‘Stop the Insanity,’ the New York Post Urges Trump. ‘It Is Time To End This Dark Charade.’

NYP-Trump-editorial-12-28-20

The New York Post, along with Fox News, is one of the Trump-friendly news outlets that has been questioning the president’s claims of massive election fraud since he started making them. In an editorial yesterday, the paper urged the president to cut it out already. “Mr. President…Stop the Insanity,” the front-page headline says. “You lost the election—here’s how to save your legacy.”

It may be too late for that, and it is hard to see how Trump could abruptly reverse himself and admit that the massive criminal conspiracy he has been describing for nearly two months did not actually happen after all. But it is encouraging to see further evidence that Trump supporters are willing to separate their partisan and policy preferences from their understanding of reality.

“It is time to end this dark charade,” the Post says. Citing Trump’s vain hope that Congress will stop Biden from taking office by rejecting electoral votes from swing states when it officially tallies the results on January 6, the paper charges him with “cheering for an undemocratic coup.”

While “you had every right to investigate the election,” the editorial says, “those efforts have found nothing.” As examples, it notes the recounts in Wisconsin and Michigan, which confirmed Joe Biden’s victories in those states. “These ballots were counted by hand,” the Post notes, “which alone debunks the claims of a Venezuelan vote-manipulating Kraken conspiracy.”

The paper does not mince words. Sidney Powell, the former Trump campaign lawyer who has been promoting a wild conspiracy theory involving deceased Venezuelan strongman Hugo Chavez, Dominion Voting Systems, George Soros, the Clinton Foundation, and “communist money” from Cuba and China, “is a crazy person,” the Post says. Former National Security Adviser Michael Flynn’s suggestion that Trump could use the military to force new elections in battleground states was “shameful” and “tantamount to treason.” The paper describes Trump himself as “the King Lear of Mar-a-Lago, ranting about the corruption of the world.”

The Post sweetens its appeal by praising Trump and invoking practical politics. Instead of focusing on a doomed effort to overturn electoral votes, the editorial says, Trump should be worrying about the January 5 runoffs in Georgia that will decide which party controls the Senate when Biden takes office.

“You came out of nowhere to win the presidency,” the Post says. “Not an elected official, not a lawyer, not beholden to any particular faction of the swamp. You took on the elites and the media who had long lost touch with average working people. You changed politics, which is something few in American history can say. If Georgia falls, all that is threatened.”

That outcome, the paper warns, will “leave your party out of power,” make it “less likely to listen to what you have to say or to capitalize on your successes,” and threaten “a future return” by Trump. “If you insist on spending your final days in office threatening to burn it all down,” the Post says, “that will be how you are remembered. Not as a revolutionary, but as the anarchist holding the match.”

The editorial is a powerful and sensible admonition, and I agree that Republican control of the Senate is important as a check on Biden’s power. But I do not share the Post‘s hope that the GOP will continue to listen to Trump, let alone that a sudden shift from deranged pettiness to sober magnanimity—which, let’s be honest, is impossible to imagine—would “set the stage for a future return.”

If Sidney Powell is “a crazy person” and Michael Flynn’s advice is “shameful” and treasonous, what should we make of a president who relies on their counsel while ranting like King Lear? Whatever your position on the substantive issues where the Post and Trump agree, is this the sort of person you want to be leading the Republican Party or running the federal government? For Trump, the personal and the political are inseparable. It is long past time for Republicans to consider the implications of that fusion.

from Latest – Reason.com https://ift.tt/2KNMHnR
via IFTTT

Global Investment Banks Rake In $125 Billion In Underwriting Fees ​​​​​​​As Capital Markets Boom

Global Investment Banks Rake In $125 Billion In Underwriting Fees ​​​​​​​As Capital Markets Boom

The global capital markets business, such as equity and debt sales, has erupted during the pandemic, comes at a time when central banks have never been so dovish as asset valuations are considered “stretched.” 

Since March, global monetary authorities have purchased $1.3 billion in assets every hour. They have also introduced a new policy by encouraging deeper nationalization of bond markets in the US, Europe, and Japan (also equity markets) via YCC to promote MMT. In other words, these unelected officials are blowing the biggest asset bubble the world has ever seen. 

As monetary authorities provide backstops in equity, debt, and credit markets, this has certainly been a boon for investment banks worldwide who generated a record $124.5 billion in fees this year as companies desperately raised cash to survive the pandemic, according to FT

Source: FT

Given that monetary authorities had the liquidity taps wide open, it was not hard for a large corporation to conduct an equity or debt deal. As a result, investment banks earned a record amount in fees for underwriting various types of deals. 

Jason Goldberg, an analyst at Barclays, said this year had been a “very robust year for underwriting both debt and equity.” 

“You saw a bump this year as companies looked to access capital markets to shore up their balance sheets in the face of pandemic-related uncertainty,” Goldberg said. 

2020 was a record year for companies raising more than $5 trillion in debt markets, and all that money raised means lenders were able to collect handsome fees. 

“While multinationals first moved to draw down credit lines in March, they quickly shifted to the bond market to lock in longer-term funding,” FT notes. 

Investment banks earned about $42.9 billion underwriting debt deals, up 25% over last year. 
The pace at which companies took on debt to repair broken balance sheets in 2020 is unlikely to continue next year. 

David Konrad, an analyst at DA Davidson, said through equity offerings, companies raised $300 billion this year. 

It was also noted that fees underwriting initial public offerings jumped 90% to $13 billion, the highest since the end of the Dot Com bubble (2000). 

Overall equity underwriting revenues nearly doubled this year to $32 billion from 2019’s $18.3 billion.

“The spurt of technology listings helped lift Goldman Sachs’ equity business far past those of its rivals. The bank, which led the DoorDash, Snowflake and Unity Software IPOs, reaped roughly 10 percent of the equity underwriting fees generated this year. Large IPOs are expected to continue into 2021,” according to Michael Wong, an analyst with Morningstar. 

The jump in equity and debt offering was able to offset a sizeable decline in merger and acquisition advisory fees, which dropped 10% to $29.6 billion.

JPMorgan Chase, Goldman Sachs, Bank of America, Morgan Stanley, and Citigroup collectively generated $37 billion in investment banking fees this year, some of the highest in more than a decade. 

Source: FT

Supporting capital markets is what central banks do as their policies have created a “K-shaped” recovery, one in which the rich get richer and the middle class evaporates into the working-poor as they beg for stimulus checks and wait in food bank lines this holiday season.

The pandemic has exacerbated wealthy inequality to dangerous levels. 

Tyler Durden
Tue, 12/29/2020 – 14:19

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

Poetry Tuesday!: “The reticent volcano keeps…” by Emily Dickinson

In this age of Internet and social media, Emily Dickinson tells us to be as quiet as a volcano.

Here’s “The reticent volcano keeps…” (1897) by Emily Dickinson (1830-1886).

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

  1. “Ulysses” by Alfred, Lord Tennyson
  2. “The Pulley” by George Herbert
  3. “Harmonie du soir” by Charles Baudelaire
  4. “Dirge Without Music” by Edna St. Vincent Millay
  5. “Clancy of the Overflow” by A.B. “Banjo” Paterson
  6. “Лотова жена” (“Lotova zhena”, “Lot’s wife”) by Anna Akhmatova
  7. “The Jumblies” by Edward Lear
  8. “The Conqueror Worm” by Edgar Allan Poe
  9. “Les Djinns” by Victor Hugo
  10. “I Have a Rendezvous with Death” by Alan Seeger
  11. “When I Was One-and-Twenty” by A.E. Housman
  12. “Узник” (“Uznik”, “The Prisoner” or “The Captive”) by Aleksandr Pushkin
  13. “God’s Grandeur” by Gerard Manley Hopkins
  14. “The Song of Wandering Aengus” by William Butler Yeats
  15. “Je crains pas ça tellment” by Raymond Queneau
  16. “The Naming of Cats” by T.S. Eliot

from Latest – Reason.com https://ift.tt/3mYJ37N
via IFTTT

‘Stop the Insanity,’ the New York Post Urges Trump. ‘It Is Time To End This Dark Charade.’

NYP-Trump-editorial-12-28-20

The New York Post, along with Fox News, is one of the Trump-friendly news outlets that has been questioning the president’s claims of massive election fraud since he started making them. In an editorial yesterday, the paper urged the president to cut it out already. “Mr. President…Stop the Insanity,” the front-page headline says. “You lost the election—here’s how to save your legacy.”

It may be too late for that, and it is hard to see how Trump could abruptly reverse himself and admit that the massive criminal conspiracy he has been describing for nearly two months did not actually happen after all. But it is encouraging to see further evidence that Trump supporters are willing to separate their partisan and policy preferences from their understanding of reality.

“It is time to end this dark charade,” the Post says. Citing Trump’s vain hope that Congress will stop Biden from taking office by rejecting electoral votes from swing states when it officially tallies the results on January 6, the paper charges him with “cheering for an undemocratic coup.”

While “you had every right to investigate the election,” the editorial says, “those efforts have found nothing.” As examples, it notes the recounts in Wisconsin and Michigan, which confirmed Joe Biden’s victories in those states. “These ballots were counted by hand,” the Post notes, “which alone debunks the claims of a Venezuelan vote-manipulating Kraken conspiracy.”

The paper does not mince words. Sidney Powell, the former Trump campaign lawyer who has been promoting a wild conspiracy theory involving deceased Venezuelan strongman Hugo Chavez, Dominion Voting Systems, George Soros, the Clinton Foundation, and “communist money” from Cuba and China, “is a crazy person,” the Post says. Former National Security Adviser Michael Flynn’s suggestion that Trump could use the military to force new elections in battleground states was “shameful” and “tantamount to treason.” The paper describes Trump himself as “the King Lear of Mar-a-Lago, ranting about the corruption of the world.”

The Post sweetens its appeal by praising Trump and invoking practical politics. Instead of focusing on a doomed effort to overturn electoral votes, the editorial says, Trump should be worrying about the January 5 runoffs in Georgia that will decide which party controls the Senate when Biden takes office.

“You came out of nowhere to win the presidency,” the Post says. “Not an elected official, not a lawyer, not beholden to any particular faction of the swamp. You took on the elites and the media who had long lost touch with average working people. You changed politics, which is something few in American history can say. If Georgia falls, all that is threatened.”

That outcome, the paper warns, will “leave your party out of power,” make it “less likely to listen to what you have to say or to capitalize on your successes,” and threaten “a future return” by Trump. “If you insist on spending your final days in office threatening to burn it all down,” the Post says, “that will be how you are remembered. Not as a revolutionary, but as the anarchist holding the match.”

The editorial is a powerful and sensible admonition, and I agree that Republican control of the Senate is important as a check on Biden’s power. But I do not share the Post‘s hope that the GOP will continue to listen to Trump, let alone that a sudden shift from deranged pettiness to sober magnanimity—which, let’s be honest, is impossible to imagine—would “set the stage for a future return.”

If Sidney Powell is “a crazy person” and Michael Flynn’s advice is “shameful” and treasonous, what should we make of a president who relies on their counsel while ranting like King Lear? Whatever your position on the substantive issues where the Post and Trump agree, is this the sort of person you want to be leading the Republican Party or running the federal government? For Trump, the personal and the political are inseparable. It is long past time for Republicans to consider the implications of that fusion.

from Latest – Reason.com https://ift.tt/2KNMHnR
via IFTTT

2020: The Year Bitcoin Became Investable For Institutions

2020: The Year Bitcoin Became Investable For Institutions

Authored by Christopher Woods via Grizzle.com,

BITCOIN’S COMING OF AGE

If 2020 has been the year of Covid-19, it has also been the year of Bitcoin. Indeed it is the year where Bitcoin has come of age.

This writer is not only talking about price performance, though clearly, that has been impressive with Bitcoin up 599% from the March low and 283% year to date.

BITCOIN PRICE

Source: Bloomberg

The other point is that this is the year Bitcoin has become investible for institutions with custodian arrangements available from the likes of Fidelity and with prominent hedge fund investors declaring that they have bought it.

In this respect, Bitcoin has now become part of the system with opportunities also for retail investors to buy into it via quoted vehicles, be it the Greyscale Bitcoin Trust in America or the recently launched VanEck Vectors Bitcoin ETN traded on the Frankfurt exchange.

This is important since, before such arrangements were in place, there was always the risk that Bitcoin accounts could be hacked.

The other risk, of course, was that Bitcoin would be declared illegal because it was perceived as being used for nefarious purposes, such as illegal narcotic transactions.

WATERSHED MOMENT: AUDITORS & SEC APPROVAL OF MICROSTRATEGY PUTTING BITCOIN ON ITS BALANCE SHEET

Still, this writer only became aware a few weeks ago of the most remarkable development in this area, though it happened four months ago.

That was the announcements in mid-August and September by the Nasdaq-listed MicroStrategy, a business intelligence software company, that it had invested in the Bitcoin equivalent of US$425m (US$250m in August and US$175m in September), amounting to almost 100% of its own treasury funds, to hold on its balance sheet.

The aim is to make Bitcoin “the primary treasury reserve asset on an ongoing basis”, along with cash and short-term investments, according to the company’s official US Securities and Exchange Commission (SEC) approved Form 8-K.

MicroStrategy invested a further US$50m in Bitcoin in early December, with a cumulative holding of 40,824 Bitcoins.

This marks a watershed moment in this writer’s view since the auditors approved MicroStrategy putting Bitcoin on its balance sheet as did the SEC.

Now it is true that the far more famous Square also announced in October that it was investing US$50m in Bitcoin but that only amounted to 1% of the Silicon Valley company’s assets.

Such a small investment probably did not even have to be reported but in MicroStrategy’s case, that was certainly not the case. 

This writer must admit to never having heard of MicroStrategy previously.

But the company seems to have been investing in technology and software for 31 years.

Since announcing its investment in Bitcoin, the company’s market capitalization has risen by 150% to US$2.99bn and the value of its Bitcoin holding has more than doubled to US$1.11bn.

MICROSTRATEGY MARKET CAP

Source: Bloomberg

The highly articulate CEO and co-founder of MicroStrategy, Michael Saylor, has done a number of podcasts with the Bitcoin “community” since his company’s purchase of Bitcoin became public.

He is, by the way, no fast money operator since he has been CEO for 22 years since MicroStrategy’s listing in 1998.

The most amazing revelation is that he only started to look at Bitcoin in 2019. He made the decision to invest the company’s funds in Bitcoin as a store of value in the spring after seeing the monetisation triggered by the Federal Reserve’s extreme policy response to Covid-19. 

THE FEAR FOR GOLD BUGS: RISK-AVERSE CAPITAL GOES TO BITCOIN 

Worryingly to people like this writer who own gold, Saylor argues that Bitcoin is “destroying gold’s value proposition” because Bitcoin has “dematerialised gold”.

It has to be admitted that this argument has some real merit.

It has been commented before on several occasions here that ownership of gold and Bitcoin are not mutually exclusive and appeal to different generations (i.e. boomers and millennials).

But gold bugs have to face up to the real risk that risk-averse capital, which would have otherwise gone to gold to hedge the obvious ongoing fiat paper currency debasement in the G7 world, will now go to Bitcoin.

In fact, that process has already begun.

Meanwhile, the brutal fact is that, since the policies of extreme currency debasement began in America, which this writer will take from the commencement of the Federal Reserve’s quantitative easing in late 2008 in the mist of the Global Financial Crisis, Bitcoin has outperformed gold by 191,000-fold.

It is also the case that the supply of Bitcoin is shrinking, under the quantitative tightening dynamic, which is certainly not the case with gold. 

BITCOIN PRICE RELATIVE TO GOLD PRICE

Source: Bloomberg

This does not mean it makes sense to give up on gold.

And the yellow metal should definitely rally again if the Fed stays doveish in the face of the dramatic cyclical recovery that is coming on the other side of the pandemic, in line with the base case.

Still, the growing evidence of institutional ownership of Bitcoin is hugely bullish for bitcoin, most particularly since the trend has only just begun.

The potential now, as it becomes mainstream, is for Bitcoin to suck in risk averse capital from the fiat paper world and the wonderful thing for those long Bitcoin is that its supply cannot be expanded.

In addition, Bitcoin should also be a massive beneficiary of the network effect, which, as is clear from the examples of Google and Facebook, creates an extremely powerful winner-takes-all dynamic.

For if money is the greatest social network of all, which it probably is, then Bitcoin is the first money to be built for the internet. And it does not really appear to have a competitor.   

Tyler Durden
Tue, 12/29/2020 – 14:03

via ZeroHedge News https://ift.tt/38QnLUS Tyler Durden

The U.K. Uses COVID-19 to Justify More Nanny State Junk Food Crackdowns

britishcandy_1161x653

The United Kingdom has been attacking its citizens’ food choices for years and now the government is using the coronavirus pandemic as an excuse for a new crackdown.

On Monday, the U.K.’s Department of Health and Social Care announced a pack of new regulations that will be implemented in April 2022 to restrict junk food promotions.

In 2018, London implemented a ban of junk food advertising that was written so broadly that it forbid promotion of all sorts of normal foods (like butter, olive oil, and canned fruit) not because those items were unhealthy but because they had sugar, salt, or fat levels beyond government-approved thresholds.

The U.K. now plans a nationwide ban on television advertisements for what it calls “junk food” before 9 p.m. And that’s not the only new regulation. Also on the list:

  • Retailers will not be permitted to offer “buy one, get one free” promotions (or similar offers) for foods the government deems unhealthy.
  • Retails will not be permitted to display these unhealthy foods for promotioal purposes near checkout counters, near the front of the store, or on the ends of aisles.
  • Retailers will not be permitted to promote unhealthy foods on the entry or landing pages of their websites.
  • Free refills of sugary drinks will be banned at restaurants.

“We know families want to be presented with healthier choices,” said Public Health Minister Jo Churchill. “This is why we are restricting promotions and introducing a range of measures to make sure the healthy choice is the easy choice.” They’re going to make it the “easy choice” by deliberately bringing about economic harm to any competing choices!

The government claims that the British people have an obesity problem—more than 63 percent of adults and a third of elementary school children are overweight. Because the United Kingdom has socialized medicine through the National Health Service (NHS), this means the healthcare costs associated with obesity, which are estimated to be 6 billion pounds annually ($8 billion), are everybody’s problem.

The U.K. government can’t seem to acknowledge or accept the idea that people are voluntarily and willingly making bad choices. This Nanny State mentality means that the government must lay the blame on those who sell or advertise unhealthy food.

“Promotions often appear to help shoppers save money,” the agency explained in its press release. “However, data shows that these deals actually increase purchases of promoted products by almost 20%. They encourage people to buy more than they need or intended to buy in the first place.”

But people always need food. If you buy more food than you “need or intended to buy in the first place” you can usually save it for the future. That is what sales, promotions, and other low-pricing deals accomplish. They allow people to stock up and store food. That’s particularly important when governments everywhere are trying to discourage people from gathering in public places due to the pandemic.

Speaking of COVID-19, even though the U.K.’s food nannyism has been building for years, British officials can’t help but try to use the coronavirus as a justification for their actions: “The COVID-19 pandemic has brought to the fore the impact that obesity can have on people’s health and health outcomes.”

Christopher Snowdon, a regular critic of the United Kingdom’s regulatory overreach, an obesity data skeptic, and the head of lifestyle economics at the U.K.-based Institute of Economic Affairs, blasted the British government’s condescending new rules on his blog:

All these years I’ve been buying a pack of four bars of soap and a pack of four tins of baked beans because it worked out cheaper on a per-unit basis than buying one. But now I understand that I would have spent less if I’d have just bought one or two. Admittedly, I’d have had to go shopping more often, but that’s a small price to pay for saving money. Thank you, the government, for putting me straight.

Snowdon notes that a ban on buy-one-get-one-free promotions could cost the average family more than 600 pounds (more than $800) a year by the government’s own estimate. That means that British officials are trying to deliberately force up the cost of unhealthy foods because they think this will force people to choose healthier alternatives.

But that’s just not what happens. Instead, shoppers will turn to black markets. Driving up the price of sodas in Philadelphia with a special tax, for example, did not affect how much soda that people drank. Lots of people there just avoided the taxes by buying their soda elsewhere.

What will U.K. health authorities do when their latest tactics fail to make people eat better? A cynic might assume they’re already planning out even more new rules that are doomed to fail.

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

The U.K. Uses COVID-19 to Justify More Nanny State Junk Food Crackdowns

britishcandy_1161x653

The United Kingdom has been attacking its citizens’ food choices for years and now the government is using the coronavirus pandemic as an excuse for a new crackdown.

On Monday, the U.K.’s Department of Health and Social Care announced a pack of new regulations that will be implemented in April 2022 to restrict junk food promotions.

In 2018, London implemented a ban of junk food advertising that was written so broadly that it forbid promotion of all sorts of normal foods (like butter, olive oil, and canned fruit) not because those items were unhealthy but because they had sugar, salt, or fat levels beyond government-approved thresholds.

The U.K. now plans a nationwide ban on television advertisements for what it calls “junk food” before 9 p.m. And that’s not the only new regulation. Also on the list:

  • Retailers will not be permitted to offer “buy one, get one free” promotions (or similar offers) for foods the government deems unhealthy.
  • Retails will not be permitted to display these unhealthy foods for promotioal purposes near checkout counters, near the front of the store, or on the ends of aisles.
  • Retailers will not be permitted to promote unhealthy foods on the entry or landing pages of their websites.
  • Free refills of sugary drinks will be banned at restaurants.

“We know families want to be presented with healthier choices,” said Public Health Minister Jo Churchill. “This is why we are restricting promotions and introducing a range of measures to make sure the healthy choice is the easy choice.” They’re going to make it the “easy choice” by deliberately bringing about economic harm to any competing choices!

The government claims that the British people have an obesity problem—more than 63 percent of adults and a third of elementary school children are overweight. Because the United Kingdom has socialized medicine through the National Health Service (NHS), this means the healthcare costs associated with obesity, which are estimated to be 6 billion pounds annually ($8 billion), are everybody’s problem.

The U.K. government can’t seem to acknowledge or accept the idea that people are voluntarily and willingly making bad choices. This Nanny State mentality means that the government must lay the blame on those who sell or advertise unhealthy food.

“Promotions often appear to help shoppers save money,” the agency explained in its press release. “However, data shows that these deals actually increase purchases of promoted products by almost 20%. They encourage people to buy more than they need or intended to buy in the first place.”

But people always need food. If you buy more food than you “need or intended to buy in the first place” you can usually save it for the future. That is what sales, promotions, and other low-pricing deals accomplish. They allow people to stock up and store food. That’s particularly important when governments everywhere are trying to discourage people from gathering in public places due to the pandemic.

Speaking of COVID-19, even though the U.K.’s food nannyism has been building for years, British officials can’t help but try to use the coronavirus as a justification for their actions: “The COVID-19 pandemic has brought to the fore the impact that obesity can have on people’s health and health outcomes.”

Christopher Snowdon, a regular critic of the United Kingdom’s regulatory overreach, an obesity data skeptic, and the head of lifestyle economics at the U.K.-based Institute of Economic Affairs, blasted the British government’s condescending new rules on his blog:

All these years I’ve been buying a pack of four bars of soap and a pack of four tins of baked beans because it worked out cheaper on a per-unit basis than buying one. But now I understand that I would have spent less if I’d have just bought one or two. Admittedly, I’d have had to go shopping more often, but that’s a small price to pay for saving money. Thank you, the government, for putting me straight.

Snowdon notes that a ban on buy-one-get-one-free promotions could cost the average family more than 600 pounds (more than $800) a year by the government’s own estimate. That means that British officials are trying to deliberately force up the cost of unhealthy foods because they think this will force people to choose healthier alternatives.

But that’s just not what happens. Instead, shoppers will turn to black markets. Driving up the price of sodas in Philadelphia with a special tax, for example, did not affect how much soda that people drank. Lots of people there just avoided the taxes by buying their soda elsewhere.

What will U.K. health authorities do when their latest tactics fail to make people eat better? A cynic might assume they’re already planning out even more new rules that are doomed to fail.

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

Latest Decision in Sarah Palin v. N.Y. Times: N.Y.’s New Anti-SLAPP Law Is Retroactive

Sarah_Palin_by_Gage_Skidmore_2_(cropped_3x4)

[1.] Sarah Palin’s libel lawsuit against the New York Times is proceeding, on the theory that a jury could potentially find that the Times people knew their allegations about Palin were false (or at least were likely false). This is the so-called “actual malice” test, which is applied to libel claims brought by public figures such as Palin on matters of public concern (though it doesn’t actually require malice at all). It’s also called the New York Times v. Sullivan test, after the 1964 case that announced the test as to public officials; later cases extended it to other public figures.

[2.] Palin’s lawyers have argued that the “actual malice” test should be overruled or at least sharply limited, and in principle the Supreme Court could agree with them, after the decision at trial and then an appeal to the Second Circuit. In practice, it’s very unlikely that the Court would grant review in this case, and I don’t see much appetite on the Court for overruling New York Times v. Sullivan. (Justice Thomas seems interested in that, but I don’t think four other Justices will join him.) But there certainly has been talk about trying to tee up a case for the Court to consider whether to revisit the matter.

[3.] Today’s decision by Judge Jed Rakoff (S.D.N.Y.) makes it even less likely that Palin v. New York Times would be a vehicle for the Court to overrule its libel precedents.

Earlier this year, New York enacted a long-discussed revision to its “anti-SLAPP statute”—essentially a protection for defendants in libel cases (and some other similar cases). Part of that revision provides that, as a matter of New York state law, libel plaintiffs suing over speech “in connection with an issue of public interest” may only recover damages if they prove “that any communication which gives rise to the action was made with knowledge of its falsity or with reckless disregard of whether it was false.”

For public-concern cases brought by private figures, this statute imposes the “actual malice” for the first time, at least when it comes to compensatory damages. (Before the new statute was enacted, New York essentially applied a sort of gross negligence standard to private-figure/public-concern/compensatory-damages cases.) But for cases brought by public officials or public figures, this revision just codifies the “actual malice” standard.

In today’s decision, Judge Rakoff held that the anti-SLAPP revision was retroactive, in that it covered cases such as Palin’s, which were pending when the revision was enacted. And if the Second Circuit eventually agrees with him on appeal, then the question whether to overrule New York Times v. Sullivan would become irrelevant to the Supreme Court.

The Supreme Court almost never second-guesses lower courts’ interpretations of state law, so it would treat the “actual malice” rule as an independent state law statutory requirement. And if that’s so, then the question whether the New York Times v. Sullivan standard should be preserved as a federal requirement would become (for this case) moot.

[4.] Judge Rakoff’s decision may end up being very important for many pending New York libel cases (including ones dealing with a different part of the anti-SLAPP statute, which changes various rules as to public figure cases as well). As a federal district court case, it isn’t binding precedent, either in state or federal court, but it’s likely to be quite influential (and will be even more influential in state court, and binding in federal court, if the Second Circuit affirms on this score). But in the Palin case itself, it has only the indirect effect that I described.

[Thanks to Gage Skidmore / Wikipedia for the photo of Palin that I’m using here as a featured image.]

from Latest – Reason.com https://ift.tt/34VsSBN
via IFTTT

Latest Decision in Sarah Palin v. N.Y. Times: N.Y.’s New Anti-SLAPP Law Is Retroactive

Sarah_Palin_by_Gage_Skidmore_2_(cropped_3x4)

[1.] Sarah Palin’s libel lawsuit against the New York Times is proceeding, on the theory that a jury could potentially find that the Times people knew their allegations about Palin were false (or at least were likely false). This is the so-called “actual malice” test, which is applied to libel claims brought by public figures such as Palin on matters of public concern (though it doesn’t actually require malice at all). It’s also called the New York Times v. Sullivan test, after the 1964 case that announced the test as to public officials; later cases extended it to other public figures.

[2.] Palin’s lawyers have argued that the “actual malice” test should be overruled or at least sharply limited, and in principle the Supreme Court could agree with them, after the decision at trial and then an appeal to the Second Circuit. In practice, it’s very unlikely that the Court would grant review in this case, and I don’t see much appetite on the Court for overruling New York Times v. Sullivan. (Justice Thomas seems interested in that, but I don’t think four other Justices will join him.) But there certainly has been talk about trying to tee up a case for the Court to consider whether to revisit the matter.

[3.] Today’s decision by Judge Jed Rakoff (S.D.N.Y.) makes it even less likely that Palin v. New York Times would be a vehicle for the Court to overrule its libel precedents.

Earlier this year, New York enacted a long-discussed revision to its “anti-SLAPP statute”—essentially a protection for defendants in libel cases (and some other similar cases). Part of that revision provides that, as a matter of New York state law, libel plaintiffs suing over speech “in connection with an issue of public interest” may only recover damages if they prove “that any communication which gives rise to the action was made with knowledge of its falsity or with reckless disregard of whether it was false.”

For public-concern cases brought by private figures, this statute imposes the “actual malice” for the first time, at least when it comes to compensatory damages. (Before the new statute was enacted, New York essentially applied a sort of gross negligence standard to private-figure/public-concern/compensatory-damages cases.) But for cases brought by public officials or public figures, this revision just codifies the “actual malice” standard.

In today’s decision, Judge Rakoff held that the anti-SLAPP revision was retroactive, in that it covered cases such as Palin’s, which were pending when the revision was enacted. And if the Second Circuit eventually agrees with him on appeal, then the question whether to overrule New York Times v. Sullivan would become irrelevant to the Supreme Court.

The Supreme Court almost never second-guesses lower courts’ interpretations of state law, so it would treat the “actual malice” rule as an independent state law statutory requirement. And if that’s so, then the question whether the New York Times v. Sullivan standard should be preserved as a federal requirement would become (for this case) moot.

[4.] Judge Rakoff’s decision may end up being very important for many pending New York libel cases (including ones dealing with a different part of the anti-SLAPP statute, which changes various rules as to public figure cases as well). As a federal district court case, it isn’t binding precedent, either in state or federal court, but it’s likely to be quite influential (and will be even more influential in state court, and binding in federal court, if the Second Circuit affirms on this score). But in the Palin case itself, it has only the indirect effect that I described.

[Thanks to Gage Skidmore / Wikipedia for the photo of Palin that I’m using here as a featured image.]

from Latest – Reason.com https://ift.tt/34VsSBN
via IFTTT

A Billion Unsold Room-Nights And “It’s Going To Get Worse” As America’s Hotel Occupancy Rate Re-Plunges

A Billion Unsold Room-Nights And “It’s Going To Get Worse” As America’s Hotel Occupancy Rate Re-Plunges

A solid recovery in the hotel industry is years away as travel and tourism will likely remain suppressed well into 2021 as cities across the US have reinstated some form of coronavirus restrictions to mitigate the spread. 

As COVID-19 infections, hospitalizations, and deaths soar, along with a new mutation of the virus spreading in Europe, Americans continue to shun hotels. 

According to STR, Inc, a hotel industry market data firm, the US hotel occupancy rate plunged 26.4% to 36.8% during the week of 13 to 19 December, compared over the same period in 2019.  

STR said the average daily rate (ADR) dropped 21.9% to $85.50 over the week. Revenue per available room (RevPAR) was at $31.45, down 41.5%. 

For the first time on record, the industry had one billion unsold room nights as Americans stayed home and or travelers avoided hotels. 

STR’s data for Top 25 US markets had lower occupancy (34.9%) than the national average but higher ADR ($90) than all other markets. 

Tampa/St. Petersburg, Florida recorded the highest occupancy level (45.4%), while Oahu Island, Hawaii (21.6%), and Minneapolis/St. Paul, Minnesota-Wisconsin (23.9%) saw the lowest. 

These worrisome stats are closely watched metrics for gauging hotel health and are sounding alarm bells regarding the health of some hotel operators. 

Readers may recall we’ve outlined the epicenter of the hotel implosion, that is, New York City. 

Given the uninspiring rebound in national occupancy rates for mid-December, S&P Global Ratings warned in a report last month that the hotel industry’s recovery may not occur until 2023. 

With that being said, Best Western CEO David Kong recently told CNN that “If we don’t get a vaccine soon and business doesn’t return, it’s going to get much worse.” 

Some two million hotel-related jobs have been lost, and about 25% of hotels are at risk of foreclosure. 

Commercial-real estate experts at Trepp outlined last week that the overall credit performance of commercial real estate loans tied to hotels continues to show “pandemic related stress.” 

Even though hotels remain under tremendous pressure, stimulus and vaccine hopes have backstopped BBB- tranche of the CMBX Series 9 index (overly exposed to malls and hotels) from falling lower. 

If national occupancy rates don’t rise soon, expect a wave of consolidation and bankruptcies sometime in 2021 across the industry. 

Tyler Durden
Tue, 12/29/2020 – 13:39

via ZeroHedge News https://ift.tt/2KKeAx4 Tyler Durden