Is Attending a Political Protest More Important than Attending a Funeral?

Over at my Times of Israel blog, I note the sudden shift of position of leading American (non-Orthodox) rabbis about the relative importance of preventing the spread of Coronavirus.

For example, that the Reform movement’s guidance, still up at its website, is that “Congregations should not facilitate or endorse any physical gathering of persons who do not already live in the same house.” However, leaders of Reform Judaism (among others) have now endorsed mass anti-racism protests, calling them the equivalent of “praying with your feet,” while apparently still holding to the position that traditional group prayer is forbidden, even if (unlike the protests) socially distanced.

You can read the whole post here.

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Cops Who Shot Homeless Man 22 Times While He Lay on the Ground Are Not Protected by Qualified Immunity, Appeals Court Rules

Five police officers who shot a homeless schizophrenic man 22 times after stopping him for walking in the street instead of on the sidewalk are not protected by qualified immunity, a federal appeals court ruled Tuesday. The officers can be sued in connection with the incident, cutting against a legal doctrine that often allows public officials to avoid liability for misconduct if the actions in question have not been explicitly addressed by a court precedent.

On March 13, 2013, Wayne Jones was walking in the street near downtown Martinsburg, West Virginia, when Officer Paul Lehman of the Martinsburg Police Department (MPD) began following him in his patrol car. After tailing him for approximately one minute, Lehman parked the vehicle and asked Lehman why he was walking in the street, a violation of state and city law. 

Lehman next requested that Jones provide identification; Jones replied that he had none. Lehman then asked Jones if he had any weapons. “What’s a weapon?” Jones replied; Lehman told him “anything—guns, knives, clubs” qualified. Jones responded that he had “something.” 

Lehman then shouted at Jones to put his hands on the police car, to which Jones asked “What are you trying to do?”; “What do you want?”; and “What did I do to you?” Lehman declined to answer, instead opting to tase Jones. MPD Officer Daniel North, who had been called in for backup, arrived at the scene and tased Jones as well.

Jones then began running down the street. North eventually caught Jones and punched him “in the brachial,” or upper arm. Jones ended up cornering himself on a nearby stoop, where North was joined by Officer William Staub, who put Jones in a chokehold after managing, with North, to drag him off the ledge. Staub said he employed the tactic “just to kind of stop [Jones] from resisting.” A “loud choking or gurgling sound” can be heard on Staub’s audio recorder, according to the suit.

Subsequently, two more officers—Officers Eric Neely and Erik Herb—arrived at the scene. Neely tased Jones for a third time, and North proceeded to apply “a drive stun without any probes.” Another officer can reportedly be seen on video kicking Jones. 

After putting Jones in another chokehold, Staub claims that he felt “a sharp poke in his side” and saw Jones wielding “a fixed blade knife in his hand.” All five officers moved back, forming a semi-circle around Jones, who—despite testimony from the officers that their efforts “had no visible effect”—remained motionless on the ground. By Lehman’s own admission, Jones “did not make any overt acts with the knife towards the officers.”

The group of police officers killed Jones anyway, firing 22 bullets into him as he lay facedown.

Jones’s estate consequently filed suit against those cops and the City of Martinsburg, alleging that the officers violated Jones’ Fourth Amendment rights by using excessive force and his 14th Amendment rights by killing him; and that the City of Martinsburg is responsible for those unconstitutional acts by improperly training and inadequately disciplining their police department.

The United States District Court for the Northern District of West Virginia dismissed the suit and granted all five officers qualified immunity. But on Tuesday, the U.S. Court of Appeals for the 4th Circuit overturned that dismissal. Writing for the unanimous panel, Circuit Judge Henry Franklin Floyd summed up in plain terms the absurd question before the court: “decid[ing] whether it was clearly established that five officers could not shoot a man 22 times as he lay motionless on the ground.”

Such is the essence of qualified immunity, the legal doctrine that gives public servants license to infringe on your rights so long as their behavior isn’t prohibited almost identically by existing case law. In other words, the cops in question sought protection for murdering Jones by claiming that the judiciary had not concretely determined that killing someone who was lying still on the ground was a violation of that person’s rights. 

Sadly, federal courts grant qualified immunity in cases like these with alarming regularity. In Howse v. Hodous (2020), the U.S. Court of Appeals for the 6th Circuit granted qualified immunity to two officers who allegedly assaulted and arrested a man on bogus charges for the crime of standing outside of his own house. There was also the sheriff’s deputy in Coffee County, Georgia, who shot a 10-year-old boy while aiming at a non-threatening dog; the cop in Los Angeles who shot a 15-year-old boy on his way to school because the child’s friend had a plastic gun; and two cops in Fresno, California, who allegedly stole $225,000 while executing a search warrant.

The above officers and many others have received qualified immunity because their actions had not been expressly ruled unconstitutional by the courts, leaving the people they hurt with no recourse to sue for medical bills or lost assets. These cases are not exceptions. Courts grant qualified immunity to police officers in over half the cases in which police attorneys invoke the doctrine. 

In the case filed by Jones’ estate, there are several reasons to withhold qualified immunity. It had already been “clearly established that law enforcement may not constitutionally use force against a secured, incapacitated person—let alone use deadly force against that person,” Judge Floyd notes in his ruling, citing Kane v. Hargis (1993) and Brockington v. Boykins (2011). “Because a reasonable jury could find that Jones was secured, incapacitated, or both, we need not reach whether the officers’ actions were so ‘flagrantly unlawful’ as to refute any claim of qualified immunity.”

But Floyd also highlights that the officers appear from an audio recording to have known they should not have shot Jones. After firing the 22 fatal bullets, the officers can be heard agreeing to exaggerate the threat they faced in order to avoid being held legally liable for their actions. “When searching Jones’s lifeless body, officers found a small fixed blade knife tucked into his right sleeve,” the judge writes. “After being told that state police were coming to investigate, officers can be heard saying that the incident would be a ‘cluster’ and that they were going to ‘have to gather some f**king story.'”

That might explain, the judge writes, the inconsistency in the officers’ stories. “Jones was armed with a knife, which was tucked into his sleeve, and yet which he somehow used to stab an officer,” Floyd says. “Given the relatively inaccessible location of the knife, and the physical inability to wield it given his position on the ground, the number of officers on Jones, and Jones’s physical state by this time, it would be particularly reasonable to find that Jones was secured while still armed.”

Judge Floyd further emphasizes that the escalation and the corresponding use of force was harshly disproportionate to the crime for which Jones was stopped. He “was not an armed felon on the run, nor a fleeing suspect luring officers into a high-speed car chase,” Floyd writes. “Jones was walking in the road next to the sidewalk, away from the dark shadows and blind corners of buildings at night. He was without housing and had a knife on his person. As a pedestrian, he should have been on the sidewalk, but Officer Lehman never told him that.”

Judge Floyd further notes that Lehman “quickly escalated the encounter,” failing to consider other potential factors—like Jones’ mental state—that might have influenced his responses. “What we see is a scared man who is confused about what he did wrong, and an officer that does nothing to alleviate that man’s fears,” the judge writes. “That is the broader context in which five officers took Jones’s life.”

The death of George Floyd, an unarmed black man who was killed by former Minneapolis police officer Derek Chauvin, has propelled qualified immunity to the forefront of American political debate and energized opposition to the doctrine, with Rep. Justin Amash (L–Mich.) introducing a bill that would eliminate it nationwide. 

“Before the ink dried on this opinion, the FBI opened an investigation into yet another death of a black man at the hands of police, this time George Floyd in Minneapolis,” Judge Floyd wrote. “This has to stop.”

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Tesla’s Solar Roof Boondoggle Starts To Collapse, Company Reportedly Cancelling “Many” Orders

Tesla’s Solar Roof Boondoggle Starts To Collapse, Company Reportedly Cancelling “Many” Orders

Tyler Durden

Thu, 06/11/2020 – 13:22

It appears to be official: the solar roof boondoggle is starting to get swept under the rug.

Tesla has started reaching out and cancelling “many” solar roof reservations due to “not covering” people’s areas, according to electrek. This comes almost 4 years after people have placed deposits on the roofs and since Musk uncovered the solar roof panels. The solar roof panels have been a topic of controversy not only with Tesla skeptics, but with experts in solar panels. 

Initially, Tesla said installations would start in 2018. That was two years ago. Even CNBC was left asking: “What Happened to Tesla’s Solar Roof Tiles?” when they didn’t materialize 2 years later. 

The company launched the Solar Roof V3 back in late 2019 and went on a hiring spree for people to be able to install the products, but now it looks as though the product still isn’t ready for primetime. We wonder if it will ever be…

Though electrek says the company saw a bump in orders after the Solar Roof V3 and hiring binge, it says Tesla is now cancelling “many” solar roof orders. The company is sending customers the following email:

Upon further review, your home is not located within our currently planned service territory. The driving distance from our closest warehouse would make it difficult for us to provide you the high-quality service that our customers deserve. For this reason, we will not be able to proceed with your project.

People in Oregon and Michigan have received the email so far, and have been told that they would get a refund within seven to 10 days:

If you agree with our assessment, a response is not required. You will be receiving a refund of your deposit within 7-10 business days to the card used when placing your order. If you have additional questions or want more clarification, please reply to this email or call us at 877-701-7652.

Tesla had previously said its Solar Roof would be available for roll out in 2020. Back in February, however, Tesla and Panasonic ended their relationship at the company’s Buffalo solar plant. 

We think electrek’s Fred Lambert said it best today:

I agree that this is a poor way to treat customers. I get that solar is tricky and there are places where it makes more sense to install solar power than others, but Tesla should have figured that out before taking $1,000 deposits and certainly shouldn’t have waited three years to start reimbursing the deposits.

Over the last few years, I’ve started to think that Tesla’s overall reservation system has little to no value for customers.

Recall, in October 2019, Musk claimed the company’s goal was to be doing 1,000 Solar Roof installs per week. He acknowledged that the company would not be producing the Solarglass roof at that rate for “at least several months”. 

This news likely won’t help the company fight off a shareholder lawsuit that alleges Musk used Tesla’s resources to bailout an insolvent SolarCity.

Similarly, slowing or ending production could further pressure the company’s Buffalo plant, which was built and funded by $750 million in taxpayer money under the guise of producing solar panels. That plant was embroiled in a scandal of being a “very racist place” to work, according to complaints reported by employees in November 2019. 

Tesla famously started operations at Buffalo in 2018 after getting a sweetheart deal to lease the facility from New York state for $1 per year and committing to spend $5 billion in the state.

It’s nice to see that money has gone completely to waste. We never had a doubt it would.

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Subpar Demand For Tailing 30Y Treasury Auction Amid Plunging Yields

Subpar Demand For Tailing 30Y Treasury Auction Amid Plunging Yields

Tyler Durden

Thu, 06/11/2020 – 13:14

Following today’s plunge in Treasury yields, some rates traders were wondering just how ugly the auction of $19BN in 30Y bonds would be. Yet even despite the dramatic tightening across the curve which has bull flattened dramatically, there was clearly enough buyside interest for today’s 29-Year 11-Month reopening of cusip SN9, which stopped at a high yield of 1.45%, a 3 month high, and also stopped through the When Issued 1.444% by 0.6bps.

Just like Tuesday’s dismal 10Y auction, the Bid to Cover slumped, if not quite as badly, dropping to 2.265 from 2.301 and the lowest since November.

The Internals were mediocre: Indirects took down 62.2%, below both May’s 65.7% and the six auction average of 64.9%. Directs took down 13.3%, also fractionally below the recent average of 15.2%, which left Dealers holding 24.5%, the highest since September.

Overall, a disappointing end to a week marked by rather subpar bond auctions although much of that can be attributed to the dramatic plunge in yields, which has seen the 10Y drop from the as high as 0.95% last week to just 0.67% right now.

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Advertisers Boycott “Tucker Carlson” Over Claim That BLM “Doesn’t Care About Black Lives”

Advertisers Boycott “Tucker Carlson” Over Claim That BLM “Doesn’t Care About Black Lives”

Tyler Durden

Thu, 06/11/2020 – 13:07

In what’s shaping up to be a re-run of the 2018 “advertiser boycott” against Tucker Carlson’s prime time show on Fox News, a number of major advertisers have said they would cease advertising on the show immediately after the Fox host said the BLM movement was “definitely not about saving Black Lives”.

The Huffington Post and Media Matters were unsurprisingly all over the story as it ‘broke’ the news a few hours ago, citing comments from executives on twitter, and statements from company PR machines. “Disney, T-Mobile, SmileDirectClub, Papa John’s and Vari have pulled their commercials from ‘Tucker Carlson Tonight,’ Media Matters reported Wednesday,” according to Huffpo.

At least one company rep insisted that the advertisements were placed on Tucker by a “third-party” ad buyer, who had been instructed not to buy the ad time.

T-Mobile CEO Mike Sievert, responding to a Twitter user on Tuesday asking if the telecom giant supported Carlson’s message, wrote back: “It definitely is not. Bye-bye Tucker Carlson! #BlackLivesMatter.”

Other advertisers followed with confirmations on Wednesday.

Disney’s advertising of its ABC network on Fox News was never supposed to run on Carlson’s show at all, according to Deadline.

“The ABC advertisements were placed on the show without our knowledge by third party media buyers who were unaware that we do not advertise on the show, and they have now been notified not to place any further ads,” an ABC spokesperson told the entertainment site.

Carlson has repeatedly trashed protesters as national unrest grows over police brutality and racism. This week, he even took issue with a CNN town hall in which “Sesame Street” characters explained the protests.

As Tucker explained in the segment, it’s a terrifying time in the US, not because police officers are massacring thousands of minorities in the streets (they aren’t), but because radical left-wing agitators have hijacked a largely peaceful protest movement decrying the evils of police brutality and insisting that reforms be implemented to protect the civil liberties of all Americans, stop unfair racial profiling of minorities, and – most importantly – stop police unions from protecting officers with multiple conduct complaints.

Thanks to the rise of smartphones, whispers about police brutality, which for years has been tolerated as an unfortunate fact of life in America. But now, public opinion polls show that the vast majority of Americans – both black and white – support reform. Instead, radical “professional activists” are pushing destructive policies and hateful rhetoric encouraging further racial animosity and division.

And yet, somehow, Tucker is the one accused of using “hateful” rhetoric?

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“Access To Oil Is Vital”: Pompeo Urges Libyans To Boot Out Russian ‘Interference’

“Access To Oil Is Vital”: Pompeo Urges Libyans To Boot Out Russian ‘Interference’

Tyler Durden

Thu, 06/11/2020 – 12:50

Via AlMasdarNews.com,

US Secretary of State Mike Pompeo called on all Libyan parties to return to the dialogue table and unite their efforts to prevent any other country, primarily Russia, from interfering in their country.

Pompeo said during a press briefing held on Wednesday: “The time has come for all Libyans from all sides to act so that Russia or any other country cannot intervene and violate Libya’s sovereignty to achieve its gains.”

He praised the decision of the Libyan Government of National Accord (GNA), led by Fayez al-Sarraj, and the Libyan National Army, led by Khalifa Haftar, to resume ceasefire negotiations under the auspices of the United Nations, considering it “a very good and positive first step.”

He stressed the need “to start urgent negotiations in good faith in order to ceasefire and to re-launch Libyan negotiations under the auspices of the United Nations.”

Pompeo said that “putting Libya on the path to economic recovery requires maintaining oil installations and ensuring strong access [of recognized authorities] to the National Oil Corporation.”

This as CNBC reported Wednesday:

Libya’s National Oil Corporation has declared force majeure on exports from its largest oil field Tuesday, after a militia group shut it down just days after it resumed production following a six-month blockade.

“The armed group, which came from Sebha, stormed the Sharara oil field and pulled their guns on civilian unarmed workers, coercing them to stop production at the field at dawn,” the state oil company said in a statement.

Workers at the massive Sharara oil field have shut it down at the demands of the armed group’s leader Mohamed Khalifa, who is linked to the renegade general Khalifa Haftar’s Libyan National Army, the instigator of a violent power struggle with Libya’s UN-recognized government that’s lasted more than a year. Haftar’s forces pulled back in May after a prolonged campaign to capture the capital Tripoli failed. 

Russia and the United States alike recently welcomed Egyptian efforts to settle the conflict in Libya, especially the “Cairo Declaration” recently put forward by Egyptian President Abdel Fattah el-Sisi.

Moscow has rejected the accusations leveled against it by Washington of interfering in Libya’s affairs, and has expressed interest in settling the Libyan conflict.

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Facebook Responds To Biden’s “Demand” For Censorship

Facebook Responds To Biden’s “Demand” For Censorship

Tyler Durden

Thu, 06/11/2020 – 12:34

Just minutes after Democratic Party presidential candidate Joe Biden “demanded” that Facebook censor posts, the social media giant responded with what is a very strong statement of intent that will assuredly rile up the outrage mob.

Biden’s campaign wrote in the New York Times no less to explain the former VP will be going on the offensive against Facebook:

“Real changes to Facebook’s policies for their platform and how they enforce them are necessary to protect against a repeat of the role that disinformation played in the 2016 election and that continues to threaten our democracy today,” said Bill Russo, a spokesman for the Biden campaign.

And Facebook responded extremely quickly…

We live in a democracy, where the elected officials decide the rules around campaigns.

  • Two weeks ago the President of the United States issued an executive order directing Federal agencies to prevent social media sites from engaging in activities like fact-checking political statements.

  • This week, the Democratic candidate for President started a petition calling on us to do the exact opposite.

Just as they have done with broadcast networks – where the US government prohibits rejecting politicians’ campaign ads – the people’s elected representatives should set the rules, and we will follow them.

There is an election coming in November and we will protect political speech, even when we strongly disagree with it.

Ironically, as Biden raises his attacks on Zuckerberg et al., his campaign is increasingly turning to the site to reach voters with ads. In recent days, he spent $5 million in advertising on Facebook, surging past political ad spending by Mr. Trump, who has dominated Facebook throughout the campaign season.

“Biden is doing the right thing by pushing the platform to be more ethical and by not walking away from it, which is not realistic,” said Erik Smith, a former Democratic strategist and co-founder of Seven Letter, a crisis communications firm.

“But he’s running a race against an opponent who has a 10-mile start on Facebook.”

It seems Zuck is implicitly saying “let the voters decide…”

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These Judges Defend Qualified Immunity as ‘a Deferential Rule’ That Protects the Police

Qualified immunity, the controversial legal doctrine that frequently shields police officers from being sued when they violate citizens’ constitutional rights, seems to be under fire from all directions these days.

“Qualified immunity protects police and other officials from consequences even for horrific rights abuses,” observed Rep. Justin Amash (L–Mich.) when he introduced the Ending Qualified Immunity Act in the House of Representatives last week. “It prevents accountability for the ‘bad apples’ and undermines the public’s faith in law enforcement.”

Plenty of non-politicians agree. “More than 1,400 professional athletes, coaches and executives,” reported The Los Angeles Times, “signed a letter asking Congress to pass legislation to eliminate qualified immunity for law enforcement and other public officials.”

Unfortunately, criticism of qualified immunity is not a unanimous opinion among federal judges. In fact, the doctrine has a number of prominent defenders on the bench, including two influential judicial appointees of President Donald Trump.

According to the U.S. Supreme Court’s 1982 ruling in Harlow v. Fitzgerald, government officials are entitled to immunity from civil suits arising from their official conduct so long as the conduct that they’re being sued over “does not violate clearly established statutory or constitutional rights.”

“That’s a deferential rule,” observed Judge Amul Thapar, a Trump appointee who sits on the U.S. Court of Appeals for the 6th Circuit. He meant deferential as a compliment. “Officers often find themselves in positions where they must make split-second decisions in dangerous situations,” Thapar wrote in Howse v. Hodous (2020). And in his view, federal judges should not be playing Monday morning quarterback when it comes to such matters. “In those crucial seconds,” Thapar insisted, “officers don’t have the time to pull out law books and analyze the fine points of judicial precedent.”

Judge James Ho, a Trump appointee who sits on the U.S. Court of Appeals for the 5th Circuit, has also praised qualified immunity for the broad judicial deference that it gives to the cops. “We have no business,” Ho wrote in Winzer v. Kaufman County (2019), “second-guessing split-second decisions by police officers from the safety of our chambers.”

Thankfully, not every member of the federal bench sees the issue that way. Judge Don Willett, another Trump appointee to the 5th Circuit, complained in a 2018 case that when it comes to qualified immunity, “merely proving a constitutional violation doesn’t cut it; plaintiffs must cite functionally identical precedent that places the legal question ‘beyond debate’ to ‘every’ reasonable officer.” In other words, Willett explained, the doctrine lets “public officials duck consequences for bad behavior—no matter how palpably unreasonable—as long as they were the first to behave badly.”

Justice Sonia Sotomayor is no fan either. The Supreme Court’s current qualified immunity doctrine “tells officers that they can shoot first and think later,” Sotomayor wrote in dissent in Kisela v. Hughes (2018), “and it tells the public that palpably unreasonable conduct will go unpunished.”

Here’s a telling example of what qualified immunity’s “deferential rule” looks like in practice. In Latits v. Phillips (2017), the 6th Circuit concluded that a Michigan police officer violated the Fourth Amendment when he shot and killed a fleeing suspect. But the court then went ahead and awarded the officer qualified immunity anyway for his unconstitutional actions. “Although we now hold that [Officer Lowell] Phillips’s conduct fell outside the bounds of the Fourth Amendment,” the 6th Circuit said, “controlling authority at the time of the events had not clearly established the rights we identify today.”

Writing in dissent, 6th Circuit Judge Eric Clay basically shook his head in disbelief. “The majority spends the bulk of its opinion explaining how Officer Phillips’ use of deadly force was objectively unreasonable.” But “in the final stretch,” Clay marveled, “the majority abruptly shifts gears to hold that [the plaintiff’s] constitutional rights were not clearly established….In so holding, the majority has created a nearly impossible barrier for plaintiffs seeking to vindicate their rights against government officials.”

As I wrote in a 2018 column, “something has gone seriously wrong in our criminal justice system when the courts are running this kind of interference on behalf of blatantly unconstitutional police conduct.”

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These Judges Defend Qualified Immunity as ‘a Deferential Rule’ That Protects the Police

Qualified immunity, the controversial legal doctrine that frequently shields police officers from being sued when they violate citizens’ constitutional rights, seems to be under fire from all directions these days.

“Qualified immunity protects police and other officials from consequences even for horrific rights abuses,” observed Rep. Justin Amash (L–Mich.) when he introduced the Ending Qualified Immunity Act in the House of Representatives last week. “It prevents accountability for the ‘bad apples’ and undermines the public’s faith in law enforcement.”

Plenty of non-politicians agree. “More than 1,400 professional athletes, coaches and executives,” reported The Los Angeles Times, “signed a letter asking Congress to pass legislation to eliminate qualified immunity for law enforcement and other public officials.”

Unfortunately, criticism of qualified immunity is not a unanimous opinion among federal judges. In fact, the doctrine has a number of prominent defenders on the bench, including two influential judicial appointees of President Donald Trump.

According to the U.S. Supreme Court’s 1982 ruling in Harlow v. Fitzgerald, government officials are entitled to immunity from civil suits arising from their official conduct so long as the conduct that they’re being sued over “does not violate clearly established statutory or constitutional rights.”

“That’s a deferential rule,” observed Judge Amul Thapar, a Trump appointee who sits on the U.S. Court of Appeals for the 6th Circuit. He meant deferential as a compliment. “Officers often find themselves in positions where they must make split-second decisions in dangerous situations,” Thapar wrote in Howse v. Hodous (2020). And in his view, federal judges should not be playing Monday morning quarterback when it comes to such matters. “In those crucial seconds,” Thapar insisted, “officers don’t have the time to pull out law books and analyze the fine points of judicial precedent.”

Judge James Ho, a Trump appointee who sits on the U.S. Court of Appeals for the 5th Circuit, has also praised qualified immunity for the broad judicial deference that it gives to the cops. “We have no business,” Ho wrote in Winzer v. Kaufman County (2019), “second-guessing split-second decisions by police officers from the safety of our chambers.”

Thankfully, not every member of the federal bench sees the issue that way. Judge Don Willett, another Trump appointee to the 5th Circuit, complained in a 2018 case that when it comes to qualified immunity, “merely proving a constitutional violation doesn’t cut it; plaintiffs must cite functionally identical precedent that places the legal question ‘beyond debate’ to ‘every’ reasonable officer.” In other words, Willett explained, the doctrine lets “public officials duck consequences for bad behavior—no matter how palpably unreasonable—as long as they were the first to behave badly.”

Justice Sonia Sotomayor is no fan either. The Supreme Court’s current qualified immunity doctrine “tells officers that they can shoot first and think later,” Sotomayor wrote in dissent in Kisela v. Hughes (2018), “and it tells the public that palpably unreasonable conduct will go unpunished.”

Here’s a telling example of what qualified immunity’s “deferential rule” looks like in practice. In Latits v. Phillips (2017), the 6th Circuit concluded that a Michigan police officer violated the Fourth Amendment when he shot and killed a fleeing suspect. But the court then went ahead and awarded the officer qualified immunity anyway for his unconstitutional actions. “Although we now hold that [Officer Lowell] Phillips’s conduct fell outside the bounds of the Fourth Amendment,” the 6th Circuit said, “controlling authority at the time of the events had not clearly established the rights we identify today.”

Writing in dissent, 6th Circuit Judge Eric Clay basically shook his head in disbelief. “The majority spends the bulk of its opinion explaining how Officer Phillips’ use of deadly force was objectively unreasonable.” But “in the final stretch,” Clay marveled, “the majority abruptly shifts gears to hold that [the plaintiff’s] constitutional rights were not clearly established….In so holding, the majority has created a nearly impossible barrier for plaintiffs seeking to vindicate their rights against government officials.”

As I wrote in a 2018 column, “something has gone seriously wrong in our criminal justice system when the courts are running this kind of interference on behalf of blatantly unconstitutional police conduct.”

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Bianco: The Fed Has Fostered An Unprecedented Bubble At The Expense Of The Economy

Bianco: The Fed Has Fostered An Unprecedented Bubble At The Expense Of The Economy

Tyler Durden

Thu, 06/11/2020 – 12:25

Authored by Jim Bianco, originally published on Bloomberg

British economist Charles Goodhart observed in the mid-1970s that “when a measure becomes a target, it ceases to be a good measure.” Some 45 years later, Goodhart’s Law is at the center of a fierce debate in financial markets over whether governments and central banks turned riskier assets such as equities into targets. And if so, are markets no longer measures of the economy?

Small investors seem to have figured out that the Federal Reserve has, indeed, targeted markets through its unprecedented stimulus programs. They know that markets are now designed for investors to win, as evidenced by the S&P 500 Index’s about 43% gain since late March despite the worst economic recession since the Great Depression. Dave Portnoy, the founder of the website Barstool Sports who recently took up day trading, recently explained it best:

“It took me a while to figure out that the stock market isn’t connected to the economy,” he said. “I tell people there are two rules to investing: Stocks only go up, and if you have any problems, see rule No. 1.”

If markets no longer have moorings to the economy, then investment money lacks consequences and purposely acts aggressively to a point that seems reckless. This further enhances its impact on markets.

Make no mistake, small investors are a significant influence on markets. Bloomberg News reported Tuesday that day traders opened record new trading accounts in the first quarter, likely lured by zero trading fees, a historic selloff in equities and probably boredom while stuck at home. Speculation among small investors has risen to at least the bubble days of the dot-com boom of 1999. The online broker Robinhood reports that one-third of  its accounts, which now total more than 14 million, were opened this year, with the bulk of these newbies joining since early March, when the Fed began supporting financial markets in moves that have expanded its balance sheet assets by almost $3 trillion to $7.17 trillion. Money manager Jeffrey Gundlach speculated this week on a webcast that people are using stimulus checks from the government to buy stocks.

The Fed justifies its actions, which primarily centers on injecting money directly into financial markets by purchasing bonds, by turning the argument around and saying the economy ultimately reflects markets. This is known as the “wealth effect” that was championed by former Fed chairman Alan Greenspan a generation ago. Current Fed Chairman Jerome Powell explained this thinking just a few weeks ago in reference to troubled companies:

“If a company like that doesn’t have market access and can’t roll over its debt and can’t have enough cash on hand to deal with its obligations, what they’re going to do is they’re going to lay people off. … So, by announcing our facility and including those companies, the ones who actually need the credit … now [have] lots of cash on their balance sheets.”

So, what if free markets do not want to finance companies with shaky operations? The Fed has decided it will effectively nationalize debt markets by removing the risk for investors so that these companies can get the funds to continue operating. In the Fed’s way of thinking, higher and vibrant markets create and save jobs.

To be sure, that is what largely happened after 2008 financial crisis as the central bank began buying bonds under a policy known as quantitative easing. A steep price was paid. While the economy grew for almost 11 years in the longest expansion on record, annualized growth was below average. This was attributable to an economy that had become less flexible and more reliant on stimulus.

Another consequence was laid out by former Federal Reserve Bank of New York President and fellow Bloomberg Opinion contributor Bill Dudley last week:

The Fed’s choices: not have a recovery, have less inequality; or have a recovery with buoyant financial asset prices and more inequality.

This is the legacy of the bank bailouts that followed the financial crisis and the consequence of the “all-in” actions by the Fed in recent months. Which is why in this monetary policy regime, no bet seems unwise, even buying the shares of bankrupt rental car companies after they already have risen 1,000% in a weekBut to keep the game going, the Fed will need to keep its policies in place in perpetuity. Then again, the Fed might wonder why it would ever end them if they increase the wealth of 60% of the nation that owns stocks and supposedly create jobs without inflation.

So, the next time markets stumble, small investors can expect even more aggressive action by the Fed, such as buying equities. This is why they have the confidence to chase collapsed stocks like airlines, cruise ships, retailers and energy companies with reckless abandon. The rampant speculation has no reason to stop. In fact, many small investors are surely hoping for another market pullback to buy aggressively like they did in March. 

“This is the easiest game I have ever played,” Portnoy said. Thanks to the Fed, he is not wrong. Perhaps Warren Buffett can learn a thing or two from him.

    via ZeroHedge News https://ift.tt/2MPAxZ0 Tyler Durden