Stocks Soar To All-Time Highs Despite Record Global Uncertainty

Stocks Soar To All-Time Highs Despite Record Global Uncertainty

The biggest short-squeeze in six weeks, mirroring the mid-September rebound…

Source: Bloomberg

Sent stocks to record highs today…

Source: Bloomberg

Despite global uncertainty being at all-time record highs…

Source: Bloomberg

It’s a full Risk-Astley-tard market…

And everyone knows, you never go full Rick-Astley-tard!

While stocks reached record highs, perhaps the bigger news was the massive explosion higher in cryptos with Bitcoin up over $1200 on the day…This is the biggest daily gain for Bitcoin since April

Source: Bloomberg

Chinese stocks ended notably higher on the week after Friday’s buying spree

Source: Bloomberg

European stocks were mostly higher on the week with DAX leading the way as trade hopes revived but UK’s FTSE disappointed on Brexit progress being stymied…

Source: Bloomberg

US Equities were all higher on the week with Trannies the biggest gainer, followed by Nasdaq…

 

With S&P 500 leaving the key 3,000 behind and ramping above the closing record high (and within 0.5 points of the intraday record high)…

S&P Record Closing High 3025.86 (3027.98 intra)

Amazon’s collapse overnight sparked a panic-bid from the cash market open (NOTE – the ramp really accelerated from the US open to the EU close)…

Momo was lower for the 3rd week in a row – tumbling most since the quant quake in September…

Source: Bloomberg

VIX was monkeyhammered back to a 12 handle for the first time since July…

Source: Bloomberg

Financials outperformed the market this week, decoupling from the yield curve…

Source: Bloomberg

Treasury yields ended the week higher after their spike today with the belly underperforming…

Source: Bloomberg

30Y Yields spiked up to Monday’s highs today…

Source: Bloomberg

The Dollar ended the week higher, but well off the October highs

Source: Bloomberg

Cable sold off this week – after 3 huge weeks higher…

Source: Bloomberg

Offshore Yuan rallied for the fourth week in a row…

Source: Bloomberg

Cryptos ended the week higher after today’s huge buying…

Source: Bloomberg

With Bitcoin bouncing perfectly off its 200-day moving-average

Source: Bloomberg

Silver and Crude outperformed this week but all major commodities were higher

Source: Bloomberg

WTI topped $56 – to its highest since September…

Gold futures got back above $1500…

And silver soared back above $18…

 

Global negative-yielding debt rose very modestly this week…

Source: Bloomberg

Finally, we note that October is currently the most disappointing macro month since April 2017…

Source: Bloomberg

But then again, it’s not about fun-durr-mentals…

Source: Bloomberg


Tyler Durden

Fri, 10/25/2019 – 16:01

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

Relying on Petty Fines To Fund City Government Can Have Serious Consequences

Burdening the poor with vexatious fines—which potentially lead, if people are unable to pay their fines, to imprisonment—is bad for society. A new study from the Institute for Justice, “The Price of Taxation by Citation,” demonstrates the serious consequences not just for unfortunate citizens who have harmed no one, but for civic peace in general.

The study focuses on three Georgia cities that derive 14 to 25 percent of their revenue from such fines and fees: Morrow, Riverdale, and Clarkston. (The average for the state is more like 3 percent.) “The cities have their own courts to process citations, and the evidence shows these courts, which are structurally dependent on the cities, operate as well-oiled machines,” the study reports. “They churn through more cases than courts in similarly sized cities, and cases almost always end in a guilty finding, resulting in fines and fees revenue for the cities.”

The cities have small population bases on which to prey, ranging from 7,500 to 16,500. They are fined, among other things, for “traffic tickets…for non-speeding violations, such as expired tags, lane violations, illegal U-turns, parking violations and window tinting, among numerous others,” as well as “trivial infractions…dominated almost entirely by offenses like being in a park after closing, violating leash laws and not walking on sidewalks.”

Overall, the study found, most of these revenue-generating tickets are “for traffic and other ordinance violations that presented little threat to public health and safety. Traffic violations posed only moderate risk on average, while property code violations were primarily about aesthetics. This suggests the cities are using their code enforcement powers for ends other than public protection.”

The phenomenon, which the authors call “taxation by citation,” “(1) creates conflicts of interest, (2) distorts law enforcement priorities and (3) violates the rights of poor people.” When, as often happens, these citations fees fund the very municipal courts that levy them, that gives judges a pretty direct “personal interest in cases they decide, and municipalities should not have a financial interest in obtaining convictions.” Federal courts have found such practices constitutionally problematic.

In addition, “prosecutors’ duty to exercise their discretion neutrally can also be compromised if their office has a financial stake in convicting people.”

The practice also encourages law enforcement to spend time not worrying about actual public safety but searching for ways to ding people for cash. Such practices end up entrapping more citizens than the national norm in probation, where more fees, often reasonably unpayable, accrue. As a result, the risk of actual imprisonment and all its concominant problems looms over people for the pettiest of offenses.

The Institute for Justice observes that “Our review of the sample cities’ laws turned up few provisions that would meaningfully protect people from fines and fees abuse.” For example, none have ordinances that would “require municipal courts to provide jury trials when requested by a defendant, offer discovery or hold ability-to-pay hearings.”

Neither do any “require their courts to consider non-jail alternatives to fines and fees, such as community service, educational programs, or school or work attendance,” or to “prohibit courts from incarcerating or threatening to incarcerate people unable to pay fines and fees.”

Taxation by citation also leads to “lower levels of trust and higher levels of ill will toward city government on the part of residents. Trust in government is the level of confidence citizens hold that ‘authorities will observe the rules of the game and serve the general interest.’ Because many people’s primary experiences with the justice system involve dealing with police officers and local courts, excessive use of fines and fees can foment
distrust, damage residents’ relationships with law enforcement and harm judicial credibility.”

I suspect that no city official is going to stress so much about damaging citizen trust in institutions as long as they can keep turning poor people’s lives into revenue spigots.

But they should consider, as the study notes, that this dire phenomenon of city’s managing their finances on the back of petty harassment of poor citizens first burst to public prominence in the context of the riots in Ferguson, Missouri, following the 2014 police-caused death of Michael Brown.

It turns out that “from July 2010 through June 2014, Ferguson, a city of about 21,000 residents, issued 90,000 citations for municipal ordinance violations. And in the final 12 months of that period, police and code inspectors wrote almost 50% more citations than they did in the first 12. Significantly, the additional citations were largely for non-serious code offenses—not offenses like assault, driving while intoxicated and theft; the number
of citations for more serious crimes like those generally held steady.”

In the long run, destroying citizen trust in institutions can have bad effects far more serious than a cracked driveway or daring to tint one’s car window, even if officials want to forget—as they should not—how badly they can mess up someone’s life for no good reason.

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Relying on Petty Fines To Fund City Government Can Have Serious Consequences

Burdening the poor with vexatious fines—which potentially lead, if people are unable to pay their fines, to imprisonment—is bad for society. A new study from the Institute for Justice, “The Price of Taxation by Citation,” demonstrates the serious consequences not just for unfortunate citizens who have harmed no one, but for civic peace in general.

The study focuses on three Georgia cities that derive 14 to 25 percent of their revenue from such fines and fees: Morrow, Riverdale, and Clarkston. (The average for the state is more like 3 percent.) “The cities have their own courts to process citations, and the evidence shows these courts, which are structurally dependent on the cities, operate as well-oiled machines,” the study reports. “They churn through more cases than courts in similarly sized cities, and cases almost always end in a guilty finding, resulting in fines and fees revenue for the cities.”

The cities have small population bases on which to prey, ranging from 7,500 to 16,500. They are fined, among other things, for “traffic tickets…for non-speeding violations, such as expired tags, lane violations, illegal U-turns, parking violations and window tinting, among numerous others,” as well as “trivial infractions…dominated almost entirely by offenses like being in a park after closing, violating leash laws and not walking on sidewalks.”

Overall, the study found, most of these revenue-generating tickets are “for traffic and other ordinance violations that presented little threat to public health and safety. Traffic violations posed only moderate risk on average, while property code violations were primarily about aesthetics. This suggests the cities are using their code enforcement powers for ends other than public protection.”

The phenomenon, which the authors call “taxation by citation,” “(1) creates conflicts of interest, (2) distorts law enforcement priorities and (3) violates the rights of poor people.” When, as often happens, these citations fees fund the very municipal courts that levy them, that gives judges a pretty direct “personal interest in cases they decide, and municipalities should not have a financial interest in obtaining convictions.” Federal courts have found such practices constitutionally problematic.

In addition, “prosecutors’ duty to exercise their discretion neutrally can also be compromised if their office has a financial stake in convicting people.”

The practice also encourages law enforcement to spend time not worrying about actual public safety but searching for ways to ding people for cash. Such practices end up entrapping more citizens than the national norm in probation, where more fees, often reasonably unpayable, accrue. As a result, the risk of actual imprisonment and all its concominant problems looms over people for the pettiest of offenses.

The Institute for Justice observes that “Our review of the sample cities’ laws turned up few provisions that would meaningfully protect people from fines and fees abuse.” For example, none have ordinances that would “require municipal courts to provide jury trials when requested by a defendant, offer discovery or hold ability-to-pay hearings.”

Neither do any “require their courts to consider non-jail alternatives to fines and fees, such as community service, educational programs, or school or work attendance,” or to “prohibit courts from incarcerating or threatening to incarcerate people unable to pay fines and fees.”

Taxation by citation also leads to “lower levels of trust and higher levels of ill will toward city government on the part of residents. Trust in government is the level of confidence citizens hold that ‘authorities will observe the rules of the game and serve the general interest.’ Because many people’s primary experiences with the justice system involve dealing with police officers and local courts, excessive use of fines and fees can foment
distrust, damage residents’ relationships with law enforcement and harm judicial credibility.”

I suspect that no city official is going to stress so much about damaging citizen trust in institutions as long as they can keep turning poor people’s lives into revenue spigots.

But they should consider, as the study notes, that this dire phenomenon of city’s managing their finances on the back of petty harassment of poor citizens first burst to public prominence in the context of the riots in Ferguson, Missouri, following the 2014 police-caused death of Michael Brown.

It turns out that “from July 2010 through June 2014, Ferguson, a city of about 21,000 residents, issued 90,000 citations for municipal ordinance violations. And in the final 12 months of that period, police and code inspectors wrote almost 50% more citations than they did in the first 12. Significantly, the additional citations were largely for non-serious code offenses—not offenses like assault, driving while intoxicated and theft; the number
of citations for more serious crimes like those generally held steady.”

In the long run, destroying citizen trust in institutions can have bad effects far more serious than a cracked driveway or daring to tint one’s car window, even if officials want to forget—as they should not—how badly they can mess up someone’s life for no good reason.

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Does Elizabeth Warren Want To Crash The Global Financial Markets?

Does Elizabeth Warren Want To Crash The Global Financial Markets?

Authored by Chris Whalen via TheInstitionalRiskAnalyst.com,

Sisyphus is a figure from Greek mythology. For sins in mortal life, he was punished by Zeus to forever roll a boulder up a hill in the depths of Hades, only to see it to roll down again.  The Federal Open Market Committee is essentially trapped in the torment of Sisyphus. They keep trying to add liquidity to the domestic US money markets, only to see it leak out into the vast offshore market for dollar funding.

This week the FOMC announced that the minimum size of its overnight repurchase-agreement operations will rise to $120 billion, from what had been at least $75 billion. Long-term repo operations will rise from a minimum daily offering size of $35 billion and go up to $45 billion in interventions scheduled for Thursday and Oct. 29. The longer-term repo operations are scheduled to carry over into November, but you can expect the operations to be extended into next year.

Trouble is that these larger operations are unlikely to be effective.  Why?  Because the US and foreign banks that hold liquidity have no incentive to make this liquidity available to domestic borrowers in the US.  Indeed, the entire intellectual construct that allowed the FOMC to think in 2018 that they could actually raise interest rates is shown to be a complete fallacy.

“Everyone in the markets focused on repo problem as technical, given the competition for funding from T-bills/reserves,” notes Ralph Delguidice at Pavilion Global Markets.

“Fed asset swap ‘not QE’ designed to force cash out of T-bills into general collateral (GC), but is now failing as sellers of those Bills (foreign official mostly) park cash in reverse repurchase (RRPs) instead. But problem isn’t cash not flowing UP to repo, it is cash not flowing DOWN to repo.”

A number of analysts such as George Selgin at Cato Institute have rightly focused on the “leakage” in the Fed’s “floor” system for fed funds, but the offshore dimension may be a more significant factor thwarting the efficacy of Fed policy. It’s about the spread everybody.  Duh.

The fact that regulatory policies such as Dodd-Frank and Basel III are blocking the movement of funding is easily understood by the markets (but not Massachusetts Senator Elizabeth Warren, it seems).  Most of the TBTF/G-SIB banks must shrink going into year end to avoid a G-SIB capital surcharge penalty.  Last December’s liquidity crisis was a function of JPMorgan (JPM) and other large banks backing away from the short-term markets.  Thanks Elizabeth!

With the level of bank reserves now lower than a year ago, the rocks in the proverbial stream are starting to appear.  The Fed is trying to address their error by dumping more reserves back into the system via QE and repo, but the “liquidity” is running out of a hole in the bucket thanks to the spread between what a cash provider earns on repo – say +75bps over LIBOR in Treasury and agency repo – and the higher yields available in the $10 trillion market for currency swaps. Call it 2%.

Delguidice believes that as US interest rates have risen, demand in the $10 trillion market for currency swaps (aka “Eurodollars”) has soared, proving an impossible situation for the Fed as it tries to manage the 1.75-2.0% target range for Fed funds.

“FX-swaps are a ten trillion-dollar market and are functionally equivalent to a repo to lenders of USD (most of the time), only with higher rates reflected by the basis,” says Delguidice. 

“They also receive derivative treatment on balance sheets, unlike REPO, so dealers would MUCH rather do them. You only have count MTMs in the capital charge, but unlike repo they MUST be physically settled when they mature. They cannot just be rolled over.”

Many sellers of T-bills are non-US banks.  Many of these then take the cash and go into the RRP market away from the Fed. These banks get UST collateral that they can hypothecate to, you guessed it, access dollar liquidity.  Many of these non-US banks in China and other Asian nations are profoundly short-dollars and hold trillions in dollar loan assets. Important, you cannot hypothecate the RRPs at the Fed.  See BIS paper on the “missing debt” parked offshore for your happy reading this weekend.

Bottom line is that the rate paid and earned for RPs and RRPs is important, but the actual flow of cash vs “excess reserves” measured by our friends at the Fed is another matter.  The Fed is uniquely ill-equipped to deal with such tactical issues.  The Fed’s balance sheet may grow, but the supply of cash liquidity in the broad market may not.  The liquidity that the Fed is adding may not “trickle down” to the GCF and fed funds markets outside the primary dealers.

Indeed, each day there is a 20-30 basis point differential between what the Fed charges primary dealers (~1.85% today and the rest of the market (~2.05%).  This effective rate differential is likely to widen as the year comes to a close.  Truth is, not only has the FOMC lost control of the Fed’s balance sheet to the financial markets, but the offshore Eurodollar market may force the FOMC to collapse US rates to eliminate the rate differential or “spread” between domestic fed funds and repo and the effective negative cost of funds offshore.

The Fed and prudential regulators could take a lot of pressure off the money markets by adjusting the G-SIB capital surcharge and a couple of other relatively minor tweaks to the bank regulatory environment, but Senator Warren is having none of it.

“So now the worst single thing that can possibly happen has happened,” notes Delguidice. 

“Elizabeth Warren wants to complicate what could have been a simple and straightforward hostage negotiation with JPM’s Jamie Dimon over regulatory relief and the eventual Fed acquisition of the UST he is having increasing difficulty funding in the GC markets on his balance sheet.”

Remember, the TBTF/G-SIBs will again be shrinking their balance sheets going into year-end thanks to Basel III/IV and Dodd-Frank.  Now you understand why the Fed just doubled down on adding repo liquidity to the markets, but it may not work.  And a socialist presidential candidate named Elizabeth Warren is perfectly willing to crash the US financial markets to advance her never ending quest for celebrity and fame.

Fed Chairman Jay Powell is Sisyphus. Elizabeth Warren thinks she is Zeus.  This will not end well. Good weekend. 


Tyler Durden

Fri, 10/25/2019 – 15:50

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

Short Circuit: A Roundup of Recent Federal Court Decisions

Please enjoy the latest edition of Short Circuit, a weekly feature from the Institute for Justice.

Next month, the U.S. Supreme Court will consider whether parents of an unarmed, unthreatening Mexican teen who was shot dead from across the border can sue the federal agent who killed their son. The Fifth Circuit ruled that they cannot. Click here to read an IJ amicus brief urging the Supreme Court to reverse. “Had Sergio Hernandez been killed by a federal agent in the 19th century, his parents could have brought a damages claim for the deprivation of their son’s constitutional rights,” says Anya Bidwell, who co-authored the brief. “The Supreme Court’s current jurisprudence that essentially eliminates the ability of individuals to sue federal agents for constitutional rights is simply inconsistent with this proud history.”

  • Though facing charges in federal court for false statements and witness tampering, political consultant for Donald Trump’s 2016 presidential campaign persists in airing inflammatory comments about the judge, the investigation, and potential witnesses. And we will not disturb the district court’s increasingly strict restraints on his Twittering, Instant-Telegrams, and Facebookery, says the D.C. Circuit.
  • Allegation: NYPD officer yanks compliant, unthreatening quinquagenarian arrestee out of her cell, tells her “don’t make me hurt you.” Frightened, she declines to tell the officer that he put on her handcuffs too tightly, which ultimately results in permanent, debilitating nerve damage. (All charges against the arrestee are later dropped.) Excessive force? Second Circuit: Yes, but qualified immunity. It was not clearly established that an arrestee who shows clear signs of distress but does not verbally inform an officer that handcuffs are too tight is being excessively forced. (Henceforth, it is clearly established, however.)
  • After protests at abortion clinics, Pittsburgh officials adopt an ordinance creating a 15-foot “buffer zone” outside the entrance of any health care facility, in which no one may “congregate, patrol, picket or demonstrate.” A First Amendment violation? Third Circuit: Not if we interpret “congregate, patrol, picket or demonstrate” super-duper narrowly, so that it excludes the plaintiffs’ peaceful sidewalk counseling.
  • Louisiana abortion clinic and two of its doctors bring a “cumulative-effects challenge” to the state’s abortion laws, arguing that, collectively, they pose an undue burden even if individual rules by themselves do not. Fifth Circuit: Maybe you can do that, but in quantifying the cumulative effects, you only get to count provisions that you would have standing to challenge individually.
  • Victoria County, Tex. district attorney rescinds job offer to prosecutor applicant after another man lodges a complaint suggesting he’s a “flicking lunatic.” The man also files a state bar grievance accusing the applicant of posting on a white nationalist forum and issuing murder threats. The applicant sues the man for defamation and other torts, seeking a cool $100 mil in state court. The man invokes diversity jurisdiction, removes the case to federal court, and seeks to dismiss the claims under Texas’ anti-SLAPP statute. Fifth Circuit: Alas, as we decided two months ago, the state anti-SLAPP statute doesn’t apply in federal diversity cases.
  • In 1999, Killeen, Tex. teenagers carjack husband and wife at gunpoint, keep the couple in the trunk for hours while they empty the couple’s bank account and try to pawn her wedding ring. From the trunk, the couple sings Gospel songs and invites the teens to church, but one of the teens shoots them both in the head, killing the husband but not the wife. She burns alive when they torch the car. Fifth Circuit: A 35-year sentence for one of the teens, who left before the murders, for aiding and abetting the carjacking is not unconstitutionally excessive. (The two teens who committed the murders have been sentenced to death and are awaiting execution. Two others were sentenced to 15 years.)
  • Who is telling the truth about what happened when police arrested a Chicago resident for being a felon in possession? The police, who claim they calmly approached and asked whether the man had a gun, eliciting an immediate confession? Or the felon, who claims the cops ran up to him with guns drawn and patted him down before asking whether he had a gun? Seventh Circuit: We may never know, because the police allowed video of the encounter to be destroyed, but we think it was reasonable for the trial court to believe the police.
  • When the feds place someone on the No Fly List (which bars the person from traveling in, to, or from U.S. airspace), must they provide an adversarial hearing where the person can challenge the allegations and evidence against them? Ninth Circuit: Maybe other plaintiffs can. But after reviewing the classified evidence that these plaintiffs (four U.S. citizens) had ties to terrorist organizations, we think the value of a live hearing is outweighed by national security interests.
  • Affordable Care Act regulations require health insurance to provide free contraception. But some religions view contraception as sinful. So can the Trump administration exempt religious employers from having to pay (via insurance) for employee birth control? Ninth Circuit: Not in 13 plaintiff states. Injunction affirmed. Dissent: There’s already a nationwide injunction about this from outside the circuit. So what are we doing here?
  • In which a legal secretary gestures from counsel table to instruct a witness not to answer. Tenth Circuit: Bad move.
  • Sixth-grade girl commits suicide, and Polk County, Fla. deputies suspect her estranged best friend of having harassed her. They enter the friend’s home without a warrant and arrest her for stalking. The charge is dismissed. The friend sues the arresting officer. And her claims were rightly dismissed, holds the Eleventh Circuit: The officer had probable cause to arrest, and a jury reasonably found that he entered the friend’s home with her father’s consent.
  • Allegation: Wildlife officers mount surveillance camera in the middle of plaintiff’s hunting and fishing property, which is accessible only by crossing two other private landowners’ properties and trespassing onto plaintiff’s property. A Fourth Amendment violation? W.D. Tenn: “Plaintiff simply had no reasonable expectation of privacy in his open field property.”
  • “If we want to stop mass shootings, we should stop punishing police officers who put their lives on the line to prevent them.” So writes Judge Ho of the Fifth Circuit, dissenting from denial of en banc review of a decision denying qualified immunity to Kaufman County, Tex. but granting it to officers who fatally shot a man under circumstances that remain unclear.

Across the nation, municipal governments are reaping major fines and fees revenue from minor traffic and other code violations. This is taxation by citation, and, according to a new IJ study, cities—and their residents—may pay a price for it. The report, titled The Price of Taxation by Citation, explores the phenomenon and its effects via case studies of three Georgia cities that generated double-digit shares of their revenues through code enforcement. Among other things, the report finds taxation by citation may violate citizens’ rights and—not entirely surprisingly—people don’t love being treated like ATMs: In all three cities, recent ticket recipients reported lower levels of trust in city government than nonrecipients. In short, what cities may gain in revenue, they may lose in community trust and cooperation. Read the report.

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Billionaire Ron Baron Forecasts Dow 650,000 Within 50 Years

Billionaire Ron Baron Forecasts Dow 650,000 Within 50 Years

Billionaire Ron Baron was back on CNBC, making the case to investors that they need to buy stocks and ignore all risks and dream big because the market will be up massively in 50-years. 

The “buy-and-hold” billionaire said “fear is evident” in the stock market, and suggested to viewers that the Dow Jones Industrial Average could hit 650,000 by 2069/70. 

Source: Bloomberg

Even on a log scale this acceleration looks a bit much.

Source: Bloomberg

As to the “fear” Baron describes in the Dow — we aren’t sure if he is accurately describing the current outlook because the index is about 1% from ATHs (mainly on trade optimism, hopes of central bank easing, and the expectation that a 2016 style rebound in the global economy is imminent in 2020). 

Baron refers to the current stock market environment as very similar to 1969, except there’s one thing he left out — stocks plunged that year – and so far this year — stocks are at record highs. 

But anyways he said: “Everybody is worried about something. If you invested in 1969, amidst turmoil in 1969, you would have made 25 times your money.”

“I think the 6.5% annual growth [in the market] is going to continue, on average, for the next 50 years, at least,” he added, making the point that investors should forget the day-to-day market gyrations and stay focused on the long term.

“People forget about compounding” money over time, he said.

Baron added, “I’m thinking the next 50 years is going to be similar to the last 50 years,” which he is suggesting implied that the Federal Reserve stands ready to pump trillions of dollars into Wall Street to hyperinflate the stock market to levels in line with his forecast. 

The timing of Baron’s stock market forecast is undoubtedly suspicious. Stocks remain at ATHs, while he’s suggesting the Dow will hyperinflate over the coming decades.

Now where have seen that before?

Source: Bloomberg

Or maybe it doesn’t, and Baron is using this time to unload stocks onto gullible millennials who will be bagholders for generations to come.


Tyler Durden

Fri, 10/25/2019 – 15:34

via ZeroHedge News https://ift.tt/31HFcBe Tyler Durden

Short Circuit: A Roundup of Recent Federal Court Decisions

Please enjoy the latest edition of Short Circuit, a weekly feature from the Institute for Justice.

Next month, the U.S. Supreme Court will consider whether parents of an unarmed, unthreatening Mexican teen who was shot dead from across the border can sue the federal agent who killed their son. The Fifth Circuit ruled that they cannot. Click here to read an IJ amicus brief urging the Supreme Court to reverse. “Had Sergio Hernandez been killed by a federal agent in the 19th century, his parents could have brought a damages claim for the deprivation of their son’s constitutional rights,” says Anya Bidwell, who co-authored the brief. “The Supreme Court’s current jurisprudence that essentially eliminates the ability of individuals to sue federal agents for constitutional rights is simply inconsistent with this proud history.”

  • Though facing charges in federal court for false statements and witness tampering, political consultant for Donald Trump’s 2016 presidential campaign persists in airing inflammatory comments about the judge, the investigation, and potential witnesses. And we will not disturb the district court’s increasingly strict restraints on his Twittering, Instant-Telegrams, and Facebookery, says the D.C. Circuit.
  • Allegation: NYPD officer yanks compliant, unthreatening quinquagenarian arrestee out of her cell, tells her “don’t make me hurt you.” Frightened, she declines to tell the officer that he put on her handcuffs too tightly, which ultimately results in permanent, debilitating nerve damage. (All charges against the arrestee are later dropped.) Excessive force? Second Circuit: Yes, but qualified immunity. It was not clearly established that an arrestee who shows clear signs of distress but does not verbally inform an officer that handcuffs are too tight is being excessively forced. (Henceforth, it is clearly established, however.)
  • After protests at abortion clinics, Pittsburgh officials adopt an ordinance creating a 15-foot “buffer zone” outside the entrance of any health care facility, in which no one may “congregate, patrol, picket or demonstrate.” A First Amendment violation? Third Circuit: Not if we interpret “congregate, patrol, picket or demonstrate” super-duper narrowly, so that it excludes the plaintiffs’ peaceful sidewalk counseling.
  • Louisiana abortion clinic and two of its doctors bring a “cumulative-effects challenge” to the state’s abortion laws, arguing that, collectively, they pose an undue burden even if individual rules by themselves do not. Fifth Circuit: Maybe you can do that, but in quantifying the cumulative effects, you only get to count provisions that you would have standing to challenge individually.
  • Victoria County, Tex. district attorney rescinds job offer to prosecutor applicant after another man lodges a complaint suggesting he’s a “flicking lunatic.” The man also files a state bar grievance accusing the applicant of posting on a white nationalist forum and issuing murder threats. The applicant sues the man for defamation and other torts, seeking a cool $100 mil in state court. The man invokes diversity jurisdiction, removes the case to federal court, and seeks to dismiss the claims under Texas’ anti-SLAPP statute. Fifth Circuit: Alas, as we decided two months ago, the state anti-SLAPP statute doesn’t apply in federal diversity cases.
  • In 1999, Killeen, Tex. teenagers carjack husband and wife at gunpoint, keep the couple in the trunk for hours while they empty the couple’s bank account and try to pawn her wedding ring. From the trunk, the couple sings Gospel songs and invites the teens to church, but one of the teens shoots them both in the head, killing the husband but not the wife. She burns alive when they torch the car. Fifth Circuit: A 35-year sentence for one of the teens, who left before the murders, for aiding and abetting the carjacking is not unconstitutionally excessive. (The two teens who committed the murders have been sentenced to death and are awaiting execution. Two others were sentenced to 15 years.)
  • Who is telling the truth about what happened when police arrested a Chicago resident for being a felon in possession? The police, who claim they calmly approached and asked whether the man had a gun, eliciting an immediate confession? Or the felon, who claims the cops ran up to him with guns drawn and patted him down before asking whether he had a gun? Seventh Circuit: We may never know, because the police allowed video of the encounter to be destroyed, but we think it was reasonable for the trial court to believe the police.
  • When the feds place someone on the No Fly List (which bars the person from traveling in, to, or from U.S. airspace), must they provide an adversarial hearing where the person can challenge the allegations and evidence against them? Ninth Circuit: Maybe other plaintiffs can. But after reviewing the classified evidence that these plaintiffs (four U.S. citizens) had ties to terrorist organizations, we think the value of a live hearing is outweighed by national security interests.
  • Affordable Care Act regulations require health insurance to provide free contraception. But some religions view contraception as sinful. So can the Trump administration exempt religious employers from having to pay (via insurance) for employee birth control? Ninth Circuit: Not in 13 plaintiff states. Injunction affirmed. Dissent: There’s already a nationwide injunction about this from outside the circuit. So what are we doing here?
  • In which a legal secretary gestures from counsel table to instruct a witness not to answer. Tenth Circuit: Bad move.
  • Sixth-grade girl commits suicide, and Polk County, Fla. deputies suspect her estranged best friend of having harassed her. They enter the friend’s home without a warrant and arrest her for stalking. The charge is dismissed. The friend sues the arresting officer. And her claims were rightly dismissed, holds the Eleventh Circuit: The officer had probable cause to arrest, and a jury reasonably found that he entered the friend’s home with her father’s consent.
  • Allegation: Wildlife officers mount surveillance camera in the middle of plaintiff’s hunting and fishing property, which is accessible only by crossing two other private landowners’ properties and trespassing onto plaintiff’s property. A Fourth Amendment violation? W.D. Tenn: “Plaintiff simply had no reasonable expectation of privacy in his open field property.”
  • “If we want to stop mass shootings, we should stop punishing police officers who put their lives on the line to prevent them.” So writes Judge Ho of the Fifth Circuit, dissenting from denial of en banc review of a decision denying qualified immunity to Kaufman County, Tex. but granting it to officers who fatally shot a man under circumstances that remain unclear.

Across the nation, municipal governments are reaping major fines and fees revenue from minor traffic and other code violations. This is taxation by citation, and, according to a new IJ study, cities—and their residents—may pay a price for it. The report, titled The Price of Taxation by Citation, explores the phenomenon and its effects via case studies of three Georgia cities that generated double-digit shares of their revenues through code enforcement. Among other things, the report finds taxation by citation may violate citizens’ rights and—not entirely surprisingly—people don’t love being treated like ATMs: In all three cities, recent ticket recipients reported lower levels of trust in city government than nonrecipients. In short, what cities may gain in revenue, they may lose in community trust and cooperation. Read the report.

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No Likes for Facebook’s Tedious Sci-Fi Drama Limetown

Limetown. Available now on Facebook Watch Original.

In 1998, when everybody was saying Saving Private Ryan was the most realistic war film ever made, I called my brother—who served several years in the U.S. Army, including a stretch in Vietnam, to ask if he’d seen it.

“Yeah, but I don’t know why people say it’s so authentic,” he grumbled. “You know that opening scene on Omaha Beach during the D-Day invasion? They showed that for 20 minutes. But in real life, it went on for like six hours.” I was afraid to ask if he’d ever noticed that no movie or TV character with a telephone ever dials seven digits.

Every movie and TV show requires a certain suspension of disbelief. We never see anybody sleep for eight hours or go to the bathroom (or at least, we didn’t used to). In sci-fi and horror, that goes double or maybe triple. Carl Kolchak, the Night Stalker reporter whose stories inevitably wound up being about werewolves and vampires, never once stopped to take any notes. (Maybe that’s why he never got anything into print?)

But there’s got to be a kind of broad verisimilitude in the details once you get past that suspension of disbelief. Saving Private Ryan‘s Captain Miller didn’t whistle “I Want To Hold Your Hand” or warn his men to set their phasers to stun as they stormed ashore at Normandy, much less seek peace by shouting praise of Wagner and Nietzsche.

And if he had, it still wouldn’t have been as nonsensically silly as Limetown, the new thriller from the Facebook Watch Original streaming service. Consider this scene:

Reporter Lia Haddock is trapped in a motel room, where a zombie-like lunatic is banging his head on the flimsy door, shrieking, “This is your warning!” Does she call the front desk for help? Does she call the cops? Nah, she whips out her cell phone to record a description of the loon “in case something happens.”

It costs nothing to subscribe to Facebook Watch Original, which is a fair price for Limetown. Tedious at its best moments, completely empty-headed at its worst, it would scarcely be worth mentioning if not for the buzz from public-radio cultists:  It’s based on an American Public Radio podcast that gives it built-in audience that, however small, is plenty noisy.

The premise of Limetown is potentially spooky. Fifteen years ago, a small, secretive town in the Tennessee mountains simply disappeared. Or, rather, the 300-some neuroscientists who lived there, working on a Manhattan Project-style classified government program, did.

The only trace of them was a single charred and crucified corpse left behind on the town’s main street. Other creepy but cryptic clues: a mass grave of pig carcasses—sacrifices? or results of an experiment gone wrong? and which would be more ominous?—and the presence of a 80-mile-long network of caves underneath the town, with entrances from every building.

Unfortunately, the premise is about all Limetown has going for it. The plot details are silly. For instance, when a single call for help came from the town that night (“Shut it off!” the caller yelled before the connection was broken), the police SWAT team that responded was prevented from entering by a private security force. Obeying whose orders? Nobody seems to have asked.

The town is still sitting there, protected only by a chain-link fence. But the houses and their contents are untouched since the moment their occupants disappeared. The army of squatters and grieving relatives camped just outside have never broken or taken anything. Which, I suppose, might be true if they were all public-radio listeners who were just there waiting for Garrison Keillor autographs. In Miami, where I live, there wouldn’t have been two bricks left standing the next morning.

To the extent that Limetown has a point (other than whatever corporate perfidy ultimately turns out to be responsible for what happened), it seems to be that the 24-hour news cycle has so scrambled Americans’ brains and scarred their souls that even the most profound tragedies have been forgotten by the weekend.

That, at least, is the thesis of the radio reporter Lia Haddock, who’s looking into the disappearance 15 years later. “What makes the Limetown tragedy unique, what makes it worth the continuing discussion in spite of the collective moving on, she says in her news report, is the complete lack of context.” (Or maybe she said “confidence,” not context. For a radio reporter, she mumbles a lot.) In this, at least, Limetown is on the mark—a public-radio reporter who’s interested not in what happened to the missing people, or why, but the media sociology of it.

Haddock is played by a stoic, foggy Jessica Biel (The Sinner), who seems to have found a few Quaaludes on the craft-services snack table. For somebody who finally has her dream job—as a little girl, she liked to put tiaras on the heads of her family members and conduct mock interviews with them—Lia seems curiously apathetic about her story, on which she’s already worked for four months.

Perhaps her drifting, disconnected performance is a writing, rather than acting, problem; the rest of the characters also seem to lack details, as if they weren’t fully composed.

Whatever the case, Biel’s Haddock makes Carl Kolchak look like Woodward and Bernstein. She has no idea what to ask her sources, or even how; she tapes one important interview by holding her phone up to the studio microphone, which will produce audio that sounds roughly like the screaming of bats.

Biel, by the way, seems completely on board with the idea that today’s Americans can’t hold anything in their heads more than 10 minutes at a time. When she first got the Limetown script, she told a (real) reporter at a screening earlier this month, she thought it was based on a true story. “I just thought I missed it, because our world is so insane that anything is possible really, right?” Biel explained. Move over, Nina Totenberg.

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No Likes for Facebook’s Tedious Sci-Fi Drama Limetown

Limetown. Available now on Facebook Watch Original.

In 1998, when everybody was saying Saving Private Ryan was the most realistic war film ever made, I called my brother—who served several years in the U.S. Army, including a stretch in Vietnam, to ask if he’d seen it.

“Yeah, but I don’t know why people say it’s so authentic,” he grumbled. “You know that opening scene on Omaha Beach during the D-Day invasion? They showed that for 20 minutes. But in real life, it went on for like six hours.” I was afraid to ask if he’d ever noticed that no movie or TV character with a telephone ever dials seven digits.

Every movie and TV show requires a certain suspension of disbelief. We never see anybody sleep for eight hours or go to the bathroom (or at least, we didn’t used to). In sci-fi and horror, that goes double or maybe triple. Carl Kolchak, the Night Stalker reporter whose stories inevitably wound up being about werewolves and vampires, never once stopped to take any notes. (Maybe that’s why he never got anything into print?)

But there’s got to be a kind of broad verisimilitude in the details once you get past that suspension of disbelief. Saving Private Ryan‘s Captain Miller didn’t whistle “I Want To Hold Your Hand” or warn his men to set their phasers to stun as they stormed ashore at Normandy, much less seek peace by shouting praise of Wagner and Nietzsche.

And if he had, it still wouldn’t have been as nonsensically silly as Limetown, the new thriller from the Facebook Watch Original streaming service. Consider this scene:

Reporter Lia Haddock is trapped in a motel room, where a zombie-like lunatic is banging his head on the flimsy door, shrieking, “This is your warning!” Does she call the front desk for help? Does she call the cops? Nah, she whips out her cell phone to record a description of the loon “in case something happens.”

It costs nothing to subscribe to Facebook Watch Original, which is a fair price for Limetown. Tedious at its best moments, completely empty-headed at its worst, it would scarcely be worth mentioning if not for the buzz from public-radio cultists:  It’s based on an American Public Radio podcast that gives it built-in audience that, however small, is plenty noisy.

The premise of Limetown is potentially spooky. Fifteen years ago, a small, secretive town in the Tennessee mountains simply disappeared. Or, rather, the 300-some neuroscientists who lived there, working on a Manhattan Project-style classified government program, did.

The only trace of them was a single charred and crucified corpse left behind on the town’s main street. Other creepy but cryptic clues: a mass grave of pig carcasses—sacrifices? or results of an experiment gone wrong? and which would be more ominous?—and the presence of a 80-mile-long network of caves underneath the town, with entrances from every building.

Unfortunately, the premise is about all Limetown has going for it. The plot details are silly. For instance, when a single call for help came from the town that night (“Shut it off!” the caller yelled before the connection was broken), the police SWAT team that responded was prevented from entering by a private security force. Obeying whose orders? Nobody seems to have asked.

The town is still sitting there, protected only by a chain-link fence. But the houses and their contents are untouched since the moment their occupants disappeared. The army of squatters and grieving relatives camped just outside have never broken or taken anything. Which, I suppose, might be true if they were all public-radio listeners who were just there waiting for Garrison Keillor autographs. In Miami, where I live, there wouldn’t have been two bricks left standing the next morning.

To the extent that Limetown has a point (other than whatever corporate perfidy ultimately turns out to be responsible for what happened), it seems to be that the 24-hour news cycle has so scrambled Americans’ brains and scarred their souls that even the most profound tragedies have been forgotten by the weekend.

That, at least, is the thesis of the radio reporter Lia Haddock, who’s looking into the disappearance 15 years later. “What makes the Limetown tragedy unique, what makes it worth the continuing discussion in spite of the collective moving on, she says in her news report, is the complete lack of context.” (Or maybe she said “confidence,” not context. For a radio reporter, she mumbles a lot.) In this, at least, Limetown is on the mark—a public-radio reporter who’s interested not in what happened to the missing people, or why, but the media sociology of it.

Haddock is played by a stoic, foggy Jessica Biel (The Sinner), who seems to have found a few Quaaludes on the craft-services snack table. For somebody who finally has her dream job—as a little girl, she liked to put tiaras on the heads of her family members and conduct mock interviews with them—Lia seems curiously apathetic about her story, on which she’s already worked for four months.

Perhaps her drifting, disconnected performance is a writing, rather than acting, problem; the rest of the characters also seem to lack details, as if they weren’t fully composed.

Whatever the case, Biel’s Haddock makes Carl Kolchak look like Woodward and Bernstein. She has no idea what to ask her sources, or even how; she tapes one important interview by holding her phone up to the studio microphone, which will produce audio that sounds roughly like the screaming of bats.

Biel, by the way, seems completely on board with the idea that today’s Americans can’t hold anything in their heads more than 10 minutes at a time. When she first got the Limetown script, she told a (real) reporter at a screening earlier this month, she thought it was based on a true story. “I just thought I missed it, because our world is so insane that anything is possible really, right?” Biel explained. Move over, Nina Totenberg.

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Will You Be Richer Or Poorer? Profit, Power, & AI In A Traumatized World

Will You Be Richer Or Poorer? Profit, Power, & AI In A Traumatized World

Authored by Adam Taggart via PeakProsperity.com,

Much of what we truly value is at risk…

Prolific and exceptionally perceptive author Charles Hugh Smith returns to discuss the insights in his just-launched book Will You Be Richer Or Poorer? Profit, Power & AI in a Traumatized World (the first chapter of which can be read for free here)

The current narrative that our standard of living is not only the best it has been in human history, but thanks to modern technology, is now improving at an accelerating rate.

Smith turns this belief on its head, pointing out the many and various ways — many of them “intangible” and not currently measured in dollars — the human condition is fast worsening. Health, purpose, social connection, civil liberties, access to natural resources, career mobility; these are but a few examples.

And technology is actually fast sending us down a darker path. One that empowers the central state, decimates jobs, destroys privacy, and has created today’s “landfill economy”.

I’ve written on these big, long dynamics of cycles, where there’s not just economic cycles or business cycles, but also social cycles where people find fewer reasons to cooperate with each other and society is fragmented. They often are associated with inflation or high unemployment, a decay of the real economy, resources becoming scarce and expensive, and so on.

Well, we’re clearly in that cycle — a Kondratieff winter, a Fourth Turning, one of Peter Turchin’s long cycles. And it’s only beginning.

Things are not going to resolve themselves quickly. There’s going to be a reset or a reckoning where we’re going to have to downsize and live within our means, and find some new social structures that are sustainable. It’s not just a physical, material world adjustment where we have to use less energy and fewer resources, we’ll also have to psychologically change. To not fear the changes ahead, but find ways to step into them positively.

Starting by trying to calculate the value of all the capital that we don’t measure is a very powerful first step. Realizing that you have all these forms of intangible capital that no one taught us to measure–or even recognize– is a very powerful process psychologically. If you start trying to prioritize the forms of capital that are important to you, it’s a kind of psychoanalysis because you really have to dig down into yourself and ask, “What forms of capital do I have that I can invest in another way of living, another livelihood, another form of community?”

There’s always going to be trade-offs. You’re not going to be able to get rich speculating in the stock and bond markets–and run a farm, and build a community. You’re going to have to give stuff up. You’re going to have to sacrifice some things in order to get what’s really fulfilling to you.

That’s wrenching in and of itself, but what’s worse is when people wait until bad things happen and then they realize the trade-offs have been imposed on them. Like they eat a highly-processed food diet, and they have a heart attack, and then they suddenly realize, “Wow, I’m going to die if I don’t change.” Or you get fired from your job or your corporation gets rid of your entire division. Then you’re forced to look at a different lifestyle and a different livelihood.

But we really do have the power to make those changes before catastrophe strikes.

I’m actually trying to deliver a positive message:  that anyone can do this. You may not be able to revolutionize your life in one fell swoop; but you can certainly make progress towards what’s important, and get busy building and accumulating the capital that truly is meaningful to you.

Click the play button below to listen to Chris’ interview with Charles Hugh Smith (51m:20s).


Tyler Durden

Fri, 10/25/2019 – 15:20

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