Bayer Surrenders to Trial-Lawyer Extortion Over Bogus Glyphosate Weedkiller Cancer Claims

RoundupReneVanDenBergDreamstime

Bayer, the German pesticide and seed company, has agreed to establish a $10 billion fund that aims to resolve current litigation and address potential future litigation over its Roundup-branded glyphosate weedkiller. The company simultaneously states that “it is important to emphasize that these resolutions contain no admission of liability or wrongdoing.” And it adds that “the extensive body of science indicates that Roundup™ does not cause cancer, and therefore, is not responsible for the illnesses alleged in this litigation.” In other words, the company is giving in to trial-lawyer extortion.

The company is merely stating scientific facts that decades of research have shown that glyphosate is not a carcinogen when used as directed. This is the scientific conclusion of every safety and regulatory agency that has evaluated the compound over the past 30 years, including the U.S. Environmental Protection Agency, the European Food Safety Authority, the German Federal Institute for Risk Assessment, and the Food and Agriculture Organization.

So what is going on? The trial lawyers are the willing (and highly compensated) instruments of the longstanding activist campaign against modern biotech crops spearheaded by groups such as the Environmental Defense Fund, Greenpeace, and the Union of Concerned Scientists. These activists hate the fact that the popular herbicide is used by millions of farmers around the world to clear weeds out of their fields planted in commodity crops genetically enhanced to resist it.

Scandalously, an activist scientist working with the International Agency for Research on Cancer (IARC) managed to get the agency to classify glyphosate as a “probable human carcinogen.” Two weeks after publication of the IARC report, the scientist Christopher Portier cashed in on his activism by signing a lucrative contract to act as a litigation consultant with law firms engaged in bringing lawsuits first against Monsanto and later Bayer alleging that exposure to Roundup had caused their clients’ cancers.

Using bogusly generated claims about glyphosate’s carcinogenicity, trial lawyers have managed to bamboozle sympathetic juries into awarding hundreds of millions of dollars to their clients.

“All that this settlement shows is that the relevant science is no match for the combination of sensationalist tort cases, which exploit victims with a rare cancer, and the propaganda of a cynical agency, which appears to have engaged in fraud to find glyphosate a ‘probable carcinogen’,” observes former Stony Brook University School of Medicine cancer epidemiologist Geoffrey Kabat in an email. “Over a dozen national and international agencies (including the U.S. EPA, Health Canada, and the European Food Safety Authority) have concluded that glyphosate is not a carcinogen and is safe when used as directed.  Nevertheless, Bayer has clearly decided that reasoned examination of the facts cannot overcome the power of narrative that reinforces well-worn fears, rewards greedy lawyers, and only harms farmers and the poor.”

Bottom line: Activist-generated scientifically bogus extortion worked.

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Bayer Surrenders to Trial-Lawyer Extortion Over Bogus Glyphosate Weedkiller Cancer Claims

RoundupReneVanDenBergDreamstime

Bayer, the German pesticide and seed company, has agreed to establish a $10 billion fund that aims to resolve current litigation and address potential future litigation over its Roundup-branded glyphosate weedkiller. The company simultaneously states that “it is important to emphasize that these resolutions contain no admission of liability or wrongdoing.” And it adds that “the extensive body of science indicates that Roundup™ does not cause cancer, and therefore, is not responsible for the illnesses alleged in this litigation.” In other words, the company is giving in to trial-lawyer extortion.

The company is merely stating scientific facts that decades of research have shown that glyphosate is not a carcinogen when used as directed. This is the scientific conclusion of every safety and regulatory agency that has evaluated the compound over the past 30 years, including the U.S. Environmental Protection Agency, the European Food Safety Authority, the German Federal Institute for Risk Assessment, and the Food and Agriculture Organization.

So what is going on? The trial lawyers are the willing (and highly compensated) instruments of the longstanding activist campaign against modern biotech crops spearheaded by groups such as the Environmental Defense Fund, Greenpeace, and the Union of Concerned Scientists. These activists hate the fact that the popular herbicide is used by millions of farmers around the world to clear weeds out of their fields planted in commodity crops genetically enhanced to resist it.

Scandalously, an activist scientist working with the International Agency for Research on Cancer (IARC) managed to get the agency to classify glyphosate as a “probable human carcinogen.” Two weeks after publication of the IARC report, the scientist Christopher Portier cashed in on his activism by signing a lucrative contract to act as a litigation consultant with law firms engaged in bringing lawsuits first against Monsanto and later Bayer alleging that exposure to Roundup had caused their clients’ cancers.

Using bogusly generated claims about glyphosate’s carcinogenicity, trial lawyers have managed to bamboozle sympathetic juries into awarding hundreds of millions of dollars to their clients.

“All that this settlement shows is that the relevant science is no match for the combination of sensationalist tort cases, which exploit victims with a rare cancer, and the propaganda of a cynical agency, which appears to have engaged in fraud to find glyphosate a ‘probable carcinogen’,” observes former Stony Brook University School of Medicine cancer epidemiologist Geoffrey Kabat in an email. “Over a dozen national and international agencies (including the U.S. EPA, Health Canada, and the European Food Safety Authority) have concluded that glyphosate is not a carcinogen and is safe when used as directed.  Nevertheless, Bayer has clearly decided that reasoned examination of the facts cannot overcome the power of narrative that reinforces well-worn fears, rewards greedy lawyers, and only harms farmers and the poor.”

Bottom line: Activist-generated scientifically bogus extortion worked.

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Schiff: Why Is Gold The Last Safe Haven Standing?

Schiff: Why Is Gold The Last Safe Haven Standing?

Tyler Durden

Wed, 06/24/2020 – 16:25

Via SchiffGold.com,

Gold took out the April highs and rose to the highest level in 8 years on Tuesday. The rally in other safe have assets has stalled in recent weeks, but gold has continued to rise. Why is gold the only safe haven left standing? Peter Schiff explained in his podcast.

Even as the price of the metal continues to climb, gold stocks lag. Peter said a lot of traders still seem to be skeptical of this rally.

Ever since we got this rally, or this more recent rally, people just assume that it’s a temporary deal. ‘Oh, people are just flooding into gold. It’s a safe haven. They’re worried about COVID-19. They’re worried about the stock market going down. They’re worried about recession and all that. And so, they’re seeking out safe havens. But, you know, once the dust settles though, they’ll be taking the safe havens off. They’ll be getting out of those trades. They’ll be getting back into stocks.’ And so, they expect gold to fall.”

The continuing rise of US stock markets has helped fuel this skepticism.

Everybody who’s in these gold stocks – they’ve got one foot out the door. They don’t expect the momentum to continue. Yet gold continues to go up anyway. Gold continues to make new highs.”

Consider the three primary safe-haven assets – gold, the dollar and US Treasuries. When the stock market plunged in March with the onset of the COVID-19 government lockdown, the dollar rallied, Treasury prices skyrocketed and yields fell to record lows, and after an initial decline, gold rallied as well.

But of those three safe havens, the only one that continues to rise is gold.

So, why is gold the only safe-haven left standing?

Because the real risk, the real threat, is not, or was not, plunging stock prices or COVID-19. The real threat is inflation. That’s what people are seeking out a safe haven from. It’s the central banks. It’s not that we have COVID-19 and a recession, but it’s the monetary policy response to the recession. It’s not the damage done from COVID-19. It’s the damage done from the monetary policy response to COVID-19 and to the monetary policy response to the fiscal policy response.

Of course, the fiscal policy response is to spend money. The Fed’s response is to print money to make the spending possible. None of this is actually helping.

That is what investors need safety from. So, the reason gold is the only safe haven that’s still going up is it’s the only safe haven that provides safety, that is a haven against inflation and global fiat currency debasement.”

In fact, the only reason stocks are rising is because the currency is being debased – central banks are inflating. As a recent article published by The Economist put it:

This devaluation will eventually lead to a loss of faith in the dollar and people will no more want to hold the fiat currency. As a result, people will want to convert their cash/wealth to something that they believe in, something that can protect their wealth with, something that has intrinsic value and that has proved its worth over decades.”

Gold.

Peter said that while this inflation is nominally bullish for the stock market, it is far more bullish for gold.

In fact, when central banks are doing that, real stock prices, which would be stock prices measured in gold, should be going down. And in fact, they are going down.”

Gold is outperforming every US stock market year-to-date, including the high-flying NASDAQ.

If gold continues its trajectory through the second have of the year, it will break the all-time record and finish above $2,000. Even some in the mainstream are anticipating this. Goldman Sachs recently raised its 12-month gold price forecast to $2,000.

In this podcast, Peter also talked about the stock market, the politics of the presidential election and explained why the dollar milkshake theory is all wet.

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

Grand Jury Indicts All 3 Suspects In Ahmaud Arbery Murder

Grand Jury Indicts All 3 Suspects In Ahmaud Arbery Murder

Tyler Durden

Wed, 06/24/2020 – 16:08

As the three men charged in the murder of Ahmaud Arbery wind through the justice system, a grand jury has indicted them on a bevy of charges tied to the shooting death of the 25-year-old who was jogging through a majority-white Georgia neighborhood when the men decided to pursue him.

Here’s more from the AJC on the nine counts facing each of the three defendants:

A grand jury has indicted the three suspects accused in the death of 25-year-old Ahmaud Arbery, the Cobb County District Attorney said Wednesday.

Travis and Greg McMichael and William “Roddie” Bryan were previously charged with felony murder in the death of Arbery, who was shot in February in a Brunswick neighborhood. All three are being held without bond in the Glynn County jail.

The indictment returned Wednesday formally charges each of the three defendants — Travis and Greg McMichael and William “Roddie” Bryan — with nine counts: malice murder; felony murder (four counts); aggravated assault (two counts); false imprisonment; and criminal attempt to commit false imprisonment, the DA said.

While most grand juries have not been in session due to the coronavirus, a judicial order allowed for those grand juries impaneled before the crisis to reconvene, Cobb DA Joyette Holmes said. Holmes announced the indictment Wednesday afternoon in front of the Glynn courthouse.

Arbery was murdered on Feb. 23, but initially no charges were filed in the case, leading to an outpouring of public contempt which eventually spurred the GBI to investigate and charge the men. McMichaels, a father and son, were quickly charged, as the younger had shot Arbery with a shotgun.

Greg McMichael, a retired investigator with the Brunswick Judicial Circuit District Attorney’s office, told police on Feb. 23, the day of the shooting, that he believed Arbery matched the description of a burglary suspect. When he saw Arbery running in their neighborhood just south of Brunswick, McMichael and his son armed themselves and followed him in their truck.

Prosecutors say Bryan joined their pursuit, eventually trapping Arbery, who tried to run past the McMichael’s pick-up but was confronted by Travis McMichael. The two men briefly tussled before Travis McMichael fired three shots at Arbery, who was unarmed, authorities say. Family and friends say the avid runner was out for a jog.

Charges against Bryan were announced the following week, as he also agreed to testify against the McMichaels.

Holmes was later appointed to prosecute the case after other area DAs recused themselves.

The family is reportedly “pleased” with the jury result.

The family was ecstatic to hear that it happened this morning,” Holmes said outside the courthouse.

A judge found probable cause against all three suspects earlier this month.

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COVID-Comeback Batters Big-Tech & Black Gold, Sparks Bond Bid

COVID-Comeback Batters Big-Tech & Black Gold, Sparks Bond Bid

Tyler Durden

Wed, 06/24/2020 – 16:00

Just when you thought it was safe to buy any stock – selected at random via Scrabble letters – on any dip, with levered money you can’t afford to lose, COVID-19 reappears in size to steal the jam out of your donut.

Last Friday saw surges in COVID cases across many states and news that Apple would be re-closing stores in a handful of states. That sent stocks tumbling. Today – after a few days of exuberant dip-buying, those same states hitting new record highs (and more Apple store closures) sparked an even more impressive plunge (and was not helped by The IMF’s downbeat forecast for the global economy)…

  • 0905ET California COVID-19 cases rise 3.9% or +7,149 to 190,222 (up from +5,019)

  • 0938ET Texas reported a 7.3% rise in Covid-19 hospitalizations to 4,389 from 4,092 yesterday.

  • 1033ET *FLORIDA COVID-19 CASES RISE 5.3% VS. PREVIOUS 7-DAY AVG. 3.7%

  • 1130ET *HOUSTON-AREA INTENSIVE CARE UNITS ARE AT 97% OF CAPACITY: CITY

  • 1140ET *NEW YORK, N.J. AND CONNECTICUT ORDER VISITORS TO QUARANTINE

  • 1400ET *CALIFORNIA HOSPITALIZATIONS UP 29% IN 14 DAYS, NEWSOM SAYS

  • 1440ET *APPLE TO RE-CLOSE 7 STORES IN HOUSTON, TX ON COVID-19 SPIKE

All building on one another to slam stocks lower (led by Small Caps) ending the 8-day win streak in Nasdaq (there was a late-day bounce on chatter of $1 trillion stimulus again but a $3bn MoC ruined that fun and games)…

And the result – a collapse below the Navarro lows, back To Friday’s lows…

As Virus fears surge to one-month highs…

Source: Bloomberg

The S&P fell back towards its 50DMA…

And the Dow failed once again to break above its 50DMA…

Momentum continued its rabid bounce back today – after perfectly reversing at unchanged for 2020…

Source: Bloomberg

The dollar was bid today…

Source: Bloomberg

Treasury yields tumbled 405bps at the long-end today…

Source: Bloomberg

Are stocks about to catch down to bond’s reality?

Source: Bloomberg

Or profits…

Source: Bloomberg

And while bonds saw safe-haven bids, bitcoin did not…

Source: Bloomberg

And gold was monkeyhammered too around the London Fix (after failing to break $1800)…

But note that gold’s tumble stalled at yesterday’s fix…

Source: Bloomberg

Silver was hit harder. busting back below $18…

Oil prices tumbled as COVID (demand) and inventory/production (supply) concerns smacked WTI back to a $37 handle…

Finally, we wonder just how far stocks will fall this time?

Source: Bloomberg

And just how quickly The Fed will need to restart its money-printing malarkey…

Source: Bloomberg

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S&P Futures Plunge 20 Points In Seconds On $3BN Sell Imbalance

S&P Futures Plunge 20 Points In Seconds On $3BN Sell Imbalance

Tyler Durden

Wed, 06/24/2020 – 15:59

It has been about three weeks since the market was so illiquid it would surge (or plunge) on news of the size of the daily market on close (MOC) imbalance. But it now appears that illiquidity is back with a vengeance because at exactly 350pm ET when the MOC closing imbalance is disclosed, the Emini puked 20 points in seconds when it was revealed that today’s imbalance was just over $3 billion for sale.

As a reminder, we have seen similar last 10 minute ludicrous action before, notably on June 2

 

… on April 8

… and on March 26

… when outsized MOCs forced a buying vacuum in the last 10 minutes of trading.

Regular readers will recall that the topic of the sudden plunge in liquidity at 3:50pm prompted none other than Goldman to highlight this curious phenomenon one month ago, when the bank said that “concerns remain centered around the final minutes of US equity trading sessions.”

Back in 2018, Goldman found that emini top of book depth was considerably stronger at the end of each trading day than earlier. However, in the past two months, ever since institutional investors stepped out of the market and left it to retail daytraders and systemic quants, this phenomenon has eroded considerably, leaving much less “extra” liquidity in the last half hour of trading, even before the coronacrisis. Weakened end-of-day liquidity was likely a potential contributor to the recent end-of-day volatility dislocation, Goldman concluded.

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Bonds Laugh At Today’s Idiotic Surge In Hertz Stock

Bonds Laugh At Today’s Idiotic Surge In Hertz Stock

Tyler Durden

Wed, 06/24/2020 – 15:45

After trying, and failing, to sell worthless Hertz stock to Gen-Z Robinhood traders, mid-bracket investment bank Jefferies has now become a used car salesman.

In a bizarre – and for now successful – attempt to pump HTZ stock, Jefferies analysts Hamzah Mazari and Bret Jordan wrote this morning that the bankrupt company could sell its roughly 150,000-car inventory and somehow pocket $3 billion in proceeds (roughly $20K per used car) as it looks to stay afloat after filing for bankruptcy.

According to the Mazari and Jordan, who probably did not know that one of their roles as a “research analyst” would be to moonlight as the world’s biggest used car salesmen, “channel checks” suggest used-car firms like CarMax and AutoNation could be among the firms looking to purchase used Hertz vehicles amid rise in demand for used cars. The very hypothetical move could, in theory, help ease some pressure for Hertz, as a sale of its used-car fleet would shore up some cash concerns and could fetch about $3 billion, the analysts said.

“Given what appears to be robust demand for inventory in a rapidly recovering used retail market, we see ~150k HTZ cars as an attractive option for retailers such as AN and KMX with strategic focus on expanding used volumes,” Mazari said.

“The most logical step would be to buy the fleet of cars which are available at a good price and shape … that’s where the value lies,” the Jefferies used car salesman noted, adding that the sale of cars – taking place at rather overinflated values – would help HTZ pay its lenders but also shore up some cash. As a reminder, in 2019, HTZ operated peak rental fleet in 567,600 vehicles in the U.S. and 204,000 vehicles in international locations.

The report did not address two very salient questions:1) why would anyone buy the cars for more than their book value on the HTZ balance sheet, and 2) how is any of this not already priced into the bonds which are still expected to be impaired by more than 70%, meaning that the stock is still a clear and total zero.

Unfortunately, those were not questions that any of the rabid Robinhood traders that had bid up the stock three weeks ago as high as $6 were asking, and as a result HTZ shares soared following the report like clockwork, at one point surging as much as 100%…

… even as bonds continued to laugh at the stupidity of retail investors who were merely doing a favor to institutional Jefferies clients who had bought up the stock in recent weeks in hopes the Initial Bankruptcy Offering would take place, and now needed to catalyst to sell at higher prices.

And yes, the fact that bonds did not even budge today confirms that HTZ stock remains a total loss, no matter what some used car salesman on Wall Street thinks.

via ZeroHedge News https://ift.tt/2BDK0jC Tyler Durden

The TVIX ETF Is Getting Delisted: Here Are The Three Implications For Markets

The TVIX ETF Is Getting Delisted: Here Are The Three Implications For Markets

Tyler Durden

Wed, 06/24/2020 – 15:30

Back in February 2018, as a result of the staggering “Volmageddon” surge in the VIX, the market lost the retail favorite XIV ETN used to bet on continued declines in volatility, which was a fantastic strategy while it worked but then suddenly lost virtually all of its value in seconds. Now, it’s the turn of the XIV’s cousin, the TVIX.

Monday’s announcement that Credit Suisse will stop taking creations and delist the TVIX (VelocityShares Daily 2x VIX Short-Term ETN) comes at a time when the product is the largest VIX ETP in both AUM ($1.4bln) and vega ($80mm) terms, and the top-performing ETN or ETF in the US equity market in 2020 (+180%).

According to Goldman’s derivatives strategist Rocky Fishman, there are three takeaways for investors:

  • Reduced vol-of-vol. While far smaller than the rebalancing done by the SVXY or XIV around the 2018 VIX spike, the TVIX also buys VIX futures when they are going up and sells them when going down, a short gamma phenomenon that can exacerbate VIX future moves in both directions. Much lower VIX liquidity metrics than we had prior to 2018 leaves this impact material, even though the vega amount is lower than it was.
  • Reduced VIX futures activity and liquidity. The TVIX has VIX futures exposure equivalent to roughly 1/3 of the open interest of VIX futures (80k out of 245k contracts). Given the economic similarity between the TVIX and existing long (e.g. VXX) and 1.5x levered long products (UVXY), we expect investors to switch some of their positions to comparable products, though if done on a dollar-for-dollar basis there will be a drop in total vega exposure. The activity generated by hedging of the TVIX itself (10k futures on average if fully hedged by VIX futures), and by secondary trading of ETP shares (equivalent to 90k futures/day in 2020, 60k/day in 2019) have been a significant source of volume and VIX futures markets (which have traded around 250k contracts/day in 2019-20). VIX futures liquidity has already been weakened, and this is a further negative development for VIX product liquidity.
  • Vega to sell in the coming days. To the extent investors close long TVIX positions before they are delisted, there could be some pressure on volatility in the coming days.

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Appeals Court Panel Rules in Favor of Michael Flynn’s Release

michaelflynn_1161x653

A federal judge can and should agree to the Department of Justice’s request to drop charges against former national security adviser Michael Flynn, a federal appeals court panel ruled today.

The Justice Department in May moved to get charges against Flynn dismissed. Flynn pleaded guilty to lying to the FBI in 2016 about his communications with Russian Ambassador Sergei Kislyak as Trump’s campaign was being investigated over concerns that they were being influenced by the Russian government.

Flynn later attempted to retract his guilty plea, and then earlier this year, representatives from the Department of Justice submitted a motion agreeing with Flynn, stating that they now believe that the intelligence investigation against Flynn lacked a legitimate basis and that his lies to the FBI were not actually material to an investigation.

This was a rather unusual move from the Department of Justice, which has a lengthy record of vociferously defending the prosecution of individuals who have lied to investigators. Rather than accepting the request, U.S. District Judge Emmett Sullivan brought in former federal judge John Gleeson to analyze the case and make an independent recommendation. Gleeson blasted the way the Justice Department was handling the case, arguing that Flynn was being treated differently by the Justice Department due to his relationship with Trump. He recommended that Sullivan move forward and sentence Flynn for his guilty plea. Sullivan had scheduled a hearing in July for attorneys to make their cases.

Flynn’s attorneys turned to the D.C. Circuit of the U.S. Court of Appeals to attempt to force Sullivan to accept the Justice Department’s request to dismiss the charges. Today, a panel of judges agreed, 2–1, with Flynn and the Justice Department.

Judge Neomi Rao, a Trump appointee, wrote the majority opinion, and its focus was on the many longstanding court precedents giving prosecutors and the executive branch (not judges) the discretion to determine whether to drop a case.

“These clearly established legal principles and the Executive’s ‘long-settled primacy over charging decisions,’ foreclose the district court’s proposed scrutiny of the government’s motion to dismiss the Flynn prosecution,” Rao wrote. “A hearing may sometimes be appropriate before granting leave of court…however, a hearing cannot be used as an occasion to superintend the prosecution’s charging decisions, because ‘authority over criminal charging decisions resides fundamentally with the Executive, without the involvement of—and without oversight power in—the Judiciary.'”

Judge Robert Wilkins, appointed by President Barack Obama, dissented, writing that it was extremely unusual for the Court of Appeals to force a ruling requiring Sullivan to rule a certain way rather than waiting for Sullivan to issue his own ruling and then deciding whether or not that ruling was legally correct.

This ruling is not the end of the matter. Sullivan can request for a full en banc hearing by the full D.C. Circuit of the U.S. Court of Appeals rather than just a panel, and a judge in the court could also call for a vote for such a hearing.

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As COVID-19 Infections Rise, Patients Are Getting Younger

Greg-Abbott-6-23-20-Newscom

Texas Gov. Greg Abbott (R) is officially alarmed by the continuing rise in his state’s daily tally of confirmed COVID-19 cases, which yesterday totaled nearly 5,500, a new record. Nationwide, newly detected infections have been rising this month, but the upward trend in Texas is especially striking. Abbott warns that new restrictions may be necessary to curb the outbreak, which he says is driven largely by young people who are flouting social distancing guidelines.

That explanation highlights a conflict between the interests of Texans who face very little personal risk from the COVID-19 virus and the interests of Texans who are especially vulnerable to the disease. But it also highlights the conflict between preventing virus transmission and achieving herd immunity, which would ultimately protect high-risk groups from a potentially deadly threat.

The shifting age distribution of COVID-19 infections in Texas and several other states suggests that herd immunity might be achieved without a big increase in deaths, assuming that people in high-risk groups can be adequately protected in the meantime. Opponents of that strategy, which involves trading more deaths now for fewer deaths later, argue that it’s reckless because we can’t be sure what the net effect will be. They add that preventing transmission buys time to develop better treatments and deploy an effective vaccine, an approach that could reduce the ultimate death toll.

As a Texas resident whose wife takes an immunosuppressive medication for a neurodegenerative disease, I have a personal stake in this debate. Given my age and health status, my own risk of dying from COVID-19 is low. It is even lower for our three daughters, who range in age from 14 to 27. Our oldest daughter, who had symptoms consistent with COVID-19 in March, may already be immune; she is waiting for the results of an antibody test. But because we are trying not to kill my wife (we are very considerate that way), we have been extra cautious about limiting our interactions with other people, even as legal restrictions on movement and economic activity have been lifted.

At the same time, I can understand the perspective of young, healthy people who chafe at social distancing rules of uncertain duration. Abbott notes that Texans younger than 30 account for a growing share of new infections. “There are certain counties where a majority of the people who are tested positive in that county are under the age of 30, and this typically results from people going to bars,” he said during a press conference last week. He suggested that the dramatic increase in cases that Texas has seen since late May can be traced to gatherings on Memorial Day weekend, when people who might not have seen each other for months got together in close proximity.

Those people have been widely portrayed as reckless idiots who do not consider the danger they could pose to their grandparents or other vulnerable people by picking up and transmitting the virus. While their own symptoms are apt to be mild or nonexistent, that may not be true of people they subsequently encounter, and their own resilience makes it more likely that they will carry the virus without realizing it. If they are not scrupulous about avoiding close contact with vulnerable people, they could unwittingly endanger their lives.

All of that is true, which is why I am especially keen to keep my wife from interacting with young people who behave the way that young people tend to behave. But it may be too much to expect them to indefinitely suspend their social lives because of a disease that poses very little risk to them or their friends. And while I doubt they are motivated by a prosocial desire to protect high-risk individuals through herd immunity, that could be an unintentional side effect of their self-interested defiance. Over the short term, they are raising the risk to vulnerable people by increasing the prevalence of the virus. But over the longer term, they could be protecting those people by increasing the prevalence of immunity and cutting chains of transmission.

I am not at all sure that’s a risk worth taking, since the answer depends on how many more infections are necessary to achieve herd immunity and how soon effective treatments and vaccines will be available. But we may not have a choice.

If rising infections in states such as Texas, California, Arizona, and Florida (which yesterday saw a record increase in new confirmed cases) represent a new normal rather than a one-time jump tied to social gatherings on Memorial Day weekend, it will be hard to put the genie back in the bottle, regardless of any legal restrictions politicians decide to reimpose. Given the impracticality of mass enforcement, social distancing has always required voluntary compliance, and the willingness to comply seems to be waning, partly because of sheer impatience but also because the experience with ham-handed, economically devastating, and frequently arbitrary lockdowns has left many people bitter and disinclined to follow official recommendations.

Assuming that large numbers of Americans are not willing to sit tight until vaccines and/or better treatments can be deployed, what will that mean for the COVID-19 death toll? On that score, there is some reason for (relative) optimism.

While I could not find data breaking down new Texas cases by age, the changing distribution of total cases confirms Abbott’s point that newly infected people are younger now than they were earlier in the epidemic. As of yesterday, people older than 65 accounted for 15 percent of total confirmed cases in Texas, down from 22 percent on April 21. The share of cases involving people younger than 40 rose from 32 percent to 41 percent during the same period. Consistent with Abbott’s gloss, the biggest jump was in 20-to-29-year-olds, whose share of all confirmed cases rose from 13 percent to 17 percent.

Those comparisons understate the change in recently detected infections, which is the relevant consideration in projecting COVID-19 deaths. In Florida, the median age of newly identified patients plummeted from 65 in early March to 35 last week. In California, according to an analysis released last week, 44 percent of newly diagnosed cases involved people 34 or younger, up from 29 percent a month earlier. The share of new cases involving people older than 50, meanwhile, fell from 46 percent to 30.5 percent.

Why is that good news? Last month the U.S. Centers for Disease Control and Prevention (CDC) estimated that the risk of death for people with COVID-19 symptoms is just 0.05 percent among patients younger than 50. That risk rises to 0.2 percent among 50-to-64-year-olds and 1.3 percent among people 65 or older. In other words, those reckless idiots getting together in bars are correct in thinking that the risk for them is negligible, even if they overlook the fact that the risk for the oldest age group is much higher—26 times as high, according to the CDC’s estimate.

While recent increases in COVID-19 infections can be expected to result in some additional deaths in the next few weeks, the consequences will not be nearly as bad as they would be if the new patients were older. The changing age distribution of cases helps explain why the nationwide tally of daily COVID-19 deaths, which has fallen dramatically since April, continued to decline long after states began lifting their lockdowns at the end of that month. Youyang Gu’s epidemiological model, which has a good track record of predicting COVID-19 fatalities, currently projects that daily deaths in the United States will continue to decline until early July, then rise through mid-August, exceeding the current level by late July, before declining again through September, dropping below the current level by the middle of that month.

“With younger age of recent infections in at least some places such as Florida,” former CDC Director Tom Frieden tweeted this week, “expect a lower death rate in this wave…until the 20-40-year-olds who are infected today go on to infect others.” The implication is that we will eventually see a big surge in COVID-19 deaths as younger, healthier Americans relatively unscathed by the virus pass it on to others who are more vulnerable. But that is not a foregone conclusion. As always, it depends on the precautions that people take, and the onus for those seems to be shifting from the population at large to people in high-risk groups. We can debate whether or not that is fair, but it will not change the reality.

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