Category: zerohedge

The buyer strike in US stocks is finally over.

After 12 consecutive weeks of outflows, which saw $50.3BN of redemptions – the worst start since 2016 – with US equity funds suffering a $4.6 billion outflow last week even as stocks continued their relentless ascent higher, BofA reports that according to EPFR data, equities finally saw an inflow of $9.1BN in the latest week, the largest since September as the bears finally threw in the towel and joined the CTA, stock buyback and short covering frenzy.

Even so, total global equity inflows were muted, and amounted to just $0.3 billion ($10.2BN in ETF inflows offsetting $9.9BN in mutual fund outflows), with all non-US regions seeing modest outflows:

• Japan: 3rd week of outflows ($0.9bn)
• Europe: chunky outflows again ($4.1n)
• EM: 2nd week of small outflows ($0.1bn)

Broken down by style, equity buying was modest and exclusively in “growth” not “value”. Specifically, inflows were observed in US large cap ($4.6bn) and US small cap ($0.3bn). A breakdown by sector saw inflows in: consumer ($1.7bn), tech ($1.3bn), healthcare ($0.7bn), real estate ($0.4bn), utilities ($0.2bn), materials ($41mn), while outflows were focused on energy ($1mn), and financials ($0.5bn).

A curious tangent: while there was a reversal in EM flows, with 2 consecutive weeks of outflows after a record inflow streak, China has curiously been lagging inflows to EM.

Meanwhile, it is quite notable that the tepid reversal into US equity flows did not come at the expense of bond outflows, which saw another impressive $6.5BN in total inflows.

Some more details on the latest relentless fixed income inflow data:

• 6th week of IG bond fund inflows ($2.9bn)
• 5th week of HY bond inflows ($0.8bn)
• EM debt inflows 7 of past 8 weeks ($1.1bn)
• 8th week of Muni fund inflows ($1.2bn)
• 8th week of MBS fund inflows ($0.6bn)
• Small Govt/Tsy inflows ($0.3bn)

That said, even here there was some modest outflows, including the 5th consecutive week of TIPS outflows ($0.5bn) and the 15th week of bank loan fund outflows ($0.1n).

Commenting on the recent flows, BofA’s CIO Michael Hartnett writes that the “Fed has ignited credit”, and as shown in the chart below, inflows to IG/HY/EM debt for the past 8 weeks amounted to $43BN, a major reversal from $69BN of redemptions in these credit products in Nov/Dec.”

And speaking of the Fed, Hartnett also notes that the equity rally has not led to Fed tightening as was expected (on the contrary, Fed talking “inflation targeting” to head off MMT) while the PBoC/ECB/BoJ are now ready & willing to ease. As a result of this increasing dovishness, both US  & Euro HY corporate bond returns are already back to highs, while as discussed two days ago, the bond volatility MOVE index at lows as policy makers are urging trade to “stay long risk.”

Ironically, while the global economy was sharply slowing, the read-through by markets was especially bullish as it assured even more dovish central bank responses. However, a recent risk has emerged to risk in the form of a new batch of “green shoots”: even as Japan/EU remain recessionary, China’s new orders rose for the 1st time in 9 months; Meanwhile in the US, claims data still low, while as a result of the “reflation” narrative, the 5s30s US yield curve has steepened 25bps past 3 months, as China bond yields inflecting higher.

To BofA, this suggests to position “for Q1 global EPS expectations trough”, in other after a brief earnings recession in Q1, BofA expects another sharp rebound in corporate earnings.

There is some more bad news however, and as Hartnett summarizes, these markets are for traders not investors, as  “green shoots” are most powerful in secular bear markets (Europe & China today). And as a case study, he notes that in Japan between 1990 and 2003 there were 13 equity trading rallies that exceeded 20%, and seven trading rallies that exceeded 33%.

All of which begs the question: if this is indeed just another “green shoots” surge in a secular bear market, did investors – who had patiently stood on the sidelines for 3 months – once again top tick the inflection point in the market, and does this week’s US equity inflow mark the high point of the rally. For the answer check back in one week’s time.

via ZeroHedge News https://ift.tt/2Ta0nwc Tyler Durden

Via Robert Wenzel,

It’s bad out there, really bad…

If their success on Tuesday carries over to the April runoff election, as many as five members of the Democratic Socialists of America could be on the Chicago City Council —  the most in more than a century, reports the Chicago Sun-Times.

Two won aldermanic seats outright.

Three others made the runoffs.

“This progressive insurgency is absolutely historic,” Rodriguez-Sanchez campaign volunteer Rachel Johnson said, according to the Sun-Times.

“We are poised to have three or four new socialists on the City Council and will be positioned to have a socialist [caucus] on the City Council. I’m absolutely elated.”

In 2015, the DSA, the most active socialists,  had roughly 5,000 members, since the election of Trump the organization says it has grown to about 60,000 card-carrying DSA members nationwide.

The most prominent socialist, Congresswoman Alexandria Ocasio-Cortez has over 3.3 million Twitter followers.

via ZeroHedge News https://ift.tt/2NA5YGa Tyler Durden

In the latest confirmation that Jeff Bezos will settle at nothing less than total domination of the grocery business, the Wall Street Journal reported on Friday that Amazon is planning to open a new chain of low-cost supermarkets in several major US cities. With dozens of new stores, the chain would co-exist with Amazon-owned Whole Foods by offering a broader assortment of products at a lower price point. while Amazon’s growing cashierless ‘Amazon Go’ chain, will focus on a smaller, more focused offerings similar to US convenience stores.

Signaling that the company is planning to continue its conquest of the space by growing organically (though it might acquire a few regional grocery chains along the way, per WSJ), shares of Wal-Mart, Kroger and Target all fell on the news.

The first store in this new chain could open in LA by the end of the year, WSJ reported. Meanwhile, Amazon is also in talks to open grocery stores in shopping centers in San Francisco, Seattle, Chicago, Washington, DC, and Philadelphia, and has already signed leases in some locations.

Amazon’s growing focus on retail comes as the company has had mixed results with its grocery delivery business, and has decided that it would be better served by expanding its retail offerings. Meanwhile, Amazon is also planning to grow its Amazon Go offerings, with 10 stores already open.

In a sign these new stores could expand their offerings to include health and beauty products, Amazon has asked for flexibility in its leases.

Amazon has asked for more flexibility in lease negotiations, these people said. The company doesn’t want restrictions on the type of goods it may sell at its stores and wants the ability to change the store and sell health and beauty products for instance, said the people. Traditional leases in shopping centers often include limitations so that businesses complement rather than cannibalize each other.

It is unclear if these grocery stores will also be cashierless, but they will be heavily tilted to customer service and pick-up capabilities, according to the people familiar with the matter. Amazon is also looking to have some control over the attached parking lot, which would allow shoppers to get their groceries within a 10-to-15-minute time frame, the people said.

Analysts say that this new hybrid strategy where e-commerce is combined with physical stores to allow customers to shop wherever, whenever, could be the future of the retail industry.

“Customers want to be able to shop when it is most convenient for them, which could be in-store, online or a combination of the two,” said a spokeswoman from the International Council of Shopping Centers.

In the first analyst comments following the WSJ report, analysts at Spruce Point said Amazon’s move into the grocery business will be a ‘net long-term negative’ for its competitors.

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

Just when Zerohedge readers thought it was time for spring, old man winter has a few more tricks up his sleeve. New weather models show several storms will affect the Northeast over the weekend.

The storm system that brought severe weather from California to the Midwest is beginning to shift and could threaten Mid-Alantic and Northeast cities with snow, ice, and rain by this weekend.

Winter Storm Ryan will begin along the West Coast by late Friday, then move across  Rockies, Plains, Ohio Valley and Northeast through the weekend.

Winter storm watches have been published for California’s Sierra, Central Midwest, Mid-Atlantic, and Northeast, where the weather is expected to deteriorate in the next 24 to 48 hours.

The storm is expected to impact the Northeast late Sunday into early Monday.

“The exact track of that storm and magnitude of the lingering cold air in its path will determine the extent and intensity of snow, ice and rain in the Eastern states from Sunday to early Monday,” according to AccuWeather Meteorologist Courtney Travis.

Here are the scenarios at play

If Winter Storm Ryan takes a northeastward route toward the central Appalachians and the mid-Atlantic coast as Travis believes (scenario 1), 4 to 8 inches of snow may fall from central Plains to the northern part of the Ohio Valley, the eastern Great Lakes, the Allegheny and Pocono mountains in Pennsylvania and northern New England.

This northeastward path would allow some cold air to penetrate the affected areas but bring mostly rain to Washington, D.C., to New York City and Boston.

Heavy snow is likely around Denver; Wichita, Kansas; St. Louis; Columbus, Ohio; Albany, New York; Bangor, Maine, and others. Pittsburgh may observe its most significant storm of the winter season if more than 4 inches of snow falls.

AccuWeather has an alternative model, a shift in the storm’s path to the east (scenario 2) might result in 1 to 2 inches of snow from the mountains of West Virginia to northern Virginia, northern Maryland, southeastern Pennsylvania, Delaware, much of New Jersey, southeastern New York state and southern New England.

This shift eastward would allow the bulk of the snow to fall in Washington, D.C., Baltimore, Philadelphia, New York City and perhaps Boston. Such a path could result in significant travel disruptions Monday.

A new wave of Arctic air expected 

Despite Winter Storm Ryan’s track, a significant blast of Arctic air is inbound for Northeast and Midwest.

High winds will follow the leading edge of the Arctic air. 

Gusts between 40 and 55 mph are expected over the Upper Midwest and 30 and 45 mph in the Northeast.

AccuWeather said the blend of wind and falling temperatures would send RealFeel® Temperatures well below zero over the Upper Midwest, Mid-Alantic and Northeast.

via ZeroHedge News https://ift.tt/2IKcX0o Tyler Durden

Authored by Jon Street via Campus Reform,

A professor at the University of California-Davis professor is facing renewed backlash over a 2014 tweet in which he reportedly said that police “need to be killed.” 

UC-Davis English Professor Joshua Clover, in tweets on his now private Twitter account, reportedly wrote, “I am thankful that every living cop will one day be dead, some by their own hand, some by others, too many of old age #letsnotmakemore.” A separate tweet from Clover just one month later reportedly read, “I mean, it’s easier to shoot cops when their backs are turned, no?”

During an interview in 2015 interview with SFWeekly.com, Clover said, “People think that cops need to be reformed. They need to be killed.”

Those comments had gone largely forgotten until the recent fatal shooting of Davis police officer Natalie Corona prompted one UC-Davis student to do a little digging on one particular professor who he had heard had a track record of making anti-law enforcement comments. Sure enough, the student’s research paid off. He wrote an op-ed in the student newspaper, The Aggie, explaining how he discovered the incendiary remarks and the actions he took once discovering them. 

“The shooting reminded me of the rumors about the cop-threatening professor last quarter. I wasn’t trying to connect the two — the shooting and the professor’s comments about killing cops — but the shooting provided the backdrop for my investigation,” student Nick Irvin wrote.

“In a community that’s just witnessed an ambush-style cop killing, the downsides were next to none; we ought to know what our professors think and say on the public record.”

Irvin later wrote that he emailed the professor to find out if he still held the same views. 

“I wanted to know whether his views had changed given the shooting of Natalie Corona, and if he’d walk them back or at least offer a smidgeon of context to them. This was the first step to uncovering the standards to which our university holds its professors,” Irvin explained. 

But Clover’s response indicated his views toward police have not changed. 

“I think we can all agree that the most effective way to end any violence against officers is the complete and immediate abolition of the police,” Clover responded, according to Irvin. The UC-Davis columnist said the professor referred further questions to the family of Michael Brown, who was fatally shot in 2014 by a Ferguson, Missouri police officer. That officer was charged but later acquitted. 

Reached for comment by KOVR-TV in Sacramento, Clover said, “On the day that police have as much to fear from literature professors as Black kids do from police, I will definitely have a statement.”

According to Irvin, as soon as he contacted the professor to comment on previous tweets, that’s when the account became private.

Irvin said one of his next steps was to contact the university for its reaction to Clover’s comments. 

“The UC Davis administration condemns the statement of Professor Clover to which you refer. It does not reflect our institutional values, and we find it unconscionable that anyone would condone much less appear to advocate murder. A young police officer has been killed serving the City of Davis,” university spokeswoman Dana Topousis said, referring to Corona.

“We mourn her loss and express our gratitude to all who risk their lives protecting us. We support law enforcement, and the UC Davis Police Department and Chief Joe Farrow have been and remain critical partners to our community,” Topousis added. 

The university’s response is similar to that of other universities that have been forced recently to respond to professors or other university employees advocating or condoning violence.

Just last week, UC-Berkeley responded to one of its employees, Yuvi Panda, who reacted to a conservative getting punched in the face, unprovoked, with a tweet that read, “OH MY GOD THE MAGA PEOPLE ON UC BERKELEY CAMPUS YESTERDAY GOT PUNCHED IN THE FACE BY SOMEONE THIS MAKES ME FEEL EMOTIONALLY SO MUCH BETTER.”

“This person does not speak for the university, does not represent the university, and does not share the university’s values,” UC-Berkeley assistant vice chancellor for communications Dan Mogulof told Campus Reform.

“The University has made clear through word and deed that violence and harassment are reprehensible and intolerable, no matter who the perpetrators and victims are, or what they believe in.”

Just last month, University of Georgia teaching assistant Irami Osei-Frimpong tweeted that “some white people may have to die for black communities to be made whole in this struggle to advance to freedom.” Osei-Frimpong has made several other racially charged comments on his personal Twitter account, as Campus Reform has reported. 

UGA, for its part, initially took no action, pointing out that Osei-Frimpong’s comments were made in his personal capacity on his personal account. However, the university later said it was “vigorously exploring all available legal options.”

“Racism has no place on our campus and we condemn the advocacy or suggestion of violence in any form,” UGA said in its statement. 

UGA did not immediately respond to Campus Reform when asked the current status of Osei-Frimpong’s employment with the school. 

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

A top Venezuelan official has announced that President Nicolas Maduro has ordered national oil and gas company PDVSA to close its current European headquarters in Lisbon, Portugal and move it to Moscow. The announcement came from Venezuelan Vice President Delcy Rodriguez during a press conference standing alongside Russian Foreign Minister Sergey Lavrov in Moscow on Friday. 

“President Nicolas Maduro instructed the Lisbon branch of PDVSA to close this office and relocate the office to Moscow,” Rodriguez said, according to Russia’s TASS news agency. It appears the relocation is already underway, and is part of the framework of “broadening cooperation” with Russian energy giants Rosneft and Gazprom, according to the statement.

The Venezuelan vice president said, “This is done in line with our plans to expand technical cooperation in the oil production area with Rosneft, with Gazprom. The moment now is the most suitable to do so. We are changing the format of our relations.” And she added, “It’s the perfect time, as we are reshaping our relations.”

As part of the press briefing, Russian FM Lavrov conveyed President Putin’s words of support and solidarity to his “friend” President Maduro in a further clear sign that Moscow has dedicated itself to helping Venezuela’s state oil company weather the storm of US economic war and sanctions. 

Lavrov explained in the press conference, “Russia will further help the Venezuelan government to solve social and economic problems, which includes lending support via legitimate humanitarian aid.”

This after what’s been widely acknowledged as failed US-led coup efforts over the past weeks in support of opposition leader Juan Gaido, who has tried to rally support for greater external “pro-democracy” intervention against the Caracas government. As part of her remarks Rodriguez slammed what she called a US “operation” of “sabotage” against a “legal government” spearheaded by White House envoy to Venezuela Elliott Abrams.

The Venezuelan vice president said:

As far as operation against Venezuela is concerned, it’s headed by a person experienced in such kind of sabotage, person who repeatedly spoke against legal governments, Mr. Abrams. There are certain plans, certain steps aimed at creation of illegal armed groups according to the US tradition, creation of terror groups. The whole world knows it’s doing that, it’s not a secret. The US supports such extremist illegal terror groups to destabilize the world.

Lavrov backed her assessment as follows: “We are concerned about the US plans to arm militants to destabilize the situation in Venezuela and, strictly speaking, to invade this sovereign country, as the US does not hesitate to speak openly about them,” said the Russian foreign minister.  

Friday’s words vowing closer relations between Moscow and Caracas come after Maduro made an official visit to meet with Putin in December, where the two inked broad deals for increased trade and investment in various industries and finance.

via ZeroHedge News https://ift.tt/2Nzh7ar Tyler Durden

While the market was delighted on Thursday to see a delayed Q4 GDP print of 2.6%, which came in well above the expected 2.2% consensus number, we warned that “while Q4 was clearly a stronger than expected print, the real question is what happens in Q1, when most banks and nowcasts expect GDP to print below 1%, in some cases concerningly so.”

Moments ago we got confirmation of precisely this, when following the latest dismal economic data including a 2 year low in the manufacturing ISM, a miss in UMich Consumer Sentiment, and a near record plunge in personal spending, Goldman launched its Q1 GDP tracking estimate at a paltry +0.9%. This forecast, as Goldman’s chief economist Hatzius said, “reflects an expected drag from inventories, sequentially slower consumption growth, a decline in residential investment, and a four-tenths drag from the government shutdown.”

It wasn’t just Goldman, because at roughly the same time, the NY Fed’s GDP Nowcast, which was launched to counter the Atlanta Fed’s famous GDP tracker, crumbled from 1.22% last week (and 2.17% as recently as a month ago), to a stunning 0.88%, as a result of big declines in Personal Consumption, Housing Starts, Wholesale Inventories, and others.

And speaking of the Atlanta Fed, it also just released its latest Q1 GDP nowcast, and it’s a doozy, with the initial estimate coming just barely positive at only 0.3%, to wit:

The initial GDPNow model estimate for real GDP growth (seasonally adjusted annual rate) in the first quarter of 2019 is 0.3 percent on March 1. The initial estimate of fourth-quarter real GDP growth released by the U.S. Bureau of Economic Analysis on February 28 was 2.6 percent, 0.8 percentage points above the final GDPNow model nowcast released the previous day.

It appears that now assured Q1 earnings recession won’t be in isolation, with the broader US economy now on the verge of contracting, if only for just one quarter. The question then becomes whether China’s massive reflation attempts are successful, and lead to a rebound in US growth in the second quarter. If not, what was expected to become the longest US expansion in history in June 2019, will be prematurely terminated by a technical recession just as Donald Trump was set to make a new economic record.

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

Andrew Cuomo is begging Jeff Bezos to reconsider Amazon’s decision to pull out of its plans for a New York City HQ2, according to the New York Times, which reports the Governor is “working intensely behind the scenes” to make a personal pitch. 

The governor has had multiple phone conversations with Amazon executives, including Mr. Bezos, over the past two weeks, according to two people with knowledge of the efforts. In those calls, Mr. Cuomo said he would navigate the company through the byzantine governmental process. –New York Times

Cuomo has offered guarantees for support for the project, according to the WSJ, while Amazon executives have given no indication that the company would reconsider. 

“I’ve had many conversations with Amazon. I hope that they reconsider,” said Cuomo ad a Thursday event in Long Island. “It would be helpful if the State Senate said that they would approve it; that would be helpful. But in the meantime I haven’t heard any changes.”

Amazon abruptly abandoned plans for the Long Island expansion – instead focusing efforts on their “second” HQ2 in Northern Virginia. The New York location promised up to 40,000 jobs, and a much needed revival of run-down neighborhoods in and around Long Island City. In return, New York offered Amazon a cumulative $3 billion in tax breaks over 10 years, along with an agreement that the government would develop infrastructure in and around the site. 

Critics of the plan, such as Rep. Alexandria Ocasio-Cortez (D-NY) – an economics major, blasted the $3 billion being “given” to Amazon as a corporate charity, and said it would be better spent fixing the city’s subways and hiring more teachers. AOC’s opposition to the HQ2 is widely cited as a factor in Amazon’s decision to pull out of the plan. 

In response, New York Mayor Bill de Blasio explained to NBC News‘ Chuck Todd that AOC doesn’t understand what she’s talking about – and a tax credit isn’t the same thing as handing money to Amazon. 

During an appearance on NBC’s “Meet the Press,” de Blasio agreed when host Chuck Todd said that the tax breaks offered to Amazon weren’t “money you had over here. And it was going over there.”

“Correct,” de Blasio said.

He added: “And that $3 billion that would go back in tax incentives was only after we were getting the jobs and getting the revenue.”

To further drive home the point, Todd said, “There’s not $3 billion in money —”

“There’s no money — right,” de Blasio said. –NY Post

Nevertheless, Amazon pulled out of the deal, sparking anger and confusion among New York leadership. 

On Friday, an open letter in the New York Times signed by more than 70 supportive unions begged Bezos to reverse course and build the Long Island campus. 

The letter was signed by more than 70 supportive unions including the AFL-CIO, local businesses and business leaders, community groups and elected officials including Representatives Hakeem Jeffries of Brooklyn, a top Democrat, Max Rose, a first-term Democrat from Staten Island, and Carolyn Maloney, whose district encompasses the Amazon site, and the former mayor David N. Dinkins.

The letter said that Mr. Cuomo “will take personal responsibility for the project’s state approval,” and Mayor Bill de Blasio “will work together with the governor to manage the community development process.” –New York Times

“We know the public debate that followed the announcement of the Long Island City project was rough and not very welcoming,” reads the letter – which was paid for by the business group Partnership for New York City. “But when we commit to a project as important as this, we figure out how to get it done in a way that works for everyone.”

Kathryn S. Wylde, the president of the partnership, said the letter had been aimed not just at Amazon but at assuring technology companies generally that New York City welcomed their businesses: “Yes, it’s directed to Amazon in hopes they will reconsider. Equally, it is a message to the broader industry.” –New York Times

 “The governor’s office was working with the business community on how to send this message,” added Wylde. 

I wonder if Jeff Bezos gets home delivery… pic.twitter.com/J7vgCu0dT0

— J. David Goodman (@jdavidgoodman) March 1, 2019

New York State Senate Democratic majority leader, Andrea Stewart-Cousins, said in a statement that he had indicated her “willingness to work” with Amazon, adding “I have always been clear that I support job creation and was disappointed with Amazon’s decision and hoped they would reconsider.”

Since Amazon decided to pull out, Cuomo has been arguing in public and private that support for the project is far more widespread than certain progressive politicians would lead one to believe. 

“I do believe Amazon should have stayed and fought the opposition,” said Cuomo in a Thursday radio interview. “It was a vocal minority opposition. Seventy percent of the people support Amazon,” which Cuomo reportedly stressed to Amazon executives during phone calls. 

Opponents of the NY HQ2, meanwhile, remained sour on the idea. 

The most vocal opponents, like Stuart Appelbaum, president of the Retail, Wholesale and Department Store Union, were not among the signatories.

“Our concerns remain the same,” Mr. Appelbaum said in response to Mr. Cuomo’s efforts. “If Amazon wants to come to New York, it must respect all workers and communities.” –New York Times

Amazon isn’t having it

The decision to pull out of the New York campus and “hyperfocus” on the Virginia expansion was due to a “confluence of factors, including the loud opposition and the lack of any sign it would abate,” reports the Times. 

“We think we could have gotten New York done, but you have to say, ‘At what cost?’” said Amazon director of global economic development, Holly Sullivan, during a Thursday event in Virginia. “We made a prudent decision that gives us the opportunity to hyperfocus on D.C.“

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

Authored by Patrick Buchanan via Buchanan.org,

Indulging its hatred of Trump is a preoccupation, an obsession of this capital city.

“Politics stops at the water’s edge” was a tradition that, not so long ago, was observed by both parties, particularly when a president was abroad, speaking for the nation.

The tradition was enunciated by Sen. Arthur Vandenberg of Michigan in 1947, as many of the Republicans in the 80th Congress moved to back Truman’s leadership in the Cold War against Stalin’s empire.

The tradition lasted until the mid-1960s, when the left wing of the Democratic Party turned viscerally, and even violently, against the war in Vietnam and President Lyndon Johnson.

Republican Presidents Nixon, Reagan and Bush I, with the support of conservative Democrats, led America to final victory in the Cold War

Yet except for brief intervals, like the rallying around George H. W. Bush after the triumphant Gulf War of 1991 and George W. Bush after 9/11, true national unity has never been restored.

Were proof needed, this week provided it.

President Trump flew to Hanoi, Vietnam, to meet North Korea’s dictator. Subject of negotiations: Kim Jong Un’s nuclear weapons, including his missiles that may be able to reach our homeland.

How did the Democratic Party wish the commander in chief well on his mission for America?

During Trump’s first full day in Hanoi, a committee of Nancy Pelosi’s House held a public hearing featuring ex-Trump lawyer and “fixer” Michael Cohen, a convicted perjurer and felon who cut a deal with the prosecution for a reduced sentence.

The city loved it. Cable and network TV coverage went gavel to gavel. Cohen’s testimony crowded out the Trump-Kim summit and even news of aerial clashes between India and Pakistan, two nuclear powers that have fought three wars since independence, 70 years ago.

What were the headlines Trump came home to after refusing to lift sanctions on North Korea, in return for meager concessions Kim offered?

“Cohen Paints Trump as Crooked” was the banner atop page one of The Washington Post. Cohen’s depiction of his old boss was boldly quoted above: “He is a racist. He is a con man. And he is a cheat.”

“Cohen Accuses Trump of Lies and Cover-ups” ran the page-one headline in The New York Times.

“Cohen Declares Trump a Racist, Cheat and Conman” read the huge headline in the Financial Times.

“Cohen Says Trump Guided Coverup” was at the top of page one in The Wall Street Journal.

Trump is denounced for calling media the “enemy of the people.” Yet that media, in news columns as well as editorials, routinely describes him as a racist, sexist, xenophobe, homophobe, Islamophobe and bigot.

Indulging its hatred of Trump is a preoccupation, an obsession of this capital city. Those headlines reveal not only the news judgment of the editors but the agenda of the elite who turn to them first every morning.

That agenda is the breaking of this president; his disgrace and fall; and, if impeachment proves not possible, his crushing defeat in 2020 and subsequent indictment. Our so-called Dreamers in Washington, D.C., look to the triumphal return to power of the establishment the American people threw out in 2016.

Yet the alliance that seeks to bring down Trump is formidable: deep-state leakers and media collaborators; the Democratic Party and House; most of America’s commentariat; and the cultural elites in the arts, academia and Hollywood.

How far beyond normal politics have the divisions in our society gone? As the Covington Catholic kids found out, wearing a MAGA hat is now seen as a racist provocation.

In the play unfolding, Cohen’s testimony to the House committee was scene one of act one.

Next comes the Mueller report, though it appears Robert Mueller and his team, after investigating for two years, have found no collusion between Trump and Vladimir Putin in the hacking of the Democratic National Committee or the Clinton campaign.

Hence, the hopes of Trump haters are being redirected to the U.S. Attorney’s Office for the Southern District of New York. Subjects of investigation: the Trump Organization, the Trump Inaugural Committee, the Trump Foundation, the Trump family and any entity with which Donald Trump has been associated in 40 years.

Again, as the president is chief of state and head of government, he cannot be indicted. He must first be removed from the presidency. But to remove him, Democrats have to impeach him in the House and convict him in a Republican Senate.

If they cannot, they will have to defeat him at the polls.

In 1968, George Wallace of Alabama tore the Southern populist right out of the Democratic Party. Liberals Gene McCarthy, Robert Kennedy and George McGovern then savaged Vice President Hubert Humphrey from the left. The Grant Park rioters did the rest.

Nixon, leading a minority Republican Party, had a compelling argument: “If the Democrats cannot unite their own party, how can they unite the nation?”

Today, a watching world is asking: If you Americans are at war with yourselves over race, religion, morality, culture and politics, if you cannot unite yourselves, how can you unite the world? And around what?

Maybe the American Century is really over.

via ZeroHedge News https://ift.tt/2INt39F Tyler Durden

Rep. Alexandria Ocasio-Cortez is catching major heat after she tweeted fake news about Donald Trump Jr. being the “second executive involved in criminal conspiracy,” a misstatement by Michael Cohen that the Wall Street Journal corrected shortly after it happened.

Ocasio-Cortez tweeted: “In Case You Missed It: Rep. Khanna got Cohen to testify that Don Jr. is the “second executive involved in criminal conspiracy.”” 

ICYMI: Rep. Khanna got Cohen to testify that Don Jr. is the “second executive involved in criminal conspiracy.”

His line of questioning was a very big deal. (He also happens to be a progressive Rep that rejects corporate money!)

⬇️ https://t.co/ZdlBv2cTym

— Alexandria Ocasio-Cortez (@AOC) March 1, 2019

Except as the Wall Street Journal reported hours after Cohen’s Wednesday testimony: “Cohen Erroneously Identifies Donald Trump Jr. as Executive Cited by Federal Prosecutors.“

In the afternoon session, Mr. Cohen identified the president’s son, apparently incorrectly, as an unnamed Trump Organization executive referenced in the charging documents filed against him by federal prosecutors in New York.

The executives were referenced in connection with the plan to reimburse Mr. Cohen for the payment to Stormy Daniels. In the charging document, federal prosecutors said the first executive, Mr. Weisselberg, forwarded an invoice from Mr. Cohen to the second executive, and it was approved.

The Journal has previously identified “Executive-1” as Trump Organization CFO Allen Weisselberg. Mr. Cohen testified today that “Executive-2” in the charging document was Donald Trump Jr.

However, according to people familiar with the matter, the second executive was Trump Organization controller Jeffrey McConney, not the president’s son. Mr. McConney previously referred requests for comment by the Journal to a Trump organization representative, who declined to comment. –WSJ

Any other factually inaccurate testimony that you want to highlight? https://t.co/Q6Xt4IxYW5

— Arthur Schwartz (@ArthurSchwartz) March 1, 2019

Huge mistake by @AOC social media staffer today posting accusations without evidence that were fully debunked 3 days ago pic.twitter.com/GGArWwreUV

— Jack Posobiec 🇺🇸 (@JackPosobiec) March 1, 2019

Except shockingly, you’re lying. Cohen’s claims about Don Jr. here were 100% inaccurate as the Wall Street Journal correctly reported. https://t.co/ZTSY2toA5S

— Andrew Surabian (@Surabees) March 1, 2019

It appears AOC owes Don Jr. an apology.

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