Things That Make You Go Hmmm… Like Is Japan Totally F##ked?

We have detailed the straitjacket into which the Japanese have been strapped for the past two decades numerous times in the last few years (in great detail here)  but as Grant Williams leaned back in his most comfortable chair after reading an article about proposed changes to the GPIF (Government Pension Investment Fund), Japan’s public pension fund; the thought popped into his mind – "Japan really is totally f##ked." What led him to that well-thought-out and eruditely expressed conclusion? Read on…


In an interview with CNN’s Fareed Zakaria earlier this year, Abe explained the true significance of the third arrow:

“What is important about the third arrow, structural reform, is to convince those who resist the steps I am taking and to make them realize that what I have been doing is correct, and by so doing, to engage in structural reform.”

Read that again.

Yes folks, the important part of structural reform in Japan is to convince people that Abe is correct. If he can convince them he is right, they will have engaged in structural reform.


You should be.

This is how Japan works — or doesn’t.

Immigration reform has been widely recognized as the only answer to Japan’s crippling demographic problem for well over three decades. Nothing has been done about it.

How about the “Wage Surprise” — increasing wages on a national basis — hailed by Abe as the key to lifting Japan out of the doldrums, and a key feature of Abenomics?


Markets will eventually tire of Abe’s continual promises that more is coming, so he desperately needs to somehow break the entrenched deflationary attitude in Japan.

(WSJ): In a survey of 1,000 consumers on March 29-30 by broadcaster Fuji News Network, 69% said they had not made any special purchases ahead of the sales tax rise, and 77.4% said they didn’t feel an economic recovery was under way.

Good luck with that attitude problem, Shinzo.

This week we got a look at how Abe is faring with one of his promises, that of guaranteed 2% inflation.

Core CPI (excluding food and energy) rose 1.3% in March — unchanged from the previous month and lower than analyst forecasts.

Of course, that was taken as a sign that further easing by the BoJ would be forthcoming…

And round and round it goes… until it stops.

The briefcase in Pulp Fiction ONLY works because we DON’T find out what is in it.

Abe’s third arrow can be loaded into the bow, but it can’t be fired once and for all, because if it IS fired, the game is up. There will still be continual promises of more to come, and markets may buy into that for a while; but, like all central bank-induced “boom times,” Abenomics has a shelf life, and that is nearing an end.

The changes at the GPIF are potentially disastrous, and Kuroda’s BoJ and Abe’s government are desperately trying to MacGyver their way out of an impossible situation, armed only with hollow promises and faith, when what they really need is duct tape and a Swiss army knife.

Abenomics is a plan by which to change Japanese behaviour; but as anyone who has spent any time in that wonderful, perplexing country will tell you, the Japanese do NOT change their behaviour — even when facing a demographic disaster.

Sorry, but Abenomics is actually nothing at all.


To understand why it's all smoke and mirrors… here is Grant Williams fill letter:



via Zero Hedge Tyler Durden

Behind The Curtain – Putin Is Admired

Submitted by Martin Armstrong via Armstrong Economics,

Putin at least stands for what he truly believes in. That is far more than we find in Western Politicians. Most Western Politicians admire Putin for he is tough and has backbone that they seriously lack not to mention perhaps brains. I disagree with Putin that landmass has anything to do with the power of a nation and Japan proved that to be a correct statement.

Russia could be a great major economic power if it reformed internally and set its people truly free. Russians are great programmers and still have embedded an entrepreneurial spirit.

It is my “opinion” that ever since Bush Jr, bureaucracy has taken hold and grabbed more power – i.e. NSA.

I say this simply based upon my personal observations dealing with government. Consequently, the very same neoconservatives who ran foreign policy under Bush are still there under Obama. The US President is just a puppet and the strings are pulled by the unelected bureaucracy. The problem with this group has been they are only concerned with power – not economics. They are totally ignorant about the economic trend and remain clueless with respect to how to run a government.

They totally fail to grasp that we need each other and cannot articulate for a single second why Russia or China should still be enemies when Communism has fallen.

via Zero Hedge Tyler Durden

Marc Faber Warns “Social Media Stocks Are Just The Start, Market Crash Coming In 2nd Half”

Having called for the demise of the hype/hope growth stocks, biotech, and social media schemes at the end of 2013, Marc Faber believes the weakness in those sectors is a signal of things to come (and that the so-called “rotation” to quality stocks is fallacious in the medium-term). Faber carefully notes that the size of markets allows some stocks to move up as others move down and so the overall market “looks” ok, but warns “we have already had a big break in parts of the market… but we haven’t had the big break in the overall market,” adding that “it’s too late to buy the US stock market,” confirming what we noted about Jeremy Grantham’s dismal outlook for US equities in the medium-term (and how and when the bubble bursts). Simply out, given yields around the world and the fundamentals, “individual investors have excessively optimistic expectations about their future returns,” which is terrible news for the record amounts of Greater Fools piling in as professionals pile out.



via Zero Hedge Tyler Durden

And Another Warning About Fascism… This Time From 1938

Yesterday we asked if the world was tumbling towards fascism. This is not the first such warning, as we noted previously (with Geoffrey Batt), in a Washington Post article from 1938 one finds an interesting warning from former president Herbert Hoover, in which he declares that the FDR “New Deal” is leading the US to fascism.


In a grass roots convention, Hoover stated that

“despite every alibi, this depression is the direct result of Government actions.


The torch of liberty has been dashed out by some sort of fascism in 14 nations of more than 240,000,000 people – they all undertook new deals under some title, usually planned economy.


The New Deal started with a government debt of $21 billion and today finds itself with a debt either direct or guaranteed of $42 billion.


It started with 12 million unemployed; it finds itself after five years with 12 million unemployed. If the 12 million unemployed are not due to [overextension in new construction or in capital equipment or speculation requiring liquidation] to what are they due?


Why have a recession in the face of low interest rates, no overextension of credit, no oversized inventories, no overextension of capital equipment, no overstock of goods, no speculation. If there are none of these sins or forces in the financial world, such as did exist in previous depressions, obviously the origins cannot be blamed upon finance and business.


There is only one place left to search for the causes of this depression. Despite every alibi, the depression is a direct result of governmental actions.”

We know how the 30s ended for America, and we wonder what would have happened had the US not joined the WWII fray, which according to many economists was the only exogenous factor which pushed the country out of the depression and realigned the global map. We do not know what Hoover would say about our current regime, but we doubt it would have been full of praise.

via Zero Hedge Tyler Durden

The State Of The Deep State – The Monster In America’s Closet

Submitted by James Howard Kunstler via Peak Prosperity,

We’ve been hearing a lot about the so-called Deep State lately. What to make of this shadowy monster? Some observers link it to the paranoid fantasy called the New World Order, a staple of political talk radio (and a hobgoblin I don’t believe in). In popular movies such as the Jason Bourne epics and Mission Impossible, the Deep State launches hyper-complex schemes that work flawlessly and never fail. That is exactly why they have such high entertainment appeal. Viewers are thrilled by the precision, by the conceit of seeming infallibility. The Deep State definitely exists; it just doesn’t work the way it is depicted in the movies. 

I like to say that I’m allergic to conspiracy theories because human beings are generally too inept to carry out schemes at the grand scale, as well as being poor secret-keepers. Insider knowledge is almost always swapped around, even in secretive organizations, often recklessly so, because doling it out confers status, tactical advantage, and sometimes money for the doler-outer. But the Deep State isn’t a secret. It operates in plain sight.


First, of course, is the Pentagon leviathan plus all of its suppliers, enablers, and lackeys — the beast that President Eisenhower warned his fellow citizens to beware of in his farewell address, calling it “the military-industrial complex.” It’s worse than ever, especially having engaged in two major fiascos on Asian soil the past decade, pointless escapades that cost the lives of 8,000 soldiers in action, many more maimed for life, and in suicides of servicemen returning home in despair to a spavined economy and the manifold indignities of a cruel and incompetent veterans’ bureaucracy completely unable to care for their needs. Iraq and Afghanistan proved the futility of America’s neurotic mission to try to control everything and every place in the world. In fact, the US military could not control the only two things that mattered in those faraway lands: the terrain and the behavior of the population. What else is there in a military campaign?

This did not stop President Obama from almost repeating the fiasco in Syria in 2013. Only some reality-testing by Vladimir Putin put the schnitz on that operation. For the moment, Putin has also juked Obama and his Secretary of State Kerry from further shenanigans in Ukraine, but the US looks like a sloppy drunk in a barroom at last call spoiling for a fight. We’d better hope we don’t find it. It’s one thing to fight a band of ragged Taliban in the Helmand highlands; it’s another thing to poke a country (Russia) with a thousand nukes targeting everything from Bangor to Bellingham.


Then there are the multiple vampire squids of Wall Street (shorthand for all of finance) engaged in funneling as much wealth out of the disintegrating middle class as possible, creaming off gargantuan transaction fees, premiums, and spreads from every transaction in the entire universe (especially in their carry-trade with the Federal Reserve), and buying off elected officials wholesale, by the hundredweight, to ensure that their swindling operations go unimpeded. Wall Street’s hired servelings now write the latest laws for financial regulation. It is nothing but racketeering on the grandest scale, plain and simple, and it is sponsored wholeheartedly by the Deep State. The Supreme Court has lent a hand in this by defining corporations as persons entitled to express political fellowship via unlimited cash contributions to election campaigns. Wall Street is assisted in turn by the thoroughly corrupt two major political parties. The fabled “revolving door” that shuffles Wall Street executives in and out of government now spins so fast that it is more like a turbine than a door. The degeneracy of Wall Street is covered sufficiently elsewhere in my writings to leave it at that for the purposes of this essay.


Present worries over the Deep State are focused on its massive security apparatus, made up of a combination of venerable old institutions such as the CIA and the Defense Intelligence services with some newer ones such as the Department of Homeland Security (DHS), The National Counterterrorism Center (NCTC), the Federal Emergency Management Agency (FEMA), the Transportation Safety Agency (TSA), Foreign Intelligence Surveillance Act (FISA), the good ol' IRS, the Bureau of Alcohol, Tobacco, and Firearms (ATF), the Immigration and Naturalization Service (INS), and God knows how many out-of-sight “security” offices in the dark precincts of seemingly benign agencies like the National Parks Service and the Bureau of Weights and Measures. On top of all that, add the newly militarized local police all across this land with their camo-clad SWAT teams, bomb-proof Hummers, grenade-launchers, surveillance drones, 20-ton Mine Resistant Ambush Protected vehicles (MRAPs), military-grade helicopters, and in the case of one Arizona sheriff’s department, a pre-owned US Army tank.

The sheer multiplication of “security” officialdom ought to give a sentient citizen a case of the vapors. The work of these outfits is supposedly coordinated by the new umbrella entity, the National Security Agency (NSA), but that’s probably too slippery a description for the organized chaos it represents. The NSA can only pretend to manage all these posses of tech-drunk cowboys. The NSA is a pretense wrapped in a wish shrouded in techno-narcissism.

Grafted onto this armature of old and new bureaucracies is a matrix of private contractors who do much of the actual dirty work and heavy lifting for the official agencies. These private contractors are hugely overpaid (by taxpayers) and are subject to little oversight outside the agencies who hire them — who, in turn, have a keen interest in concealing any misbehavior perpetrated by their private contractors. Outside of that ring of techies, hit men, and errand boys is an asteroid belt of domestic spying infrastructure based in the internet, featuring companies that, willingly or not, funnel information about the myriad activities of individual citizens to the government. These include online retailers, Google and other search engines, banks, credit card companies, health care orgs, phone companies, universities, etc. Then, of course, there is the gigantic corps of lobbyists, public relations spinners, media pimps, corporate consultants, legislative staffers, and other enablers and fixers of Deep State operations. These highly-paid parasites are the ones largely responsible for Washington becoming the third-richest ranked metro area in the nation.

This ever-growing network has been constructed right out in the open with a long lead-up after World War Two, and then an exponential ramp-up following the attacks of 9/11/01 and the paranoia entailed by it. It is surely a remarkable thing that there have been no terror acts on the grand scale in America since 9/11. The 2013 Boston marathon “pressure cooker” bombs that killed 3 people and maimed over 250 others was a way smaller op than 9/11 and relatively amateurish, and the Deep State did not prevent the Chechen Tsarnaev brothers from pulling it off despite the fact that the elder brother, Tamerlan, had been on an FBI watch list for two years prior to the bombing. The Fort Hood massacre of 2009 (13 fatalities) was perpetrated by, of all things, an army psychiatrist Major Nidal Malik Hasan. You’d think the army would have been onto this fellow… he being right under its nose… but what better illustration of basic institutional failure?

There has been surprisingly little else. Perhaps that is due to the diligent work of these bureaucracies. But I find it hard to believe that they had much to do with the absence of terror acts against the countless “soft targets” across the nation. For instance, a small squad of half a dozen jihadists might have entered any one of a thousand big regional shopping malls across America with enough ordnance in a duffle bag to kill a few hundred people. It hasn’t happened, but can anyone say it’s because the National Security apparatus prevented it? I’ve been in many malls the past thirteen years and none of them had any security screening at their doors whatsoever. Anyone could stroll in with an Uzi tucked under his London Fog and blast away. Yet, the known attempted dastardly deeds that were prevented by the Deep State — the 2010 Times Square car bomber, the airplane underwear bomber — you can count on the fingers of one hand.  Of course, the airplane shoe bomber wasn’t stopped until the very moment he tried (and failed) to light his Nikes. Lucky he was a klutz.

In any case, the monumental new combined security apparatus has been given carte blanche to elaborate itself, to grow ever more branches and buds so that it is now a kind of creeping, suffocating, parasitical vine entombing the edifice of the Republic behind a scrim of toxic administrative overgrowth. The remarkable thing all along has been the lack of protest from just about any quarter of the American polity, either the citizens themselves or their elected representatives. Now and again an elderly airline passenger will complain about being groped by an ardent TSA officer, but on the whole the broad public does not seem to care about having its privacy stripped away, even after Edward Snowden burst on the scene with his revelations of what should have been perfectly obvious to anyone who thought about it for half a minute — namely, that government agents could not possibly resist the temptation to harvest those bounteous crops of data accumulating in all the humming server farms all over the country.

It was really only a few weeks ago when one politician did offer a few yelps of objection. That would be Senator Diane Feinstein who, as chair of the Senate Select Committee on Intelligence, was investigating torture carried out by the CIA following 9/11 and in the wars engendered by it. The CIA response to the committee’s requests for information was a 6.2 million-page data-dump of un-collated, un-indexed memos and cables — obviously designed to confound, impede, and delay any discovery of misconduct. On a number of occasions both the CIA and White House staff lied to the committee about the handling of documents, which, of course, distracted attention from the substance of what was in the documents: evidence of programmatic torture. It would be fair to say that CIA personnel jerked the committee around in every way possible to avoid providing coherent answers to straightforward questions and requests. CIA Director John Brennan repeatedly stonewalled Senator Feinstein’s letters, simply refusing to reply. As the tussle heated up, the CIA hacked the Senate committee staff’s computers. Then they went a step further and referred senate committee staffers to the Department of Justice for criminal prosecution in mishandling secret documents. The CIA’s general counsel who made the referral was, in fact, a lawyer in the CIA’s counter-terrorism unit when the alleged tortures took place  — meaning, he had approved them — and his name appeared 1,600 times in the Senate committee’s report.

Senator Feinstein, formerly a dogged supporter of the CIA and its redundant cousin agencies, finally lost it. She held a press conference and pretty much denounced the whole wicked business as an attempt to intimidate the committee and obstruct constitutional oversight of the CIA’s activities.

Who Is Watching The Watchmen?

The affair raises very troubling questions, chiefly: has this vast “security” apparatus become by stealth a fourth branch of the United States Government?  Does it think itself to be more equal than the other branches? Does its existence undermine the rule of law in this nation? And what do we ordinary citizens of this republic do about it? (Assuming we are still a republic.) We’ll touch on these matters in Part 2: How To Oppose The Deep State

Click here to access Part 2 of this report (free executive summary, enrollment required for full access).


via Zero Hedge Tyler Durden

Friday Humor: You Can’t Make This Stuff Up

Submitted by Simon Black of Sovereign Man blog,

20 years in prison.

That’s the penalty you could face for travelling to a country the President has labelled to be “of concern”.

Sending any form of monetary assistance to people in the country merits further steep penalties.

Recently introduced in Congress, ‘The International Conflicts of Concern Act’ gives the President the power to ban travel to certain countries with the flick of his pen.

And the only way around the ban is by applying to the Treasury Department for a special license.

A travel license to leave the country? These kinds of ‘people controls’ are synonymous with regimes like North Korea and Cuba—the latter of which has of course largely been off limits for US citizens for decades.

So far the first country they’ve chosen is Syria, where Director of National Intelligence, James Clapper, warns that terrorist cells are using the country as a training ground to radicalize foreign nationals.

Their logic? Apparently US citizens might go to Syria and learn to be terrorists. So it’s for your own good, you see.

If you’ve been following the news, the situation in Syria is indeed concerning.

There’ve been several stories from Syria about a new terrorist cell that has been bringing deadly weapons into the country. Their latest shipment included 50 TOW missiles, which are powerful enough to pierce through armored tanks.

This organization has also been ramping up its training programs both in Syria and in neighboring Jordan to more effectively militarize the conflict.

This is definitely a problem—a dangerous terrorist cell bringing in armored piercing weapons and militarized training programs into Syria could pose a major threat to America.

The thing is, this isn’t Al Qaeda I’m talking about. You’ve probably guessed—the terrorist cell in Syria I’m talking about is actually the US government.

Uncle Sam is supplying an increasing amount of taxpayer funded weapons to this hostile region, as well as sending in special operations forces to train groups that they’ve determined to be “moderate” rebels.

Needless to say, the US government has a pretty dismal record when it comes to arms dealing given that they’ve mistakenly placed military grade weaponry in the hands of drug cartels, dictators, and yes, terrorists. Oops.

Resolute not to make the same mistake twice (or for the hundredth time, as it were), the US government has a solution.

This time around, the Syrian fighters are posting videos on YouTube to prove that they’ve received these weapons (courtesy of the American taxpayer) and are using them for their intended purposes.

You just can’t make this stuff up…

While something as innocuous as travelling abroad is enough to get the average American 20 years in prison, the government is using your tax dollars to aid terrorism directly… and using YouTube as their auditor.

Sounds about right for a terrorist organization whose leader has a Nobel Peace Prize.

via Zero Hedge Tyler Durden

On The Edge Of War: The Latest Russian And Ukraine Troop Movements

If Putin needed a pretext to finally drive across the Ukraine border, he got it today following first the death of nearly 40 pro-Russian protesters in Odessa during a confrontation between pro-Russia and pro-Kiev forces, and then, what appears to be a storming in progress right now by the Ukraine national guard of yet another separatist-controlled city in east Ukraine: Kramatorsk.

According to RT, Ukraine’s National Guard is storming the eastern town of Kramatorsk even as it has also resumed its special operation in Slavyansk, where two soldiers have been killed.

“The assault is starting now,” a Kramatorsk self-defense activist has told RIA Novosti by phone. Another activist told the news agency that the National Guard opened fire on self-defense forces.


Dozens have been killed or injured in Kramatorsk, a doctor told RIA Novosti. The medic added that the fighting has now stopped and all of those injured have been taken to hospitals in Kramatorsk and Slavyansk. At least two died on the way to the hospital, she said.


Meanwhile, the Ukrainian military’s special operation has resumed in the nearby town of Slavyansk. The headquarters of the people’s self-defense is under snipers’ fire, according to Itar-Tass. There are reports of injuries among protesters.

Recall that Putin has made it very clear that all the Kremlin needs to green light an operation in Ukraine is a pretext of “self-defense” for the pro-Russian citizens currently there being attacked by the local military, something which if the tables were turned, would have been classified as a civil war by the impartial western media.

So what does the theater of operations look like should Russia finally get involved?

The Washington Post is publishing a new map that shows, using information from the Royal United Services Institute, recent troop movements in the region. The graphic illustrates how military exercises conducted by Russia have left a big build-up of troops on Ukraine’s border. It also shows Ukraine’s own military moves to its borders with Russia and Moldova’s Russian-dominated enclave, Transnistria.

It may be a long weekend.

via Zero Hedge Tyler Durden

5 Things To Ponder: Sell In May & Go Away

Submitted by Lance Roberts of STA Wealth Management,

There is an old Wall Street axiom that goes "Sell in May and go away, come again after St. Leger's day."  Of course, as with all Wall Street axioms, they are viewed by the media to be "valid" only if they work every single year. The reality is that no axiom, investment discipline or strategy works all the time. It is the cumulative effect over long periods of time which defines success or failure.

 In order to provide some context to today's selected readings, both for and against this particular "Wall Street wisdom," I am providing some statistical analysis.  The table below, which uses Dr. Robert Shiller's data, shows the monthly statistical data of returns which I will use for the remainder of this missive.


Historically, May is the 3rd worst performing month for stocks on yielding an average return of 0.27% and a median return of 0.49%.  The chart below graphically depicts the disparity of monthly average and median returns.


May, as shown in the above, also represents the beginning of the "seasonally weak" period for stocks.  As the markets roll into the early summer months, May and June tend to be some of weakest months of the year along with September.  This is where the old adage of "Sell In May" is derived from.  Of course, while not every summer period has been a dud, history does show that being invested during summer months is a "hit or miss" bet at best as shown in the next chart of historical returns for May back to 1900.   While May's monthly average is skewed by sharp deviations in returns during the "Great Depression," more recent years have been primarily contained, with only a couple of exceptions, within a +/- 5% return band as shown below.


One last point, as I discussed in "Sell In May Particularly During Mid-Term Election Years:"

While there are some years that have posted sizable gains during the summer months, such years do not invalidate the long term statistical probabilities. As the table shows above, the average annual return from the summer months is significantly poorer than the fall and winter. To show the impact of that performance differential, I constructed the following chart which shows the growth of $10,000 invested in each of the seasonal periods.


So, with this context in place let us ponder some different views about whether you should "Sell In May," or not.

1) Dow Closed At A 52-Week High On Last Day Of Aprilby Jason Goepfert via Sentimentrader

"The Dow has closed at a 52-week high on the last day of April seven other times in its history. The next three months showed positive returns two times, negative returns five times, with an overall average return of -1.6%. At its best point during the next three months, it gained a median +1.9%, while at its worst point, it lost a median -3.3%. The years were 1945, 1951, 1954, 1965, 1983, 1995 and 2011."

2) Dow At A Record: Time To Sell In May?by Adam Shell via USA Today


3) Why Investors Expect To "Sell In May" by Trang Ho via Investor's Business Daily

"But more important at this point is capital preservation and eventually re-establishing some exposure for the year-end rally, which may turn out to be the last leg of this bull market," Maierhofer said in an email. "There are some bearish divergences indicative of a slowing trend but not the kind of divergences usually seen right before major market tops."

4) 17 Reasons Not To "Sell In May"by Mark Hulbert via WSJ MarketWatch

"However, and some sectors historically have not adhered to the same seasonal pattern. That’s according to an academic study titled 'The Halloween Effect in U.S. Sectors,' written by Ben Jacobsen, a finance professor at Massey University in New Zealand, and Nuttawat Visaltanachoti, a senior lecturer in finance at that institution.


The industry groupings that stood out the most in their study were food and agriculture, leisure, multimedia, retailing and utilities.


One option would be to invest in ETFs benchmarked to those five. But another would be to focus on stocks within the sectors that are particularly compelling."

5)  Sell In May? Via ZeroHedge

As FBN's JC O'Hara explains, the “Sell in May” slogan heard around Wall Street has some truth behind it. The gist of the saying suggests it’s better to be out of the market come May and re-enter during the fall months.

"We ran the numbers over the last 20 years and found validity to the statement. We created a model that went long the market Jan, Feb, March, April, Oct, Nov & Dec. as well as a second model that went long the market May through Sept 30. We concluded that the May – Sept time period model, on average over the past 20 years, would have lost you money.


The majority of the time the market was unimpressive over those summer months. The majority of the markets returns were housed in the first model that was long the months into May and the months after Sept. While there were instances where May – Sept was negative, the risk adjusted returns suggests investors do not necessarily need to exit the market but should expect flat markets with little if any of the yearly gains coming during this time period. The real money was made during other 7 months of the year. As we approach May we are not in the SELL camp yet, but rather acknowledge the fact that a volatile, stagnant, sideways moving market is what history implies. Over the next few pages of this report we examine the past 20 years and highlight where the majority of returns are found."

The key chart in this analysis was the following which shows the seasonal tendency of market returns during "mid-term election years."


As always have a great weekend.

via Zero Hedge Tyler Durden

FAA Fines Drone Operator For Multiple “Reckless” Crashes In Manhattan

Filed under – WTF Headline of the day. The FAA, for the 2nd time in its history, has fined someone (David Zabdlidowsky) for operating (and crashing) an unmanned drone in Midtown Manhattan:


The drone was operated in a “careless and reckless” manner, according to the letter below, which is hardly surprising given it took off from 38th near what locals call “Pub Alley.” Is this what Obama was worrying about?


Here is the video of the crash…


Full FAA Letter…

Drone NYC

via Zero Hedge Tyler Durden