The death of the big city has been greatly exaggerated

[Editor’s note: This letter was written by our Sovereign Woman—Viktorija.]

Travel is one of those things that rarely goes according to plan… at least for me.

A few weeks ago I told you about how my taxi in Istanbul got lost, and I accidentally ended up in Asia.

Not long after, I was denied boarding while trying to fly from Mallorca to Portugal because the Covid-19 rules had suddenly changed earlier that day.

And now, this morning, I was politely asked to leave the airport in Berlin during a connection here, because my wait time was longer than two hours.

Apparently under their Covid rules, you’re not allowed to wait in the airport if your connection time is longer than two hours.

I tried talking my way into staying… but Germans really love following the rules. So, I was kicked out of the airport and asked to come back later for my connecting flight.

No big deal; I decided to go on a little adventure and explore the city.

I’ve always loved Berlin; it’s such a unique place because it has transformed itself so many times.

Just think about it– this used to be the capital of Nazi Germany, the place where Hitler made decisions to exterminate millions of people.

After World War II, the city was split between East and West for decades.

The grip of communism was so severe that over 100,000 risked their lives trying to climb over the Berlin Wall, some in the most creative ways imaginable.

One guy stole a tank and tried breaking through the Wall. Another escaped by building a makeshift zip line.

Two families escaped together by sailing over the wall in a hot air balloon. Another literally walked a tightrope.

It is incredible how far people will go for their freedom.

And finally, when the Wall came down, Berlin kept reinventing itself.

Today this city is probably the most prominent technology hub in Europe.

Berlin has a startup-friendly environment, which has attracted talent and entrepreneurship from all over the world.

But unlike Silicon Valley that has endless wealth, Berlin smacks of a Bohemian culture and art scene.

In fact a former Mayor of Berlin once described his city as “poor, but sexy”.

It’s not exactly poor anymore; some of the most valuable startups in the world are based here now. But the city has maintained its gritty culture.

It’s interesting to be here at a time when the new ‘Covid normal’ is threatening many large cosmopolitan cities.

And it’s true, a lot of cities are in trouble.

We’ve already started seeing a mass exodus from big cities to suburban and rural areas, all over the world.

And this has led many pundits to declare the big city DEAD.

Simon and I both disagree.

Sure, there will continue to be a lot of people who move out of the city; plenty of companies have already moved to online work arrangements, so employees can now live anywhere within reason and work remotely.

We’ve both been writing about this extensively and think that it’s great for people to have the freedom to move wherever they want.

Countless employees are no longer tethered to a place where they HAVE to be. Now they have the freedom to move where they WANT to be.

But that’s exactly the point: while millions of people around the world want to move away from the city, there will be plenty of people who want to move TO the city.

Younger people in particular used to be priced out of big city life. Rent was simply too high.

Not anymore. Rents have fallen at a dizzying pace. And for the first time in their lives, a lot of young people can actually afford to live in the city.

And they want to be there for the social engagement that they just can’t get online, or in rural areas.

Now, not all large cities are the same. Tier 2 and Tier 3 cities may certainly suffer.

But the world’s truly GREAT cities, like London, Hong Kong, and here in Berlin for example, will likely continue to thrive.

Again, Berlin has reinvented itself so many times. Covid will just be one more reinvention.

And this is a really interesting opportunity; talented, creative people can play a major role in driving the next urban transformation.

Think about it– real estate prices will clearly have to fall… which means that someone is going to make a ton of money figuring out the best way to re-purpose all of that unused office space.

The world’s truly great cities will emerge from this urban crisis cheaper, more resilient, more creative than they have been in decades.

The great cities of the world aren’t dead. They’re brimming with opportunity.

Source

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New Biden Biz Partner Emerges, Confirms “Big Guy” Joe Directly Involved In China Deal

New Biden Biz Partner Emerges, Confirms “Big Guy” Joe Directly Involved In China Deal

Tyler Durden

Thu, 10/22/2020 – 09:35

Former Hunter Biden business partner Tony Bobulinski has confirmed that an email published in the New York Post‘s  bombshell exposé is indeed genuine – something the Biden camp hasn’t disputed, and that the “Big Guy” described in one of those emails is none other than Joe Biden himself. Bobulinski also says Joe Biden was lying when he said he and Hunter never discussed business dealings.

“My name is Tony Bobulinski. The facts set forth below are true and accurate; they are not any form of domestic or foreign disinformation. Any suggestion to the contrary is false and offensive. I am the recipient of the email published seven days ago by the New York Post, which showed a copy to Hunter Biden and Rob Walker. That email is genuine.’ -New York Post

Bobulinski issued the statement late Wednesday, affirming that, contrary to Joe Biden’s claims that he never discussed business dealings with Hunter, the former Veep actually profited from his son’s dealings, which were undertaken with the full support of the Biden family. 

Bobulinski claims cash and equity positions and 10% stakes in dealings were set aside for “the big guy,” – aka Joe Biden

Bobulinski said: “I’ve seen Vice President Biden saying he never talked to Hunter about business” – “I’ve seen firsthand that that’s not true.”

I’ve seen firsthand that that’s not true, because it wasn’t just Hunter’s business, they said they were putting the Biden family name and its legacy on the line.”

According to Bobulinski, he was the CEO of Sinohawk Holding, a holding company partnership between now-bankrupt CEFC China Energy Co. and the Biden family. He said the Chinese weren’t in partnership for any kind of commercial purpose: they were there to pay for “influence” in the US. 

“I realized the Chinese were not really focused on a healthy financial ROI. They were looking at this as a political or influence investment. Once I realized that Hunter wanted to use the company as his personal piggy bank by just taking money out of it as soon as it came from the Chinese, I took steps to prevent that from happening”

In the final weeks of the presidential campaign, Joe Biden has labeled Hunter Biden’s emails as a “smear” campaign against him, and Democrats like Adam Schiff have accused these reports of being linked to a Russian intelligence operation, even though intelligence officials have said there’s no evidence that this is true.

Here is Bobulinski’s statement in full (emphasis ours):

My name is Tony Bobulinski. The facts set forth below are true and accurate; they are not any form of domestic or foreign disinformation.  Any suggestion to the contrary is false and offensive. I am the recipient of the email published seven days ago by the New York Post which showed a copy to Hunter Biden and Rob Walker. That email is genuine

This afternoon I received a request from the Senate Committee on Homeland Security and Government Affairs and the Senate Committee on Finance requesting all documents relating to my business affairs with the Biden family as well as various foreign entities and individuals. I have extensive relevant records and communications and I intend to produce those items to both Committees in the immediate future. 

I am the grandson of a 37 year Army Intelligence officer, the son of a 20+ year career Naval Officer and the brother of a 28 year career Naval Flight Officer.  I myself served our country for 4 years and left the Navy as LT Bobulinski.  I held a high level security clearance and was an instructor and then CTO for Naval Nuclear Power Training Command.  I take great pride in the time my family and I served this country.  I am also not a political person. What few campaign contributions I have made in my life were to Democrats. 

If the media and big tech companies had done their jobs over the past several weeks I would be irrelevant in this story.  Given my long standing service and devotion to this great country, I could no longer allow my family’s name to be associated or tied to Russian disinformation or implied lies and false narratives dominating the media right now.

After leaving the military I became an institutional investor investing extensively around the world and on every continent. I have traveled to over 50 countries.  I believe, hands down, we live in the greatest country in the world.

What I am outlining is fact.  I know it is fact because I lived it.  I am the CEO of Sinohawk Holdings which was a partnership between the Chinese operating through CEFC/Chairman Ye and the Biden family.  I was brought into the company to be the CEO by James Gilliar and Hunter Biden.  The reference to “the Big Guy” in the much publicized May 13, 2017 email is in fact a reference to Joe Biden.  The other “JB” referenced in that email is Jim Biden, Joe’s brother.

Hunter Biden called his dad ‘the Big Guy’ or ‘my Chairman,’ and frequently referenced asking him for his sign-off or advice on various potential deals that we were discussing. I’ve seen Vice President Biden saying he never talked to Hunter about his business. I’ve seen firsthand that that’s not true, because it wasn’t just Hunter’s business, they said they were putting the Biden family name and its legacy on the line.

I realized the Chinese were not really focused on a healthy financial ROI.  They were looking at this as a political or influence investment. Once I realized that Hunter wanted to use the company as his personal piggy bank by just taking money out of it as soon as it came from the Chinese, I took steps to prevent that from happening.

The Johnson Report connected some dots in a way that shocked me — it made me realize the Bidens had gone behind my back and gotten paid millions of dollars by the Chinese, even though they told me they hadn’t and wouldn’t do that to their partners.

I would ask the Biden family to address the American people and outline the facts so I can go back to being irrelevant — and so I am not put in a position to have to answer those questions for them. 

I don’t have a political ax to grind; I just saw behind the Biden curtain and I grew concerned with what I saw. The Biden family aggressively leveraged the Biden family name to make millions of dollars from foreign entities even though some were from communist controlled China.

God Bless America!!!!

All of which will likely be “muted” in tonight’s highly anticipated debate.

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Central Europe Reports Record Jump In COVID-19 Cases; US Hospitalizations Hit 2-Month High: Live Updates

Central Europe Reports Record Jump In COVID-19 Cases; US Hospitalizations Hit 2-Month High: Live Updates

Tyler Durden

Thu, 10/22/2020 – 09:24

Summary:

  • Germany, Romania, Poland and Hungary report new records
  • US hospitalizations at 2 month high
  • Brazil says AZ-Oxford trials to continue
  • EU puts pressure on WHO for more transparency
  • South Korea sees rise in cases
  • Spain warns outbreak “out of control”

* * *

Thursday is shaping up to be another rough session for Europe in terms of COVID-19, as Germany just reported more than 10,000 new cases (a new record) for one of Europe’s best performers, along with Hungary, Romania and Poland, which all reported fresh record numbers of new cases as well.

While cases continued to decline in India, the state of West Bengal notably bucked the trend on Thursday when it reported 4,069 new cases, its biggest daily tally yet, after a major Hindu street festival brought thousands together across the region. All told, India reported just 55,639 new cases in the past day, up from 54,044 the day before. India’s death toll jumpd by 702 to 116,616.

Finally, in the US, the number of COVID-19 patients occupying American hospitals hit 40,000 for the first time since August, according to a Reuters tally. The milestone comes as midwestern states like Wisconsin, North Dakota and South Dakota lead the third wave of the US outbreak. Hospitals have seen the number of patients climb 36% over the past 4 weeks. New York reported more than 2,000 cases in a day yesterday for the first time since May.

After a patient enrolled in AstraZeneca’s COVID-19 vaccine trial reportedly died, authorities in Brazil said they wouldn’t pause the trial, run by AZ and the University of Oxford, after the death of the volunteer. The volunteer was said to be a Brazilian who had received the placebo, suggesting that his death wasn’t related to COVID-19 or the trial.

Here’s some other big COVID-19 news from overnight and Thursday morning:

German Health Minister Jens Spahn tested positive for the coronavirus, the health ministry says, adding that he had placed himself in home quarantine (Source: Nikkei).

The European Union wants the World Health Organization to become more transparent about how countries report emerging health crises, a draft proposal on reforming the U.N. agency says, according to Reuters. The paper, drawn up by the German government after discussions with other member states following criticism of China’s initial handling of the COVID-19 pandemic, is the latest to outline the EU’s monthslong plans to address WHO’s shortcomings on funding, governance and legal powers (Source: Nikkei).

Tokyo reports 185 new infections, up from 150 the previous day and bringing the capital’s total to 29,520.

India’s COVID-19 tally tops 7.7 million after 55,839 new cases were reported in the past 24 hours, up from 54,044 the previous day. The death toll jumped by 702 to 116,616.

South Korea confirms 121 new cases, up from 89 a day ago. Total infections reach 25,543 with 453 deaths.

Romania reported a record 4,902 new coronavirus cases in the past 24 hours, bringing the total number of infections to over 196,000. It also registered 98 deaths, the highest daily toll so far. The total number of fatalities stands at 6,163 (Source: Bloomberg).

India’s government has set aside about 500 billion rupees ($7 billion) to vaccinate the world’s most populous nation after China against the coronavirus, according to people with knowledge of the matter (Source: Bloomberg).

Poland registered 12,107 new coronavirus cases in the past 24 hours, a 21% jump from the previous record set a day ago, according to data published by the Health Ministry on Thursday. The death toll in the country of 38 million rose by a record 168 to 4,019. The government is due to announce further restrictions on Thursday in its battle against the pandemic. Slovenia reported a record 1,663 daily infections while the number of hospitalized patients doubled in the past 10 days to 357 (Source: Bloomberg).

One day after becoming the first European country to top 1 million cases, Spain warned that the spread of coronavirus is out of control in certain parts of the country, according to Health Minister Salvador Illa. “We are in the middle of a second wave, it’s no longer a threat but rather a reality,” Illa said in an interview on Madrid-based Onda Cero radio. “In some parts of our country the epidemic isn’t under control, so we need to take more drastic measures (Sources: Bloomberg).

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Biden Offloads Court Packing Decision To Commission Which Will Study Overhaul Options

Biden Offloads Court Packing Decision To Commission Which Will Study Overhaul Options

Tyler Durden

Thu, 10/22/2020 – 09:14

Joe Biden says that if elected, he will create a bipartisan commission to study overhauling the nation’s court system, which is “getting out of whack.” The former Vice President’s announcement is effectively a punt over whether he will pack the Supreme Court following the expected confirmation of Judge Amy Coney Barrett following the death of Justice Ruth Bader Ginsburg.

In comments to “60 Minutes,” Biden says the commission would consider over six months “a number of alternatives that go well beyond packing.”

As Bloomberg noted on Wednesday, alternatives to packing the court include:

Term limits

Jurisdiction stripping – making laws which could limit the Supreme Court from reviewing them, as well as stripping lower courts of the ability to review legislation. The move could also “confine legal challenges to geographic regions where courts are generally sympathetic.”

Supermajority requirement – requiring that some cases achieve a two-thirds vote or even unanimity, as opposed to simple majority.

Balanced Bench – A proposal in which the US Supreme Court would start with 10 justices; five chosen by Democrats and five by Republicans, with lifetime appointments.

Lottery System – Each judge on federal appeals courts would be appointed as an associate justice on the Supreme Court. Every two weeks, a panel of nine justices would be randomly selected from that pool to hear cases.

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Fun Facts About Judge David C. Westenhaver of the U.S. District Court for the Northern District of Ohio (1865-1928)

Most District Court judges can spend their entire careers without the Supreme Court reviewing one of their decisions. Very few have two of their decisions reviewed by the Supreme Court. And outside of D.D.C., a very, very small number of federal judges preside over two cases that give rise to two landmark decisions. Judge David C. Westenhaver of the U.S. District Court for the Northern District of Ohio (1865-1928) fits in this august group.

President Wilson nominated Westenhaver to the District Court in 1917. That seat opened up when Wilson nominated Judge John H. Clarke to the Supreme Court in 1916. (Wilson had appointed Clarke to the District Court only two years earlier.).

In 1918, Judge Westenhaver presided over the sedition trial of Eugene Debs. The prominent socialist had given an anti-war speech in nearby Canton, Ohio. Debs was convicted, and Westenhaver sentenced him to ten years in prison. On appeal the Supreme Court affirmed the conviction 9-0.

Seven years later, in 1926, Judge Westenhaver presided over Ambler Realty Co. v. Village of Euclid, Ohio. He declared the Village’s zoning law unconstitutional. (You would think that a nominee of such a Progressive president would rule uphold this attempt at central planning.) Judge Westenhaver quipped in his opinion, “This case is obviously destined to go higher.” He was right. On appeal, the Supreme Court reversed the District Court’s decision by a 6-3 vote. Justice Sutherland wrote the majority opinion. He left his fellow three horseman in the dust.

In the span of seven years, a single District Court judge in Ohio was randomly assigned two cases that would become landmark decisions. One was affirmed unanimously. The other was reversed by a 6-3 vote.

Judge Westenhaver died two years later in 1928.

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The Barrett Boycott Begins… “Pure Theater” From Democrats

The Barrett Boycott Begins… “Pure Theater” From Democrats

Tyler Durden

Thu, 10/22/2020 – 09:07

Authored by Jonathan Turley,

recently wrote about how the Barrett confirmation hearing is proof that Benjamin Franklin was right when he wrote that “it is hard for an empty sack to stand upright.” Now that analogy is becoming reality as Democrats plan to leave actual empty seats in today’s hearing to vote on the nomination. It is all an effort to convince Democrats voters that the senators are really angry over the nomination and fighting like the dickens to stop it. It is, of course, pure theater with no real impact on the nomination but voters seem to demand little more from politicians today than visceral distractions.

The Committee rules do stipulate at least two members from the opposing party must be present for a quorum. However, committees have proceeded in the past with a majority and the Committee could simply change the rules. All sides will then be satisfied.  The Republicans will get their vote and the Democrats will get their show — and the voters will get little beyond the same low-grade performance art from “the world’s most deliberative body.”

The boycott comes after Democratic senators, and particularly Sen. Dianne Feinstein, faced rising criticism over their civility during the Barrett nomination.  Democratic voters wanted a professional wrestling match with pile drivers and chair slams.  Even though they know it is fake, they wanted the senators to at least pretend that they were trying to hurt each other. Instead, they watched a largely civil and often friendly exchange between senators. It was entirely out of sync with the demands of an age of rage.

The final outrage apparently came with the hug that Feinstein gave Chairman Lindsey Graham at the end of the hearing after saying that this was “the best set of hearings that I’ve participated in.” No hug has been so lethal since Sherlock Holmes embraced Professor Moriarty before their plunge over the falls of Reichenbach. The display of collegiality sent many liberals into immediate apoplexia with some demanding that Feinstein step down as ranking member. The president of the pro-choice group NARAL, Ilyse Hogue, declared the gesture as “wildly out of step with the American people. As such, we believe the committee needs new leadership.”  It was certainly “wildly out of step” with the current American politics which demands nothing short of unhinged  and irrational rage.

In an astonishing move, Minority Leader Chuck Schumer went out of his way to demean Feinstein and publicly say that he gave her a stern talking to. Other colleagues have notably failed to come to her defense — leaving her twisting in the wind rather than risk the ire of Democratic base by supporting their long-time colleague.

The Democrats are reportedly planning to bring back the pictures of people who will be victimized by Barrett if she votes against the Affordable Care Act (ACA) in a case set for a November 10th argument.  I have previously written how unfair and unprecedented this display has been for a confirmation hearing. Not only are Democrats now basing their confirmation votes on the expected vote of a nominee in a pending case, but they are misleading the public on the actual case.  As I previously discussed, senators have been open about voting against Barrett unless she assures them that she will vote to preserve the Act. Sen. Mazie K. Hirono (D., HI) announced recently that she would vote against Barrett because “she will vote to strike down the Affordable Care Act.” In reality, the ACA case is unlikely to be struck down. The Court may uphold the lower court in declaring the individual mandate of the original ACA to be unconstitutional, but the real issue is whether that provision can be “severed” from the rest of the statute. Most legal experts believe that the Court has a clear majority favoring severance and preserving the rest of the act. The law was originally saved by Chief Justice John Roberts who felt that the individual mandate was constitutional. Congress later nullified the mandate.  He and Justice Brett Kavanaugh are viewed as likely votes to sever. Even if the ACA were struck down however both parties are committed to the continued protection of pre-existing conditions.

None of that matters. The Democrats continue to parade these giant pictures that are designed to portray Barrett like some judicial serial killer surrounded by her victims. Now, they will not even be in the room. The pictures will be all that remains on the Democratic side, a fitting symbol of a now literal empty-sack strategy.

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Fun Facts About Judge David C. Westenhaver of the U.S. District Court for the Northern District of Ohio (1865-1928)

Most District Court judges can spend their entire careers without the Supreme Court reviewing one of their decisions. Very few have two of their decisions reviewed by the Supreme Court. And outside of D.D.C., a very, very small number of federal judges preside over two cases that give rise to two landmark decisions. Judge David C. Westenhaver of the U.S. District Court for the Northern District of Ohio (1865-1928) fits in this august group.

President Wilson nominated Westenhaver to the District Court in 1917. That seat opened up when Wilson nominated Judge John H. Clarke to the Supreme Court in 1916. (Wilson had appointed Clarke to the District Court only two years earlier.).

In 1918, Judge Westenhaver presided over the sedition trial of Eugene Debs. The prominent socialist had given an anti-war speech in nearby Canton, Ohio. Debs was convicted, and Westenhaver sentenced him to ten years in prison. On appeal the Supreme Court affirmed the conviction 9-0.

Seven years later, in 1926, Judge Westenhaver presided over Ambler Realty Co. v. Village of Euclid, Ohio. He declared the Village’s zoning law unconstitutional. (You would think that a nominee of such a Progressive president would rule uphold this attempt at central planning.) Judge Westenhaver quipped in his opinion, “This case is obviously destined to go higher.” He was right. On appeal, the Supreme Court reversed the District Court’s decision by a 6-3 vote. Justice Sutherland wrote the majority opinion. He left his fellow three horseman in the dust.

In the span of seven years, a single District Court judge in Ohio was randomly assigned two cases that would become landmark decisions. One was affirmed unanimously. The other was reversed by a 6-3 vote.

Judge Westenhaver died two years later in 1928.

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Fears Of Biden Capital Gains Tax Hike Spark Avalanche Of Private Company Sales

Fears Of Biden Capital Gains Tax Hike Spark Avalanche Of Private Company Sales

Tyler Durden

Thu, 10/22/2020 – 08:47

At the start of the month, we reported that as part of his proposed tax reform, Joe Biden would increase the maximum tax rate for long-term capital gains by a whopping 66%, from 20% currently (23.8% when accounting for the additional 3.8% ACA tax) to as high as 39.6%, for those making over $1 million or for proceeds of a business sale over $1 million. A summary of the changes tot he US tax code under a Biden admin is shown below.

We also observed that while this cap gains increase wouldn’t affect most small-timer Robinhood traders (except for the really talented ones), it would have a drastic hit on major market players and corporate strategies involving exit events that include more than $1 million in proceeds, as the following analysis from Benchmark Corporate showed: assume a $2.0M EBITDA (small or medium) business receives a valuation multiple of 10x for a total transaction value (taxable gain) of $20.0M. Under the Biden Plan, the seller would lose $3.92M in the sale. To receive the same net proceeds, a multiple of 13.2x would need to be secured.

We concluded that “this kind of dramatic revision to post-transaction cash flows under a Biden regime is – to say the least – concerning, although because the media has barely discussed Biden’s tax plan (or any of his other policies for that matter) and instead focusing on Trump, Trump, Trump, the impact of Biden’s tax long-term cap gains will come as a shock to the market.”

Yet while the media may be ignoring the gamut of tax implications a Biden presidency would unleash, bankers have been busy generating fees from the upcoming tax law overhaul, and as Reuters reports investment bankers have a simple pitch to their corporate owner clients: hire us to sell your company now or pay at least twice as much in taxes if Democratic presidential candidate Joe Biden has his way.

Of course, Biden would have to win the presidency and the Democratics would have to gain control of the Senate for his tax proposals to become law. While this is far from certain, this prospect has been seized on by bankers hungry for new business.

“We urge all of our current and potential clients to take note of the potential forthcoming changes, along with their associated consequences, as they consider an exit strategy for their business in the near future,” Houlihan Lokey bankers wrote in a note earlier this month, perhaps after having read our post.

While the bankers’ pitch is geared toward individuals and families, it also targeted private equity firms who control companies and can decide when to sell them. It also targets company founders, who may only sell one business in their lifetime, making it the most important transaction of their lives.

The strategy to rush and sell before a Biden administration arrives appears to be working: according to Dealogic, sales of privately held U.S. companies totaled a record $253 billion in the third quarter, up fivefold from the second quarter and up 51% from the third quarter of 2019. This is despite the COVID-19 pandemic suppressing corporate valuations in some sectors.

“Since the summer we have seen a lot of dialogue from family offices about exploring a sale of some assets. Many of these investors are sophisticated about how they handle their affairs from a tax perspective,” said PJT Partners partner David Perdue.

One of the U.S. companies pursuing a deal because of tax considerations is Asplundh Tree Expert LLC, a family-controlled tree-trimming firm, according to people familiar with the deliberations. According to Reuters, the family that has owned Asplundh since 1928 has been keen to hold onto the company and resisted overtures to sell to private equity firms hungry for a quick flip. When one of these firms, CVC Capital Partners Ltd, convinced the Asplundh family to sell it a minority stake in 2017, it had to use a buyout fund it manages that is dedicated to retaining holdings for a decade or more, rather than cashing out after a few years.

But after decades of holding out, the Asplundh family is now working with investment bankers to cash out on part of its stake, because of its concerns about upcoming changes in the tax system, Reuters reports, noting that the family is seeking a valuation for Asplundh of as much as $10 billion.

To be sure, even if Biden wins and implements his tax plan, corporate owners may still have time to cash out. Most of President Donald Trump’s corporate tax cuts, which were enacted into law in 2017, became effective in 2018, a year after he came into office. Still, the big uptick in the divestitures of privately owned companies shows how some of their owners view Biden’s election victory, and subsequent tax changes, as likely.

And while small and medium business owners of private businesses are the biggest losers as they are now forced to liquidate to avoid a major hit to their equity value, the winner from a potential Blue Sweep is – drumroll – Wall Street, which will collect billions in transaction fees.

Goldman Sachs advised on more sales of privately held U.S. companies year-to-date than any other, followed by Morgan Stanley, JPMorgan and Bank of America. One can almost sense a conflict of interest in these banks relentlessly pushing for a blue wave as the most likely outcome on Nov 3.

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Initial Jobless Claims Plunge To Lowest Since March As California Cleans Up Fraud

Initial Jobless Claims Plunge To Lowest Since March As California Cleans Up Fraud

Tyler Durden

Thu, 10/22/2020 – 08:35

After the previous week’s disappointing resurgence in initial jobless claims, this week saw the number of Americans filing for first time unemployment benefits plunged to 787k (870k exp) – the lowest since the pandemic lockdowns began…

Source: Bloomberg

Continuing claims also printed better than expected, tumbling below 9million for the first time since March…

Source: Bloomberg

Finally, bear in mind that California has completed its pause in processing of initial claims and has resumed reporting actual unemployment insurance claims data based on their weekly claims activity. This News Release reflects actual counts for California for the current week and revisions to the two prior weeks. So just this data with a pinch of salt.

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The Foreign Policy Questions Trump and Biden Should Answer

Joe Biden Donald Trump Debate

The topic list for the final presidential debate this Thursday—assuming it happens—is broad. In just an hour and a half, President Trump and Democratic nominee Joe Biden will be asked to address the COVID-19 pandemic, American families, race, climate change, leadership, and national security.

These are all worthwhile topics, but the latter is uniquely important for this office. The president does not have the Constitutional power to start new wars, whatever recent practice may suggest, but he does have the power to end them, and our country has a lot of wars overdue for conclusion. American voters deserve careful scrutiny of the candidates’ positions on individual conflicts and larger strategic matters alike. Here are a few questions Trump and Biden should answer.

Afghanistan. This is the longest war and nation-building project in American history, and you have both pledged to end it. President Trump, you’ve backtracked on exit plans before and don’t intend to withdraw the last ground troops before Inauguration Day. What is your purpose in this delay, and what will you do if that purpose is not achieved by next summer’s withdrawal deadline? Vice President Biden, what is the meaningful difference between your Afghanistan policy and your opponent’s? Will you end this war within six months of your inauguration?

Iraq. After initially supporting the 2003 invasion, you have both more recently called the war in Iraq a mistake. The American public agrees: Two thirds say the war wasn’t worth fighting, and the Army’s history of Iraq describes a “doomed” venture in which the United States failed “to attain its strategic objectives” and instead produced regional destabilization, hundreds of thousands of American and Iraqi casualties, and up to $2 trillion debt-funded spending. What lesson(s) do you see here? Do you anticipate ending this war within four years if you win this election? If not, why not?

Yemen. The Obama administration began supporting the Saudi-led coalition intervention into Yemen’s civil war in 2015, and the Trump administration has continued to enable coalition actions that have been widely labeled war crimes. Vice President Biden, when did you first oppose the U.S. role in Yemen, and what is your schedule for ending it? President Trump, you vetoed a bipartisan bill with strong public support that would have required U.S. departure. Under what circumstances, if any, would you change your mind on this issue?

North Korea. U.S. diplomacy with North Korea is at a standstill and has seen little real progress since the first summit with leader Kim Jong-un in 2018. Washington continues to insist on complete, verifiable, irreversible denuclearization (CVID) as the only acceptable goal in negotiations despite strong evidence this is not an aim Pyongyang will accept so long as it believes forcible, U.S.-orchestrated regime change—like in Iraq—is a risk. To both candidates: Will you continue indefinitely to insist on CVID in your talks with North Korea? Will you pursue a peace treaty for the Korean War?

Iran. Our relationship with Iran is at a five-year low since the Trump administration left the Iran nuclear deal and instituted its counterproductive “maximum pressure” approach, which demands Tehran concede everything in exchange for nothing before negotiations even begin. Vice President Biden, you’ve said you’d rejoin the deal but intend to continue sanctioning Iran. How will your Iran policy progress beyond that of the Obama administration, which contributed to cruel shortages of food and medicine for ordinary Iranians? President Trump, you’ve said we’ll have a new nuclear deal with Iran “within one month” if you’re re-elected. What will you do if we don’t? How will you avoid repeating the needlessly dangerous position in which you put us this past January?

Great power competition. How would you characterize U.S. relations with China and Russia? In what circumstances would you risk war with these fellow nuclear powers? How aggressively would you deploy U.S. troops near their borders, as in the South China Sea, or in nations where they have a ground presence, like Syria? Would you intervene militarily to fight against Russia in Eastern Europe or to protect Taiwan from invasion by Beijing? If yes, please explain the necessity of that choice to defend U.S. national security.

Grand strategy. How would you describe your grand strategy for U.S. foreign policy? What do you consider vital U.S. security interests—interests that require military defense because our country cannot survive without them? The U.S. keeps around 150,000 troops at 800 bases in 70 nations worldwide. Do you believe that global sprawl is necessary for U.S. security? What is your method of diplomacy, and how do you conceive its place within your strategy for foreign affairs? Why are you best suited to steward the United States toward safety and peace?

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