South America’s COVID-19 Dilemma: Pestilence or Famine?

“I would rather die of the virus than of hunger,” says Karina Ribullen as she sells surgical masks and coffee in the open-air market of La Parada on the Colombian-Venezuelan border. “If I miss a day of work, my family doesn’t eat. It’s not bravery, it’s desperation.”

Ribullen isn’t alone. Like most of working-class Latin America, the 46-year-old woman doesn’t have savings; she lives hand to mouth working informally in the streets. She pays rent by the day in a shared apartment with her two daughters, ages 10 and 19, and her granddaughter, age 2. They have received no assistance from either the Venezuelan or Colombian governments. Left without another option, she defies a federally mandated lockdown to earn enough money to support her family.

The COVID-19 crisis has presented much of Latin America with an impossible choice: Continue enforcing draconian lockdown methods much stricter than those in the United States while risking economic collapse, or end the protective measures and risk overwhelming critically vulnerable health systems.

Making the dilemma even more painful, the global fall of oil prices is likely to send the oil-dependent economies of Venezuela, Colombia, and Ecuador into severe regional economic depression. Some experts warn of a looming regional debt crisis as governments find themselves unable to meet their payment obligations.

Meanwhile, a ravaged Latin American working class reels from 6 weeks of an economic freeze. Normal work is on hold, governments have been slow or unable to deliver emergency protections, and unrest is growing.

On April 23 in Upata, Venezuela, hungry protesters raided shops and open-air markets in riots that were put down violently by police and armed gangs. Hunger-driven protests have since spread to more than 15 Venezuelan cities, as acute gasoline shortages make food distribution more difficult and as the global crisis worsens an already astronomical inflation.

In Colombia, there are nearly nightly protests. In the southern neighborhoods of the capital, Bogotá, vulnerable citizens have taken to hanging red cloths in their windows as a call for help and a symbol of growing hunger.

The World Bank’s April report on Latin America predicts a 3–4 percent drop in GDP across the region, adding that the impact could be worse if oil stays weak. It further warns that a depressed economy could lead to a return to the broad social unrest of 2019, when mass protests swept the region. South America might not be able to endure a frozen economy for much longer.

Sergio Guzman is an analyst and director at Colombia Risk Analysis, a consultancy and political risk assessment group. “The [Colombian] government is caught between a rock and hard place,” he says. “People are running on fumes. Unless the government can restart the economy soon, they will be facing an even more severe long-term downturn, and that puts vulnerable people even more at risk.”

In all of Latin America, low-income communities are more at risk as they are often forced to resume work informally or go hungry. Wealthier individuals are more likely to both support and obey lockdown measures, as they have savings and resources that allow them to survive the freeze.

“The potential for unrest is very high,” says Guzman. “People’s hunger is growing, and it is translating into anger with police forces and the government. The crisis is increasing Colombians’ awareness that government institutions aren’t up to the task of dealing with this situation.”

Eighty percent of Colombia’s export market is driven by petroleum and mineral extraction, and both foreign and domestic companies are already pulling back on investment as weakened oil prices make exploration unprofitable. In an economy whose currency has shown a strong correlation with oil prices, this exacerbates an already looming recession. As inflation increases, a weakened Colombian peso means payments on a foreign debt ledgered in dollars becomes a heavier burden, and economic contraction becomes more painful.

The impact of the coming economic contraction will cut across all strata of society. “It isn’t a matter of only affecting the wealthy,” says Mathew Smith, an economic analyst and journalist in Medellin. “It means double-digit unemployment, collapse of small businesses, government rollback of spending on social programs like health and education, and a rise in crime in a region where the rate is already high.”

Ecuador has been the Latin American nation hit hardest by COVID-19. Official government statistics report 506 deaths, but the local press has been claiming for weeks that the actual number is far higher. A recent New York Times study suggests the actual number may be 15 times larger. The city of Guayaquil was so overwhelmed that citizens left bodies on the streets and cemeteries were forced to use shared graves.

The economic freeze has cost the country an estimated $4.7 billion in sales, plus an unknown amount in lost oil revenue and investment. The government defaulted on its most recent foreign debt payment due to a lack of liquidity, downgrading its international credit rating. Tourism has plummeted, leaving millions economically paralyzed.

The Ecuadorian government has announced plans to slowly reopen the economy while maintaining social distancing measures. The state of the economy has left them little choice.

Colombia has announced plans to maintain its strict lockdown until at least May 11, though some businesses that have been deemed essential will begin to open this week. Local and federal officials have been at odds over how and when to formally restart the economy, with President Iván Duque pushing to open more quickly. He is opposed by a vocal group of mayors and governors. 

Venezuela has reacted to ongoing shortages by announcing plans to nationalize sectors of the food industry and implement price controls—a strategy that has worsened both inflation and smuggling in the past, as Venezuelan farmers chose to sell their goods in Colombia rather than in government-mandated markets.

As these countries weigh their limited options, officials fear that resuming normal life too soon may result in a loss of life and increased hardship. But for the most vulnerable citizens, like Ribullen, waiting too long could have a disastrously similar effect.

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Does a dissent have the “force of law”?

Today the Supreme Court decided Georgia v. Public Resource.Org, Inc. The Court held that under the government edicts doctrine, the annotations beneath the statutory provisions in the Official Code of Georgia Annotated are ineligible for copyright protection. My co-blogger noted the unusual 5-4 voting alignment. Chief Justice Roberts wrote the majority opinion, joined by the four most junior justices: Sotomayor, Kagan, Gorsuch, and Kavanaugh. Justices Thomas dissented, joined by Justice Alito, and in part, by Justice Breyer. Justice Ginsburg wrote a separate dissent, joined by Justice Breyer.

The majority and dissent disagreed on many points. For example, was it relevant that the annotations lacked the “force of law”? Chief Justice Roberts concluded this factor was not relevant. Why? Because concurrences and dissents, which also lack the “force of law,” cannot be copyrighted. The Chief explained:

Banks, following Wheaton and the “judicial consensus” it inspired, denied copyright protection to judicial opinions without excepting concurrences and dissents that carry no legal force. 128 U. S., at 253 (emphasis deleted). As every judge learns the hard way, “comments in [a] dissenting opinion” about legal principles and precedents “are just that: comments in a dissenting opinion.” Railroad Retirement Bd. v. Fritz, 449 U. S. 166, 177, n. 10 (1980). Yet such comments are covered by the government edicts doctrine because they come from an official with authority to make and interpret the law.

Here is the full quote from Footnote 10 of Railroad Retirement Bd. v. Fritz (1980):

The comments in the dissenting opinion about the proper cases for which to look for the correct statement of the equal protection rational-basis standard, and about which cases limit earlier cases, are just that: comments in a dissenting opinion.

Roberts may have some personal familiarity with this case. Justice Rehnquist wrote the majority opinion in December 1980. At the time, a young John Roberts was his law clerk.

Justice Thomas vigorously disagreed with the majority on this point:

The majority finds it meaningful, for instance, that Banks prohibited dissents and concurrences from being copyrighted, even though they carry no legal force. Ante, at 15. At an elementary level, it is true that the judgment is the only part of a judicial decision that has legal effect. But it blinks reality to ignore that every word of a judicial opinion—whether it is a majority, a concurrence, or a dissent—expounds upon the law in ways that do not map neatly on to the legislative function. Setting aside summary decisions, the reader of a judicial opinion will always gain critical insight into the reasoning underlying a judicial holding by reading all opinions in their entirety.

Thomas further explained his viewed in footnote 6, which Justice Breyer dissented from:

Understanding the reasoning that animates the rule in turn provides pivotal insight into how the law will likely be applied in future judicial opinions.6

6For instance, this Court has not overruled Lemon v. Kurtzman, 403 U. S. 602 (1971), which pronounced a test for evaluating EstablishmentClause claims. But a reader would do well to carefully scrutinize the various opinions in American Legion v. American Humanist Assn., 588 U. S. ___ (2019), to understand the markedly different way that this precedent functions in our current jurisprudence compared to when it was first decided. Moreover, sometimes a separate writing takes on canonical status, like Justice Jackson’s concurrence regarding the executive power in Youngstown Sheet & Tube Co. v. Sawyer, 343 U. S. 579, 634–638 (1952) (opinion concurring in judgment and opinion of the Court); see also Katz v. United States, 389 U. S. 347, 360–361 (1967) (Harlan, J.,concurring) (reasonable expectation of privacy Fourth Amendment test). Still other times, the reasoning in an opinion for less than a majority of the Court provides the explicit basis for a later majority’s holding. See, e.g., McKinney v. Arizona, 589 U. S. ___, ___ (2020) (slip op., at 5) (discussing Ring v. Arizona, 536 U. S. 584, 612 (2002) (Scalia J., concurring)); Estelle v. Gamble, 429 U. S. 97, 102 (1976) (incorporating into the majority the Eighth Amendment “evolving standards of decency” test first announced in Trop v. Dulles, 356 U. S. 86, 101 (1958) (plurality opinion)). Even ” ‘comments in [a] dissenting opinion,’ ” ante, at 15, sometimes reemerge as the foundational reasoning in a majority opinion. See, e.g., Franchise Tax Bd. of Cal. v. Hyatt, 587 U. S. ___ (2019) (discussing Nevada v. Hall, 440 U. S. 410, 433–439 (1979) (Rehnquist, J., dissenting)); Lawrence v. Texas, 539 U. S. 558, 578 (2003) (“JUSTICE STEVENS‘ [dissenting] analysis, in our view, should have been controlling in Bowers  [v. Hardwick, 478 U. S. 186 (1986),] and should control here”). These examples, and myriad more, demonstrate that the majority treats the role of separate judicial opinions in an overly simplistic fashion.

Justice Thomas, who is often in dissent, may a different vantage point than the Chief.

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20 Years After Its Release, The Legend of Zelda: Majora’s Mask Is Eerily Relevant

“You’ve met with a terrible fate, haven’t you?” So begins Link’s adventure in the creepily off-kilter land of Termina, the setting of The Legend of Zelda: Majora’s Mask, which was released in Japan 20 years ago today.

Two years ago, when The Legend of Zelda: Ocarina of Time turned 20, I hailed it as perhaps the greatest video game ever created. It seems only fair, then, to give the beloved game’s twisted sequel its due: Majora’s Mask polarized the masses, but it’s the favorite of hardcore Zelda fans. Strangest of all—and there’s a lot that’s strange about this trip—Link’s adventure in Termina is bizarrely relevant to the grim situation so much of the world finds itself in right now: the coronavirus pandemic.

Majora’s Mask is a surprisingly sophisticated, lyrical meditation on the theme of coping with one’s own mortality. It forces players to consider what the sudden, unexpected end of civilization would look like at the micro level: for a mailman who’s run out of time to deliver his last letter, for the frustrated director of a theater troupe, for a lonely dairy farmer, and so on. Sometimes the hero doesn’t save the world. Sometimes there are no good outcomes. Sometimes it’s simply too late.

Indeed, Majora’s Mask subverts one of the quintessential video game tropes from its outset. There is no princess in need of rescuing: Zelda, the titular damsel in distress, appears only briefly in a flashback. Having purged evil from the land in the previous installment, protagonist Link thinks he’s getting out of the world-saving business and is ready for some personal time. The battle against the forces of darkness obliged Link to grow up too fast, Zelda fears, and thus she releases him to recapture his youth, on a quest to reconnect with a missing friend whose identity is never confirmed.

Link travels to a familiar forest, and follows a horse thief through a door to a parallel dimension. Majora’s Mask owes a great debt to Alice’s Adventures in Wonderland: Link enters the looking glass and falls into a world that’s a mirror image of the one he knows so well. Termina is populated with familiar faces—the game, which runs on the same engine as Ocarina, reuses many of the same sprites—but none of them know Link.

At first they hardly notice him. They have their own problems: The moon is expected to crash into Termina and obliterate all life in just three days.

It soon becomes clear that this is the doing of a mischievous imp called the Skull Kid, who resembles a scarecrow with a bird’s beak. The Skull Kid has stolen Majora’s Mask, and unless Link can return the item to its elusive owner, the Happy Mask Salesman, the world will end.

That all sounds like straightforward hero-saves-the-world stuff, but three days later, Link fails. And then he fails again. And again, and again. Each time he can use his magic ocarina to travel backward three days. The merchant from whom the mask was stolen greets Link with the line: “You’ve met with a terrible fate, haven’t you?” He encourages Link to try harder next time.

“Everything you do is marked by failure, by bad luck, by not having enough time to get everything done,” observed The AV Club‘s Anthony John Agnello in a 2015 review of the game’s remake for the Nintendo 3DS. “That pervasive air of cruel indifference from the world permeates the game.”

That’s a basic overview, but one that only begins to hint at the singular weirdness of playing Majora’s Mask. A long list of horrors awaits Link: a tree with a pained expression, later revealed to be a runaway son deformed and murdered by the Skull Kid; the ghost of a hero who died in an avalanche; a farm beset by alien (yes, alien) abductions. The game’s rigid schedule makes the horror more real. If Link visits the park north of town on the first night—and only the first night—he can save an old woman from a mugging. If he fails, he must buy her purloined goods from the pawn shop on night two. There’s a haunted house on a forlorn beach, but Link has to cleanse it before the third day, at which point the owner loses interest. It hardly matters, because everything resets when Link travels back through time at the end of the three-day cycle. Visit the town’s laundry pool at just the right moment, and a circus performer will confess that a fit of jealousy caused him to steal a magic artifact from the circus’s leader: a dog. “Why was the dog the leader??” the perplexed performer wonders. Why, indeed?

This is a fantastical game that bears little resemblance to anything from the worlds of fantasy, and the game’s visual style and musical cues reinforces the theme of dread. The townsfolk are pointy humanoids with exaggerated smiles and frowns. The swamp’s color scheme is green and purple, giving it an unwell feeling. The background music gradually intensifies as time marches on, and the last five minutes of the third day produce a cacophony of bells and sorrowful sounds. Even the upbeat tunes have a note of understated sadness to them.

It’s the little people who make Majora’s Mask so memorable. Link learns their routines, their secrets, and their fears. He’s there for them as they begrudgingly come to terms with what’s about to happen, whether it’s witnessing a last-minute declaration of love, conducting a final orchestra performance, or comforting customers at the local bar as the world ends. (The bar’s patrons drink milk—this is, after all, a kid’s game.) Sometimes, Link learns, the best thing you can do for people is be honest with them. Real heroes don’t magically solve everybody’s problems. They listen, they empathize, they offer companionship. For helping them cope with their pain, Link’s new friends each give him a token of remembrance: a mask. These masks represent the folks of Termina letting go of their fears and bracing for the inevitable.

It’s not exactly a spoiler to reveal that in the end, Link sets some things right. Still, the conclusion is bittersweet at best, and it’s not clear whether Link ever does find his missing friend—or whether he survives his ordeal in Termina at all. (Termina, of course, means “end.”) Two decades later, the game feels grimly familiar, and not just because everyone is wearing a mask.

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“World Should Have Listened To WHO” Claims Tedros

“World Should Have Listened To WHO” Claims Tedros

Authored by Paul Joseph Watson via Summit News,

Despite its complicity in helping China cover-up the severity of the coronavirus pandemic, the head of the World Health Organization today claimed “the world should have listened” to the WHO.

Tedros Adhanom Ghebreyesus told a virtual press briefing that the WHO told the world the COVID-19 outbreak constituted a “Public Health Emergency of International Concern” on January 30, when there were only 82 cases registered outside China

“The world should have listened to WHO then carefully,” Ghebreyesus asserted.

The sheer inaccuracy of these statements would be funny if not for the fact that lives were lost due to the WHO’s mishandling of the outbreak.

At every step of the way, the WHO praised China’s actions on coronavirus, despite widespread evidence that the virus was leaked from a lab, that Beijing lied about the true fatality numbers and had known about coronavirus at least weeks before it informed the WHO.

On January 14th, the WHO amplified Chinese government propaganda that there had been no “human to human transmission” of COVID-19, despite this having actually occurred back in November.

According to sources who told Fox News that the virus was leaked from a lab in Wuhan, this represented the “costliest government coverup of all time” and “the World Health Organization (WHO) was complicit from the beginning in helping China cover its tracks.”

The WHO also blocked doctors from urging countries to impose border controls to stop the spread of coronavirus and repeatedly told countries not to close borders, despite this being an effective way of controlling the spread of the virus.

Right up until the end of February, the WHO continued “to advise against the application of travel or trade restrictions to countries experiencing COVID-19 outbreaks,” despite the rapid spread of the disease.

A Mount Sinai study found that New York City’s record-high coronavirus cases and deaths were “predominately” due to travel from Europe, meaning that many more lives could have been saved if borders had been closed down earlier.

But instead, the WHO insisted that maintaining the globalist principle of the international traffic of people was more important than stopping a global pandemic.

The organization also repeatedly told countries not to profile Chinese people in order to avoid “stigmatization,” something that almost certainly led to a lack of screenings of Chinese people passing through airports.

Given this history, more lives would have been saved if countries had in fact listened to the World Health Organization a lot less.

*  *  *

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Tyler Durden

Mon, 04/27/2020 – 14:31

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Tesla Fired 300 Janitors And Bus Drivers While Musk’s Wealth Grew By $650 Million In April

Tesla Fired 300 Janitors And Bus Drivers While Musk’s Wealth Grew By $650 Million In April

We’ve been documenting the ongoing fire drill that is Tesla throughout the course of this pandemic. Most recently, we reported that workers at the company’s Fremont factory could be heading back in to work before the county’s stay-at-home order expires.

…what’s left of the company’s workers, that is. 

We also reported days ago that Tesla had furloughed a majority of its workers and instituted pay cuts until the end of Q2. Now, The Sun is reporting that the company has laid off “close to 300 janitors and bus drivers” while Elon Musk has seen his personal wealth grow by $650 million and Tesla’s stock rebounded from its coronavirus lows. 

Google, Apple and Facebook continue to pay workers in the same positions as those laid off from Tesla, the report notes.

Dianne Solis, the vice president of SEIU-United Service Workers West, which represents 11,000 janitors in northern California said: “Early on we had most tech giants, Google, Facebook, Cisco, Apple, Microsoft, all committed to keep workers on or offering continued pay and benefits in the case of layoffs. We were hoping Tesla would follow suit but they are an outlier.”

Esther Garcia Servin, a single mother with two children who worked for Tesla, commented: “This is having a devastating effect on workers, who are low wage workers and not seen. They’re subcontracted and that’s the way Tesla tries to remove any responsibility. Many of these workers have chronic conditions like diabetes and don’t have healthcare. There are no other jobs out there right now, and these workers don’t know how they’ll pay May rent or put food on the table.”

Servin said she could not afford to pay May rent as a result of being laid off.

To pay this collective of workers for 12 weeks at a rate of $15, it would cost Tesla about $2.016 million, The Sun estimated. That works out to about 0.3% of the $650 million in net worth CEO Musk has tacked on in April. 

Maria Noel Fernandez, campaign director at the grassroots community organization, Silicon Valley Rising, concluded: “Elon Musk is making a conscious decision to say Tesla doesn’t care about its contractors. Musk is saying ‘we’re not standing by our workers and their communities.’ And he could afford it. It’s a decision.”


Tyler Durden

Mon, 04/27/2020 – 14:16

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Billionaires in Space: How Musk, Bezos, and Branson Could Save Humanity

The dynamism of the emerging private space industry, with its eye-popping aircraft designs and new approaches to launches, is rejuvenating excitement around space travel. Once monopolized by a budget-busting federal bureaucracy, space travel now has new leaders: wealthy philanthropists with boyhood dreams of spaceflight, and entrepreneurs who believe that they can make money selling tickets to the edge of space.

When Reason first declared the “dawn of private ventures in space” in 1979, we were admittedly off by a number of years. But in the last decade, billionaires such as Elon Musk, Richard Branson, and Jeff Bezos have been working through costly failures and lengthy experiments to arrive at workable approaches to commercial spaceflight. In 2019 investors poured a record $5.8 billion into hundreds of space ventures.

“Even though the industry, the world, all the primes, all the governments had concluded that it’s impossible to reuse rocket boosters, [Elon Musk and Jeff Bezos] took enormous risks and try it anyway,” says famed aerospace engineer Burt Rutan. “And you know, they all crashed at first and kept crashing. But wow, they figured it out! And now, by reusing rocket boosters, it changes the entire outlook on what’s going to happen for the public as far as flying in space.”

Rutan, who won the Reason Foundation’s 2019 Savas Award for Privatization, designed SpaceShipOne, the first reusable manned craft to reach space not underwritten by the government. He sat down with Reason Editor-in-Chief Katherine Mangu-Ward to discuss private space flight, his renegade aircraft designs, and why it’s important for mankind to leave Earth. Rutan, Microsoft co-founder Paul Allen, and the rest of the SpaceShipOne team won the $10 million Ansari X Prize as the first non-government organization to launch a reusable manned spacecraft into space twice within two weeks.

Elon Musk has said that that what he’s doing on rocketry is a hundred times more important than curing cancer,” says Rutan. “If you cure cancer, you save 14 percent of the people. If you can colonize another planet—and humans can learn to survive there—you can save all of us.”

Edited and graphics by Meredith Bragg; cameras by Jim Epstein and Kevin Alexander.

Photos: Mark Greenberg/ZUMA Press/Newscom, ARCOCCHI GIULIO/SIPA/Newscom, Paul Hennessy/ZUMA Press/Newscom, SMG/ZUMA Press/Newscom, Blue Origin/Cover Images/Newscom, Yichuan Cao/ZUMA Press/Newscom, Ben Cawthra/Sipa USA/Newscom

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Billionaires in Space: How Musk, Bezos, and Branson Could Save Humanity

The dynamism of the emerging private space industry, with its eye-popping aircraft designs and new approaches to launches, is rejuvenating excitement around space travel. Once monopolized by a budget-busting federal bureaucracy, space travel now has new leaders: wealthy philanthropists with boyhood dreams of spaceflight, and entrepreneurs who believe that they can make money selling tickets to the edge of space.

When Reason first declared the “dawn of private ventures in space” in 1979, we were admittedly off by a number of years. But in the last decade, billionaires such as Elon Musk, Richard Branson, and Jeff Bezos have been working through costly failures and lengthy experiments to arrive at workable approaches to commercial spaceflight. In 2019 investors poured a record $5.8 billion into hundreds of space ventures.

“Even though the industry, the world, all the primes, all the governments had concluded that it’s impossible to reuse rocket boosters, [Elon Musk and Jeff Bezos] took enormous risks and try it anyway,” says famed aerospace engineer Burt Rutan. “And you know, they all crashed at first and kept crashing. But wow, they figured it out! And now, by reusing rocket boosters, it changes the entire outlook on what’s going to happen for the public as far as flying in space.”

Rutan, who won the Reason Foundation’s 2019 Savas Award for Privatization, designed SpaceShipOne, the first reusable manned craft to reach space not underwritten by the government. He sat down with Reason Editor-in-Chief Katherine Mangu-Ward to discuss private space flight, his renegade aircraft designs, and why it’s important for mankind to leave Earth. Rutan, Microsoft co-founder Paul Allen, and the rest of the SpaceShipOne team won the $10 million Ansari X Prize as the first non-government organization to launch a reusable manned spacecraft into space twice within two weeks.

Elon Musk has said that that what he’s doing on rocketry is a hundred times more important than curing cancer,” says Rutan. “If you cure cancer, you save 14 percent of the people. If you can colonize another planet—and humans can learn to survive there—you can save all of us.”

Edited and graphics by Meredith Bragg; cameras by Jim Epstein and Kevin Alexander.

Photos: Mark Greenberg/ZUMA Press/Newscom, ARCOCCHI GIULIO/SIPA/Newscom, Paul Hennessy/ZUMA Press/Newscom, SMG/ZUMA Press/Newscom, Blue Origin/Cover Images/Newscom, Yichuan Cao/ZUMA Press/Newscom, Ben Cawthra/Sipa USA/Newscom

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Cohodes: Pump-And-Dump Stock Trading Needs New Rules For The Digital Age

Cohodes: Pump-And-Dump Stock Trading Needs New Rules For The Digital Age

Submitted by Marc Cohodes, first published in the FT

The fairness of capital markets is under threat due to the rise of digital media.

We live in an era where some stock promoters and short sellers open large positions prior to publishing market-moving information about a company, and rapidly close those positions after inducing a buying or selling frenzy.

Whipping up hype and hysteria is an easy way to make quick, riskless profit. In my view, it is also wrong. It goes against the spirit of our laws, and it is bad public policy. Whether you own shares or are betting against a company, I believe it is misleading to tell investors that you have a specific view on a company and then profit from a trade in the opposite direction.

A US circuit court said as much as part of the 1979 case of Zweig v Hearst Corp, which found that a newspaper columnist touting a stock could be sued for securities fraud for failing to disclose he owned the security and “his intent to sell when the market price rose”.

More recently, in the 2018 case of Lidingo Holdings, a writer was charged civilly with fraud for selling “stock at a profit soon after his article was published, which was contrary to the advice he gave in his articles advocating holding for the long-term”. This year he consented to a judgment without admitting or denying the allegations.

The two legal cases deal with people accused of trying to push prices up through publicity and then selling. US regulators should extend the rule, and make clear that it is equally unacceptable to encourage the sale of a security while planning to purchase shares to cover a short position soon afterwards.

Existing US law also fails to address fundamental changes to the media environment that are giving rise to new forms of market manipulation. Many bloggers and social media personalities who promote or attack stocks do not conduct a deep investigation of the companies involved. Instead, they republish theses acquired elsewhere and buy and sell quickly to make a fast buck. If you truly believe that a stock price is off — either because the company is a hidden gem or a fraudulent trash heap — he or she should be willing to hold open a position consistent with the advice he or she is giving to other investors.

It is time for Congress to enact a ten-day minimum holding period that would apply to any stock promoter or short seller who opens a large position and disseminates market-moving information, whether by publishing a report, going on media outlets such as CNBC, Fox or Bloomberg, speaking at conferences or posting on social media.

The idea is simple: if both longs and shorts are required to hold open a position they have advocated for 10 days, the market is given an opportunity to evaluate the quality and credibility of the information. If the promoter is worried that the price might crash back to earth within 10 days, they should not be touting the stock to begin with.

Similarly, if a short seller is concerned that the price might rebound in that window, investors are better off not selling in the first place. I recognise that a 10-day holding period is relatively brief, but short sellers already face expensive borrowing costs to hold open a position. A longer holding period might very well be cost prohibitive.

This is a modest rule which protects investors from predatory hedge funds seeking to exploit hype or hysteria about a public company. This is a fair and even-handed approach that avoids tipping the scales in favour of public companies or their critics. This is a simple way to protect the integrity of our capital markets, and it is one that the entire investment community — both long and short — can get behind.


Tyler Durden

Mon, 04/27/2020 – 14:01

via ZeroHedge News https://ift.tt/2y3wX9S Tyler Durden

What Happened To Kim Jong Un? Top Theories Emerge

What Happened To Kim Jong Un? Top Theories Emerge

North Korea’s Kim Jong Un hasn’t been seen since April 11, notably missing the country’s most important holiday on April 15 honoring his grandfather, Kim Il Sung.

What we do know is that China dispatched a team of medical experts to North Korea amid conflicting reports that Kim underwent a ‘botched’ cardiovascular surgery. According to the Daily NK, however, Kim has mostly recovered.

Last Monday though, MSNBC‘s Katie Tur tweeted “Kim Jong Un is brain dead,” and that both NBC and CNN had confirmed his status. She quickly deleted the tweet “out of an abundance of caution.”

So, with rumors over Kim’s fate swirling, here are the top theories as to what’s going on, according to Bloomberg.

Relax, he’s just fine

Kim Jong Un is alive and well,” according to Moon Chung-in, special adviser to South Korea’s president. In a Sunday statement to Fox News, Moon said that Kim had been staying in the coastal resort town of Wonsan since April 13. 

He’s toast

According to CNN, so who knows, US intelligence suggests that Kim is in “grave danger” following the surgery. Meanwhile, Bloomberg reported that US officials were told Kim is in critical condition, but could not confirm his status.

While U.S. President Donald Trump said Thursday that he believed the CNN report was “incorrect” and based on “old documents,” rumors about Kim’s deteriorating condition only accelerated on social media. On Saturday, Reuters reported that the Chinese Communist Party’s International Department dispatched a team including medical experts to North Korea on Thursday to advise on Kim. The news service, which cited three people familiar with the situation, said it was unclear what the delegation signaled about Kim’s health. –Bloomberg

According to China’s foreign ministry, the ‘medical team’ was related to coronavirus testing. “That is not the same as a medical team,” said CCP spokesman Geng Shuang in a Monday night interview from Beijing.

Kim is social distancing

Not wanting to catch coronavirus since the 36-year-old is in a higher risk category on account of his obesity, some have suggested that the North Korean leader is simply quarantining amid the COVID-19 crisis, despite the fact that North Korea hasn’t disclosed any cases.

Screenshot “LollyBomb

On Monday, Seoul-based JoongAng Daily newspaper reported that Kim is in self-quarantine, citing an unidentified source in China. According to the report, one of Kim’s bodyguards was confirmed to have contracted the virus, which is why China sent 50 or so medical staff.

Of course, this wouldn’t prevent Kim from providing proof-of-life.

Kim was injured during military drills

Screenshot “LollyBomb

One rumor circulating is that Kim was injured during military drills in the eastern tourist enclave of Wonsan, where he owns a palatial family compound. According to satellite photos analyzed by 38 North, Kim’s armored train, or one which looks a lot like it, was seen parked at the local railway station last week.

Source: Planetlab/38 North

On April 14, the day before the Day of the Sun celebration in Pyongyang, there was a burst of military activity which included cruise missile tests and fighter jet maneuvers, according to a statement by North Korean defector Ri Jong Ho, who currently lives in the US. Bloomberg suggests this is unlikely, and notes that satellite images from April 15 don’t show Kim’s train.

Seeking attention

Last but not least, Bloomberg cites South Korean lawmaker Yoon Sang-hyun, who heads a committee on inter-Korean relations, who suggested that Kim devised his disappearance in order to draw attention to the regime.

Yoon speculated that the North Korean leader would have to show up in public in the next couple of weeks to avoid a destabilizing debate about his grip on power and potential successors.

“If he doesn’t, it’s a real big issue,” Yoon told reporters Monday, according to the DongA Daily. “Kim is apparently not running the country as he would normally do now.” –Bloomberg

In 2014, Kim similarly vanished for six weeks, stoking all sorts of rumors ranging from ‘gout’ to ‘overthrown,’ after which he was seen walking with a cane. 


Tyler Durden

Mon, 04/27/2020 – 13:46

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

When It Comes to Covering Trump, The New York Times Has Abandoned Any Distinction Between Reporting and Opinion

Two recent New York Times stories raise the question of whether the paper any longer makes a distinction between news and opinion when it comes to covering Donald Trump. One piece, identified as a “political memo,” makes the case that the president is not nearly as smart as he thinks he is, while the other, presented as a content analysis of Trump’s comments during COVID-19 briefings, argues that he indulges in unprecedented self-praise, self-pity, and blame shifting.

Those portrayals will strike Trump’s critics, presumably including most Times readers, as essentially accurate. But they do not belong in the news section unless the Times has abandoned any pretense that its reporting, as distinct from its opinion section, aspires to even-handedness and political neutrality. While the reality has always been quite different, the paper’s bias in its news coverage has never been more blatant.

Under the headline “Trump’s Disinfectant Remark Raises a Question About the ‘Very Stable Genius,'” national political reporter Matt Flegenheimer mocks the president’s perceptions of his own intelligence and intellectual seriousness. “The president has often said he is exceptionally smart,” the subhead says. “His recent suggestion about injecting disinfectants was not.” Referring to last Thursday’s coronavirus briefing, during which Trump suggested that injections of disinfectants such as bleach and isopropyl alcohol might prove to be effective treatments for COVID-19, Flegenheimer observes: “Mr. Trump’s performance that evening…did not sound like the work of a doctor, a genius, or a person with a good you-know-what.”

Flegenheimer suggests that Trump’s disinfectant comments could hurt him even among die-hard supporters: “Mr. Trump’s typical name-calling can be recast to receptive audiences as mere ‘counterpunching.’ His impeachment was explained away as the dastardly opus of overreaching Democrats. It is more difficult to insist that the man floating disinfectant injection knows what he’s doing.” Although the piece quotes various observers (all critical of Trump) regarding the episode and its potential political ramifications, there is no mistaking the author’s opinion of the president’s intelligence.

In a story headlined “260,000 Words, Full of Self-Praise, From Trump on the Virus,” Washington correspondents Jeremy Peters and Maggie Haberman, together with national political reporter Elaina Plott, summarize their transcript analysis this way: “The self-regard, the credit-taking, the audacious rewriting of recent history to cast himself as the hero of the pandemic rather than the president who was slow to respond: Such have been the defining features of Mr. Trump’s use of the bully pulpit during the coronavirus outbreak….The transcripts show striking patterns and repetitions in the messages he has conveyed, revealing a display of presidential hubris and self-pity unlike anything historians say they have seen before.”

Peters, Plott, and Haberman are ostensibly presenting data, counting “roughly 600” instances of “self-congratulation,” “more than 260” examples of giving credit to others, “more than 110” examples of blaming others, and “about 160” expressions of empathy. They also quote sources (again, all critics of Trump) who offer their own views. But the authors are unmistakably communicating their low regard for the president in a way that might make the piece an interesting addition to the opinion section but is hardly consistent with straight reporting or even news “analysis.”

Trump has always viewed outlets like the Times as overtly hostile to him, and stories like these only confirm that impression. The articles dress up opinion as reporting, drawing conclusions that may be perfectly defensible but rely on value judgments and character assessments that readers would ordinarily expect from commentators rather than reporters. While the president’s attacks on the news media are frequently unhinged and overbroad, “reporting” like this validates his thesis that much of the press corps is out to get him.

There is a difference between reporting facts that make Trump uncomfortable, or reporting the opinions of Trump critics, and calling him stupid, uninformed, vain, petty, irresponsible, and self-obsessed. By crossing that line, the Times is erasing the distinction between reporting and advocacy.

Maybe that’s for the best. There is nothing wrong with advocacy or opinion journalism (I do it all the time!), as long as it is intellectually honest and explicitly identified as such. The subtler forms of bias that were apparent in news coverage by the Times long before Trump was elected—manifested in decisions about which facts to include or omit, which sources to quote, and which angles to emphasize—are more insidious and therefore more misleading.

Readers may be better served by a newspaper that is open about its prejudices and does not pretend that it aspires to anything like objectivity, which was always an impossible standard to meet, or even balance. But if that is the route the Times chooses, it must abandon the notion that what it does is fundamentally different from what Fox News does, and its “reporters” can hardly object when Trump publicly describes them as political opponents.

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