1-1.4 from last week’s figure of 1.0-1.2.

“An R number between 1.1 and 1.4 means that on average every 10 people infected will infect between 11 and 14 other people,” a government report read.

The temporary closures would help create “a breathing space” in the battle against coronavirus, government sources have reportedly said.

Meanwhile, London Mayor Sadiq Khan on Friday announced the cancellation of the city’s New Year’s fireworks during an interview with LBC radio. He also admitted that another ‘localized lockdown’ targeting London is a possibility that is under discussion.

As London mulls what would be its second lockdown, Israel’s second lockdown began on Friday, Israel entered its second lockdown, inspired by a surge in new cases in the small Mediterranean country.

While the Netherlands recorded a new 24-hour record of cases, the French city of Nice imposed new restrictions, including reviving a ban on gatherings with more than 10 people.

via ZeroHedge News https://ift.tt/33EPHIH Tyler Durden

More Than One Third Of All NYC Residents Consider Leaving

More Than One Third Of All NYC Residents Consider Leaving

Tyler Durden

Fri, 09/18/2020 – 10:57

Authored by Mike Shedlock via MishTalk,

The cost of living in New York City is so steep that in the past 4 months, 35% have considered leaving.

High Income Flight

A Siena College study shows 44 Percent of Six-Figure Earners in NYC Have Considered Relocating.

The study also states 80% of those living in the city make $100,000 or more, and that translates to 35.2% of all residents.

Key Findings

  1. Of New York City residents who earn $100,000 or more annually, 44% have considered moving out of the city in  the past four months. Looking ahead, 37% say that it is at least somewhat likely that they will not be living in the city within the next two years.

  2. More than two-thirds (69%) are “not confident that New York City will be back to normal anytime soon,” while just 28% believe that the city “will weather this crisis, and things will be back to normal soon.” 

  3. Respondents from Staten Island are especially pessimistic: 89% say that they are not confident in a timely return to normalcy. 

  4. Some 80% of New Yorkers earning six-figure salaries or higher believe that economic activity in the city will take longer than a year to recover, and just 20% say that the economy will return to normal in the next 12 months. 

  5. Older respondents are more pessimistic about the recovery, with 89% of those 65 years and older expecting recovery to be more than a year away

  6. Only 38% of New Yorkers surveyed said that quality of life now was excellent or good, a drop by half, from 79% before the pandemic. Most believe that the city has a long road to recovery: 69% say that it “will take longer than a year” for quality of life to return to normal.

  7. 75% of respondents cited income taxes as a problem, while 72% pointed to traffic and 68% to the reliability of public transportation. 

  8. The greatest concern of all was the likelihood of coronavirus spread, with 90% saying that it posed a problem for them. 

  9. Among respondents with children who attend public school in New York City, more than half (53%) said that they are very concerned about sending them back to school, including 76% of black respondents. Those in the Bronx (72%) are warier of sending their children to reopened physical schools than those in Manhattan (40%). 

  10. Income taxes appear to be a bigger concern for respondents than property taxes (75% to 60%, respectively, saying that these taxes are at least somewhat serious problems). Even for these New Yorkers earning six-figure salaries and above, 89% cite cost of living as a problem.

Governor Cuomo Begs Rich New Yorkers to Return

In an effort to get wealthy New Yorkers to return, Governor Andrew Cuomo says ‘Come over, I’ll cook!’

“I literally talk to people all day long who are now in their Hamptons house who also lived here, or in their Hudson Valley house, or in their Connecticut weekend house, and I say, ‘You got to come back! We’ll go to dinner! I’ll buy you a drink! Come over, I’ll cook!’

“They’re not coming back right now. And you know what else they’re thinking? ‘If I stay there, I’ll pay a lower income tax,’ because they don’t pay the New York City surcharge,” he added, noting the wealthiest 1 percent of the Empire State’s population picks up roughly 50 percent of the state’s tax burden.

NYC Mayor Says ‘I Am Not Going to Beg’

In sharp contrast to governor Cuomo, NYC mayor Bill de Blasio says ‘I Am Not Going to Beg’.

In a briefing from City Hall, de Blasio for a second day in a row sneered at Gov. Cuomo’s suggestion that the Big Apple’s ballooning deficit can only be bridged if rich people who fled at the outset of the pandemic come back and start paying taxes again.

“I am not going to beg anybody to live in the greatest city in the world.”

De Blasio also reiterated his demand for taxing wealthy New Yorkers at a higher rate and said the most “fair” period in American history was in the high-taxed aftermath of World War II.

“We saw much less income inequality,” he said. “We had the model right.”

The Right Model

De Blasio, a true progressive nutcase, wants a 90% income tax rate. 

If he tried that at the city level rather than nationally most of NYC would vacate.

Modern Income Tax

The Modern Income Tax started in 1913 at a modest 1% rate.

By 1918  it was 77% to finance WWI which the US should never have been involved in.

In the name of “fairness” President Franklin D. Roosevelt idiotically proposed a 100% tax on all incomes over $25,000.

In the wake of WWII marginal rates got as high as 94% on incomes above $200,000.

Rates have generally been falling since 1964 when the top rate was lowered to 70%.

via ZeroHedge News https://ift.tt/32HxdI8 Tyler Durden

China Buzzes Taiwan With Unusually Large Show Of Force Involving 18 Aircraft

China Buzzes Taiwan With Unusually Large Show Of Force Involving 18 Aircraft

Tyler Durden

Fri, 09/18/2020 – 10:35

Another top American official is on a three day visit to Taiwan, and China has made its anger known by once again buzzing the island with fighter jets. But this time it was an almost unprecedented show of air power in recent times.

Just a day after US Undersecretary for Economic Affairs Keith Krach arrived in Taipei for talks on Thursday, China sent what it called a “necessary response” in the form of an usually large group of 18 jets flying near the island.

Taiwan confirmed it was 18 fighters, which defense officials said was far more than prior such encounters, in response to which Taiwan scrambled its own fighters.

The defense ministry described in an English statement: “September 18, two H-6 bombers, eight J-16 fighters, four J-10 fighters and four J-11 fighters crossed the midline of the TaiwanStrait and entered Taiwan’s southwest ADIZ.” And further: “ROCAF scrambled fighters, and deployed air defense missile system to monitor the activities.”

From a prior February encounter involving a Chinese H-6 bomber in Taiwan’s airspace, via AFP.

China’s defense ministry described of the latest provocative action over the island it claims as it’s own:

“They are a reasonable, necessary action aimed at the current situation in the Taiwan Strait and protecting national sovereignty and territorial integrity.”

In response, Taiwan said it loaded some of its F-16 fighters with missiles to be ready for possible escalation.

US Undersecretary for Economic Affairs Krach is the most senior US official who has visited the island in decades. But Beijing is apparently attempting to lay down a ‘red line’ over fears Washington may be readying an even more visible top US delegation diplomatic trip.

Hu Xijin of China’s state-run Global Times wrote of the scenario, “If the US secretary of state or defense secretary visits Taiwan, People’s Liberation Army fighters should fly over Taiwan island, and directly exercise in the skies above it.”

via ZeroHedge News https://ift.tt/2ZRewA1 Tyler Durden

Affirmative Action in College Admissions Will Be on California’s Ballot in November

UCSD_1161x653

California voters will be asked in November whether they want to end a ban on affirmative action in college admissions, even though the state college system’s own demographic data shows increasingly diverse campuses absent preferential treatment.

Proposition 209, passed in 1996, added to the state’s constitution a ban on racial or sex preferences in education and hiring decisions in government institutions. This meant that on top of forbidding discrimination against somebody on the basis of sex, race, or ethnicity, the state couldn’t give somebody an advantage in public college admissions or government jobs on the basis of these factors.

In June, Democratic lawmakers voted to put on the November ballot a measure that would strike down Proposition 209. It’s on the ballot as Proposition 16, and the new proposition would simply strike out the text added to the state’s constitution by Proposition 209.

The proposition is supported by the regents of the University of California, which is notable because former leaders of the college system led the campaign for Proposition 209 in the first place. Former regent Ward Connerly, a Republican, said at the time that affirmative action was intended to be a temporary measure to recover from decades of racist practices, but that “[t]hree decades later, affirmative action is permanent and firmly entrenched as a matter of public policy. … not because of any moral imperative but because it has become the battleground for a political and economic war that has racial self-interest as its centerpiece.”

The arguments for eliminating Proposition 209 are odd and not terribly compelling (which would explain why Prop. 16 is currently doing poorly in polls). Assembly Member Shirley Weber (D–San Diego) authored the bill that would become Prop. 16 and explained in June that “The ongoing pandemic, as well as recent tragedies of police violence, is forcing Californians to acknowledge the deep-seated inequality and far-reaching institutional failures that show that your race and gender still matter.” Affirmative action, notably, does nothing to solve either COVID-19 or police violence.

Coverage in The Los Angeles Times is giving a lot of attention to a study from U.C. Berkeley released in August claiming that in the immediate wake of Prop. 209, there was a drop in enrollment by black and Latino students in the University of California system, which drove down their future wages.

The study further argues that prior to Prop. 209, when affirmative action was permitted in California, white and Asian American students were not harmed because they just went to other high-quality schools and ended up with similar earnings.

Affirmative action proponents could argue that the market provided for those students who were negatively affected by affirmative action, which would appear to echo the libertarian argument that gay couples have access to a market for wedding cakes and thus Christian bakers should not be forced to act against their own beliefs under threat of government penalty.

But there is a significant difference here, and it is that gay couples can’t be forced to pay a bakery if it won’t make a cake for them. The same is not true for California’s state-run college system and applicants who would be accepted on the merits but rejected under affirmative action. Because about 12 percent of the University of California’s budget comes from state funding—a total of $3.69 billion for the 2018-2019 school year—and about 12 percent of California’s general fund goes to higher education across the state, bringing back affirmative action would require some Californians to pay into an education system that would likely discriminate against them and their children on the basis of their race if they are white or Asian. As one might imagine, this does not play well with leaders of some Asian organizations in California who are tired of being pitted against other minorities.

“This is a troubling trend where our public university in the state is taking backwards steps in history to allow racial favoritism in college admissions,” said Crystal Lu, president of the Silicon Valley Chinese Assn. Foundation, in June.

On Thursday, UC’s board of regents banned the use of race quotas in admissions, hiring, and contracting, but race and gender would be used as a factor in admissions (along with more typical considerations like grades, talents, and coursework). Even without the quotas, though, it’s part of the college system’s stated goal to more closely match the demographics of California’s school age population.

What’s a bit strange about this effort is that the data showing drops in minority attendance at the University of California is from 20 years ago. The U.C. system responded to the drop after Prop. 209’s passage by finding effective ways to increase minority representation at their colleges that don’t depend on racial favoritism.

Here’s what the Los Angeles Times noted in June at the same time as the U.C. regents were calling for repealing Prop. 209:

UC campuses increased outreach to underserved communities. UCLA, for instance, works with 20 Los Angeles Unified high schools and several Black churches in the Inland Empire to scout promising students and keep them on track. The strategy, spearheaded by Youlonda Copeland-Morgan, UCLA vice provost of enrollment management, has helped the campus increase the proportion of resident Black students admitted as freshmen from 3.7% in 2012 to 6.3% in 2019.

The measures have produced some progress. The share of admission offers to California freshmen who are Black increased from 4.3% in fall 2010 to 4.7% in 2019, while the Latino share grew from 22.9% to 34.3% during the same period. Asian Americans also increased from 33.9% to 35.72% while whites declined from 32.4% to 21.9%.

The share of students admitted to California colleges who are black is just one percentage point less than the estimated 5.8 percent of the state that is black, and the share of students admitted who are Latino is just five percentage points below the estimated 39 percent of the state that is Latino.

Most importantly, even without affirmative action, white college admissions are dropping as a percentage of the total enrolled population right now! The most recent data about college admissions in California actually shows that affirmative action is not needed to create a college campus that better reflects the state’s population.

The one big outlier in these stats is the percentage of the freshman that identifies as Asian, which is more than twice the 14 percent of the California population that is Asian. That would explain why Asian community leaders are so angry: The people trying to sell Californians on bringing back affirmative action want voters to think it’s those privileged white folks who are hogging all the seats in the lecture hall. But white enrollment is actually declining, which means returning affirmative action to California colleges will ultimately pit minority groups against each other.

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Trump Wants More Stimulus Spending. Biden Wants a National Mask Mandate. Both Are Wrong.

sfphotosthree429951

The 2020 presidential election is shaping up to be a choice between a man who wants to spend America further into oblivion to solve a problem that money can’t fix, and a man who believes being president gives him license to regulate the personal behaviors of more than 330 million people (and also wants to spend America into oblivion).

In the first corner is President Donald Trump, who is now trying to paper over his administration’s many, many early mistakes in handling the coronavirus by running the federal printing press at warp speed.

Trump on Wednesday agreed with Speaker of the House Rep. Nancy Pelosi (D-Calif.) that more stimulus spending is necessary. In May, Pelosi’s House passed a $3 trillion coronavirus stimulus bill—that’s $3 trillion on top of about $4 trillion in emergency coronavirus spending already authorized, some of which remains unspent—but the Republican-controlled Senate has refused to pass it. Citing concerns about the size of the deficit, Senate Republicans have pushed for a smaller package that would cost about $500 billion.

Trump left no doubt where he stood on Wednesday.

“I like the larger amount,” he said from the podium in the White House briefing room yesterday evening. “Some of the Republicans disagree, but I think I can convince them to go along with that.”

Over 13 million Americans remain out of work in large part due to the pandemic. There may be a good argument for a limited federal response that helps those most hurt by the pandemic and by mandatory shutdowns. Another round of business-focused aid might be necessary as the crisis drags on. But the “higher number” that Trump prefers in the House-passed stimulus bill is a mess of special interest handouts and unnecessary aid to states that shouldn’t be looking to the deeply indebted federal government for help in the first place.

It is difficult to comprehend just how much money the federal government has already spent because of the COVID-19 pandemic. Here’s a useful illustration—compare the total government spending during this year to the 2009 stimulus, which looks like a tiny bump in comparison:

Continuing to spend like this is beyond reckless.

Meanwhile, Trump’s opponent in November’s election also made coronavirus-related news yesterday—but not in a good way.

During a news conference in Delaware, former vice president Joe Biden said he believed the president has the authority to issue a national mandate requiring the wearing of face masks in public. “Our legal team thinks I can do that, based upon the degree to which there’s a crisis in those states, and how bad things are for the country,” Biden said, according to CBS News.

Biden has been beating the “mask mandate” drum since the Democratic National Convention but has not been forthcoming about the details of that plan, like how his administration would enforce such a rule.

Wednesday’s remarks, however, suggest that Biden’s team is actually building a legal case for having a president require that individuals dress in a certain way. That’s beyond ridiculous, of course, and seems likely to be unconstitutional.

Should all Americans wear masks when they are unable to socially distance during the pandemic? Yes. Should the president be ordering this behavior? Absolutely not.

As Elizabeth Nolan Brown wrote last month, the biggest problem with a national mask mandate is that someone has to enforce it. “That means either turning federal agents to the task of monitoring mask-wearing or giving more funds to state and local police departments so they can do so,” she argued. “No matter how it’s accomplished, there’s no way that doesn’t lead to more spending on law enforcement, more government surveillance, and more contact between cops and communities that are already overpoliced—all at a moment when millions of Americans are demanding just the opposite of that.”

Oh, and Biden also supports the passage of the House’s $3 trillion stimulus package—part of roughly $11 trillion in new spending that Biden’s campaign is proposing to pay for with about $3 trillion in new taxes. You can do that math on that one by yourself.

What neither Trump nor Biden has figured out yet is that it is impossible to stimulate your way out of an economic crisis that’s been created by people being unwilling or unable to spend money. When the federal printing press churned out $1,200 checks for every American at the start of the pandemic, personal savings rates shot through the roof. There are some people who might need additional help to get through this crisis, but throwing money at the rest of us—to say nothing of bailing out the postal service and the Kennedy Center—makes no sense.

The mask mandate has a similar problem. It is impossible to enforce, so the only realistic option is to convince Americans to voluntarily wear masks—which is something you can do without a mandate. The president, like all other government officials, should encourage the wearing of masks and endeavor to provide accurate, timely information to all people so they can make their own risk assessments. That’s all. Just please do that one thing.

It is a near certainty that either Trump or Biden will be elected president less than two months from now. It is also a near certainty, regardless of who wins, that federal spending will continue to rise and that presidential power will continue to metastasize.

There might be good reasons to vote for either Biden or Trump—and there are plenty of reasons to vote against both, as the new issue of Reason explores—but when it comes to their plans for the next stage of dealing with this pandemic, neither man deserves our confidence.

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Affirmative Action in College Admissions Will Be on California’s Ballot in November

UCSD_1161x653

California voters will be asked in November whether they want to end a ban on affirmative action in college admissions, even though the state college system’s own demographic data shows increasingly diverse campuses absent preferential treatment.

Proposition 209, passed in 1996, added to the state’s constitution a ban on racial or sex preferences in education and hiring decisions in government institutions. This meant that on top of forbidding discrimination against somebody on the basis of sex, race, or ethnicity, the state couldn’t give somebody an advantage in public college admissions or government jobs on the basis of these factors.

In June, Democratic lawmakers voted to put on the November ballot a measure that would strike down Proposition 209. It’s on the ballot as Proposition 16, and the new proposition would simply strike out the text added to the state’s constitution by Proposition 209.

The proposition is supported by the regents of the University of California, which is notable because former leaders of the college system led the campaign for Proposition 209 in the first place. Former regent Ward Connerly, a Republican, said at the time that affirmative action was intended to be a temporary measure to recover from decades of racist practices, but that “[t]hree decades later, affirmative action is permanent and firmly entrenched as a matter of public policy. … not because of any moral imperative but because it has become the battleground for a political and economic war that has racial self-interest as its centerpiece.”

The arguments for eliminating Proposition 209 are odd and not terribly compelling (which would explain why Prop. 16 is currently doing poorly in polls). Assembly Member Shirley Weber (D–San Diego) authored the bill that would become Prop. 16 and explained in June that “The ongoing pandemic, as well as recent tragedies of police violence, is forcing Californians to acknowledge the deep-seated inequality and far-reaching institutional failures that show that your race and gender still matter.” Affirmative action, notably, does nothing to solve either COVID-19 or police violence.

Coverage in The Los Angeles Times is giving a lot of attention to a study from U.C. Berkeley released in August claiming that in the immediate wake of Prop. 209, there was a drop in enrollment by black and Latino students in the University of California system, which drove down their future wages.

The study further argues that prior to Prop. 209, when affirmative action was permitted in California, white and Asian American students were not harmed because they just went to other high-quality schools and ended up with similar earnings.

Affirmative action proponents could argue that the market provided for those students who were negatively affected by affirmative action, which would appear to echo the libertarian argument that gay couples have access to a market for wedding cakes and thus Christian bakers should not be forced to act against their own beliefs under threat of government penalty.

But there is a significant difference here, and it is that gay couples can’t be forced to pay a bakery if it won’t make a cake for them. The same is not true for California’s state-run college system and applicants who would be accepted on the merits but rejected under affirmative action. Because about 12 percent of the University of California’s budget comes from state funding—a total of $3.69 billion for the 2018-2019 school year—and about 12 percent of California’s general fund goes to higher education across the state, bringing back affirmative action would require some Californians to pay into an education system that would likely discriminate against them and their children on the basis of their race if they are white or Asian. As one might imagine, this does not play well with leaders of some Asian organizations in California who are tired of being pitted against other minorities.

“This is a troubling trend where our public university in the state is taking backwards steps in history to allow racial favoritism in college admissions,” said Crystal Lu, president of the Silicon Valley Chinese Assn. Foundation, in June.

On Thursday, UC’s board of regents banned the use of race quotas in admissions, hiring, and contracting, but race and gender would be used as a factor in admissions (along with more typical considerations like grades, talents, and coursework). Even without the quotas, though, it’s part of the college system’s stated goal to more closely match the demographics of California’s school age population.

What’s a bit strange about this effort is that the data showing drops in minority attendance at the University of California is from 20 years ago. The U.C. system responded to the drop after Prop. 209’s passage by finding effective ways to increase minority representation at their colleges that don’t depend on racial favoritism.

Here’s what the Los Angeles Times noted in June at the same time as the U.C. regents were calling for repealing Prop. 209:

UC campuses increased outreach to underserved communities. UCLA, for instance, works with 20 Los Angeles Unified high schools and several Black churches in the Inland Empire to scout promising students and keep them on track. The strategy, spearheaded by Youlonda Copeland-Morgan, UCLA vice provost of enrollment management, has helped the campus increase the proportion of resident Black students admitted as freshmen from 3.7% in 2012 to 6.3% in 2019.

The measures have produced some progress. The share of admission offers to California freshmen who are Black increased from 4.3% in fall 2010 to 4.7% in 2019, while the Latino share grew from 22.9% to 34.3% during the same period. Asian Americans also increased from 33.9% to 35.72% while whites declined from 32.4% to 21.9%.

The share of students admitted to California colleges who are black is just one percentage point less than the estimated 5.8 percent of the state that is black, and the share of students admitted who are Latino is just five percentage points below the estimated 39 percent of the state that is Latino.

Most importantly, even without affirmative action, white college admissions are dropping as a percentage of the total enrolled population right now! The most recent data about college admissions in California actually shows that affirmative action is not needed to create a college campus that better reflects the state’s population.

The one big outlier in these stats is the percentage of the freshman that identifies as Asian, which is more than twice the 14 percent of the California population that is Asian. That would explain why Asian community leaders are so angry: The people trying to sell Californians on bringing back affirmative action want voters to think it’s those privileged white folks who are hogging all the seats in the lecture hall. But white enrollment is actually declining, which means returning affirmative action to California colleges will ultimately pit minority groups against each other.

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Trump Wants More Stimulus Spending. Biden Wants a National Mask Mandate. Both Are Wrong.

sfphotosthree429951

The 2020 presidential election is shaping up to be a choice between a man who wants to spend America further into oblivion to solve a problem that money can’t fix, and a man who believes being president gives him license to regulate the personal behaviors of more than 330 million people (and also wants to spend America into oblivion).

In the first corner is President Donald Trump, who is now trying to paper over his administration’s many, many early mistakes in handling the coronavirus by running the federal printing press at warp speed.

Trump on Wednesday agreed with Speaker of the House Rep. Nancy Pelosi (D-Calif.) that more stimulus spending is necessary. In May, Pelosi’s House passed a $3 trillion coronavirus stimulus bill—that’s $3 trillion on top of about $4 trillion in emergency coronavirus spending already authorized, some of which remains unspent—but the Republican-controlled Senate has refused to pass it. Citing concerns about the size of the deficit, Senate Republicans have pushed for a smaller package that would cost about $500 billion.

Trump left no doubt where he stood on Wednesday.

“I like the larger amount,” he said from the podium in the White House briefing room yesterday evening. “Some of the Republicans disagree, but I think I can convince them to go along with that.”

Over 13 million Americans remain out of work in large part due to the pandemic. There may be a good argument for a limited federal response that helps those most hurt by the pandemic and by mandatory shutdowns. Another round of business-focused aid might be necessary as the crisis drags on. But the “higher number” that Trump prefers in the House-passed stimulus bill is a mess of special interest handouts and unnecessary aid to states that shouldn’t be looking to the deeply indebted federal government for help in the first place.

It is difficult to comprehend just how much money the federal government has already spent because of the COVID-19 pandemic. Here’s a useful illustration—compare the total government spending during this year to the 2009 stimulus, which looks like a tiny bump in comparison:

Continuing to spend like this is beyond reckless.

Meanwhile, Trump’s opponent in November’s election also made coronavirus-related news yesterday—but not in a good way.

During a news conference in Delaware, former vice president Joe Biden said he believed the president has the authority to issue a national mandate requiring the wearing of face masks in public. “Our legal team thinks I can do that, based upon the degree to which there’s a crisis in those states, and how bad things are for the country,” Biden said, according to CBS News.

Biden has been beating the “mask mandate” drum since the Democratic National Convention but has not been forthcoming about the details of that plan, like how his administration would enforce such a rule.

Wednesday’s remarks, however, suggest that Biden’s team is actually building a legal case for having a president require that individuals dress in a certain way. That’s beyond ridiculous, of course, and seems likely to be unconstitutional.

Should all Americans wear masks when they are unable to socially distance during the pandemic? Yes. Should the president be ordering this behavior? Absolutely not.

As Elizabeth Nolan Brown wrote last month, the biggest problem with a national mask mandate is that someone has to enforce it. “That means either turning federal agents to the task of monitoring mask-wearing or giving more funds to state and local police departments so they can do so,” she argued. “No matter how it’s accomplished, there’s no way that doesn’t lead to more spending on law enforcement, more government surveillance, and more contact between cops and communities that are already overpoliced—all at a moment when millions of Americans are demanding just the opposite of that.”

Oh, and Biden also supports the passage of the House’s $3 trillion stimulus package—part of roughly $11 trillion in new spending that Biden’s campaign is proposing to pay for with about $3 trillion in new taxes. You can do that math on that one by yourself.

What neither Trump nor Biden has figured out yet is that it is impossible to stimulate your way out of an economic crisis that’s been created by people being unwilling or unable to spend money. When the federal printing press churned out $1,200 checks for every American at the start of the pandemic, personal savings rates shot through the roof. There are some people who might need additional help to get through this crisis, but throwing money at the rest of us—to say nothing of bailing out the postal service and the Kennedy Center—makes no sense.

The mask mandate has a similar problem. It is impossible to enforce, so the only realistic option is to convince Americans to voluntarily wear masks—which is something you can do without a mandate. The president, like all other government officials, should encourage the wearing of masks and endeavor to provide accurate, timely information to all people so they can make their own risk assessments. That’s all. Just please do that one thing.

It is a near certainty that either Trump or Biden will be elected president less than two months from now. It is also a near certainty, regardless of who wins, that federal spending will continue to rise and that presidential power will continue to metastasize.

There might be good reasons to vote for either Biden or Trump—and there are plenty of reasons to vote against both, as the new issue of Reason explores—but when it comes to their plans for the next stage of dealing with this pandemic, neither man deserves our confidence.

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Watch: CNN (Seriously) Claims That COVID Will Spread At Trump Rallies But Not BLM Protests

Watch: CNN (Seriously) Claims That COVID Will Spread At Trump Rallies But Not BLM Protests

Tyler Durden

Fri, 09/18/2020 – 10:15

Authored by Steve Watson via Summit News,

In response to criticism that CNN is continuously praising mass gatherings when they are BLM organised, but condemning Trump campaign rallies for breaking COVID restrictions, the network seriously attempted to argue that the Trump rallies are scientifically more likely to spread the virus than BLM gatherings.

On Wednesday, Trump campaign communications director Tim Murtaugh called out CNN’s hypocrisy on this matter, noting that “if people can protest in the streets by the tens of thousands, if people can riot, if people can gamble in casinos, then certainly they can gather peaceably under the First Amendment to hear from the president of the United States.”

Butthurt from this exchange, CNN Newsroom drafted in “medical analyst” Leana Wen, who happens to be a former Planned Parenthood president, to explain why science means COVID doesn’t affect BLM protests as much as Trump rallies.

“It does not care why it is that people are gathering but it does care about the conditions under which they’re gathering,” Wen argued, adding “outdoors much safer than indoors and wearing masks obviously much safer than not wearing masks.”

“I would also in this case would distinguish between the behavior of the participants while at protests versus rallies,” she continued, arguing that BLM protesters are more “aware” of the risks than Trump supporters.

“At protests many people are aware of the risks and doing everything they can to reduce that risk versus at many of the rallies we are seeing people going in defiance,” Wen claimed.

“It’s their behavior during those events. I also worry about what they do after the events. They may not be self-quarantining and testing as then getting tested as they should be,” Wen baselessly conjectured.

She even cited a study carried out in June that found “[T]here have not been surges of infections that have been tied” to protests.

Of course, there is no evidence that Trump rallies are tied to any surges of infections either, but that doesn’t seem to matter because the orange man is bad.

Host Jim Sciutto thanked Wen for “breaking through the fog of confusion and disinformation to lead us back to the facts.”

Diligent viewers were left wondering exactly what facts they’d been ‘led back to’ and questioning why the ‘fog of confusion bullshit’ appeared thicker than ever at the end of this segment.

via ZeroHedge News https://ift.tt/2RKll1z Tyler Durden

UMich Sentiment Jumps To Six-Month High As Democrats’ Confidence Soars

UMich Sentiment Jumps To Six-Month High As Democrats’ Confidence Soars

Tyler Durden

Fri, 09/18/2020 – 10:10

Having utterly failed to confirm the ‘v’-shaped recovery in stocks so far, preliminary UMich sentiment data was expected to show more of the same – mixed moves and disappointment – but it actually came in considerably better than expected.

The headline sentiment index for September advanced to 78.9 from a final August reading of 74.1, and well above the 75.0 expectations. That is the highest in 6 months (but well below the pre-COVID highs)

The measure of expectations rose 4.8 points to 73.3, also a six-month high, while a gauge of current conditions increased 4.6 points to 87.5.

Source: Bloomberg

Somewhat shockingly, only 16% of respondents said they expected the economy to worsen in the year ahead, the smallest share since 2015 and consistent with an economy and labor market that are slowly recovering.

“Over the next several months, there are two factors that could cause volatile shifts and steep losses in consumer confidence: how the election is decided and the delays in obtaining vaccinations,’’ Richard Curtin, director of the survey, said in a statement.

Additionally shocking is the fact that Democrats’ sentiment surged in early September…

Source: Bloomberg

Finally, despite The Fed’s best efforts to create and inflationary environment, sentiment on future inflation tumbled…

Source: Bloomberg

The Michigan surveys have traditionally asked consumers which candidate they thought would win the election, not whom they favored or how they intended to vote. The data from July to September indicate a virtual tie. This question has been asked since Carter ran against Ford in 1976, and in every presidential election, consumers correctly chose the winner, save one: when Trump ran against Clinton in 2016, two-thirds of consumers expected a Clinton victory. In one other election had the data been as close as now—in the 1980 election that had Reagan over Carter by one percentage point.

When consumers were directly asked which candidate would be better for the economy and for their personal finances, Trump was chosen over Biden as more likely to benefit the economy and their finances, although most consumers said there was no difference with regard to their own finances.

via ZeroHedge News https://ift.tt/3mB92mv Tyler Durden

Quad-Witch Trigger: “Staggering Gamma Collapse” Opens Market Trapdoor If QQQ Slides Below 270

Quad-Witch Trigger: “Staggering Gamma Collapse” Opens Market Trapdoor If QQQ Slides Below 270

Tyler Durden

Fri, 09/18/2020 – 09:54

The relentless gamma meltup of late August, early September is now ancient history, and following today’s “quad witch” expiration, Nomura’s Charlie McElligott writes that the “Nasdaq is open to a MUCH larger trading range coming-out” following what he calls a “staggering collapse” in dealer gamma, with 63% running off and now totaling a negative -$564.5mm, which is not only the lowest since late 2018 when the market suffered its first mini bear market of the post crisis period, but is also just a 2.3 percentile since 2014…

… while dealer Delta is -$15.5B, just 2.8%ile since 2014…

And unlike just two weeks ago, when spot was solidly in positive gamma territory, dealers are now near the extremes of “short gamma” territory vs spot, with QQQ spot at $272…

… far below the “gamma neutral” line at $281.64.

To McElligott, this matters “because the QQQ $270 strike probably needs to and probably will be well-defended today by market-makers short this monster in size”, but if selling persists and the $270 “trigger” in QQQs is taken out, that’s when “things could get sloppy to the downside into next week.”

Away from the Nasdaq, the Nomura cross-asset strategist believes that the S&P seems “safe” as it is currently pinning around the “gamma neutral” level of ~3380 (3360 spot ref).

A few more observations as we head into this key for market volatility day, first looking at factors, where McElligott notes that the last few days look pretty “gross-down-ish” which he views as “rational” in the risk-management sense, as books trade through VaR limits in light of the recent vol events and need to be reduced. This is important because what on the surface may look like “Value over Growth” rotation “is really about the mechanical realities of reducing partial of your longs and covering a portion of your shorts.”

Meanwhile, in volatility, Charlie recently discussed the disconnect and dysfunction in the vol space imminently prior to the crash and noted that “smart guys were taking-advantage of the rich implieds in the Tech bellwether single-names and began to short vol again because the demand drivers were blown out of the market, thus effectively putting on “buy the dip” market expressions thereafter, and those vols have since been SMASHED.

Looking at vol now, the Nomura strategist says that it now seams reasonable again to look at going long some vol/gamma/owning optionality into pending risk event catalysts (the election, trade deal, vaccine and earnings), especially since Dealers are increasingly unable to go sizeably short gamma or vega into that wall of “risk events” and as they look to protect themselves from a risk-management PNL perspective.

Next, picking up on the recent discussion of vol control funds, McElligott notes that the switch he anticipated from Vol Control moving from the 3m- to 1m- realized as their allocation input has been a critical shift in flows, “as we removed what had been a source of almost daily latent buying to one that has now turned a local incremental “seller” with -$18.3B over the past 2w since the vol shock event.

As a result, Nomura we would anticipate a sell in almost every circumstance: only a flat 0% return would see a small “buy” (+$0.3B), while -2% is a sale of -$5.4B and +2% is a sale as well (-$5.1B).

Finally, Charlie mentions increasing market chatter “among a handful of clients that contrary to the rapid shift in consensus that a new stimulus (4.0) deal would not happen before the election, “could be caught flat-footed, with a few folks believing that this year’s election “October Surprise” might not be vaccine-related (as speculated by some), but instead, potentially about a stimulus “deal” getting done by mid/late Oct as a potential monster pain-trade catalyst for a “pro-cyclical” risk-ON and bear-steepening/reflation catalyst” into what is already a powerful year-end seasonal going forward. And since so many have now given up hope of this possibility, the market implications could be profound.

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