The CDC’s Rules Let Teachers, Lawyers, Media Jump to the Front of the COVID Vaccine Line

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Education sector “support staff members,” corporate tax lawyers, and magazine fashion editors will all jump to the front of the coronavirus vaccination line ahead of the general population, under recommendations issued in late December by the federal government’s Centers for Disease Control and Prevention.

Self-interest dictates I should probably wait until after I get my immunity-producing doses before raising any questions about the prioritization. The government’s allocation strategy is such an inviting target, though, that it’s hard to resist taking, er, a shot.

How did we get here? On December 20, a government committee of highly educated, mostly academic experts known as the Advisory Committee on Immunization Practices voted about who should get the vaccine first. The committee has 15 voting members. Twelve of them are medical doctors. One is a lawyer. Nine—a majority—are affiliated with universities, including Stanford, Vanderbilt, Baylor, and the University of California, Los Angeles.

Naturally, the committee of doctors decided that the first vaccines should go to healthcare workers. That might seem like common sense—emergency room or intensive care doctors treating Covid-19 patients deserve to be protected against the risk of catching the disease in the workplace. Healthcare workers, though, is a big, catchall category. It includes everyone from Beverly Hills plastic surgeons conducting elective cosmetic surgery to “administrative staff,” which might be the billing clerk in the plastic surgery practice, or some hospital accounts-receivable bookkeeper or fundraiser with no patient contact.

“Healthcare personnel” are in the CDC’s phase 1a. Educational sector support staff are next in phase 1b. That could include people who are currently working from home and who ordinarily have little or no direct contact with students—say, the employees who answer telephone questions about retired professors’ pension benefits.

The next phase, 1c, encompasses the “media” and “law” categories. Like healthcare personnel, these groups are so broad that they include essential frontline workers but also some others whose prioritization is difficult to justify.

Journalists covering the pandemic by doing on-the-scene reporting from nursing homes or hospital intensive care units probably do have a strong case to be vaccinated relatively early. So do criminal defense lawyers meeting clients in prisons or jails, or making frequent in-person courtroom appearances.

The “media” and “law” categories, though, also include the copyeditors at Vogue and the big-firm lawyers who rarely show up in court but spend their time instead writing memos and helping companies minimize their taxes. Their Covid-19 risk seems pretty small, or at least small enough that it’s hard to see the rationale for those workers leapfrogging ahead of the general population.

A cynic might suspect the vaccine committee put lawyers and journalists early in the queue as a way to avoid getting sued or attracting negative press coverage.

It turns out that there is a mechanism in capitalism for allocating scarce goods. It works pretty well—better than allowing a government-appointed committee to decide who gets what when. It is called “price.”

When sellers are free to adjust prices upward to meet demand, scare goods wind up in the hands of those who value them most. If a coronavirus vaccine dose cost $1,000 or $2,000 instead of “free” or “$20,” a hospital might decide that it is worth vaccinating the intensive care nurses immediately. At that price, the same hospital might decide to wait for a while before vaccinating the accounts-receivable bookkeeper.

Some worry that under a free market approach like this, the Beverly Hills plastic surgery billing clerks and corporate tax lawyers will get vaccinated before the emergency room doctors in inner-city hospitals or public defenders visiting clients in jail. That’s a reasonable concern, but it’s better addressed by targeted subsidies than by a total suspension of the price mechanism in favor of broad-brush categories like “law” or “media.”

A nice thing about temporarily high prices—whether for a Tesla or an iPhone or a Manhattan apartment—is that they tend to spur production, either of that product or of close substitutes.

The coronavirus vaccine was created by a combination of private-sector ingenuity at Pfizer and Moderna and government spending and planning at Operation Warp Speed. The Trump administration has showed openness to using commercial vendors such as CVS and McKesson to administer and distribute the vaccine. Letting a committee of academic physicians rather than a market decide who gets the shot first is a departure from the private sector-led approach that has driven America’s success so far.

It may seem like the most important thing America has to give the rest of the world right now is the vaccine. An even more valuable export, though, would be confidence that free markets and capitalism work better than communism, cronyism, and state-run central planning. It might mean journalists or lawyers wait a week or two longer for this vaccine.

The net long-term result, though, would be that more shots and goods of all sorts wind up faster in the arms of those who can use them best.

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Will President Trump Make Recess Appointments During the “Fictitious” Inter-Session Recess on January 3?

On January 3, 2021, the 116th Congress will come to a close, and moments later, the 117th Congress will begin. There will be, for a fleeting instance, an inter-session recess. During this period, in theory at least, President Trump could make recess appointments. And those appointments would last until the the next session concludes in January 2022. Would such appointments be constitutional?

Noel Canning recounts that in 1903, President Theodore Roosevelt made 160 recess appointments between the end of one Senate session and the beginning of another Senate session:

Most notably, in 1905 the Senate Committee on the Judiciary objected strongly to President Theodore Roosevelt’s use of the Clause to make more than 160 recess appointments during a “fictitious” inter-session recess. S.Rep. No. 4389, 58th Cong., 3d Sess., p. 2 (hereinafter 1905 Senate Report). At noon on December 7, 1903, the Senate President pro tempore had “declare[d]” a formal, “extraordinary session” of the Senate “adjourned without day,” and the next formal Senate session began immediately afterwards. 37 Cong. Rec. 544 (1903). President Roosevelt made over 160 recess appointments during the instantaneous inter-session interval.

The Senate Judiciary Committee issued a reporting, finding that this instantaneous break was not a “recess of the Senate” for purposes of the Recess Appointments Clause. The report defined “recess” as:

“the period of time when the Senate is not sitting in regular or extraordinary session as a branch of the Congress …; when its members owe no duty of attendance; when its Chamber is empty; when, because of its absence, it can not receive communications from the President or participate as a body in making appointments.”

Were these appointments valid? Later, Justice Breyer’s majority opinion flagged TR’s appointments:

There are a few historical examples of recess appointments made during inter-session recesses shorter than 10 days. We have already discussed President Theodore Roosevelt’s appointments during the instantaneous, “fictitious” recess.

Alas, Justice Breyer did not definitively resolve this issue.

There may be others of which we are unaware. But when considered against 200 years of settled practice, we regard these few scattered examples as anomalies. We therefore conclude, in light of historical practice, that a recess of more than 3 days but less than 10 days is presumptively too short to fall within the Clause. We add the word “presumptively” to leave open the possibility that some very unusual circumstance — a national catastrophe, for instance, that renders the Senate unavailable but calls for an urgent response — could demand the exercise of the recess-appointment power during a shorter break. (It should go without saying — except that Justice SCALIA compels us to say it — that political opposition in the Senate would not qualify as an unusual circumstance.)

Again, the Court’s opinion does not distinguish between inter-session recesses and intra-session recesses. The three-to-ten day standard would seem to apply to both types of recesses. An instantaneous inter-session appointment would be “presumptively” unconstitutional.

In his concurrence (really a dissent), Justice Scalia uses the TR example for a different purpose: to show that at the turn of the 20th century, even the most aggressive President did not try to make an intra-session recess appointment. Rather, TR tried to squeeze the recess appointments into the fleeting inter-session recess.

That was where things stood when, in 1903, Roosevelt made a number of controversial recess appointments. At noon on December 7, the Senate moved seamlessly from a special session into a regular one scheduled to begin at that hour. See 37 Cong. Rec. 544; 38 Cong. Rec. 1. Roosevelt claimed to have made the appointments in a “constructive” recess between the two sessions. See Special Session Is Merged Into Regular, N.Y. Times, Dec. 8, 1903, p. 1. He and his allies in the Senate justified the appointments on the theory that “at the moment the gavel falls to summon the regular session into being there is an infinitesimal fraction of a second, which is the recess between the two sessions.” Extra Session Muddle, N.Y. Times, Dec. 7, 1903, p. 3. In 1905, the Senate Judiciary Committee published a report criticizing the appointments on the ground that “the Constitution means a real recess, not a constructive one.” S.Rep. No. 4389, 58th Cong., 3d Sess., p. 4. The report explained that the recess is “the period of time when the Senate is not sitting in regular or extraordinary session… when its members owe no duty of attendance; when its Chamber is empty; when, because of its absence, it can not receive communications from the President or participate as a body in making appointments.” Id., at 2 (emphasis deleted).

The majority seeks support in this episode, claiming that the Judiciary Committee embraced a “broad and functional definition of `recess'” consistent with the one the majority adopts. Ante, at 2564. On the contrary, the episode powerfully refutes the majority’s theory. Roosevelt’s legal justification for his appointments was extremely aggressive, but even he recognized that “the Recess of the Senate” could take place only between formal sessions. If the majority’s view of the Clause had been considered plausible, Roosevelt could have strengthened his position considerably by making the appointments during an intra-session break of a few days, or at least a few hours. (Just 10 minutes after the new session began on December 7, the Senate took “a recess for one hour.” 38 Cong. Rec. 2.) That he instead strained to declare a dubious inter-session recess of an “infinitesimal fraction of a second” is powerful evidence that the majority’s view of “the Recess” was not taken seriously even as late as the beginning of the 20th century.

Yet the majority contends that “to the extent that the Senate or a Senate committee has expressed a view, that view has favored a functional definition of `recess’ [that] encompasses intra-session recesses.” Ante, at 2563. It rests that contention entirely on the 1905 Judiciary Committee Report. This distorts what the committee said when it denied Roosevelt’s claim that there had been a recess. If someone avers that a catfish is a cat, and I respond by pointing out that a catfish lives in water and does not have four legs, I have not endorsed the proposition that every land-dwelling quadruped is a cat. Likewise, when the Judiciary Committee explained that an instantaneous transition from one session to another is not a recess because the Senate is never absent, it did not suggest that the Senate’s absence is enough to create a recess. To assume otherwise, as the majority does, is to commit the fallacy of the inverse (otherwise known as denying the antecedent): the incorrect assumption that if P implies Q, then not-P implies not-Q. Contrary to that fallacious assumption, the Judiciary Committee surely believed, consistent with the Executive’s clear position at the time, that “the Recess” was limited to (actual, not constructive) breaks between sessions.

Scalia doesn’t actually say that TR’s appointments were invalid. Indeed, under Scalia’s reading of “the recess of the Senate,” an inter-session recess of any duration would suffice. Though, under the 1905 Senate Report’s functional definition of a “Recess,” a momentary lapse would not suffice. Here, Scalia’s opinion does not provide a clear answer.

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Only One Number Mattered To Global Markets In 2020

Only One Number Mattered To Global Markets In 2020

Authored by Robert Burgess, op-ed via BloombergQuint.com,

When it came to financial markets in 2020, the most frequently asked question was why. Why, in the midst of a global pandemic that has killed some 1.7 million people worldwide and plunged the economy into the worst crisis since the Great Depression, did equity markets stage a historic rebound to reach new highs and become completely disconnected from reality? And it wasn’t just stocks, as anything smacking of carrying any semblance of risk, from junk bonds to Bitcoin, had epic rallies.

Everyone has an explanation for how markets performed. They range from the cerebral (markets are “forward-looking” and investors are anticipating a roaring economy once Covid-19 has been eradicated) to the cynical (just buy the dip). True, the market is always about what will happen rather than what has happened, and it’s been highly profitable in recent years to buy whenever the market pulls back. Still, neither adequately explains the jaw-dropping 66% surge in the MSCI All-Country World Index of stocks from its low in late March, the record-low yields in junk bonds, the more than five-fold increase in the price of Bitcoin or any of the other seemingly inexplicable market moves.

The answer is much simpler and comes down to one number: $14 trillion. That’s the amount by which the aggregate money supply has increased this year in the U.S., China, euro zone, Japan and eight other developed economies.

To put the surge in perspective, the jump to $94.8 trillion exceeds all other years in data going back to 2003 and blows away the previous record increase of $8.38 trillion in 2017, according to data compiled by Bloomberg (how did equities do back then? The MSCI All-Country World Index soared 21.6%, the result of a steady climb all year. Although the MSCI is up a smaller 12.4% this year, it has surged 65% from its low in late March).

Knowing what was behind the performance of markets is only part of the story; it’s also important to understand the mechanics. The place to start is with the central banks, which were instrumental in printing the money they needed to inject directly into the financial markets by purchasing bonds and other assets on a scale never seen before. As of Nov. 30, the collective balance sheet assets of the Federal Reserve, the European Central Bank, the Bank of Japan and the Bank of England stood at 54.3% of their countries’ total gross domestic product, up from about 36% at the end of 2019 and about 10% in 2008, data compiled by Bloomberg show. The Fed alone is pumping at least $120 billion a month into the financial markets through its purchases of fixed-income assets.

The purchases by central banks helped to suppress bonds yields globally, with the average tumbling to below 1% this year, as measured by the Bloomberg Barclays Global Aggregate Index. Not only that, but the amount of bonds with yields below zero surged above $18 trillion, adding to the financial repression suffered by savers since the financial crisis.

Of course, nobody wants to own bonds that pay next to nothing, or even negative rates, unless they have to for regulatory or other reasons. The result has been a scramble for yield, primarily for the debt obligations of companies and others with below-investment-grade credit ratings. Rising demand pushed yields on bonds issued by these companies to a record low 4.59% worldwide on average. Even so-called frontier nations such as Ghana, Senegal and Belarus are benefiting.

Many realize that these low yields don’t offer a lot of compensation in return for lending money to borrowers at higher risk of default. After all, they’re not called “junk bonds” for nothing. Which is why much of the money that landed in the laps of investors this year found its way into the stock market, pushing the global value of stocks to more than $100 trillion for the first time and the average stock price for a member of the MSCI All-Country World Index to a stratospheric 31 times earnings.

All the money created by governments and central banks also raised some hard questions about the true value of currencies. There’s no small number of people who believe foreign-exchange regimes are on the verge of collapsing because of all of the money-printing — not just this year, but since the financial crisis more than a decade ago. This explains much of the stunning rally in Bitcoin and other cryptocurrencies, as well as gold.

While many governments deserve criticism for their response to the pandemic from a social-welfare context, the swift action they took – in conjunction with their central banks – to support their economies warrants praise despite the worries about permanent “moral hazard,” never-ending central bank support of financial markets and the wealth inequality it exacerbated. It will be years, perhaps a generation, before we know whether too much (or perhaps too little?) money was created to support the economy through the pandemic, nurturing the biggest bubble of all time and uncontrollable inflation.

But imagine the alternative if nothing was done.

 

Tyler Durden
Mon, 12/28/2020 – 16:20

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Newly Recorded COVID-19 Cases and Deaths Are Falling in the U.S.

CoronavirusEpidemicDown

Newly recorded COVID-19 cases and deaths in the United States, which rose dramatically this fall, now seem to be declining. According to Worldometer’s numbers, the seven-day average of daily new cases fell by 18 percent between December 18 and yesterday. The seven-day average of daily deaths has fallen by 19 percent since December 22.

Daily new cases in the U.S. are still five times as high as they were in mid-September, while daily deaths are three times as high as they were in mid-October. But the seven-day average of daily deaths, about 2,200 as of yesterday, has dropped slightly below last spring’s peak after exceeding it for several weeks. The recent trends, assuming they continue, are a hopeful sign that the winter might not be quite as deadly as many people feared.

Back in October, for instance, Joe Biden said “the expectation is we’ll have another 200,000 Americans dead [from COVID-19] between now and the end of the year.” That implied a total U.S. death toll of about 423,000 by January 1. Per Worldometer, the current death toll is about 342,000. With four days to go in the year, it looks like Biden’s projection will be off by 70,000 or so.

Allowing for the lag between laboratory confirmation and death, the recent drop in fatalities corresponds with a decrease in daily new cases recorded in late November. Since newly identified infections are falling again, it is plausible that daily deaths will continue to fall as well.

But for how long? Since COVID-19 symptoms that might prompt someone to seek testing appear two to 14 days after infection, the increase in confirmed cases following the dip in late November is consistent with the fear that gatherings over Thanksgiving weekend would boost virus transmission. The impact of Christmas and New Year’s Day gatherings may not be fully apparent until mid-January or later.

The pessimistic take on the recent dip in daily new cases is that it simply represents a falloff from the surge associated with Thanksgiving, which suggests that cases and deaths will rise again as infections tied to Christmas and New Year’s Day celebrations show up in the official tallies. A more optimistic interpretation is that the dramatic increases in cases and deaths have encouraged wider and more consistent compliance with COVID-19 precautions.

Did the new legal restrictions imposed by many states also play a role? Maybe, although a comparison of the two most populous states seems inconsistent with that hypothesis. California, where Gov. Gavin Newsom has imposed a raft of new restrictions, has seen a smaller decline in daily deaths than Texas, where Gov. Greg Abbott has taken a more lenient approach.

However you interpret current trends, they show that continued increases in new cases and deaths are not inevitable. The way Americans choose to behave in the months until vaccines are widely available will determine exactly how deadly the pandemic proves to be.

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Ethereum Erupts, Oil & Gold Pump’n’Dump As Tech Jumps

Ethereum Erupts, Oil & Gold Pump’n’Dump As Tech Jumps

$600 checks for all, vaccines for all, and stocks are hitting record highs as economic data collapses…

Source: Bloomberg

The message is – Biden’s here, all is well! (Oh, apart from the “dark winter” he keeps on warning about)…

Crypto deserves the main headlines since Xmas Eve’s close with Bitcoin up over 15% and altcoins even more…

Source: Bloomberg

Bitcoin tagged new highs and fell back to stabilize around $27,000…

Source: Bloomberg

But today it was Ethereum that really ripped, surging up towards $750…

Source: Bloomberg

Which reversed the recent trend in ETH/BTC, which is back above the Maginot Line of 0.025x…

Source: Bloomberg

Bitcoin is on track for its longest monthly winning streak in more than a year after touching a record above $28,000 over the weekend. The largest cryptocurrency reached an all-time high of $28,365 on Sunday before paring some of the advance, according to a composite of prices compiled by Bloomberg. The run of outsize returns over October, November and December so far is the longest such stretch since mid-2019.

“My sense is we’re very close to a top — we could hit $30,000 though,” said Vijay Ayyar, head of business development with crypto exchange Luno in Singapore.

“We should definitely see a pullback, but the magnitude is probably lesser. We might only see 10% to 15% drops.”

But while crypto was ripping, gold and oil were rollercoastering.

Gold futures spiked back above $1900 before giving it all back…

WTI screamed up towards $49 after reports of Trump signing the COVID Lockdown Relief only to retreat back below $48 as the cash equity market opened…

Notably, as ETH/BTC reversed course today, so did Small Caps / Big Tech as Nasdaq dramatically outperformed. Russell 2000 tumbled into the red late in the day (and the rest of the market was also hit) but there was no clear catalyst

Erasing Russell 2000’s outperformance since 12/22…

Energy stocks were the worst performers as Tech and Consumer Discretionary outperformed…

Source: Bloomberg

Treasuries ended the day practically unchanged after pushing notably higher in yield overnight…

Source: Bloomberg

Once again, the magic hand of Covfefe stepped in a compressed 10Y yields back below 95bps…

Source: Bloomberg

The dollar managed gains after overnight weakness was erased during the Europe session…

Source: Bloomberg

Finally, it appears the call-buying panic of the last couple of months is taking a break. Will the shortened week breathe life back into the leveraged long crowd?

Source: SpotGamma

For now, the Put-Call ratio continues to push to new 14 year lows…

Source: Bloomberg

Tyler Durden
Mon, 12/28/2020 – 16:00

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Wonder Woman 1984 Is No Wonder

Wonder-1984

Critics have described Wonder Woman 1984 asa film with a heart full of hope and love” and a reminder “that a cinematic superpower can transport us away from the doldrums of reality and save the day,” with a heroine who serves as “a moral and muscular counterweight to ego-driven male misdirections.”

But as I watched this movie from the comfort of my couch on Christmas evening, searching for those transporting signs of love, hope, and affirming feminist counterweights, I found something far less inspired. Wonder Woman 1984 is a risk aversion strategy in movie form. It is not a particularly good movie, because it was not designed to be a particularly good movie. It was designed to avoid being notably bad.

So it offers a bland rehash of the last Wonder Woman movie in a new setting, with somewhat less effective character bits, somewhat less amusing comic moments, and action scenes that seem to gesture at the original film’s high points without quite hitting them. It’s an aggressively cautious production that manages not to make any big mistakes, but in the process forecloses on the possibility of doing anything all that well. 

I will not describe the plot of this movie, except to say that it involves an ancient stone that grants wishes, which is fitting for a movie that traffics in ho-hum wish fulfillment. 

The story, such that it is, is mostly a vehicle for loosely connected scenes in which Wonder Woman (Gal Gadot) and her alter ego Diana Prince do the sort of things you might want to see Wonder Woman do. Here is Wonder Woman stopping jewel thieves in a brightly colored 1980s mall! Here is Diana Prince hanging out in Washington, D.C., with Steve Trevor (played once again by Chris Pine), her dead boyfriend who has magically returned via a gift from the Convenient Plot Device Fairy! Here is Wonder Woman fighting a supervillain-ized version of herself—Cheetah (Kristen Wiig), in strangely cheap-looking CGI! 

Some of the actors do fine work: Wiig in particular brings a loopy menace to an underwritten role, and Pine continues to demonstrate an endearing willingness to look goofy on screen. Gadot, however, is largely wasted. She has a strong screen presence, but her Wonder Woman is vague and undefined, except as an avatar of generic goodness and virtue, whatever you think that might be. And as Prince, she has all the personality of a supporting character in a teaser trailer. The movie picks up decades after its predecessor with no sense of what happened in between. What has she been doing all these years? What does she want out of life? Out of the world? 

The movie is set largely in Washington, D.C., and there are are interlocking subplots about Ronald Reagan’s nuclear ambitions and conflict in the Middle East, but they have been stripped of all real-world specifics. I suppose you could read a Trumpy mania into Pedro Pascal’s Maxwell Lord, a scammy real-estate developer who becomes one of the film’s two villains, but any connection seems more stylistic than specific; the movie might allude to Donald Trump, but it doesn’t say much of anything about him. 

Like so many of today’s biggest movies, Wonder Woman 1984 exists in a strangely depoliticized and decontextualized fantasy world, one with governments and wars but no politics or ideology to speak of—a virtual construct designed to summon the sensation of political relevance without any sense of what anyone might believe, or why. 

The story, similarly, isn’t really a story. It’s an excuse for a series of trailer-ready bits, a collection of loosely ordered scenes that you might have found in a movie you might actually have wanted to see. (And, it turns out, an unexpected number of jokes about fannypacks. See, it was the 1980s, and they’re so funny, because you wear them on your…never mind.)

Anyway, maybe Wonder Woman 1984 is a movie you did want to see, if only because 2020 has provided so few opportunities for this sort of megabudget, studio-made franchise entertainment. Until this year, superhero films with foreign-aid-program-sized budgets were a near weekly occurrence, and it’s been strange to suddenly go without. There is something intrinsically pleasurable about watching this sort of top-shelf production after going so long without one, even on a small screen at home. 

But there is also something disappointing in the fact that this one is so aggressively mediocre, so devoid of grander aspirations. Wonder Woman 1984 delivers on the promise of a perfectly average superhero movie experience, and not a cent more. It is neither over- nor underwhelming—you will leave the theater, or your living room, simply whelmed. It’s fine, I suppose, but it’s certainly not a wonder. 

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Biden COVID Advisor Urges More “Genomic Surveillance” Necessary To Stop Mutant COVID Strains

Biden COVID Advisor Urges More “Genomic Surveillance” Necessary To Stop Mutant COVID Strains

With December on track to be the deadliest month for the virus since the outbreak began (more than 63K people have died in the US so far this month), Dr. Fauci and others have been in the press constantly warning that the situation is on track to worsen in January and February.

And on Monday, he was joined by Dr. Celine Gounder, a clinical assistant professor of medicine and infectious diseases at NYU’s Grossman School of Medicine and member of Biden’s COVID task force, who reiterated Dr. Fauci’s warnings about already-overwhelmed hospitals being poorly equipped to handle the next wave of patients.

But while the MSM focused on remarks about President Biden likely invoking the Defense Production Act to try to ensure the US catches up to its lofty vaccination targets (we’re already about 18MM behind the OWS target of 20MM doses by year’s-end), Dr. Gounder added an off-hand line about the need for using “genomic surveillance” to track mutations like the B.1.1.7 mutated “variant” that has been making headlines for the past week or so.

“We’re also going to see an increase in genomic surveillance which is where you track the changes in…virus genetic materials…we can do that…we have the technology…we just chose not to spend the money on public health surveillance…”

Offering up some math to demonstrate why the US needs to dramatically ramp up the pace of vaccinations if it wants to reach whatever the new herd immunity threshold is, Dr. Gounder insisted there is “no question” about another surge due to the number of people traveling during the holiday.

And when this next wave hits, more rural areas will likely scramble to convert hallways and stadiums into excess capacity wards. However, she warned that while NYC has plenty or resources – physical, and human –  many smaller cities will have a much harder time due to limited human resources.

“You can’t stand up new doctors and nurses the way you can with field hospitals…so this is going to be the limiting factor here in treating all of these patients,” she warned.

Dr. Gounder also told CNBC that Biden will almost definitely invoke the WWII-era “Defense Production Act” to help ensure America’s pharmaceutical companies have enough access to enough raw materials to keep cranking out new doses. An unanticipated shortage of raw materials was blamed by Pfizer earlier this month for cutting its year-end delivery target from the absurdly high 100MM doses, to the slightly more realistic target of 50MM.  The company has refused to say much more than that, with WSJ reporting that the company sources these raw materials from “the US and Europe.”

Biden will invoke the act to ensure that whatever these raw materials are, that Pfizer and Moderna have enough of the stuff on hand to keep production humming, while also controlling the number of tests and protective equipment to ensure supplies remain ample across the country.

“You will see him invoking the Defense Production Act,” Dr. Gounder said. “The idea there is to make sure the personal protective equipment, the test capacity and the raw materials for the vaccines are produced in adequate supply.”

NBC News reported last week that the Biden team was considering invoking the act, and this would appear to cement that notion.

If anything, it’s just the latest reminder of how wildly optimistic many of the vaccination timelines – timelines for the developed world, at least – have been.

Tyler Durden
Mon, 12/28/2020 – 15:40

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Second Circuit Rules for Agudath Israel and Brooklyn Diocese

Today, a Second Circuit panel (Livingston, Park, Menashi) decided the consolidated cases of Agudath Israel of America v. Cuomo and Roman Catholic Diocese of Brooklyn v. Cuomo. Judge Park wrote the panel opinion. The court reviewed Governor Cuomo’s numerical caps with strict scrutiny, and declared them unconstitutional. The court remanded to the district court the question of whether the percentage caps are lawful. At this point, I doubt Governor Cuomo will risk appealing to the Supreme Court.

First, the court found that strict scrutiny was warranted, in light of the Supreme Court’s per curiam Diocese decision:

“To determine neutrality, we begin with the [Order’s] text, ‘for the minimum requirement of neutrality is that a [government policy] not discriminate on its face.'” Id. (quoting Church of the Lukumi Babalu Aye, Inc. v. City of Hialeah, 508 5 U.S. 520, 533 (1993)). The Order fails this basic standard by explicitly imposing on  “houses of worship” restrictions inapplicable to secular activities. “In a red zone, while a synagogue or church may not admit more than 10 persons, businesses categorized as ‘essential’ may admit as many people as they wish,” subject to only the less stringent 50% capacity limit applicable to all businesses. Roman Cath. 10 Diocese, 141 S. Ct. at 66. And “[t]he disparate treatment is even more striking” in 11 orange zones, where “attendance at houses of worship is limited to 25 persons” but most non-essential businesses must comply with only the generally applicable 13 50% capacity limit. Id. The fixed capacity limits thus “cannot be viewed as neutral because they single out houses of worship for especially harsh treatment.” Id. . . .

Here, the court considers whether houses of worship are treated differently that any secular activity, and not just a comparable secular activity. Here, the court correctly rejected the Chief’s comparator approach from South Bay, and adopted the correct comparator approach from Diocese. (Ninth Circuit, take note).

Indeed, the panel stated that Diocese “supplanted” South Bay.

The district courts, motions panel, and Governor also relied heavily on the Chief Justice’s concurring opinion in South Bay. Whatever persuasive value that opinion may have had in the early months of the COVID-19 pandemic, the Supreme Court’s decision in Roman Catholic Diocese has supplanted South Bay. See Roman Cath. Diocese, 141 S. Ct. at 70 (Gorsuch, J., concurring) (“Rather than apply a nonbinding and expired concurrence from South Bay, courts must resume applying the Free Exercise Clause.”).

Second, the Court criticizes the Governor’s framework of designating certain businesses as “essential.” :

Moreover, the Order does not impose generally applicable public-health guidelines, like requiring masks and distancing or limiting capacity by time. Instead, the Governor has selected some businesses (such as news media, financial services, certain retail stores, and construction) for favorable treatment, calling them “essential,” while imposing greater restrictions on “non-essential” activities and religious worship. That lack of general applicability is also subject to strict scrutiny.

“Essential” is a synonym for “important,” as determined by Cuomo. Here, the Court seems to embrace Justice Gorsuch’s Diocese concurrence

Further, although the Governor asserts that “all” activities not restricted by the Order present lesser risks of COVID-19 transmission than religious worship, he has never claimed that the unrestricted category of “essential” activities was  created based on transmission risk. Instead, “[t]he only explanation for treating  religious places differently seems to be a judgment that what happens there just  isn’t as ‘essential’ as what happens in secular spaces.” Roman Cath. Diocese, 141 4 S. Ct. at 69 (Gorsuch, J., concurring). Courts apply strict scrutiny to assess whether a government policy impermissibly “‘devalues religious reasons’ for congregating ‘by judging them to be of lesser import than nonreligious reasons.'” Calvary Chapel Dayton Valley v. Sisolak, 140 S. Ct. 2603, 2614 (2020) (Kavanaugh, J., dissenting) (quoting Lukumi, 508 U.S. at 537–38).

Third, the Court found that the percentage limits (which SCOTUS did not review) would also be reviewed with strict scrutiny:

The Supreme Court’s Roman Catholic Diocese opinion addressed only the fixed capacity limits, but the same reasoning applies to the Order’s percentage capacity limits, which by their own terms impose stringent requirements only on houses of worship. One could easily substitute the percentage capacity limits for the fixed capacity limits into the Supreme Court’s discussion of strict scrutiny without altering the analysis. Thus, both the fixed capacity and percentage capacity limits on houses of worship are subject to strict scrutiny.

Fourth, the Court found that the numerical limits are not narrowly tailored:

Regarding the fixed capacity limits, the Governor has never seriously contended that they are narrowly tailored to stem the spread of COVID-19, and he 4 appears to concede as much here. Those limits are “far more severe than has been shown to be required to prevent the spread of the virus at [Appellants’] services,” particularly because the Governor has pointed to no evidence of any outbreaks related to Appellants’ churches and synagogues. Roman Cath. Diocese, 141 S. Ct. at 8 67. Most obviously, the 10- and 25-person restrictions do not account in any way for the sizes of houses of worship in red and orange zones. Two Diocese churches originally affected by the Order seat over 1,000 people, and more than ten accommodate over 700. Likewise, Agudath Israel of Kew Garden Hills has a capacity of over 400. “It is hard to believe that admitting more than 10 people to a 1,000-seat church or 400-seat synagogue would create a more serious health risk than the many other activities that the State allows.” Id.

Here, the Court forcefully rejected the pernicious stereotype that houses of worship cannot be trusted to follow health guidelines.

The fixed capacity limits also bear little relation to the particular COVID-19transmission risks the Governor identifies. As an initial matter, the Governor’sidentification of those risks relied on broad generalizations made by public-health  officials about inherent features of religious worship. See, e.g., App’x, No. 20-3572, at 294 (“Generally, the congregants are arriving and leaving at the same period and are together over an extended period of time.”). The government must normally refrain from making assumptions about what religious worship  requires. See Our Lady of Guadalupe Sch. v. Morrissey-Berru, 140 S. Ct. 2049, 2055 5 (2020) (“The First Amendment protects the right of religious institutions ‘to decide for themselves, free from state interference, matters of church government as well as those of faith and doctrine.'” Even taking these assertions at face value, however, the Governor must explain why the Order’s density restrictions targeted at houses of worship are more effective than generally applicable restrictions on the duration of gatherings or requirements regarding masks and distancing. The Governor may not, of course, presume that religious communities will not comply with such generally applicable regulations.

So many Governors, and judges simply presume that people of faith cannot be trusted. Last week, I wrote:

And houses of worship follow rigorous protocols. They prohibit singing and chanting. They time their exit and entry to prohibit crowding. Judges are wedded to this March 2020 stereotype where people chant and scream at the top of their lungs for hours on end. This narrative is simply false. Please, get on with the times.

This sort of generalization would never fly for any other classification.

Fifth, the Court declines to determine whether the percentage limits are narrowly tailored. That issue is remanded to the District Court.

Before the Supreme Court’s Roman Catholic Diocese decision, all parties to this litigation were focused primarily on the Order’s fixed capacity limits. Agudath Israel chose to challenge only those limits in its application for injunctive relief in the Supreme Court. Similarly, Agudath Israel’s counsel represented to this Court during oral argument on its motion for an injunction pending appeal that it was not, at that time, objecting to the 25% capacity restriction. Under these circumstances, we remand Agudath Israel’s motion for a preliminary injunction as to the percentage capacity limits for the district court to decide in the first instance in light of the Supreme Court’s decision and this opinion.

Yet, the panel seems to suggest that the Governor’s defense of the percentage limits are a “post hoc rationalization.” And, the court suggests that there is no “contemporaneous evidence” about the justification behind the percentage limit.

Sixth, the Court clarified that Jacobson has no place in a First Amendment challenge. Indeed, the Second Circuit clarified one of its prior ruling that implicated Jacobson:

In Jacobson, the Supreme Court upheld a mandatory vaccination law against a substantive due process challenge. Jacobson predated the modern constitutional jurisprudence of tiers of scrutiny, was decided before the First Amendment was incorporated against the states, and “did not address the free exercise of religion.” Phillips v. City of New York, 775 F.3d 538, 543 (2d Cir. 2015); see Roman Cath. Diocese, 13 141 S. Ct. at 70 (Gorsuch, J., concurring) (“Jacobson hardly supports cutting the Constitution loose during a pandemic. That decision involved an entirely different mode of analysis, an entirely different right, and an entirely different kind of restriction.”). Indeed, the Jacobson Court itself specifically noted that “even if based on the acknowledged police powers of a state,” a public-health measure”must always yield in case of conflict with . . . any right which [the Constitution]gives or secures.” 197 U.S. at 25.

Amen. I am still disappointed that so many judges made this foundational error.

And, the court would not grant special deference to the government with respect to an enumerated right, even during an emergency:

But we grant no special deference to the executive when the exercise of emergency powers infringes on constitutional rights. That is precisely what the three-tiered framework for analyzing constitutional violations is for, and courts may not defer to the Governor simply because he is addressing a matter involving science or public health.

Seventh, the panel rejected the district court’s finding that Orthodox Jews can worship with “modifications”:

The court below concluded that Agudath Israel had not demonstratedirreparable harm because its congregants could “continue to observe theirreligion” with “modifications.” This was error. See, e.g., Hernandez v. Comm’r, 490 4 U.S. 680, 699 (1989) (“It is not within the judicial ken to question the centrality ofparticular beliefs or practices to a faith, or the validity of particular litigants’interpretations of those creeds.”). Religious adherents are not required to establishirreparable harm independent of showing a Free Exercise Clause violation because 8 a “presumption of irreparable injury . . . flows from a violation of constitutional rights.” Jolly v. Coughlin, 76 F.3d 468, 482 (2d Cir. 1996). Nevertheless, as Agudath Israel explained, Orthodox Jews are obligated to have an in-person minyan—a quorum—before some of Judaism’s most sacred rituals. Orthodox Jews also desist from using electronics on Shabbat, so in-person gatherings are necessary for Agudath Israel’s congregants. Appellants have demonstrated irreparable harm that would result without a preliminary injunction against enforcement of theOrder’s fixed capacity limits on houses of worship.

Observant Jews cannot worship by Zoom.

Eighth, the Court declined to consider Agudath Israel’s targeting claim.

Agudath Israel also argues that the Order is subject to strict scrutiny for the independent reason that the Governor “gerrymandered” the initial zone boundaries to target Orthodox Jewish communities. We need not reach this argument because we conclude that the Order discriminates against religion on its face.

Soon enough, Governor Cuomo will have to answer for his comments at that dreadful press conference.

Finally, the court expresses concern about the absolute power that Governor Cuomo has wielded since March.

On 15 March 7, 2020, Governor Cuomo declared a disaster emergency in the State, which allows him to exercise extraordinary executive powers. See N.Y. Exec. Law § 28. He can “temporarily suspend any statute, local law, ordinance, or orders, rules or regulations, or parts thereof, of any agency,” and can “issue any directive . . . necessary to cope with the disaster.” Id. § 29-a. Suspensions and directives under this law expire after 30 days, but the Governor may renew them an unlimited number of times. Id. The legislature of New York can terminate suspensions and directives “by concurrent resolution,” but the Governor’s actions pursuant to Executive Law § 29-a do not otherwise require legislative consultation or approval.  Id.

Governors have historically exercised this emergency authority in a limited  and localized manner, most often in response to natural disasters such as severe 10 storms or flooding. Governor Cuomo’s executive orders during the COVID-19 pandemic, however, have been unprecedented in their number, breadth, and duration. From March to December 2020, he has issued almost 90 executive orders relating to the pandemic. Those orders affect nearly every aspect of life in the State, including restrictions on activities like private gatherings and travel.

Civil libertarians have been quiet about this gross exercise of unchecked authority–presumably because they support the results. Decades ago, the ACLU would have intervened at every junction. Alas, that organization should changes its name to the APLU–the American Progressive Liberalism Union.

When the dust settles, I plan to write about possible legislative reforms. For example, in New York, the Governor’s emergency powers continue unless the legislature disapproves. I would flip that presumption. The Governor’s emergency powers would expire unless the legislature approves an extension of those powers. I would use the War Powers Resolution as a model. No one person should have carte blanche to regulate every facet of human existence. Especially not Andrew Cuomo.

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TSA Screens 1.28 Million Passengers At Airports On Sunday – Most Since March

TSA Screens 1.28 Million Passengers At Airports On Sunday – Most Since March

The Transportation Security Administration (TSA) released new figures Monday that showed it screened 1.28 million passengers at airports across the country on Sunday, the highest amount of travelers in one given day since mid-March. 

Even though Sunday’s passenger volume at airports was 50% lower than the same day last year, it was the sixth day out of the last ten that volume surpassed one million. The rise in air travel comes during the holiday season as Americans come together for Christmas and New Year’s celebrations despite warnings from top public health officials.

 

Dr. Anthony Fauci warned on Sunday that cases could surge after the holidays due to the mixing of households. 

“We very well might see a post-seasonal — in the sense of Christmas, New Year’s — surge, and as I’ve described it, as a surge upon a surge,” Fauci said on CNN’s “State of the Union.”

Last week, the country’s top infectious disease specialists warned that “our darkest days in this battle against Covid are ahead of us, not behind us.”

“I share the concern of President-elect Biden that as we get into the next few weeks it might actually get worse,” Fauci said.

There is some good news in the overnight session, President Trump signed a COVID-19 relief measure, which means airlines are set to receive $15 billion in additional payroll assistance. 

Fauci also said, “traveling and the likely congregating of people for the good warm purposes of being together for the holidays” adds pressure to the worsening crisis.

Nevertheless, a mutation of the coronavirus is on the loose in Europe and could already be spreading in the US undetected. 

Tyler Durden
Mon, 12/28/2020 – 15:20

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Wonder Woman 1984 Is No Wonder

Wonder-1984

Critics have described Wonder Woman 1984 asa film with a heart full of hope and love” and a reminder “that a cinematic superpower can transport us away from the doldrums of reality and save the day,” with a heroine who serves as “a moral and muscular counterweight to ego-driven male misdirections.”

But as I watched this movie from the comfort of my couch on Christmas evening, searching for those transporting signs of love, hope, and affirming feminist counterweights, I found something far less inspired. Wonder Woman 1984 is a risk aversion strategy in movie form. It is not a particularly good movie, because it was not designed to be a particularly good movie. It was designed to avoid being notably bad.

So it offers a bland rehash of the last Wonder Woman movie in a new setting, with somewhat less effective character bits, somewhat less amusing comic moments, and action scenes that seem to gesture at the original film’s high points without quite hitting them. It’s an aggressively cautious production that manages not to make any big mistakes, but in the process forecloses on the possibility of doing anything all that well. 

I will not describe the plot of this movie, except to say that it involves an ancient stone that grants wishes, which is fitting for a movie that traffics in ho-hum wish fulfillment. 

The story, such that it is, is mostly a vehicle for loosely connected scenes in which Wonder Woman (Gal Gadot) and her alter ego Diana Prince do the sort of things you might want to see Wonder Woman do. Here is Wonder Woman stopping jewel thieves in a brightly colored 1980s mall! Here is Diana Prince hanging out in Washington, D.C., with Steve Trevor (played once again by Chris Pine), her dead boyfriend who has magically returned via a gift from the Convenient Plot Device Fairy! Here is Wonder Woman fighting a supervillain-ized version of herself—Cheetah (Kristen Wiig), in strangely cheap-looking CGI! 

Some of the actors do fine work: Wiig in particular brings a loopy menace to an underwritten role, and Pine continues to demonstrate an endearing willingness to look goofy on screen. Gadot, however, is largely wasted. She has a strong screen presence, but her Wonder Woman is vague and undefined, except as an avatar of generic goodness and virtue, whatever you think that might be. And as Prince, she has all the personality of a supporting character in a teaser trailer. The movie picks up decades after its predecessor with no sense of what happened in between. What has she been doing all these years? What does she want out of life? Out of the world? 

The movie is set largely in Washington, D.C., and there are are interlocking subplots about Ronald Reagan’s nuclear ambitions and conflict in the Middle East, but they have been stripped of all real-world specifics. I suppose you could read a Trumpy mania into Pedro Pascal’s Maxwell Lord, a scammy real-estate developer who becomes one of the film’s two villains, but any connection seems more stylistic than specific; the movie might allude to Donald Trump, but it doesn’t say much of anything about him. 

Like so many of today’s biggest movies, Wonder Woman 1984 exists in a strangely depoliticized and decontextualized fantasy world, one with governments and wars but no politics or ideology to speak of—a virtual construct designed to summon the sensation of political relevance without any sense of what anyone might believe, or why. 

The story, similarly, isn’t really a story. It’s an excuse for a series of trailer-ready bits, a collection of loosely ordered scenes that you might have found in a movie you might actually have wanted to see. (And, it turns out, an unexpected number of jokes about fannypacks. See, it was the 1980s, and they’re so funny, because you wear them on your…never mind.)

Anyway, maybe Wonder Woman 1984 is a movie you did want to see, if only because 2020 has provided so few opportunities for this sort of megabudget, studio-made franchise entertainment. Until this year, superhero films with foreign-aid-program-sized budgets were a near weekly occurrence, and it’s been strange to suddenly go without. There is something intrinsically pleasurable about watching this sort of top-shelf production after going so long without one, even on a small screen at home. 

But there is also something disappointing in the fact that this one is so aggressively mediocre, so devoid of grander aspirations. Wonder Woman 1984 delivers on the promise of a perfectly average superhero movie experience, and not a cent more. It is neither over- nor underwhelming—you will leave the theater, or your living room, simply whelmed. It’s fine, I suppose, but it’s certainly not a wonder. 

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