Arbitrary COVID-19 Control Measures Will Not Make Americans More Likely To ‘Hang in There’ Until Vaccines Are Available

Anthony-Fauci-CNN-11-15-20

As the surge in newly identified COVID-19 cases continues, state and local governments across the country are responding by imposing new restrictions on social and economic activity. With a few exceptions, the rules so far are not as sweeping as the lockdowns that all but a few states imposed last spring, when far fewer cases were reported but the number of daily deaths was twice as high. But now as then, many of the distinctions drawn by politicians make little scientific sense.

As of yesterday, according to Worldometer’s tallies, the seven-day average of newly confirmed infections in the United States was more than 152,000. That is more than four times the average on September 12, which was already slightly higher than last spring’s peak.

Since virus testing has expanded dramatically over the course of the epidemic, from fewer than 50,000 tests a day in early April to around 1.5 million a day recently, comparisons between the spring and fall are misleading. But the recent spike in daily new cases is clearly much larger than expanded testing can explain, and the percentage of tests that detect the coronavirus has more than doubled during the last month, from a seven-day average of 4 percent in mid-October to nearly 10 percent now.

Hospitalizations are also on the rise. According to the COVID Tracking Project, nearly 70,000 COVID-19 patients were hospitalized in the United States yesterday, up from fewer than 29,000 on September 20. That is significantly higher than the previous peaks of about 60,000 seen in April and July.

Increases in COVID-19 fatalities so far have been less dramatic, even allowing for the typical lag between laboratory confirmation and death. As of yesterday, the seven-day average of daily deaths, per Worldometer, was 1,156, up 64 percent from the recent low on October 17.

The case fatality rate (deaths as a share of confirmed infections) has fallen from more than 6 percent in mid-May to 2.3 percent as of yesterday. In other words, COVID-19 patients, even when hospitalized, are much less likely to die from the disease today than was the case in the spring. That downward trend probably has been driven by several factors, including ramped-up testing that identifies milder cases, a younger and healthier mix of patients, and improved treatment.

What does all this mean for how many Americans ultimately will die from COVID-19 by the time effective vaccines are widely available? It seems clear that President-elect Joe Biden was excessively pessimistic when he predicted last month that we would see another 200,000 deaths, or a total of around 423,000, by the end of the year. The “ensemble forecast” from the Centers for Disease Control and Prevention (CDC), based on projections from “45 modeling groups,” puts the death toll at 260,000 to 282,000 by December 5. Based on the upper value from the CDC’s forecast, Biden’s projection implies a death toll of more than 5,400 a day during the last 26 days of December, which is 4.7 times the current average and 2.4 times the April peak.

By contrast, Anthony Fauci, director of the National Institute of Allergy and Infectious Diseases, yesterday told CNN’s Jake Tapper “it is possible” that the death toll will be in the neighborhood of 439,000 by March 1, as currently projected by the the University of Washington’s Institute for Health Metrics and Evaluation. But Fauci added:

The models, as I have said so often, are as good as the assumptions you put into the model. And we have got to change those assumptions. We have got to say, we are going to turn it around [by] very, very vigorously adhering to the public health measures. And we don’t need to get to that number.

That is a model number if we act in a certain way. We can turn that around, that plus the fact that we are going to start getting doses of vaccines available for the highest-priority individuals sometime in mid-to-late December.

And then, as we get into January, we will get more vaccine doses available. I think, when we put those two things together, vaccine plus strong adherence to the fundamental public health measures, we can blunt that. We don’t have to accept those large numbers that are so terrifying.

What does “very vigorously adhering to the public health measures” mean? One interpretation is that it means taking all the familiar precautions, such as avoiding crowds, limiting travel and social interaction, working at home when feasible, maintaining physical distance, and wearing face masks when you are indoors in close proximity to strangers. Another interpretation, increasingly favored by politicians, is that “turn[ing] it around” requires new legal mandates.

The legal restrictions imposed this fall cover a wide range, from mask mandates to renewed lockdowns. But in many cases, governors and mayors do not seem to have learned much from the bitterness and defiance engendered by last spring’s restrictions, which were often arbitrary and hard to square with what we know about the coronavirus.

Beginning today in New Mexico, Gov. Michelle Lujan Grisham is imposing a two-week lockdown, meaning that residents are once again instructed to stay home except for “essential” activities, restaurants will be limited to takeout and delivery, and “nonessential” businesses such as gyms, salons, and casinos must close. Grisham’s order also applies to outdoor venues such as state parks and golf courses, even though the risk of virus transmission in those settings is much lower. She also has imposed new capacity limits on supermarkets and big-box retailers.

Compared to Grisham’s order, Chicago Mayor Lori Lightfoot’s “advisory,” which also took effect today, seems relatively mild. Yet Chicago’s policy, like New Mexico’s, includes some puzzling judgments.

Lightfoot is urging city residents to stay home as much as possible during the next month, eschew nonessential interstate travel, and avoid gatherings with people outside their households. While outdoor dining at restaurants will continue, gatherings of more than 10 people, whether indoors or outdoors, are banned. But according to the ABC affiliate in Chicago, that limit “does not apply to fitness clubs and retail stores, personal services and movie theaters.” It is hard to see the logic of banning outdoor gatherings of 11 or more people while allowing them inside those businesses.

Likewise, it is hard to see the sense in New York Gov. Andrew Cuomo’s new rule requiring businesses with liquor licenses to close at 10 p.m. The New York Times says that “public health experts” view that edict as “a bizarre middle ground.” But it actually seems worse than that, since limiting serving hours is more likely to increase crowding than reduce it. Cuomo also has decreed that no more than 10 people may gather in private residences, without regard to the size of the home or the number of people who live there.

Some American politicians, including New York Mayor Bill de Blasio, seem inclined to close primary and secondary schools, which are not important sources of virus transmission, even while allowing indoor dining at restaurants. As the Times notes, that is the opposite of the judgment made by public officials in Europe.

“A mounting body of evidence from across the globe indicates that elementary schools in particular are not the superspreader sites they were once feared to be, though the science is more muddled for older children,” the newspaper says. “Schools have so far been a bright spot for New York. Only .17 percent of tests conducted in over 2,800 schools over the last month came back positive. Several prominent public health experts have come forward in recent weeks to say they are now more confident that schools can reopen safely, as long as they implement strict safety measures and community transmission remains relatively low.”

When there is little rhyme or reason to COVID-19 control measures, politicians should not be surprised by the skepticism and resentment they provoke. Worse, arbitrary legal restrictions may encourage Americans to disregard official advice and resist the voluntary steps that are crucial to reducing virus transmission.

“There is light at the end of the tunnel,” Fauci said on CNN, alluding to the distribution of highly promising vaccines, which is expected to begin next month but probably won’t reach full scale until the spring. “Help is coming. And that should, I believe, motivate people to just say, ‘We are going to double down and do this uniformly.'”

At the same time, Fauci acknowledged that Americans “don’t like to be told what to do” and may be losing patience. “Everyone is sensitive to what we call COVID fatigue,” he said. “People are worn out about this. But we have got to hang in there a bit longer, particularly as we get into the holiday seasons and the colder weather, as we get into the late fall and early winter months.” Every ill-considered, scientifically unsound edict compounds COVID fatigue and makes it less likely that Americans will in fact “hang in there,” let alone “double down.”

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Democrats Regroup After Senate Setback, Look To Biden Strategy As ‘Blueprint’

Democrats Regroup After Senate Setback, Look To Biden Strategy As ‘Blueprint’

Tyler Durden

Mon, 11/16/2020 – 14:05

After failing to capture the Senate for the third election cycle in a row as they face another two years in the minority (should January’s Georgia Senate runoff fail to flip the chamber), Senate Democrats are trying to regroup to improve their messaging.

And whose strategy are some Democrats looking to emulate? Joe Biden.

“We should be paying attention to what Joe Biden did. Joe Biden’s message won in the kind of states we need to win in order to capture the Senate, so we should sort of be looking at the issues that Biden focused on … and think of that as a template,” said Sen. Chris Murphy (D-CT).

“I think the issue we’re grappling with more on the Senate side is, you know, how to get accomplishments and then make sure people understand, ‘Hey that’s a Democratic thing,” Sen. Tim Kaine (D-VA) tells The Hill.

Democrats entered the 2020 cycle defending 12 seats to Republicans’ 23. Though most of those were in deep-red states, a combination of historic levels of fundraising, an unpopular Republican incumbent at the top of the ticket, a once-in-a-lifetime pandemic and, in retrospect, inaccurate polling made Democrats and political prognosticators believe they had multiple pathways to winning back the majority for the first time since 2014

Instead, in the four best states for Democrats, they won two, Arizona and Colorado, and lost two, Maine and North Carolina. And in the roughly eight additional races handicappers rated as toss ups or “lean Republican,” Democrats won none outright.

The two Georgia races are going to runoffs on Jan. 5, and Democrats would need to win both to get the Senate to a 50-50 split. –The Hill

Senate Minority Leader Chuck Schumer (D-NY), meanwhile, is avoiding the topic. When asked during a recent press conference whether he thought Democrats had made mistakes by focusing on red states such as South Carolina, Schumer deflected to Biden’s victory and redirected focus on Georgia.

“We’ve won the most important election that we face. We always said the No. 1 election is of the president, and we won. And, when it comes to the Senate, it’s not over at all,” he said.

Sen. Doug Jones (D-AL) expressed frustration over the party’s poor messaging and inability to defend itself against attacks.

“I don’t think it was the progressive movement, I think it was the fact that Democrats didn’t have the right message to counter some of the things that came up. I think that so many things right now are just about messaging, and you know I keep saying things that were hit on me about defunding the police which is not true about some other things,” said Jones.

Centrist Sen. Joe Manchin (D-VA) was a bit more direct – saying Democrats needed a message “that didn’t scare the bejesus out of people.”

“When you’re talking about, basically, Green New Deal and all this socialism, that’s not who we are as a Democratic Party,” Manchin said in recent comments to Fox News. “If you have a ‘D’ by your name, you must be for all the crazy stuff, and I’m not.”

Manchin’s rhetoric — he’s also tweeted that Democrats don’t have “some crazy socialist agenda” — earned him a call out from Rep. Alexandria Ocasio-Cortez (D-N.Y.), who tweeted a photo of her appearing to glower at him during a State of the Union address.

Sen. Dick Durbin (Ill.), the No. 2 Senate Democrat, said that Republicans were able to use the Green New Deal and “defund the police” calls “very effectively in a lot of races, even if Democrats had not said those words.” He argued that lawmakers now needed to “govern from the center” and “achieve what we can.” –The Hill

Read the rest of the report here.

via ZeroHedge News https://ift.tt/35BzmGU Tyler Durden

Arbitrary COVID-19 Control Measures Will Not Make Americans More Likely To ‘Hang in There’ Until Vaccines Are Available

Anthony-Fauci-CNN-11-15-20

As the surge in newly identified COVID-19 cases continues, state and local governments across the country are responding by imposing new restrictions on social and economic activity. With a few exceptions, the rules so far are not as sweeping as the lockdowns that all but a few states imposed last spring, when far fewer cases were reported but the number of daily deaths was twice as high. But now as then, many of the distinctions drawn by politicians make little scientific sense.

As of yesterday, according to Worldometer’s tallies, the seven-day average of newly confirmed infections in the United States was more than 152,000. That is more than four times the average on September 12, which was already slightly higher than last spring’s peak.

Since virus testing has expanded dramatically over the course of the epidemic, from fewer than 50,000 tests a day in early April to around 1.5 million a day recently, comparisons between the spring and fall are misleading. But the recent spike in daily new cases is clearly much larger than expanded testing can explain, and the percentage of tests that detect the coronavirus has more than doubled during the last month, from a seven-day average of 4 percent in mid-October to nearly 10 percent now.

Hospitalizations are also on the rise. According to the COVID Tracking Project, nearly 70,000 COVID-19 patients were hospitalized in the United States yesterday, up from fewer than 29,000 on September 20. That is significantly higher than the previous peaks of about 60,000 seen in April and July.

Increases in COVID-19 fatalities so far have been less dramatic, even allowing for the typical lag between laboratory confirmation and death. As of yesterday, the seven-day average of daily deaths, per Worldometer, was 1,156, up 64 percent from the recent low on October 17.

The case fatality rate (deaths as a share of confirmed infections) has fallen from more than 6 percent in mid-May to 2.3 percent as of yesterday. In other words, COVID-19 patients, even when hospitalized, are much less likely to die from the disease today than was the case in the spring. That downward trend probably has been driven by several factors, including ramped-up testing that identifies milder cases, a younger and healthier mix of patients, and improved treatment.

What does all this mean for how many Americans ultimately will die from COVID-19 by the time effective vaccines are widely available? It seems clear that President-elect Joe Biden was excessively pessimistic when he predicted last month that we would see another 200,000 deaths, or a total of around 423,000, by the end of the year. The “ensemble forecast” from the Centers for Disease Control and Prevention (CDC), based on projections from “45 modeling groups,” puts the death toll at 260,000 to 282,000 by December 5. Based on the upper value from the CDC’s forecast, Biden’s projection implies a death toll of more than 5,400 a day during the last 26 days of December, which is 4.7 times the current average and 2.4 times the April peak.

By contrast, Anthony Fauci, director of the National Institute of Allergy and Infectious Diseases, yesterday told CNN’s Jake Tapper “it is possible” that the death toll will be in the neighborhood of 439,000 by March 1, as currently projected by the the University of Washington’s Institute for Health Metrics and Evaluation. But Fauci added:

The models, as I have said so often, are as good as the assumptions you put into the model. And we have got to change those assumptions. We have got to say, we are going to turn it around [by] very, very vigorously adhering to the public health measures. And we don’t need to get to that number.

That is a model number if we act in a certain way. We can turn that around, that plus the fact that we are going to start getting doses of vaccines available for the highest-priority individuals sometime in mid-to-late December.

And then, as we get into January, we will get more vaccine doses available. I think, when we put those two things together, vaccine plus strong adherence to the fundamental public health measures, we can blunt that. We don’t have to accept those large numbers that are so terrifying.

What does “very vigorously adhering to the public health measures” mean? One interpretation is that it means taking all the familiar precautions, such as avoiding crowds, limiting travel and social interaction, working at home when feasible, maintaining physical distance, and wearing face masks when you are indoors in close proximity to strangers. Another interpretation, increasingly favored by politicians, is that “turn[ing] it around” requires new legal mandates.

The legal restrictions imposed this fall cover a wide range, from mask mandates to renewed lockdowns. But in many cases, governors and mayors do not seem to have learned much from the bitterness and defiance engendered by last spring’s restrictions, which were often arbitrary and hard to square with what we know about the coronavirus.

Beginning today in New Mexico, Gov. Michelle Lujan Grisham is imposing a two-week lockdown, meaning that residents are once again instructed to stay home except for “essential” activities, restaurants will be limited to takeout and delivery, and “nonessential” businesses such as gyms, salons, and casinos must close. Grisham’s order also applies to outdoor venues such as state parks and golf courses, even though the risk of virus transmission in those settings is much lower. She also has imposed new capacity limits on supermarkets and big-box retailers.

Compared to Grisham’s order, Chicago Mayor Lori Lightfoot’s “advisory,” which also took effect today, seems relatively mild. Yet Chicago’s policy, like New Mexico’s, includes some puzzling judgments.

Lightfoot is urging city residents to stay home as much as possible during the next month, eschew nonessential interstate travel, and avoid gatherings with people outside their households. While outdoor dining at restaurants will continue, gatherings of more than 10 people, whether indoors or outdoors, are banned. But according to the ABC affiliate in Chicago, that limit “does not apply to fitness clubs and retail stores, personal services and movie theaters.” It is hard to see the logic of banning outdoor gatherings of 11 or more people while allowing them inside those businesses.

Likewise, it is hard to see the sense in New York Gov. Andrew Cuomo’s new rule requiring businesses with liquor licenses to close at 10 p.m. The New York Times says that “public health experts” view that edict as “a bizarre middle ground.” But it actually seems worse than that, since limiting serving hours is more likely to increase crowding than reduce it. Cuomo also has decreed that no more than 10 people may gather in private residences, without regard to the size of the home or the number of people who live there.

Some American politicians, including New York Mayor Bill de Blasio, seem inclined to close primary and secondary schools, which are not important sources of virus transmission, even while allowing indoor dining at restaurants. As the Times notes, that is the opposite of the judgment made by public officials in Europe.

“A mounting body of evidence from across the globe indicates that elementary schools in particular are not the superspreader sites they were once feared to be, though the science is more muddled for older children,” the newspaper says. “Schools have so far been a bright spot for New York. Only .17 percent of tests conducted in over 2,800 schools over the last month came back positive. Several prominent public health experts have come forward in recent weeks to say they are now more confident that schools can reopen safely, as long as they implement strict safety measures and community transmission remains relatively low.”

When there is little rhyme or reason to COVID-19 control measures, politicians should not be surprised by the skepticism and resentment they provoke. Worse, arbitrary legal restrictions may encourage Americans to disregard official advice and resist the voluntary steps that are crucial to reducing virus transmission.

“There is light at the end of the tunnel,” Fauci said on CNN, alluding to the distribution of highly promising vaccines, which is expected to begin next month but probably won’t reach full scale until the spring. “Help is coming. And that should, I believe, motivate people to just say, ‘We are going to double down and do this uniformly.'”

At the same time, Fauci acknowledged that Americans “don’t like to be told what to do” and may be losing patience. “Everyone is sensitive to what we call COVID fatigue,” he said. “People are worn out about this. But we have got to hang in there a bit longer, particularly as we get into the holiday seasons and the colder weather, as we get into the late fall and early winter months.” Every ill-considered, scientifically unsound edict compounds COVID fatigue and makes it less likely that Americans will in fact “hang in there,” let alone “double down.”

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Poetry Monday!: “When I Was One-and-Twenty” by A.E. Housman

Here’s “When I Was One-and-Twenty” (1896) by A.E. Housman (1859-1936).

For the rest of my playlist, click here. Past poems are:

  1. “Ulysses” by Alfred, Lord Tennyson
  2. “The Pulley” by George Herbert
  3. “Harmonie du soir” by Charles Baudelaire
  4. “Dirge Without Music” by Edna St. Vincent Millay
  5. “Clancy of the Overflow” by A.B. “Banjo” Paterson
  6. “Лотова жена” (“Lotova zhena”, “Lot’s wife”) by Anna Akhmatova
  7. “The Jumblies” by Edward Lear
  8. “The Conqueror Worm” by Edgar Allan Poe
  9. “Les Djinns” by Victor Hugo
  10. “I Have a Rendezvous with Death” by Alan Seeger

from Latest – Reason.com https://ift.tt/3f5Pwvl
via IFTTT

School District Decides Asians Aren’t Students of Color

dreamstime_xxl_102957647

One school district in Washington state has evidently decided that Asians no longer qualify as persons of color.

In their latest equity report, administrators at North Thurston Public Schools—which oversees some 16,000 students—lumped Asians in with whites and measured their academic achievements against “students of color,” a category that includes “Black, Latinx, Native American, Pacific Islander, and Multi-Racial Students” who have experienced “persistent opportunity gaps.”

Most indicators in the report show that the achievement gap between white/Asian students and “students of color” is fairly narrow and improving over time. It would probably be even narrower if Asian students were categorized as “students of color.” In fact, some indicators might have even shown white students lagging behind that catch-all minority group. Perhaps Asians were included with whites in order to avoid such an outcome. (The superintendent did not respond to a request for comment.)

What the equity report really highlights is the absurdities that result from overreliance on semi-arbitrary race-based categories. The report also measured “students of poverty”—those who qualify for free or reduced-cost lunches—against non-poverty students, and unsurprisingly found a much more significant achievement gap. Students of poverty perform 28 percent worse on math tests, for instance. That socioeconomic category captures something real and meaningful in a way that the gerrymandered race category does not.

Outside public-school bureaucracies, these kinds of race-based classifications seem less popular than ever. In the 2020 election, California voters decisively rejected Proposition 16, which would have allowed public employees to consider race as a factor in university admissions, employment, contracting, and other decisions. Race-based admissions have been forbidden in the state since 1996, when voters outlawed them via ballot initiative by a margin of 54 percent to 45 percent. Proposition 16, which would have reversed this, lost by an even larger margin, despite receving enthusiastic endorsements from top Democrats in the state.

As The Atlantic‘s Conor Friedersdorf notes:

California political and media elites overwhelmingly favored ending race neutrality by passing Prop 16. It was endorsed by Senators Kamala Harris and Dianne Feinstein; former Senator Barbara Boxer; at least 30 Democratic members of the U.S. House, including Nancy Pelosi; and Governor Gavin Newsom, Lieutenant Governor Eleni Kounalakis, Secretary of State Alex Padilla, State Controller Betty Yee, State Treasurer Fiona Ma, State Superintendent of Public Instruction Tony Thurmond, Speaker of the Assembly Anthony Rendon, Los Angeles Mayor Eric Garcetti, San Francisco Mayor London Breed, and hundreds of other local officials. It was also supported by many of the state’s newspapers, including the Los Angeles TimesThe Mercury News, the San Francisco ChronicleThe San Diego Union-TribuneLa Opinión, the East Bay TimesThe Sacramento BeeThe Fresno Bee, and The Modesto Bee. And proponents of Prop 16 raised nearly 20 times more money than its opponents.

California is among the bluest of blue states, and yet voters there have decisively rejected the race-based codifications beloved by progressives. As liberals grapple with an election outcome that was less favorable for Democrats than expected, they should bear these things in mind. Proposition 16 was as close a proxy for cultural woke-ism as one could on the ballot this year, and it lost badly.

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Watch Live: Biden Delivers Remarks On Reviving The US Economy

Watch Live: Biden Delivers Remarks On Reviving The US Economy

Tyler Durden

Mon, 11/16/2020 – 13:50

With stocks at fresh record highs and the continued recovery in the economy facing only the threat of authoritarian lockdowns (from progressive governors), Joe Biden is set to explain to the American public how higher taxes (on the “rich”), higher minimum wages, and more borrowing will bail out local, city, and state governments (and pension funds) while reviving the US economy. Additional regulation on the energy sector is sure to help the economy also.

Ahead of the remarks, Biden held a virtual meeting with major industry CEOs and labor union leaders:

“Thanks for being here,” Biden said.

“To state the obvious, we seem to be turning a pretty dark corner now.”

Seemingly missing the fact that unemployment rates are tumbling (from peak lockdown highs) and sentiment is back near record highs…

He said his objective was to “get our economy back on track. We all agree on the common goals, just have a slightly different perspective.”

Participants included labor union leaders Richard Trumka, president of AFL-CIO; Mary Kay Henry, president of Service Employees International Union; Rory Gamble, president of United Auto Workers; Marc Perrone, president of United Food and Commercial Workers International Union; and Lee Saunders, president of American Federation of State, County and Municipal Employees.

All of whom endorsed Biden’s presidential run, and, of course, we are sure, are focused completely on ensuring all Americans do well.. and not just enriching themselves from higher coffers from their members.

Let’s see what Joe has to say… (due to start at 1400ET)…

via ZeroHedge News https://ift.tt/35yUVro Tyler Durden

Poetry Monday!: “When I Was One-and-Twenty” by A.E. Housman

Here’s “When I Was One-and-Twenty” (1896) by A.E. Housman (1859-1936).

For the rest of my playlist, click here. Past poems are:

  1. “Ulysses” by Alfred, Lord Tennyson
  2. “The Pulley” by George Herbert
  3. “Harmonie du soir” by Charles Baudelaire
  4. “Dirge Without Music” by Edna St. Vincent Millay
  5. “Clancy of the Overflow” by A.B. “Banjo” Paterson
  6. “Лотова жена” (“Lotova zhena”, “Lot’s wife”) by Anna Akhmatova
  7. “The Jumblies” by Edward Lear
  8. “The Conqueror Worm” by Edgar Allan Poe
  9. “Les Djinns” by Victor Hugo
  10. “I Have a Rendezvous with Death” by Alan Seeger

from Latest – Reason.com https://ift.tt/3f5Pwvl
via IFTTT

School District Decides Asians Aren’t Students of Color

dreamstime_xxl_102957647

One school district in Washington state has evidently decided that Asians no longer qualify as persons of color.

In their latest equity report, administrators at North Thurston Public Schools—which oversees some 16,000 students—lumped Asians in with whites and measured their academic achievements against “students of color,” a category that includes “Black, Latinx, Native American, Pacific Islander, and Multi-Racial Students” who have experienced “persistent opportunity gaps.”

Most indicators in the report show that the achievement gap between white/Asian students and “students of color” is fairly narrow and improving over time. It would probably be even narrower if Asian students were categorized as “students of color.” In fact, some indicators might have even shown white students lagging behind that catch-all minority group. Perhaps Asians were included with whites in order to avoid such an outcome. (The superintendent did not respond to a request for comment.)

What the equity report really highlights is the absurdities that result from overreliance on semi-arbitrary race-based categories. The report also measured “students of poverty”—those who qualify for free or reduced-cost lunches—against non-poverty students, and unsurprisingly found a much more significant achievement gap. Students of poverty perform 28 percent worse on math tests, for instance. That socioeconomic category captures something real and meaningful in a way that the gerrymandered race category does not.

Outside public-school bureaucracies, these kinds of race-based classifications seem less popular than ever. In the 2020 election, California voters decisively rejected Proposition 16, which would have allowed public employees to consider race as a factor in university admissions, employment, contracting, and other decisions. Race-based admissions have been forbidden in the state since 1996, when voters outlawed them via ballot initiative by a margin of 54 percent to 45 percent. Proposition 16, which would have reversed this, lost by an even larger margin, despite receving enthusiastic endorsements from top Democrats in the state.

As The Atlantic‘s Conor Friedersdorf notes:

California political and media elites overwhelmingly favored ending race neutrality by passing Prop 16. It was endorsed by Senators Kamala Harris and Dianne Feinstein; former Senator Barbara Boxer; at least 30 Democratic members of the U.S. House, including Nancy Pelosi; and Governor Gavin Newsom, Lieutenant Governor Eleni Kounalakis, Secretary of State Alex Padilla, State Controller Betty Yee, State Treasurer Fiona Ma, State Superintendent of Public Instruction Tony Thurmond, Speaker of the Assembly Anthony Rendon, Los Angeles Mayor Eric Garcetti, San Francisco Mayor London Breed, and hundreds of other local officials. It was also supported by many of the state’s newspapers, including the Los Angeles TimesThe Mercury News, the San Francisco ChronicleThe San Diego Union-TribuneLa Opinión, the East Bay TimesThe Sacramento BeeThe Fresno Bee, and The Modesto Bee. And proponents of Prop 16 raised nearly 20 times more money than its opponents.

California is among the bluest of blue states, and yet voters there have decisively rejected the race-based codifications beloved by progressives. As liberals grapple with an election outcome that was less favorable for Democrats than expected, they should bear these things in mind. Proposition 16 was as close a proxy for cultural woke-ism as one could on the ballot this year, and it lost badly.

from Latest – Reason.com https://ift.tt/3nz2MeD
via IFTTT

Spain’s Santander In Talks To Buy Wirecard Bank, Other Assets Out Of Bankruptcy

Spain’s Santander In Talks To Buy Wirecard Bank, Other Assets Out Of Bankruptcy

Tyler Durden

Mon, 11/16/2020 – 13:35

Even though auditors eventually determined that roughly 2/3rds of Wirecard’s revenue (including practically all of its Asian business) was fraudulent, there are still a few businesses and assets, including Wirecard’s former European banking unit, and its payments software, that have been deemed valuable. And the company’s German bankruptcy trustee has been working to sell these businesses off piecemeal, with buyers lined up to buy WC businesses in Brazil and elsewhere.

Now, Bloomberg reported Monday that Spanish bank Santander is in late-stage talks to buy Wirecard Bank, a small European lender run by Wirecard, along with some smaller subsidiaries, in what is shaping up to be the biggest deal involving former Wirecard assets, marking “the final step” of the bankrupt former tech darling’s dissolution.

Banco Santander SA is closing in on a purchase of Wirecard AG’s core business, according to people familiar with the matter, a move that would mark the final step of the failed German payment processor’s wind down.

The Spanish bank is likely to sign an agreement to acquire the main unit of Wirecard, which includes Wirecard Bank, as well as a few smaller German subsidiaries within the next couple of days, the people said, declining to be identified because the information is private.

No decision has been made and other bidders may restart discussions, they said. Lycamobile Ltd. is a potential suitor, according to earlier press reports. Santander declined to comment.

That Santander had been in talks with Wirecard was widely known. Following Wirecard’s demise, it came out that the company at one point was in talks to buy Deutsche Bank, part of a scheme hatched by Wirecard CEO Marcus Braun to try and obscure a ~$2 billion revenue hole in the company’s balance sheet.

Though consolidation is the order of the day in the banking sector – in the US as well as Europe – the decision to buy Wirecard is certainly curious.

Santander may pay substantially more than the 100 million euros ($120 million) that the insolvency lawyer, Jaffe set as a minimum price, the people said. The other Wirecard operations in the possible sale include the acquiring and issuing business as well as the firm’s payment processing software.

Santander will likely continue Wirecard Bank’s operating business, the people said.

Since Wirecard failed in the summer, the firm’s insolvency lawyer has sold off its assets in pieces. The North American business was bought by to Syncapay, Inc. and the sale of its Brazil unit to PagSeguro is expected to close by the end of the month.

While German regulators will probably be relieved to get rid of these assets, we can’t help but wonder about Santander’s motives, especially since Bloomberg seems to suggest that it won’t get much of a deal on the assets.

via ZeroHedge News https://ift.tt/32SeSro Tyler Durden

Here Comes More Fed Easing: JPMorgan Expects Fed To Extend QE Maturity In December Meeting

Here Comes More Fed Easing: JPMorgan Expects Fed To Extend QE Maturity In December Meeting

Tyler Durden

Mon, 11/16/2020 – 13:20

Over the weekend we showed in simple terms why the Fed will have to adjust – and expand – its QE: as the following BofA table makes abundantly clear, in a time when foreign demand for US Treasurys continues to decline (with China’s current account moving into a deficit, it will be far more focused on finding its own foreign investors rather than funding US deficits), the US is set to issue a net $2.4 trillion while the Fed will monetize less than $1 trillion of this, a stark reversal from 2020 when Jerome Powell is purchasing every dollar of debt sold by Mnuchin.

So unless the Fed is prepared to allow Treasury yields to rise far higher in order to create the required excess demand for US paper to fund the massive 2021 deficit, it will be up to the Fed to aggressively increase its QE, although it may need another “crisis” as a catalyst to announce this expansion.

And while a crisis is unlikely to take place before the next FOMC meeting on December 16, JPMorgan is already taking the next step of projecting that in an interim step extending the duration envelope of QE, and now sees the Fed to extend the maturity of its Treasury purchases.

Here is what the bank’s chief economist Michael Feroli wrote this morning: “We now look for the Fed to extend the maturity of its $80 billion monthly purchases of US Treasuries at the December FOMC meeting.”

But why? after all stocks are currently trading at all time highs and the economy is rapidly mending? How will the Fed justify yet another monetary expansion? Simple: the $2 trillion fiscal injection is not coming any time soon, if ever, which means that the only game in town remains Brrrrr. Only instead of telling the truth, Feroli decides to take the circuitous path to justify his assumption, stating that there are “considerable downside risks” to the economy due to the surge in covid cases, completely ignoring the fact that a covid vaccine is now just around the corner. If only stocks shared his pessimism:

The recent surge in virus case counts presents a considerable downside risk to the near-term economic outlook. While markets are more focused on the medium-term outlook, where vaccine hopes are rising, recent Fed rhetoric has indicated growing concern about the months between now and when a vaccine is widely available. Moreover, the apparent success of the monetary and fiscal response this spring is a reminder that minimizing short-run risks can lessen the degree of longer-run damage to the economy. At the most recent post-FOMC meeting press conference, Chair Powell indicated that the Committee thought the degree of accommodation they were providing was appropriate. However, the accelerating spread of the virus may be changing that assessment, and last Thursday Powell indicated that this spread implies that Congress and the Fed will likely need “to do more.”

While that cover the bulk of Feroli’s revised forecast, he padded it with the following:

There are a number of ways the Fed can try to do more, but we believe the approach which is most likely to gain consensus on the Committee is the one offered by Boston Fed President Rosengren: leave the notional monthly purchase pace unchanged but lengthy (sic) the weighted average maturity of their Treasury purchases. The rationale for such a move is simply to put more downward pressure on longer-term interest rates and thereby encourage more interest-sensitive spending.

In other words, take the already biggest asset bubble in the world and make it bigger:

He goes on:

The recent backup in longer-term interest rates actually increases the scope for this strategy to be successful. To the extent this backup has been driven by an increase in term premium (as in the ACM model), this further strengthens the case that extending  the maturity of purchases will place downward pressure on rates. As our colleagues in interest rate strategy recently noted, the Fed could potentially double the weighted average maturity of their current purchases.

At any rate, we believe the general policy shift will be announced in the December FOMC statement, with the details announced in an accompanying NY Fed operating policy statement. Finally, as we noted after the last FOMC meeting, the Federal Reserve Board may be running into legal and political challenges extending the various credit facilities beyond their current December 31st expiration date. If this remains the case this should further support the argument for the Fed doing more where it can operate with fewer constraints: in its asset purchase programs.

Since none of this does anything to expand the total monthly Treasury monetization, what JPM is focusing on is merely an interim step before the next crisis hits – sometime in Q1 – at which point the Fed, already gobbling up 10Y, 20Y and 30Y bonds, will announce it is expanding its $80BN in monthly TSY purchases to $160BN or more, just so the current status quo in which the Fed monetizes the entire US budget deficit, continues.

The only questions, as we laid out over the weekend, is what the next crisis big enough to enable more QE, will be and who will spark it?

Finally, for all those who only came here for the cartoons, here is an explanation of what’s going on.

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