Harris Fans Blame Billionaires, Sexists, and Racists for Her Campaign’s Collapse

Blaming everyone but Kamala Harris for her presidential campaign’s collapse. The conversation surrounding Kamala Harris’ exit from the 2020 presidential race has been reaching some ridiculous places since the California senator announced she was dropping out yesterday. Harris herself blamed billionaires, basically, while supporters and pundits expanded the blame to also include sexism, racism, biased media coverage, and other issues beyond the candidate or her campaign’s control.

If you’re wondering whether Democrats picked up any introspection since Hillary Clinton’s 2016 loss was chalked up to sexism, racism, third parties, Bernie bros, and such…the signs aren’t looking so good.

On social media and cable news, commentators keep coming back to alleged advantages enjoyed by other candidates—personal wealth, less scrutiny of their criminal justice records, etc.—to supposedly explain why Harris was forced to exit early (and to complain how unfair it is that folks like Michael Bloomberg, Pete Buttigieg, and Sen. Amy Klobuchar remain in the race).

But all of these explanations fall apart with the slightest scrutiny. Whatever setbacks Harris may have faced based on her race and sex, they pale in comparison to the challenges she and her campaign staffers brought upon themselves.

Staff and supporters have cited the senator’s strategy, debate performances, and the flaws of her top advisors for why the campaign failed to sustain either popular or establishment liberal support.

The campaign certainly got its share of support from corporations and rich donors to start with, sustaining Harris through several Democratic debate cycles. So, the fact that former New York City Mayor Michael Bloomberg may be able to “buy his way in” to the upcoming debate by blasting the nation with a concentrated bout of self-funded campaign ads hardly seems like the stinging indictment that some want it to be.

Get back to me if Bloomberg and all his cash have any shot at getting near the White House—or even a second debate stage. But for now, Bloomberg’s brief moment in the spotlight means nothing, and it’s especially absurd to suggest he somehow knocked Harris out of the polls. Her numbers had been steadily declining for months before Bloomberg entered the race.

Some people have taken to blaming the “Kamala Harris is a cop” meme and any criticism of the former prosecutor and state attorney general’s criminal justice record, while positioning these things as unfair gotchas, and maybe even racist. The Independent offers a particularly bad example of this, one that characterizes “Kamala is a cop” criticisms as springing forth in response to her surging popularity and not something that many leftists and libertarians had been saying for a long time.

Others complain that Harris isn’t the only former drug warrior and tough-on-crime politician and yet, for instance, Amy Klobuchar, the senator from Minnesota, hasn’t seen the same level of scrutiny over her prosecutor past. Former Vice President Joe Biden hasn’t been hit constantly for the 1994 Crime Bill (though he has been hit some).

Most of the candidates have some bad criminal justice points on their records, of course. Klobuchar, Biden, and others should have to answer for their carceral ways (with Biden’s burden bearing more recent examples than the crime bill, for what it’s worth). But Harris is the only candidate who explicitly positioned her campaign around law-and-order themes, running with the tagline “Kamala Harris, For the People” (a callback to her time as a district attorney) and repeatedly emphasizing her “progressive” prosecutor past.

Harris all but wore a big sandwich board sign saying “ASK ME ABOUT MY HISTORY AS A COP” and then was completely unprepared when anyone did, with the campaign blaming bigotry for folks noticing the very things Harris herself kept harping on.

A lot of Harris fans are holding out hope that she’ll find a spot on someone’s ticket as a vice president. But this may be a bit delusional, considering the spectacular flaming out of her campaign and the fact that both Harris and her people seem to divide more than they unite.

Harris could have technically held on a little longeras Anna Massoglia of Open Secrets points out, she had more than $10 million in funds left. There’s still time for her to qualify for the next debate. A candidate with her credentials and hype could, with the right messaging, still outlast the likes of Tom Steyer and exit respectably closer to the top of the tier.

Choosing to leave now is a strategic decision—no more need to attack potential future allies, no need to fumble around with wishy-washy messaging any longer—since all those excess campaign donations can now go to Harris’ next senate race.

Biden said he had “mixed feelings” about Harris’ campaign ending. “She is a first-rate intellect, a first-rate candidate and a real competitor,” he told ABC News.


FREE MINDS

Twitter’s new Terms of Service contain some cause for worry. “The changes amount to about 10 lines scattered through the 12-page document,” notes XBIZ. “While some of them are mere clarifications from the previous TOS, and one paragraph concerns the Twitter Vulnerability Reporting Program, there’s one change in the terms of service that should concern those interested in the company’s control over the content that one’s followers see. In a nutshell: Twitter has explicitly reserved the right to shadowban, under the legalese of ‘limit distribution or visibility of any Content on the service.'”

In the current TOS, Twitter reserves the right “to create limits on use and storage at our sole discretion at any time” and to “remove or refuse to distribute any Content on the Services, suspend or terminate users, and reclaim usernames without liability to you.”

The new TOS adds to this the right to “limit distribution or visibility of any Content on the service.”


FREE MARKETS

The economic case for sex work decriminalization. As the debate over decriminalizing prostitution becomes louder and “part of a broader rethinking of the criminal justice system,” opponents still worry “that prostitution is inherently violent and decriminalization would worsen the exploitation of women.” But “economic evidence—and theory” says otherwise, writes Karl Smith at Bloomberg Opinion. Smith looks at a study from economists Scott Cunningham, Gregory DeAngelo, and John Tripp:

Economists studied Craigslist, which from 2002 to 2010 gradually introduced an “erotic services” section that allowed sex workers to advertise directly and anonymously on the internet. The staggered rollout allowed the economists to measure the impact on each market as the service expanded. As expected, the market for sex workers expanded rapidly. More important, according to the 2019 paper, the expansion of Craigslist into a market “led to a 10% to 17% reduction in female homicides.” To be clear, that figure is not homicides among sex workers —  which are difficult to measure in real time — but homicides among all women in the area.

This result so astounded the economists that they performed some tests to validate it. It passed them all. Moreover, effects have been demonstrated in other studies. Decriminalization in even parts of a city is associated with double-digit declines in sexual assault. A 2014 study of an inadvertent decriminalization of indoor sex work in Rhode Island from 2003 to 2009 found it resulted in a 30% drop in rapes. This isn’t mere correlation: Both the Rhode Island and Craigslist studies use several methods designed to identify causation.

More here.


QUICK HITS

  • Today, the House Judiciary Committee considering President Donald Trump’s impeachment “plans to hear from four constitutional scholars about the historical underpinnings of the process,” according to The Washington Post.
  • The long tail of responsibility for sex trafficking continues to grow, with a new lawsuit attempting to hold the email marketing service Mailchimp legally responsible for exploitation because it sent an email about a website where an alleged trafficker would later post.
  • A Los Angeles police officer left his body camera on while fondling the breasts of a dead woman.
  • “More than two dozen correctional officers in Baltimore were charged Tuesday with using excessive force on prisoners at state-operated jails,” the Associated Press reports.

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S&P, Nasdaq Erase Yesterday Losses On Unsourced Trade Headlines

S&P, Nasdaq Erase Yesterday Losses On Unsourced Trade Headlines

Well that de-escalated quickly…

Small Caps are leading the short-squeeze, but S&P and Nasdaq have now erased all of yesterday’s losses…

The algos seem desperate to get back to run the stops from yesterday’s pre-plunge…

What happens next?


Tyler Durden

Wed, 12/04/2019 – 10:11

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ISM Services Disappoint As “Optimism Remains Historically Subdued”

ISM Services Disappoint As “Optimism Remains Historically Subdued”

Following the mixed picture from ‘soft’ surveys on the manufacturing side of the US economy (Markit PMI higher, ISM lower), and the extremely mixed picture from AsiaPac overnight, all eyes are on the Services data this morning to confirm/cherry-pick data that means the trough in growth is over.

  • Markit Manufacturing PMI rose to 52.6 (from 51.3)

  • ISM Manufacturing fell to 48.1 (from 48.3)

  • Markit Services PMI rose to 51.6 (from 50.6)

  • ISM Services fell to 53.9(from 54.7)

Source: Bloomberg

Under the hood, only 3 of the subindices are lower…

 

Source: Bloomberg

Aggregating the ISM Manufacturing and Services data provides a Composite picture (weighted by jobs and earnings) that shows the brief rebound fading…

Source: Bloomberg

But, as Chris Williamson, Chief Business Economist at IHS Markit, said:

“With both services and manufacturing reporting stronger rates of expansion, the November PMI surveys indicate the fastest pace of economic growth for four months. The improvement is coming from a low base, however, and even at these higher levels the survey is merely indicative of annualised GDP growth in the region of 1.5%.”

“Similarly, while reviving order book growth has encouraging more companies to take on extra staff after two months of net job losses being reported, the survey’s employment index continued to run at a level consistent with monthly jobs growth of only around 100,000.

“Weakened business activity and jobs growth compared to earlier in the year also led to widespread caution with respect to pushing up selling prices in the face of an uncertain outlook. Business expectations for the year ahead continue to run at one of the lowest levels recorded by the survey since 2012 with firms worried about trade wars, slowing economic growth at home and abroad, as well as the possibility of next year’s election cycle causing customers to postpone spending decisions.”

So take your pick of ‘soft’ surveys to support your panic-bid or scramble to sell.


Tyler Durden

Wed, 12/04/2019 – 10:04

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“Strongly Approve of Trump” Among My Students: Zero

Just for fun, I do an anonymous internet survey of my Constitutional Law I class every year. The survey is voluntary, with a high but far from universal response rate. Some of the students were required to take my class, and others were required to take Constitutional Law I, but got to choose their professor. Here are some results from the past three years:

Out of 106 students:

20 Strong Democrats
27 Lean Democrats
32 Lean Republicans
16 Strong Republicans
11 Independent/Other

Approve of Trump: 19
Strongly Approve of Trump: 0 (yes, zero)

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Baltimore Mayor Warns Of Body “Snatching” White Van Targeting Young Girls To Sell Their Organs 

Baltimore Mayor Warns Of Body “Snatching” White Van Targeting Young Girls To Sell Their Organs 

Seriously WTF! 

We tend to report on how Baltimore City’s socio-economic crisis is sending the region into a collapse. Now there’s a new report that appears to be literally from a third world country! 

Baltimore Mayor Bernard C. “Jack” Young warned in an interview this week with WBAL News’ Vanessa Herring that a white van has been running around the city targeting young girls for their organs, reported The Baltimore Sun.

“We’re getting reports of somebody in a white van trying to snatch up young girls for human trafficking and for selling body parts, I’m told. So we have to be careful because there’s so much evil going on, not just in the city of Baltimore, but around the country,” Young said. “It’s all over Facebook.”

Police spokesman Matt Jablow told The Sun that the department is “aware of the posts on social media, but we do not have any reports of actual incidents.”

WBAL asked the FBI’s Baltimore Field Office about any reports of abductions in the city, and they responded by indicating no reports have yet been filed. 

A spokesman for the mayor said Young was discussing a general problem of human trafficking in the city, not a specific incident. 

Councilman Kristerfer Burnett, the co-chair of the Baltimore City Human Trafficking Collaborative, said: “While it’s important that we do raise awareness about human trafficking, I would note that rarely are people snatched as you may see in film or may see on social media.” 

Young’s latest claims of a body-snatching van come after a news conference last month, which he said: “I’m worried about people pulling up in vans, snatching young girls to take their organs or sell them into prostitution.”


Tyler Durden

Wed, 12/04/2019 – 09:55

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“Strongly Approve of Trump” Among My Students: Zero

Just for fun, I do an anonymous internet survey of my Constitutional Law I class every year. The survey is voluntary, with a high but far from universal response rate. Here are some results from the past three years:

Out of 106 students:

20 Strong Democrats
27 Lean Democrats
32 Lean Republicans
16 Strong Republicans
11 Independent/Other

Approve of Trump: 19
Strongly Approve of Trump: 0 (yes, zero)

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Angry Trump Cancels Press Confedence, Leaves NATO Summit Early After Video Of World Leaders Laughing At Him

Angry Trump Cancels Press Confedence, Leaves NATO Summit Early After Video Of World Leaders Laughing At Him

The leak by the Canadian Broadcasting Corporation of a clip showing Justin Trudeau, Emmanuel Macron and Boris Johnson caught on a hot mic appearing to ridicule President Trump at the NATO 70 year anniversary summit, appears to have made an already tense diplomatic situation, downright unbearable.

Shortly after Trump told reporters that Trudeau was “two-faced” in response to questions about the hot mic video, which reportedly was also a reference to the Canadian PM’s “blackface” history, Trump tweeted that he won’t hold a scheduled news conference to conclude the NATO summit, noting that he’s spoken repeatedly to reporters at meetings with world leaders that past two days, and would leave the NATO summit early, heading to Washington at the end of the day’s meetings.

Great progress has been made by NATO over the last three years. Countries other than the U.S. have agreed to pay 130 Billion Dollars more per year, and by 2024, that number will be 400 Billion Dollars. NATO will be richer and stronger than ever before.

Just finished meetings with Turkey and Germany. Heading to a meeting now with those countries that have met their 2% GOALS, followed by meetings with Denmark and Italy.

When today’s meetings are over, I will be heading back to Washington. We won’t be doing a press conference at the close of NATO because we did so many over the past two days. Safe travels to all!

Then Trump issued a thinly veiled threat to his NATO peers, whom he has criticized of repeatedly underpaying, saying that if they refuse to pay their required quote, he would “get them on trade,” hinting that the trade war may soon spread to even more NATO member nations:

  • TRUMP: IF NATO COUNTRIES DON’T PAY `WE’LL GET THEM ON TRADE

So, as NYT reporter Katie Rogers, summarized: “This was a really unusual trip for Trump, who abided by Boris Johnson’s wishes to not interfere in UK elections, got an earful from Macron, woke up to footage of close allies mocking him, and, on top of it all, decided not to get the final say with a presser.”

And the day is not over yet.

 


Tyler Durden

Wed, 12/04/2019 – 09:45

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You Better Not Short; You Better Not Try; Larry Kudlow, Please Tell Them All Why

You Better Not Short; You Better Not Try; Larry Kudlow, Please Tell Them All Why

Submitted by Michael Every of Rabobank

The NATO summit saw the expected shenanigans with: Turkey’s President Erdogan stating it will oppose defense of the Baltic region if NATO doesn’t support it in its fight against the Kurds; France’s Macron refusing to do so; and US President Trump and Macron having a public spat, and then uniting in a clash over Turkey and the Kurds and its Russian S-400 missile system, with the word “sanctions” being mentioned by the US president again. Trump also suggested that countries who don’t pay up the 2% of GDP for defence might be dealt with via the trade channel, further politicizing trade as an issue, if it wasn’t already. Markets didn’t pay any attention.

That was because they were too busy being rocked when President Trump stated he is in no rush and “in some ways I think it’s better to wait until after the election” to make a trade deal with China. Not September, as we were told by those ‘in the know’ at certain financial media; not October, as were again told; not November, as we were still told; and not December, and perhaps not early 2020 – but after the US presidential election….which might as well be forever for markets. Especially as Trump will not have any electoral concerns at that point so might just dump the whole idea and go ‘all-in’. Indeed, Commerce Secretary Ross also made clear if “substantial progress” isn’t seen soon then the final 15% tariff tranche is indeed going to happen on 15 December.

The market reaction was clear: US 10-year yields plunged from 1.84% intraday to 1.72%, presumably because of all the inflation now coming from the tariffs, and 2-year yields from 1.62% to 1.55%; the S&P dipped; and CNH went from under 7.04 to over 7.08 and is at 7.0726 at time of writing. Perhaps it will go lower again when people read headlines on Bloomberg like “China Stockpiles Foreign Tech as ‘Silicon Curtain’ Descends”.

If not, it certainly should do given the US House of Representatives just passed legislation 407-1 to impose sanctions on Chinese officials responsible for alleged human rights abuses in Xinjiang, and to prevent the sale of technology to China that can be used in such repression. The Senate measure has already passed, but the House has added provisions that require the president within 120 days to list all officials deemed responsible and to impose visa restrictions and Global Magnitsky Act sanctions; the bill also ties US policy to China to Xinjiang via an annual State Department report to Congress on the issue. As with the recent HKHRDA legislation, it is expected there will now be rapid work to consolidate the two similar bills into one and to pass it to Trump before year-end – again with a veto-proof majority behind it. Indeed, a president who already signed the HKHRDA, and who is about to be impeached by the House on strictly bipartisan lines based on the Democrats just-released report, is not really going to be in a position to veto a bill backed by his own party. China has already vowed a response: banning US-based NGOs and US military visits to Xinjiang? And not getting as much coverage, but very significant, Taiwan is inviting US military experts to the island to advise on how it can bolster its defences: that’s on top of the recent agreement of US arms sales to it.

In which case, for those in markets trying to close out their books for the year-end and to get into the Xmas party spirit–and to pretend that the geopolitical issues I have been warning about as potential landmines for so long will never actually matter–it’s time for a Christmas Carol.

The following needs to be sung to the tune of ‘Santa Claus is Coming to Town’, and is best accompanied by a *large* brandy and a larger dose of tongue-in-cheek:

“Larry Kudlow, Larry Kudlow, Please don’t let this bull market go – tell us

A trade deal is comin’ to town! A trade deal is comin’ to town! A trade deal is comin’ to town!

He’s making a list; He’s checking it twice; Of all the things about China that’re suddenly nice – so

A trade deal is comin’ to town! A trade deal is comin’ to town! A trade deal is comin’ to town!

He sees when stocks are slipping; He knows when bears awake

He knows the Dow Jones must look good; For Trump’s electoral sake

So you better not short; You better not try; Larry Kudlow, please tell them all why – ‘cos

A trade deal is comin’ to town! A trade deal is comin’ to town! A trade deal is comin’ to town!

A great, great trade deal is comin’ to toooooooooooooownnnnn!”

And there will be nowhere singing this more loudly than Australia given that Q3 GDP came in at just 0.4% q/q, a tick weaker than expected vs. an upwardly-revised 0.6% in Q2, and meaning only 1.7% y/y, around half of where the RBA sees the low-productivity/high-net immigration Aussie economy as deserving to grow. The Reserve Bank Governor of course left rates unchanged yesterday at 0.75%, and once again displayed his magic touch in saying that some downside risks to the global economy had lessened recently. Maestro!

What else to wrap with? Kamala Harris is out of the presidential race unless she gets offered VP by someone else; and Trump has stated he wouldn’t want the NHS even if it was offered to him on a silver platter; and Corbyn obviously doesn’t believe him, especially on drug pricing. On which note, the US has just proposed stripping 10-year protections for biologic drugs from generic rivals from the USMCA to speed its passage in Congress, which seems the complete opposite of what Labour is saying the US would do to the UK in a US-UK trade deal.


Tyler Durden

Wed, 12/04/2019 – 09:30

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Cryptos Suddenly Panic-Bid, Bitcoin Nears $7800, Ether Tops $150

Cryptos Suddenly Panic-Bid, Bitcoin Nears $7800, Ether Tops $150

Catalysts, as usual, are unclear but a sudden surge of buying has lifted cryptos across the board this morning…

Source: Bloomberg

With Bitcoin testing $7800…

Source: Bloomberg

And Ethereum above $150…

Source: Bloomberg

This surge happens as CoinTelegraph reports that  Bitcoin futures open interest on digital asset platform Bakkt has hit a new all-time high.

According to a Dec. 3 Twitter post published on Dec. 3 by Bakkt Volume Bot — a Twitter account dedicated to reporting Bakkt trading volumes — Monday’s open interest on Bakkt Bitcoin futures reached a new all-time high of $6.5 million.

In futures markets, open interest is the number of open contracts in the market and is often used to indicate the health of the market. When there is a large amount of open interest, new or additional capital is flowing in. 

Regularly breaking records

The reported open interest is a 42% increase from the previous day, which was an all-time high as well. Last Friday and Saturday saw open interest records of $4.2 million and $4.3  million, respectively.

The platform’s trading volumes have been continuously breaking records since its launch in September. At the end of November, daily volumes on the platform hit a new all-time high of over $42.5 million — or 4,443 BTC at the time.

Also in November, Bakkt’s chief operating officer Adam White announced the firm’s move to include a cash-settled option in an apparent bid to further increase the platform’s popularity among investors. The Intercontinental Exchange — Bakkt’s parent company — later confirmed the launch of the option for Dec. 9.

Bakkt’s management could also soon start influencing United States’ cryptocurrency regulation. As Cointelegraph reported on Dec. 1, Georgia Governor Brian Kemp is expected to appoint Bakkt chief executive officer Kelly Loeffler for a United States Senate seat.

 


Tyler Durden

Wed, 12/04/2019 – 09:19

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Perfect Storm: Trump Admin To Cut 750,000 From Food Stamps Ahead Of Recession

Perfect Storm: Trump Admin To Cut 750,000 From Food Stamps Ahead Of Recession

In a bid to end the massive welfare state, the Trump administration is expected to announce new measures Wednesday that would end food stamp benefits for nearly 750,000 low-income folks. The new rules will make it difficult for “states to gain waivers from a requirement that beneficiaries work or participate in a vocational training program,” according to Bloomberg sources.

Republicans have long attempted to abolish the welfare state, claiming that the redistribution of wealth for poor people keeps them in a state of perpetual poverty. They also claim the welfare state is a system of command and control and has been used by Democrats for decades as a political weapon against conservatives, hence why most inner cities vote Democrat. 

House Republicans tried to cut parts of the federal food assistance program last year, but it was quickly rejected in the Senate. 

The new requirements by the Trump administration would only target “able-bodied” recipients who aren’t caring for children under six. 

Sources said the measure would be one of three enacted by the Trump administration to wind down the massive federal food assistance program.

The measures are expected to boot nearly 3.7 million recipients from the Supplemental Nutrition Assistance Program (SNAP). Though it comes at a time when employment is in a downturn, manufacturing has stumbled into a recession, and the US economy could be entering a mild recession in the year ahead.

As to why President Trump wants hundreds of thousands of low-income folks off SNAP ahead of an election year while the economy is rapidly decelerating could be an administrative error that may lead to social instabilities in specific regions that will be affected the hardest. Then again, no turmoil could come out of it, and it’s hailed as a success during the election year. 

The Department of Agriculture estimates that the new measures could save the agency $1.1 billion in year one, and $7.9 billion by year five. 

Nearly 36.4 million Americans in the “greatest economy ever” are on food stamps. At least half of all Americans have low-wage jobs, barely enough to cover living expenses, nevertheless, service their credit cards with record-high interest rates

The economy as a whole is undergoing profound structural changes with automation and artificial intelligence. Tens of millions of jobs will be lost by 2030. It’s likely the collision of these forces means the welfare state is going nowhere and will only grow in size when the next recession strikes.

Cutting food stamps for low-income folks is the right move into creating a more leaner government, but there are severe social implications that could be triggered if the new measures are passed. 

And while President Trump wants to slash the welfare state for poor people, his supply-side policies and bailouts of corporate America have been record-setting in some respects. 

Actions by the administration clearly show that corporate welfare for Wall Street elites is more important than welfare for low-income folks. Perfect Storm: Trump Admin To Cut 750,000 From Food Stamps Ahead Of Recession


Tyler Durden

Wed, 12/04/2019 – 09:00

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