Neighbors Won’t Let Decaying L.A. French Restaurant Die, Despite Owner’s Wishes


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The editorial board of the Los Angeles Times is telling the city’s NIMBYs to stop trying to use historic preservation laws to shut down a needed housing development.

Today’s editorial is about the future of Taix French Restaurant, which has been operating on Sunset Boulevard in Echo Park since 1962. Its owner, Michael Taix, is attempting to sell the property to developers, who want to replace it with a mixed-use project that would include housing and commercial space.

Taix wants to reopen in a smaller space within this new development. He told Times reporter Emily Alpert Reyes that this change was necessary for his business to survive because he cannot continue to financially support the current building.

But historic preservationists—or those who claim to be but really just don’t want new housing in their neighborhood—have been fighting to stop the deal. Despite Taix saying that he can’t keep operating this space, one woman told Reyes that she wanted to preserve the building entirely because she had such great feelings about having eaten there. Taix’s livelihood is no match for her desire to “feel like [I] belong, and that the city means something to [me] other than real estate.”

Her memories will persist regardless of whether or not Taix French Restaurant remains, and it’s absolutely reprehensible for nostalgia to be used as an excuse to overrule somebody’s property rights and to stand in the way of L.A.’s need for more housing.

Reason has taken note of several terrible examples of people in Los Angeles (and elsewhere) attempting to use historic preservation regulations not to restore something that’s actually significant, but to stop development they don’t like, even over the objection of the longtime owner of the business. Here, the Times editorial board is just not having it:

It should be an easy choice. There’s no point in preserving the cutesy faux French shell of Taix if the restaurant goes out of business. And there’s no good reason to forgo much-needed housing, especially affordable housing, just so people can drive by the old Taix building and savor their memories. Nostalgia is not a sufficient reason to reject development.

While a Times editorial is probably a good avenue to reach these NIMBY types, I don’t hold out much hope they’ll change any minds. Most of the arguments against development in Los Angeles stem from a selfish love of the status quo from people who already own property and don’t want things to change. Sunset Boulevard is a transit corridor and prime for this exact kind of development. This should be the kind of location where battered old buildings that no longer serve their purpose are replaced with bigger buildings that can help make space for more people to live.

But a lot of Taix’s opponents don’t actually want to solve the city’s housing problem if it means changing the L.A. they know and love. The L.A. Conservancy pulls the typical NIMBY trick of insisting that it does support more and denser housing, but just not this particular housing because it’s … not more or dense enough. I smell disingenuousness:

In addition to standing up for historic places, the Conservancy strongly supports increased density and new housing when it makes sense, especially if much-needed affordable housing is provided. In this case, it is a “lose-lose” proposition as the proposed project provides minimal affordable housing, the design and density achieved is underwhelming, and it needlessly demolishes a longtime legacy business building and neighborhood landmark.

The proposal is for 170 apartments on the property. There are currently zero apartments on the property. That’s far from “underwhelming” density.

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New Border Migration Trends Cast Doubt on Biden’s Approach


zumaamericasthirtyone148416

A growing number of people from far-flung nations are trying to cross into the U.S. from Mexico. That trend is challenging President Joe Biden’s attempts at stemming migration at the border. 

Over the past few decades, border crossers have shifted from mostly Mexican nationals to mostly citizens of Central America’s Northern Triangle region of El Salvador, Guatemala, and Honduras. In 2000, Mexican nationals comprised 98 percent of migration volume at the border, while Central Americans made up 1 percent. By May 2019, Northern Triangle nationals made up 78 percent of border crossers, and Mexicans 13 percent. 

That breakdown seems to be shifting once again, judging by the Department of Homeland Security’s (DHS) Southwest border encounter data for April 2021. According to DHS, Customs and Border Protection (CBP) encountered 33,150 citizens of nations outside El Salvador, Guatemala, Honduras, and Mexico at the border in April 2021. In January, that number was just 9,416. 

With 173,460 CBP encounters in April, migrants from nations outside Mexico and the Northern Triangle accounted for nearly 20 percent of border crossers. Most are single adults or members of family units. 

Miriam Jordan writes in The New York Times that these are largely “pandemic refugees” escaping COVID-addled economies. While agents in the past few months have encountered people from over 160 countries, numbers of migrating Ecuadorians, Brazilians, and Venezuelans have skyrocketed. 

Beyond the Americas, Jordan reports that migrants are going to great lengths to reach the border. Those from India have traveled to major hubs “like Mumbai, where they boarded planes to Dubai and then connected through Moscow, Paris, and Madrid, finally flying to Mexico City. From there, they embarked on the two-day bus ride to reach the Mexico-U.S. border.” Over 2,000 Romanians have already made the journey in fiscal year 2021, compared to 266 in 2020. According to Reuters, these migrants often fly from Paris to Mexico City and are then smuggled by bus to the Rio Grande River, which they cross by raft into Texas.

Biden campaigned on a promise to help solve “the humanitarian crisis at our border.” His proposed solution includes a four-year, $4 billion plan to invest in security and development in the Northern Triangle nations. That’s in addition to the $310 million in aid he sent to those countries in April. All told, these sums are meant “to encourage would-be migrants to stay home” by alleviating the issues that might compel people to come to the U.S., writes Tana Ganeva for Reason

That approach yields mixed results. In a 2019 policy paper, Michael A. Clemens of the Center for Global Development, and Hannah M. Postel, a Princeton University Ph.D. student, reported that “the evidence suggests that the capacity of development assistance to deter migration is small at best.” Further, they find that successful development in nearly all formerly poor countries has led to increased emigration. The Obama administration failed to effectively address root causes of Central American emigration with its aid-driven Alliance for Prosperity Plan, and by the end of the president’s tenure, he had deported around 3 million people—many of whom were from the Northern Triangle

Those findings cast doubt on Biden’s plan to send aid to nations to keep would-be migrants at home—an approach that would be costly and questionably effective, now that citizens of over 160 countries are arriving at the U.S.-Mexico border. 

In the long run, making immigration pathways easier to navigate could make streams of migration more predictable, which would help stem sudden influxes like the one currently challenging Biden. And given the changing face of immigration at the Southwest border, spot treatment via foreign aid cannot possibly be a solution. The Trump-era “zero tolerance” policy at the border is not the answer, but neither is Biden’s deterrence through development scheme. 

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Biden’s $6 Trillion Budget Plan Is Even More Expensive Than It Looks


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There is little debate about what President Joe Biden’s recent budget proposal represents. The headline figures speak for themselves: $6 trillion in federal spending this year, rising to more than $8 trillion in a decade, with deficits totaling at least $1.3 trillion every year in the process. It’s a budget plan that The New York Times—in a news article, not an opinion piece—recently described as a call for “a permanent increase in the size of the federal footprint on the U.S. economy” and “an attempt to expand the size and scope of federal engagement in Americans’ daily lives.” 

Biden’s budget plan is a proposal, not a law, and it has not been passed by Congress. But it is a vision of America’s fiscal future in which a substantially expanded federal government is at the center of much of everyday life. And if anything, its vision is actually more expansive than the headline figures represent. 

That’s because Biden’s budget includes rhetorical support for a number of policies that it leaves out of its cost estimates. In particular, it expresses support for expanding Medicare, already among the most costly federal programs, by adding new benefits and expanding eligibility options to people as young as 60. 

It also calls for the creation of a “public option”—a government-run health plan that would be sold alongside regulated private insurance plans on the health insurance plans created under the Affordable Care Act, also known as Obamacare. 

Some reports have framed this move as Biden leaving out the public option, frustrating progressives who have long supported the creation of a government-run insurance plan. But while it’s true that neither the public option nor the expansion of Medicare are included in Biden’s budget estimates, I think this is not quite the right way to read the president’s budget.

It’s not that Biden left these health care expansions out of his budget. It’s that he included them—without detailing how they would work or how much they would cost. Biden’s budget is an attempt to push for these policies without having to wade into the sure-to-be-controversial policy mechanics or additional budgetary costs they would entail. 

Biden’s budget plan doesn’t just vaguely suggest that expanding Medicare and creating a public option might be nice. Instead, in a paragraph that opens with an explicit call for Congress “to take action this year to further strengthen health care” by “expanding and improving health coverage,” it declares that expanding Medicare, creating a public option, and a number of other health care policies are all part of “the President’s health care agenda.” 

The Biden administration said in advance of the budget’s release that several major health care initiatives had been postponed, and the budget wouldn’t “propose new initiatives,” and that’s true enough in some technical sense. 

But the clear expression of support means that these are, in effect, off-budget policies. But they would have a significant impact on both the budget and the delivery of health care services. Biden just won’t say what that impact would be. 

Biden’s reluctance to specify how either policy would work goes back to his campaign. As the Kaiser Family Foundation recently noted, Biden’s campaign proposal to let people aged 60–64 use Medicare leaves out many details: “Important policy design features have yet to be specified, including how it would be financed or administered.” Put a little more bluntly, there isn’t actually a plan here. But there is little doubt that adding millions of people to Medicare would increase total federal health care spending.  

Similarly, Biden has declined to provide much in the way of specifics for how a government-run health insurance plan might work. Some analyses in the past have suggested that a public option might reduce the deficit. But such analyses also assume that the public option, like Medicare, would pay health care providers much lower rates than private insurance. Yet paying lower rates inevitably threatens patient access to care, especially at rural hospitals that serve poorer populations. 

That helps explain why it’s been politically difficult to make such plans work: Several years ago, Democrats in Washington state attempted to set up a state-run public option with rates close to Medicare’s. It only passed after the rates came up. 

A recent paper by a trio of policy analysts at the Hoover Institution, meanwhile, found that depending on how it was implemented and which taxes were used to offset the cost of the program, a public option could end up becoming the third-largest federal program, and running an $800 billion deficit over its first decade in operation. And because Congress would have control over the health insurance premiums charged by a government-run plan, it’s easy to imagine that lawmakers would come under significant pressure to cap or otherwise limit increases to those premiums—offsetting the difference via additional taxes or deficit spending. 

The point is that all of this is contentious, and any actual plan would inevitably spark significant debate and opposition from a wide constellation of interests. But Biden didn’t want to have those debates or answer specific questions about his policies, so he tried to have it both ways, backing some major policy initiatives while pointedly declining to say how those initiatives would affect the budget. Which means that Biden’s expansive, expensive budget plan—his vision for the federal government’s fiscal future—is probably much more expansive and expensive than even the big headline numbers look. 

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Fed’s Beige Book Freaks Out Over Unprecedented Nationwide Shortages Of Everything

Fed’s Beige Book Freaks Out Over Unprecedented Nationwide Shortages Of Everything

With the economy overheating, it will hardly come as a surprise that the latest Fed Beige Book – which found that the economy expanded at a “moderate” pace from early April to late May, a “somewhat faster” rate than the prior reporting period – one of the biggest concerns were soaring costs, but nothing spooked the various Fed districts quite as much as what appears to be a shortage of everything, with district after district complaining about broken supply chains, lacking workers, and critical commodities that just can’t be procured.

Reading the report, we learn that several Districts cited “the positive effects on the economy of increased vaccination rates and relaxed social distancing measures, while they also noted the adverse impacts of supply chain disruptions. The effects of expanded vaccination rates were perhaps most notable in consumer spending in which increases in leisure travel and restaurant spending augmented ongoing strength in other spending categories.”

Commenting on the overall state of economic activity, the Fed found that:

  • Light vehicle sales remained solid but were often constrained by tight inventories.
  • Factory output increased further even as significant supply chain challenges continued to disrupt production.
  • Manufacturers reported that widespread shortages – there’s that word again – of materials and labor along with delivery delays made it difficult to get products to customers.
  • Similar challenges persisted in construction.
  • Homebuilders often noted that strong demand, buoyed by low mortgage interest rates, outpaced their capacity to build, leading some to limit sales. Nonresidential construction increased at a moderate pace, on balance, even as contacts in several Districts said that supply chain disruptions pushed costs higher and, in some cases, delayed projects.
  • Demand for professional and business services increased moderately, while demand for transportation services (including at ports) was exceptionally strong.
  • Lending volumes increased modestly, with gains in both household and business loans. Overall, expectations changed little, with contacts optimistic that economic growth will remain solid.

Employment and Wages

  • Staffing levels increased at a relatively steady pace, with two-thirds of Districts reporting modest employment growth over the
  • reporting period and the remainder indicating employment gains were moderate.
  • As the spread of COVID-19 continued to slow, employment growth was strongest in food services, hospitality, and retail.
  • Manufacturers also added workers in several Districts. It remained difficult for many firms to hire new workers, especially low-wage hourly workers, truck drivers, and skilled tradespeople.
  • The lack of job candidates prevented some firms from increasing output and, less commonly, led some businesses to reduce their hours of operation.
  • Overall, wage growth was moderate, and a growing number of firms offered signing bonuses and increased starting wages to attract and retain workers.
  • Contacts expected that labor demand will remain strong, but supply constrained, in the months ahead.

Prices

  • Not surprising, the Fed found that overall price pressures increased further since the last report, something the record surge in the latest CPI print confirmed.
  • Selling prices increased moderately, while input costs rose more briskly. Input costs have continued to increase across the board, with many contacts noting sharp increases in construction and manufacturing raw materials prices.
  • Increases were also noted in freight, packaging, and petrochemicals prices.
  • Contacts reported that continuing supply chain disruptions intensified cost pressures.
  • Strengthening demand, however, allowed some businesses, particularly manufacturers, builders, and transportation companies, to pass through much of the cost increases to their customers.
  • Looking forward, contacts anticipate facing cost increases and charging higher prices in coming months.

And some more detail at the regional Fed level:

Boston

  • Business activity in the First District expanded at a moderate pace. Restaurant sales were up sharply, and restaurant openings buoyed retail property leasing. Labor demand strengthened but hiring was held back by labor shortages. Recruiting efforts intensified, with varying degrees of wage increases. Prices held mostly steady despite growing cost pressures.

New York

  • The regional economy continued to grow at a strong pace, with growth broad-based across industries. Hiring picked up and wages continued to grow moderately, with availability of workers cited as a top concern. Consumer spending and tourism picked up noticeably. Input price pressures have intensified further, and more businesses are raising their selling prices.

Philadelphia

  • Business activity continued at a moderate pace of growth during the current Beige Book period – still below levels attained prior to the pandemic. Supply constraints continued to limit growth but may also be contributing to overstated perceptions of strong demand for labor and parts. Employment continued to grow modestly as did wage growth, while prices grew moderately.

Cleveland

  • The pace of business activity quickened, and contacts expect that demand will remain strong in the near term. However, supply chain bottlenecks constrained growth and caused materials costs to escalate. Price hikes became more widespread as firms attempted to keep up with rising costs. Hiring activity was reportedly modest because of a dearth of job applicants. A greater share of firms boosted wages, especially for hourly workers.

Richmond

  • The regional economy expanded moderately in recent weeks. Manufacturers and service providers reported increased activity but also faced higher labor and input costs as well as shortages of materials. Employment rose moderately but was constrained by challenges filling open positions. Prices rose briskly in recent weeks as some increased costs of business were passed along to customers.

Atlanta

  • Economic activity expanded at a moderate pace. Labor markets improved and wage pressures picked up for some positions. Some nonlabor costs remained elevated. Retail sales increased. Leisure, hospitality, and tourism activity strengthened. Residential real estate demand remained strong. Commercial real estate conditions were mixed. Manufacturing activity improved. Banking conditions were steady.

Chicago

  • Economic activity increased moderately. Employment, consumer spending, business spending, and manufacturing production all increased moderately, while construction and real estate was flat. Wages and prices rose moderately and financial conditions improved slightly. Prospects for agriculture income in 2021 improved.

St. Louis

  • Contacts reported that economic conditions have moderately improved since our previous report. Many contacts described a situation in which growth in demand for their products or services is outpacing their growth in capacity.

Minneapolis

  • The District economy saw robust demand, tempered by inventory shortages and rising prices. Job openings increased, but wage growth was not well aligned with firms ’ broader concerns over labor availability, and workforce contacts cited low wages as a barrier to job seekers taking available jobs. Manufacturing and construction activity continued to grow despite strong input cost pressures. Agricultural incomes grew sharply.

Kansas City

  • Economic activity rose moderately since the last survey. Consumer spending increased moderately, and sales were above pre-pandemic levels for the majority of retail, restaurant, and auto contacts. Most other sectors expanded as well, including commercial real estate, which increased for the first time since the pandemic started. However, about two-thirds of firms reported a negative impact from rising material prices and lack of availability.

Dallas

  • The District economy expanded at a solid rate, bolstered by continued strong growth in housing, manufacturing, and nonfinancial services. Drilling activity rose further. Price pressures intensified. Reports of labor shortages were more widespread across sectors and skill levels than the last report. Outlooks stayed positive.

San Francisco

  • Economic activity in the District expanded significantly, and labor market conditions continued to improve modestly. Wages and inflation picked up further. Retail sales increased, and activity in the services sector strengthened moderately. Conditions in the manufacturing and agriculture sectors continued to improve. Residential construction remained strong, while lending activity grew somewhat.

Tyler Durden
Wed, 06/02/2021 – 14:20

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New Border Migration Trends Cast Doubt on Biden’s Approach


zumaamericasthirtyone148416

A growing number of people from far-flung nations are trying to cross into the U.S. from Mexico. That trend is challenging President Joe Biden’s attempts at stemming migration at the border. 

Over the past few decades, border crossers have shifted from mostly Mexican nationals to mostly citizens of Central America’s Northern Triangle region of El Salvador, Guatemala, and Honduras. In 2000, Mexican nationals comprised 98 percent of migration volume at the border, while Central Americans made up 1 percent. By May 2019, Northern Triangle nationals made up 78 percent of border crossers, and Mexicans 13 percent. 

That breakdown seems to be shifting once again, judging by the Department of Homeland Security’s (DHS) Southwest border encounter data for April 2021. According to DHS, Customs and Border Protection (CBP) encountered 33,150 citizens of nations outside El Salvador, Guatemala, Honduras, and Mexico at the border in April 2021. In January, that number was just 9,416. 

With 173,460 CBP encounters in April, migrants from nations outside Mexico and the Northern Triangle accounted for nearly 20 percent of border crossers. Most are single adults or members of family units. 

Miriam Jordan writes in The New York Times that these are largely “pandemic refugees” escaping COVID-addled economies. While agents in the past few months have encountered people from over 160 countries, numbers of migrating Ecuadorians, Brazilians, and Venezuelans have skyrocketed. 

Beyond the Americas, Jordan reports that migrants are going to great lengths to reach the border. Those from India have traveled to major hubs “like Mumbai, where they boarded planes to Dubai and then connected through Moscow, Paris, and Madrid, finally flying to Mexico City. From there, they embarked on the two-day bus ride to reach the Mexico-U.S. border.” Over 2,000 Romanians have already made the journey in fiscal year 2021, compared to 266 in 2020. According to Reuters, these migrants often fly from Paris to Mexico City and are then smuggled by bus to the Rio Grande River, which they cross by raft into Texas.

Biden campaigned on a promise to help solve “the humanitarian crisis at our border.” His proposed solution includes a four-year, $4 billion plan to invest in security and development in the Northern Triangle nations. That’s in addition to the $310 million in aid he sent to those countries in April. All told, these sums are meant “to encourage would-be migrants to stay home” by alleviating the issues that might compel people to come to the U.S., writes Tana Ganeva for Reason

That approach yields mixed results. In a 2019 policy paper, Michael A. Clemens of the Center for Global Development, and Hannah M. Postel, a Princeton University Ph.D. student, reported that “the evidence suggests that the capacity of development assistance to deter migration is small at best.” Further, they find that successful development in nearly all formerly poor countries has led to increased emigration. The Obama administration failed to effectively address root causes of Central American emigration with its aid-driven Alliance for Prosperity Plan, and by the end of the president’s tenure, he had deported around 3 million people—many of whom were from the Northern Triangle

Those findings cast doubt on Biden’s plan to send aid to nations to keep would-be migrants at home—an approach that would be costly and questionably effective, now that citizens of over 160 countries are arriving at the U.S.-Mexico border. 

In the long run, making immigration pathways easier to navigate could make streams of migration more predictable, which would help stem sudden influxes like the one currently challenging Biden. And given the changing face of immigration at the Southwest border, spot treatment via foreign aid cannot possibly be a solution. The Trump-era “zero tolerance” policy at the border is not the answer, but neither is Biden’s deterrence through development scheme. 

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Biden’s $6 Trillion Budget Plan Is Even More Expensive Than It Looks


sfphotosfour976156

There is little debate about what President Joe Biden’s recent budget proposal represents. The headline figures speak for themselves: $6 trillion in federal spending this year, rising to more than $8 trillion in a decade, with deficits totaling at least $1.3 trillion every year in the process. It’s a budget plan that The New York Times—in a news article, not an opinion piece—recently described as a call for “a permanent increase in the size of the federal footprint on the U.S. economy” and “an attempt to expand the size and scope of federal engagement in Americans’ daily lives.” 

Biden’s budget plan is a proposal, not a law, and it has not been passed by Congress. But it is a vision of America’s fiscal future in which a substantially expanded federal government is at the center of much of everyday life. And if anything, its vision is actually more expansive than the headline figures represent. 

That’s because Biden’s budget includes rhetorical support for a number of policies that it leaves out of its cost estimates. In particular, it expresses support for expanding Medicare, already among the most costly federal programs, by adding new benefits and expanding eligibility options to people as young as 60. 

It also calls for the creation of a “public option”—a government-run health plan that would be sold alongside regulated private insurance plans on the health insurance plans created under the Affordable Care Act, also known as Obamacare. 

Some reports have framed this move as Biden leaving out the public option, frustrating progressives who have long supported the creation of a government-run insurance plan. But while it’s true that neither the public option nor the expansion of Medicare are included in Biden’s budget estimates, I think this is not quite the right way to read the president’s budget.

It’s not that Biden left these health care expansions out of his budget. It’s that he included them—without detailing how they would work or how much they would cost. Biden’s budget is an attempt to push for these policies without having to wade into the sure-to-be-controversial policy mechanics or additional budgetary costs they would entail. 

Biden’s budget plan doesn’t just vaguely suggest that expanding Medicare and creating a public option might be nice. Instead, in a paragraph that opens with an explicit call for Congress “to take action this year to further strengthen health care” by “expanding and improving health coverage,” it declares that expanding Medicare, creating a public option, and a number of other health care policies are all part of “the President’s health care agenda.” 

The Biden administration said in advance of the budget’s release that several major health care initiatives had been postponed, and the budget wouldn’t “propose new initiatives,” and that’s true enough in some technical sense. 

But the clear expression of support means that these are, in effect, off-budget policies. But they would have a significant impact on both the budget and the delivery of health care services. Biden just won’t say what that impact would be. 

Biden’s reluctance to specify how either policy would work goes back to his campaign. As the Kaiser Family Foundation recently noted, Biden’s campaign proposal to let people aged 60–64 use Medicare leaves out many details: “Important policy design features have yet to be specified, including how it would be financed or administered.” Put a little more bluntly, there isn’t actually a plan here. But there is little doubt that adding millions of people to Medicare would increase total federal health care spending.  

Similarly, Biden has declined to provide much in the way of specifics for how a government-run health insurance plan might work. Some analyses in the past have suggested that a public option might reduce the deficit. But such analyses also assume that the public option, like Medicare, would pay health care providers much lower rates than private insurance. Yet paying lower rates inevitably threatens patient access to care, especially at rural hospitals that serve poorer populations. 

That helps explain why it’s been politically difficult to make such plans work: Several years ago, Democrats in Washington state attempted to set up a state-run public option with rates close to Medicare’s. It only passed after the rates came up. 

A recent paper by a trio of policy analysts at the Hoover Institution, meanwhile, found that depending on how it was implemented and which taxes were used to offset the cost of the program, a public option could end up becoming the third-largest federal program, and running an $800 billion deficit over its first decade in operation. And because Congress would have control over the health insurance premiums charged by a government-run plan, it’s easy to imagine that lawmakers would come under significant pressure to cap or otherwise limit increases to those premiums—offsetting the difference via additional taxes or deficit spending. 

The point is that all of this is contentious, and any actual plan would inevitably spark significant debate and opposition from a wide constellation of interests. But Biden didn’t want to have those debates or answer specific questions about his policies, so he tried to have it both ways, backing some major policy initiatives while pointedly declining to say how those initiatives would affect the budget. Which means that Biden’s expansive, expensive budget plan—his vision for the federal government’s fiscal future—is probably much more expansive and expensive than even the big headline numbers look. 

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AT&T Users Report “Widespread” Outages Across Baltimore–Washington Metro

AT&T Users Report “Widespread” Outages Across Baltimore–Washington Metro

Downdector users report AT&T service across the Baltimore–Washington metropolitan area is experiencing widespread outages.

Most of the outages and or issues appear to be with AT&T phone and internet service.

People are reporting AT&T outages are “widespread” in parts of Maryland. 

“There’s definitely a outage! I’m in Baltimore & same issue, constantly no service , dropping calls & dropping wifi calls to 611! I don’t know wtf is happening @ATTHelp @ATT,” someone tweeted

Another person said, “AT&T has had my phone jacked up all day… State wide outages? What the hell yall doing up there????” 

About an hour ago, local news WBAL-TV Baltimore said, “Hmmm, according to ATT, there are “no outages to report.”” 

Earlier today, we reported Apple Card was experiencing outages across the country. 

Tyler Durden
Wed, 06/02/2021 – 14:06

via ZeroHedge News https://ift.tt/3ca8h0o Tyler Durden

“The Correlation Is Broken”: JPMorgan Tells Clients To Buy Puts In These Tech Stocks

“The Correlation Is Broken”: JPMorgan Tells Clients To Buy Puts In These Tech Stocks

Last week, ahead of the massive Momentum ETF (MTUM) rebalance, we showed something remarkable: momentum stocks had undergone a complete Dr Jekyll to Mr Hyde transformation, and instead of correlating to growth, momentum was now purely a “risk on”, or value trade…

… which could be best seen in the collapse of growth-to-momentum correlation.

Needless to say, this transformation made life for analysts – who are really just glorified momentum chasers with some sophisticated-sounding narrative overlay – challenging, because after years of pitching momentum growth names, they now had to shift to value stocks as their preferred reco.

Nowhere was this more evident than in a research note from JPMorgan itself, which despite being the most bullish bank on Wall Street (certainly not to be confused with Morgan Stanley, whose chief equity strategist Mike Wilson yesterday said a 10-15% drop is coming in the next few months), is now taking a step back from its WallStreetBets-like enthhusiasm for risk, and telling clients to “Buy Puts in Tech Stocks Triggering Negative Momentum Signals“:

In the note, JPM quant strategist Shawn Quigg points to the chart of collapsing growth-to-momentum correlations shown above (and first discussed last week), and says that “the correlation of Growth and Momentum is broken, driven by a swift market re-allocation towards Value amid a view the economic reopening will drive inflation and interest rates higher, headwinds for stocks that benefit in deflationary environments such as Technology.”

To be sure, despite the recent rebound in the QQQs, JPM expects these headwinds to persist as the bank’s economists anticipate peak inflation occurring in April (last Friday’s PCE release). However, according to Quigg it will take until late June (e.g., May release), or later, to confirm the peak.

Here things get awkward within JPM itself, because while one quant strategist says to buy tech puts, the bank’s equity strategist is still overweight tech. How does Quigg resolve this apparent contradiction? Here’s how:

“While our U.S. equity strategist remains Overweight Technology, downside risks could remain for those stocks triggering negative momentum signals despite the NASDAQ 100 in a recent upswing.”

In other words, the bank argues that while tech stocks will still keep rising over the long run, they will drop in the short-term, as “momentum is broken”, and so having puts on is a way to capitalize on this drop. Why that is not sufficient to at least prompt a downgrade from Overweight to Neutral remains a very open question.

Anyway, back to Quigg who then says that he screens the NASDAQ 100 for stocks that are breaking, or are poised to break, below key momentum / technical signals that also carry cheap implied volatility for tactical trade ideas. He details the process below:

We use five short to intermediate term momentum and technical signals popular with quantitative investors (i.e., 1M, 2M, 3M momentum signals, and the 50d and 100d moving averages). We include only those option liquid (10M notional option volume over a 20d period) members of the NASDAQ 100 that are breaking, or are within +/-2.5% (beta adj.) of breaking, below three to five of these signals. We additionally screen for those stocks with cheap volatility via 2M implied volatility that ranks within the bottom quartile (i.e., 25th %-ile rank or lower) relative to the QQQ. Broadly, we find that nearly 30% of the QQQ are breaking, or are poised to break, three to five of these key technical levels. Comparatively, we are not witnessing nearly the same degree of technical breakage in the S&P 500 where only 15% are breaking below three to five of these technical levels, of which 42% of those are within the Information Technology and Communication Services sectors.

His advise: purchase July 95% strike puts on BIDU, PDD, SWKS, QCOM, OKTA, XLNX and/or TSLA, and visually:

Tyler Durden
Wed, 06/02/2021 – 14:01

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A Pennsylvania Police Chief Resigns After Pleading Guilty to Threatening a Facebook Critic With a False Arrest


Brian-Buglio-WNEP

A Pennsylvania police chief has resigned after admitting that he threatened to arrest a critic on trumped-up charges. West Hazleton Police Chief Brian Buglio, who had worked for the town’s police department since 1996, pleaded guilty to violating the critic’s First Amendment rights under color of law, a federal crime punishable by up to a year of imprisonment and a maximum fine of $100,000.

The U.S. Attorney’s Office for the Middle District of Pennsylvania, which charged Buglio last Friday, did not name his victim. But WNEP, the ABC station in Scranton, identified him as East Stroudsburg resident Paul DeLorenzo, who said his beef with Buglio began with Facebook posts last February. One post criticized Buglio for taking too long to make an arrest in a case involving DeLorenzo. Another post, WNEP says, “accused the chief of committing a violent crime.”

That’s when DeLorenzo heard from Buglio. “He called me, left me a voicemail, and said that he was going to arrest me for a crime that was being investigated for something I’ve never even done or had any part of,” DeLorenzo told WNEP. In March, Buglio summoned him to the police station, where DeLorenzo agreed to take down his posts under threat of arrest. “I said to Brian, ‘Why are you doing this?'” DeLorenzo recalled. “He goes, ‘Well, you like to post fake things and fake stories about me, so I could make up a fake arrest and put you in jail.'”

DeLorenzo reported the incident to the FBI office in Scranton, which conducted an investigation that led to the federal charge against Buglio. Federal prosecutors said Buglio admitted he knew there was no legal basis to arrest DeLorenzo. He agreed to plead guilty within a few days of being charged.

Buglio is hardly the first thin-skinned cop to treat irksome speech as a crime. As C.J. Ciaramella noted in April, Dickson, Tennessee, cops charged Joshua Grafton with “harassment” last January because he posted a picture on Facebook that “appeared to show two men urinating on the tombstone of Sgt. Daniel Baker, who was shot and killed on duty in 2018.” In March, Ciaramella cited a couple of other recent examples:

In 2019, an Iowa man won a lawsuit after he was charged with third-degree harassment for posting on Facebook that a sheriff’s deputy was a “stupid sum bitch” and “butthurt.” Just last month, the U.S. Court of Appeals for the 8th Circuit denied qualified immunity to a Minnesota police officer who pulled over and arrested a man for flipping her off.

Going further back, Liberty, New York, police arrested Willian Barboza in 2012 for scrawling “FUCK YOUR SHITTY TOWN BITCHES” on a speeding ticket when he paid the fine by mail. For good measure, Barboza crossed out Liberty in the phrase “Liberty Town Court” and replaced it with Tyranny. As if to prove his point, local cops charged him with “aggravated harassment in the second degree”—a charge that was ultimately dismissed by a municipal judge who concluded that Barboza’s commentary was protected by the First Amendment.

In 2011, police in Renton, Washington, used a trumped-up “cyberstalking” investigation to uncover the identity of “Mr. Fuddlesticks,” the creator of nine online cartoons that mocked the police department and alluded to various internal affairs investigations. They later changed their allegation to “harassment.”

I could go on, but you get the idea. Perhaps the ignominious end to Buglio’s policing career will help alert vindictive cops to the fact that inventing fake crimes in retaliation for constitutionally protected speech is an actual crime under federal law.

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A Pennsylvania Police Chief Resigns After Pleading Guilty to Threatening a Facebook Critic With a False Arrest


Brian-Buglio-WNEP

A Pennsylvania police chief has resigned after admitting that he threatened to arrest a critic on trumped-up charges. West Hazleton Police Chief Brian Buglio, who had worked for the town’s police department since 1996, pleaded guilty to violating the critic’s First Amendment rights under color of law, a federal crime punishable by up to a year of imprisonment and a maximum fine of $100,000.

The U.S. Attorney’s Office for the Middle District of Pennsylvania, which charged Buglio last Friday, did not name his victim. But WNEP, the ABC station in Scranton, identified him as East Stroudsburg resident Paul DeLorenzo, who said his beef with Buglio began with Facebook posts last February. One post criticized Buglio for taking too long to make an arrest in a case involving DeLorenzo. Another post, WNEP says, “accused the chief of committing a violent crime.”

That’s when DeLorenzo heard from Buglio. “He called me, left me a voicemail, and said that he was going to arrest me for a crime that was being investigated for something I’ve never even done or had any part of,” DeLorenzo told WNEP. In March, Buglio summoned him to the police station, where DeLorenzo agreed to take down his posts under threat of arrest. “I said to Brian, ‘Why are you doing this?'” DeLorenzo recalled. “He goes, ‘Well, you like to post fake things and fake stories about me, so I could make up a fake arrest and put you in jail.'”

DeLorenzo reported the incident to the FBI office in Scranton, which conducted an investigation that led to the federal charge against Buglio. Federal prosecutors said Buglio admitted he knew there was no legal basis to arrest DeLorenzo. He agreed to plead guilty within a few days of being charged.

Buglio is hardly the first thin-skinned cop to treat irksome speech as a crime. As C.J. Ciaramella noted in April, Dickson, Tennessee, cops charged Joshua Grafton with “harassment” last January because he posted a picture on Facebook that “appeared to show two men urinating on the tombstone of Sgt. Daniel Baker, who was shot and killed on duty in 2018.” In March, Ciaramella cited a couple of other recent examples:

In 2019, an Iowa man won a lawsuit after he was charged with third-degree harassment for posting on Facebook that a sheriff’s deputy was a “stupid sum bitch” and “butthurt.” Just last month, the U.S. Court of Appeals for the 8th Circuit denied qualified immunity to a Minnesota police officer who pulled over and arrested a man for flipping her off.

Going further back, Liberty, New York, police arrested Willian Barboza in 2012 for scrawling “FUCK YOUR SHITTY TOWN BITCHES” on a speeding ticket when he paid the fine by mail. For good measure, Barboza crossed out Liberty in the phrase “Liberty Town Court” and replaced it with Tyranny. As if to prove his point, local cops charged him with “aggravated harassment in the second degree”—a charge that was ultimately dismissed by a municipal judge who concluded that Barboza’s commentary was protected by the First Amendment.

In 2011, police in Renton, Washington, used a trumped-up “cyberstalking” investigation to uncover the identity of “Mr. Fuddlesticks,” the creator of nine online cartoons that mocked the police department and alluded to various internal affairs investigations. They later changed their allegation to “harassment.”

I could go on, but you get the idea. Perhaps the ignominious end to Buglio’s policing career will help alert vindictive cops to the fact that inventing fake crimes in retaliation for constitutionally protected speech is an actual crime under federal law.

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