Intel Shares Tumble, Erase YTD Gains On Weak Margins, EPS Guidance

Intel Shares Tumble, Erase YTD Gains On Weak Margins, EPS Guidance

Intel looked good out ofthe gate with a top- and bottom-line beat:

  • EPS: $1.09, adjusted, versus $0.91 expected

  • Revenue: $19.5 billion, adjusted, versus $18.31 billion expected

But, the chipmaker gave a disappointing forecast for profit in the current quarter, fueling concern that the cost of Chief Executive Officer Pat Gelsinger’s turnaround plan will weigh heavily on the chipmaker’s financial performance.

Intel CEO Pat Gelsinger:

“Q4 represented a great finish to a great year. We exceeded top-line quarterly guidance by over $1 billion and delivered the best quarterly and full-year revenue in the company’s history. Our disciplined focus on execution across technology development, manufacturing, and our traditional and emerging businesses is reflected in our results. We remain committed to driving long-term, sustainable growth as we relentlessly execute our IDM 2.0 strategy.”

Gelsinger has made it clear that the company is in “investment mode,” rather than prioritizing short-term financial metrics.

Intel did raise its Q1 revenue outlook to $18.3 billion, well above the $17.67 billion consensus estimate.

However, the tech giant cut it EPS guidance for Q1 to 80c, well below the 86c consensus estimate.

Additionally, Intel’s memory business is down 18% YoY to $1 billion, slightly missing estimates.

The IOT business brought in 1.06 billion, missing estimates of $1.07 billion.

MobileEye brought in $356 million, missing estimates of $366.6 million.

And finally, Intel is reporting Q4 gross margins of 55.4%, down about 5% year over year.

Putting all that together and investors were better sellers, sending INTC shares down 4% after hours, erasing all YTD gains, and pushing it to its lowest since mid-December…

Of course, if MSFT was anything to go by last night, INTC will explode higher the moment the earnings call begins.

 

 

Tyler Durden
Wed, 01/26/2022 – 16:15

via ZeroHedge News https://ift.tt/3r42ql6 Tyler Durden

Corey DeAngelis: 2021 Was “the Year of School Choice,” But 2022 Will Be Even Better


maskedstudents

2021 was “the year of school choice, and we’re just getting started,” says Corey DeAngelis, national director of research at the American Federation for Children and a leading advocate for school choice.

The disruption to schooling caused by COVID-19, demands by teacher unions for more money and less accountability, and the mounting frustration of parents over everything from failed attempts at distance learning to medically dubious mask mandates have created the greatest opportunity for radical K-12 education reform in American history. Last year, 18 states either expanded or created new school-choice options, from publicly funded charter schools to education savings accounts to voucher programs. The percentage of households saying they are homeschooling their kids more than doubled from 5.4 percent in 2020 to 11.1 percent in 2021.

I talked with DeAngelis about what reforms have already been passed, what fixes are coming next, and what barriers need to be smashed in order to deliver on the promise of a quality, individualized education for every kid in the country. We discussed why he is against state-level laws banning Critical Race Theory (CRT) and other controversial pedagogies, why he believes Republicans are the party of school choice, and why he thinks parents should lobby state legislatures rather than local school boards if they want real choice for their kids.

This episode is supported by The Long Time Academy, a new podcast about how to be a good ancestor. It’s a show about time, and how we think about time. The Long Time Academy is an audio documentary, but it also includes with practical exercises designed to expand your sense of time and help you be a good ancestor. Search for The Long Time Academy anywhere you listen to podcasts. Life is short. Time is long. The Long Time Academy.

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Corey DeAngelis: 2021 Was “the Year of School Choice,” But 2022 Will Be Even Better


maskedstudents

2021 was “the year of school choice, and we’re just getting started,” says Corey DeAngelis, national director of research at the American Federation for Children and a leading advocate for school choice.

The disruption to schooling caused by COVID-19, demands by teacher unions for more money and less accountability, and the mounting frustration of parents over everything from failed attempts at distance learning to medically dubious mask mandates have created the greatest opportunity for radical K-12 education reform in American history. Last year, 18 states either expanded or created new school-choice options, from publicly funded charter schools to education savings accounts to voucher programs. The percentage of households saying they are homeschooling their kids more than doubled from 5.4 percent in 2020 to 11.1 percent in 2021.

I talked with DeAngelis about what reforms have already been passed, what fixes are coming next, and what barriers need to be smashed in order to deliver on the promise of a quality, individualized education for every kid in the country. We discussed why he is against state-level laws banning Critical Race Theory (CRT) and other controversial pedagogies, why he believes Republicans are the party of school choice, and why he thinks parents should lobby state legislatures rather than local school boards if they want real choice for their kids.

This episode is supported by The Long Time Academy, a new podcast about how to be a good ancestor. It’s a show about time, and how we think about time. The Long Time Academy is an audio documentary, but it also includes with practical exercises designed to expand your sense of time and help you be a good ancestor. Search for The Long Time Academy anywhere you listen to podcasts. Life is short. Time is long. The Long Time Academy.

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More on Amy Wax and Penn Law School

I have an op-ed in the Philadelphia Inquirer on the controversy surrounding Professor Amy Wax at the University of Pennsylvania Law School. You can see more about the current controversy here.

My focus on the op-ed is on whether there is or should be a hate speech exception to academic freedom and tenure protections. Many of those who were calling for Penn to fire Wax for her comments on the Glenn Loury podcast have been arguing that hate speech is unprotected. This claim seems as misguided in this context as it is in the larger First Amendment context. As I note there:

It is not hard to weaponize a hate speech exception to academic freedom in order to drive out professors with unpopular views. One student complained that professor Wax should be sanctioned for making students feel “uncomfortable” and “unheard,” and a student petition called for tenure rules to be modified to ensure that tenured professors must follow “principles of social equity.” But such claims can be multiplied endlessly. In 2020, College Republicans announced that it felt unwelcome on campus because of a history professor’s anti-MAGA social media posts. Sponsors of measures that oppose critical race theory justify them, in part, by arguing that professors who teach critical race theory are creating a hostile educational environment for white students. If academic freedom principles are changed to escort professor Wax out the door, she will not be the only one to find herself out on the street.

Read the whole thing here.

As a bonus, the editors at the Inquirer wanted a contrasting position to pair with mine, and they used a piece from a third-year Penn law student, Apratim Vidyarthi. That piece, arguing that Wax can no longer perform her duties on the faculty, can be found here as well. Vidyarthi is willing to bite the bullet and argue that “We already draw a line as to what speech is acceptable,” though interestingly the examples offered for when speech is obviously over the line and would lead to a professor being fired are in fact examples that are clearly protected under traditional academic freedom principles. Professors who deny the Holocaust have been protected by those principles, so long as they are expressing such views in their private capacity in the form of extramural speech and are not teaching, for example, twentieth-century European history or holding themselves out as a scholarly expert on the Holocaust.

Also on the Amy Wax front, the Business Insider has a report on allegations relating to Wax’s behavior on campus involving students in and out of the classroom. Those allegations are an entirely different matter. If proven true, Wax would be in a much more vulnerable position and could not easily seek shelter under academic freedom protections. Penn would do well to make very clear that its announced investigation will not be focused on her protected extramural speech but rather on her on-the-job conduct. Penn should investigate such allegations carefully and in good faith, and Wax should have ample opportunity to defend herself against such charges.

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Biden Administration Withdraws Business Vaccine Mandate After Losing Supreme Court Case


Banprotest_1161x653

The Biden administration today withdrew its mandate requiring workers from large companies to get vaccinated for COVID-19 or regularly tested, following a Supreme Court loss earlier this month. 

Because of the court’s ruling in National Federation of Independent Businesses vs. OSHA, an emergency temporary standard (ETS) the administration put into place can no longer be enforced.

The vaccination mandate has caused controversy in part because an ETS can circumvent the traditional democratic rulemaking process and even act as a proposal for more permanent standards, bypassing Congress’ lawmaking powers. 

Fearing this temporary regulation may become permanent, many private businesses, Republican states, and religious groups threw dozens of lawsuits at the Occupational Safety and Health Administration (OSHA). Now, OSHA will ask the U.S. Sixth Circuit Court of Appeals to dismiss cases related to their mandate. 

The mandate would have applied to over 80 million employees.

OSHA still says it will continue to evaluate the vaccine rule as it monitors the course of the pandemic, but this is amounts to an empty threat. The Supreme Court’s ruling was about the breadth of the mandate and whether OSHA had such power, not how the rule was implemented. Even following the normal rule-making process, a new vaccine and testing mandate would likely not make it past the courts. 

From the time of OSHA’s inception, the agency never required employers to make vaccination mandatory, a safety measure that would extend beyond the workplace. Moreover, OSHA typically requires employers to pay for workplace safety measures, not employees. The vaccination mandate turned this concept on its head, with workers now bearing the burden of either vaccines or testing—something the court said is not within OSHA’s power. 

Justice Neil Gorsuch stated in his concurring opinion that the court’s decision was about who has the power to respond to the pandemic, not how it should be handled. 

With the Supreme Court’s decision and the mandate withdrawal, the Labor Department now states it “continues to strongly encourage the vaccination of workers against the continuing dangers posed by COVID-19 in the workplace.”

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What Homeschoolers Knew Before Everyone Else


Since the COVID-19 pandemic began, school kids across the country have suffered—not much from the disease itself, but from three school years that have been interrupted by pandemic mitigation measures. Though in-person public schools have suffered, home-based educational alternatives have thrived.

The families of nearly 2.6 million kids have turned to homeschooling since the pandemic began. The homeschooler population is almost double what it was before the pandemic, with 11 percent of American households now homeschooling their kids. Charter school enrollment also boomed, and home-based virtual institutions drove much of that growth in many states.

Long before the pandemic, millions of students were completing their education at home. I became one of them in 2005. From kindergarten through 10th grade, I attended a virtual charter school in Pennsylvania. I completed readings, assignments, and exams with the help of my mother at first, and independently later on. After a final two years as a traditionally homeschooled student in Utah, I finished high school having never set foot in a brick-and-mortar school.

This educational journey was far less common in the pre-pandemic years, partly due to strict regulation of alternative schooling and partly due to the perception that these options were inferior to public brick-and-mortar education. But now that an entire nation’s worth of students has been forced to experience nontraditional education, families and lawmakers are beginning to see the benefits that have always existed outside the traditional public school system.

The journey to acceptance has been a lengthy one. Homeschooling was once extremely rare, and not even legal in all 50 states until 1993.

After legalizing the practice, states enacted their own regulations for home-based education. By 2015, more than half required education in certain subjects. Twenty-three states had attendance requirements, while 13 required homeschooling parents to have certain qualifications. Kids in 24 states weren’t legally permitted to participate in extracurricular activities at their local public schools or attend those schools part time. Others required (and still require) annual achievement tests, portfolio reviews from school system representatives, and detailed attendance records. New York, which has some of the strictest homeschooling laws, dictates that a “home instruction program will be put on probation and the parent must submit a remediation plan” if “a child’s annual assessment does not comply” with state regulations.

Even so, at times different states have sought greater involvement in how parents teach their children. An unsuccessful 2004 bill in Montana would’ve banned parents from homeschooling kids with developmental disabilities. In March 2008, California ruled that parents without teaching credentials couldn’t educate their kids at home. Though reversed a few months later, the ruling put the parents of an estimated 166,000 children at risk of prosecution (as their children would have been deemed truants). Virtual home-based programs have been under fire since their launch, too—including in my home state of Pennsylvania, where a state representative in 2019 introduced a bill that would’ve required all cyber charter schools to cease operations.

But perceptions changed when COVID-19 hit and school districts sent kids home. Parents began to realize that home education is often the right fit for kids with special needs and disabilities, those who have concerns about bullying or systemic racism, or those who take issue with one-size-fits-all instruction. (Not to mention the extreme learning loss caused by pandemic-era schooling.) In June 2021, the Department of Education reported that public school enrollment “fell by its largest margin in at least two decades.” Public schools lost 1.4 million students.

Every student, to some degree, experienced home-based education—and the ones who stuck with it didn’t always fit the stereotypical mold of homeschooled students. Between April and October 2020, the percentage of black families homeschooling their kids had jumped from 3 percent to 16 percent. The percentage of homeschooling Hispanic families nearly doubled.

Families are voting with their feet, and lawmakers are paying attention. Last April, the National Conference of State Legislatures reported that at least 19 state legislatures saw bills that would roll back homeschooling regulations. Nearly half of all states had considered legislation that would launch or broaden education savings account programs, through which parents may withdraw kids from public schools and receive a deposit of public funds to use on alternative programs. Colorado, Virginia, New York, and New Jersey had all seen legislation introduced on tax credits for homeschooling families. Lawmakers in other states have put forth bills that would allow homeschoolers to participate in local public schools’ athletic programs and extracurricular activities, take Advanced Placement and college entrance exams at district brick-and-mortar schools, and access scholarship programs at in-state colleges.

These reforms are overdue and could tip the scales for families considering home-based education. Homeschooling made me an entrepreneurial learner and enabled me to pursue educational opportunities outside the four walls of a classroom. I scored well on standardized tests and was accepted to most of the four-year universities I applied to. I graduated college summa cum laude, even though I entered with no high school diploma. Lawmakers should make that path more accessible, not less.

I’m not an anomaly, despite skeptics like Harvard law professor Elizabeth Bartholet claiming that “we have zero evidence that, on average, homeschooled students are doing well.” Students educated at home “typically score 15 to 30 percentile points above public-school students on standardized academic achievement tests,” according to the National Home Education Research Institute. Over three-quarters of peer-reviewed studies on academic outcomes show that homeschooled students “perform statistically significantly better than those in institutional schools.” Recognizing their unique backgrounds, many top U.S. universities actively recruit homeschoolers—including Harvard.

The U.S. became a nation of involuntary home-learners during the pandemic. Predictably, this approach didn’t suit everyone—homeschooling never has. But more families than ever before have seen the benefits of alternative, home-based education. Once-controversial instructional methods are finally entering the mainstream.

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More on Amy Wax and Penn Law School

I have an op-ed in the Philadelphia Inquirer on the controversy surrounding Professor Amy Wax at the University of Pennsylvania Law School. You can see more about the current controversy here.

My focus on the op-ed is on whether there is or should be a hate speech exception to academic freedom and tenure protections. Many of those who were calling for Penn to fire Wax for her comments on the Glenn Loury podcast have been arguing that hate speech is unprotected. This claim seems as misguided in this context as it is in the larger First Amendment context. As I note there:

It is not hard to weaponize a hate speech exception to academic freedom in order to drive out professors with unpopular views. One student complained that professor Wax should be sanctioned for making students feel “uncomfortable” and “unheard,” and a student petition called for tenure rules to be modified to ensure that tenured professors must follow “principles of social equity.” But such claims can be multiplied endlessly. In 2020, College Republicans announced that it felt unwelcome on campus because of a history professor’s anti-MAGA social media posts. Sponsors of measures that oppose critical race theory justify them, in part, by arguing that professors who teach critical race theory are creating a hostile educational environment for white students. If academic freedom principles are changed to escort professor Wax out the door, she will not be the only one to find herself out on the street.

Read the whole thing here.

As a bonus, the editors at the Inquirer wanted a contrasting position to pair with mine, and they used a piece from a third-year Penn law student, Apratim Vidyarthi. That piece, arguing that Wax can no longer perform her duties on the faculty, can be found here as well. Vidyarthi is willing to bite the bullet and argue that “We already draw a line as to what speech is acceptable,” though interestingly the examples offered for when speech is obviously over the line and would lead to a professor being fired are in fact examples that are clearly protected under traditional academic freedom principles. Professors who deny the Holocaust have been protected by those principles, so long as they are expressing such views in their private capacity in the form of extramural speech and are not teaching, for example, twentieth-century European history or holding themselves out as a scholarly expert on the Holocaust.

Also on the Amy Wax front, the Business Insider has a report on allegations relating to Wax’s behavior on campus involving students in and out of the classroom. Those allegations are an entirely different matter. If proven true, Wax would be in a much more vulnerable position and could not easily seek shelter under academic freedom protections. Penn would do well to make very clear that its announced investigation will not be focused on her protected extramural speech but rather on her on-the-job conduct. Penn should investigate such allegations carefully and in good faith, and Wax should have ample opportunity to defend herself against such charges.

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Biden Administration Withdraws Business Vaccine Mandate After Losing Supreme Court Case


Banprotest_1161x653

The Biden administration today withdrew its mandate requiring workers from large companies to get vaccinated for COVID-19 or regularly tested, following a Supreme Court loss earlier this month. 

Because of the court’s ruling in National Federation of Independent Businesses vs. OSHA, an emergency temporary standard (ETS) the administration put into place can no longer be enforced.

The vaccination mandate has caused controversy in part because an ETS can circumvent the traditional democratic rulemaking process and even act as a proposal for more permanent standards, bypassing Congress’ lawmaking powers. 

Fearing this temporary regulation may become permanent, many private businesses, Republican states, and religious groups threw dozens of lawsuits at the Occupational Safety and Health Administration (OSHA). Now, OSHA will ask the U.S. Sixth Circuit Court of Appeals to dismiss cases related to their mandate. 

The mandate would have applied to over 80 million employees.

OSHA still says it will continue to evaluate the vaccine rule as it monitors the course of the pandemic, but this is amounts to an empty threat. The Supreme Court’s ruling was about the breadth of the mandate and whether OSHA had such power, not how the rule was implemented. Even following the normal rule-making process, a new vaccine and testing mandate would likely not make it past the courts. 

From the time of OSHA’s inception, the agency never required employers to make vaccination mandatory, a safety measure that would extend beyond the workplace. Moreover, OSHA typically requires employers to pay for workplace safety measures, not employees. The vaccination mandate turned this concept on its head, with workers now bearing the burden of either vaccines or testing—something the court said is not within OSHA’s power. 

Justice Neil Gorsuch stated in his concurring opinion that the court’s decision was about who has the power to respond to the pandemic, not how it should be handled. 

With the Supreme Court’s decision and the mandate withdrawal, the Labor Department now states it “continues to strongly encourage the vaccination of workers against the continuing dangers posed by COVID-19 in the workplace.”

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Stocks & Bonds Puke As Powell Hints At “Sooner, Faster” QT

Stocks & Bonds Puke As Powell Hints At “Sooner, Faster” QT

It started off well enough: milliseconds after the Fed statement and associated Fed balance sheet “principles” were released, algos quickly skimmed the key bullet points before they realized that there were no landmines in the statement: indeed, all the biggest hawkish fears had been defused with the Fed not announcing an early end to tapering, an early start to rate hikes and certainly nothing on the fears 50bps rate hike.

Drilling into the statement, the Committee announced the final two reductions in the amount of their monthly asset purchases, which will bring purchases to an end in “early March” and the Committee now expects that it will “soon be appropriate” to raise the funds rate – which will almost certainly happen at the next FOMC meeting in March—and updated the statement to note that inflation is “well above” the FOMC’s two percent target (previously characterized as “having exceeded 2 percent for some time”) and that the labor market is “strong,” dropping the judgment that the economy is short of full employment.

Separately, the Committee released a new set of normalization principles for reducing the size of the Fed’s balance sheet. The principles state that balance sheet reduction will start “after the process of increasing the target range for the federal funds rate has begun,” implying that the Committee may decide to start normalization at any meeting after March. This contrasts with the previous cycle’s normalization principles, which stated that balance sheet reduction would begin “once normalization of the level of the federal funds rate is well under way.” While the Committee did not specify a pace for normalization, the principles note that the Committee intends to reduce the size of the balance sheet “primarily by adjusting the amounts reinvested of principal payments,” suggesting that active asset sales are unlikely as part of balance sheet reduction. The Committee also noted that it “intends to hold primarily Treasury securities” in its balance sheet over time.

So far so good, because there was nothing here that the market did not anticipate or had priced in.

And then Powell started talking… and all hell broke loose, as stocks, bonds, and gold all tumbled post-Fed as the dollar rallied.

So what exactly did Powell say to upset the algos so much?

Well, a few things, starting with Biden’s admission that the Fed is launching the most historic tightening cycle with virtually zero visibility, when he said “the outlook is quite uncertain.”

Paradoxically, when it comes to the pace of rate increases, Powell was non-committal… which is not hawkish on its own. But as Bloomberg notes, the market may struggle on how to interpret that as the presumed pace is once a quarter. It could leave the door open to a more aggressive path than currently projected. But it could imply a readiness to pull back if downside risks were suddenly realized.

That said, Powell apparently did have enough visibility to provide soft guidance: asked whether rate increases can undercut inflation without harming the labor market, Powell was optimistic, and issued a comment that immediately took the wind out of equity markets’ sails by signaling, inadvertently or not, a more lengthy tightening cycle than expected: “I think there’s quite a bit of room to raise interest rates without without threatening the labor market.”

Powell continued his double-speak…

“Economy no longer needs sustained high levels of monetary support.”

BUT…

“Of course, the economic outlook remains highly uncertain.”

But the final straw was when Powell admitted that the Fed is “willing to move sooner” and “perhaps faster” than last time in shrinking the balance sheet. adding that “we want the balance sheet to be declining in a predictable manner,” by adjusting the reinvestment of maturing debt, to try to clam the panic.

But that didn’t help as stocks all puked into the red for the day (and week), only to bounce the moment Powell stopped speaking…

And yes, we have another historic milestone: the S&P 500 erased a 2% advance for first time since April 2020 and was down 0.3% at the close. The Nasdaq managed to desperately scramble back to unchanged on the day…

This was the market’s worst performance on an FOMC day in at least a year…

Source: Bloomberg

In his post-mortem of Powell’s presser, Bloomberg’s Intelligence economist Carl Riccadonna said the market reaction to the presser (particularly the move in the short end of the yield curve) seems to hinge on signaling from Powell that they’re going to do more on the interest-rate front initially, especially since Powell said that the committee has not yet gelled around the plan for balance-sheet runoff.

Echoing this sentiment, Alex Chaloff, co-head of investment strategies at Bernstein Private Wealth Management, notes that a hawkish sounding Powell is the driver for the selloff, and identifies this remark from the Fed chair as setting the tone: “I think there is plenty of room to raise rates without threatening the labor market.” Chaloff concludes: “That’s bold for someone as careful as Powell.”

Others were even more critical: Jason Brady, president and CEO at Thornburg Investment Management, said that “many commentators have made the point that the Fed does not want to ‘surprise’ markets. I think that is simultaneously true and regrettable. It is precisely in giving markets what they want in the near term that the Fed has painted itself into a corner.”

Of course, it is possible that Powell was merely clueless instead of telegraphing to the market what it will do. This is certainly possibly considering that financial conditions have tightened materially since the Fed’s hawkish pivot last November – with much of the Nasdaq (and S&P) now in a bear market –  and this is surely factoring into policymakers’ assessment of the appropriate pace of normalization.

Indeed, as Bloomberg put it, “A predictable normalization path should help engineer an easy landing, but if financial conditions tighten too sharply between now and then, particularly in the credit markets, the Fed risks inducing a sharper economic slowdown than they may deem desirable.”

But for now algos are selling first, and asking questions later as the dismal market reaction to Powell’s presser confirms, which manifests itself not only in the puke in risk assets which have wiped out all intraday gains and are now down on the day, but also in the far more ominous, and recession pre-signaling collapse in the yield curve.

Bonds were a bloodbath with the short-end dramatically underperforming…

Source: Bloomberg

This was the biggest jump in 2Y Yields since March 2020…

Source: Bloomberg

Rate-hike expectations rose modestly at the shortest-end (March fully priced in), but for Dec 2022, rate-hike expectations rose significantly with a 50% chance of a 5th hike this year now…

Source: Bloomberg

The yield curve flattened significantly – some might it collapsed – to its flattest since April 2020…This is screaming a Fed policy error is imminent.

Source: Bloomberg

The dollar surged above yesterday’s highs, back near its highest level of the year…

Source: Bloomberg

Bitcoin pumped and dumped after The Fed, reaching $39k before dumping back below $37k…

Source: Bloomberg

Gold was clubbed like a baby seal as the dollar ripped…

Oil prices remain higher, despite weakness post-Fed as geopolitical tensions dominated. WTI made it back above $87 intraday – its highest since Oct 2014…

Finally, we note that a crashing stock market will probably not help the situation in this chart…

Source: Bloomberg

Additionally, Bloomberg’s Ye Xie raised the specter of Powell’s rookie mistake in 2018… Back then, his hawkish comment that Fed policy needs to “go past neutral,” and “we’re a long way from neutral at this point, probably” caused market turmoil. Well, this comment today is likely to have taken the euphoria out of the stock market:

“I think there’s quite a bit of room to raise interest rates without without threatening the labor market.”

That’s certainly wasn’t music to ears of stock investors then and likely won’t be now either.

Source: Bloomberg

Time to unleash the FedSpeak!

Tyler Durden
Wed, 01/26/2022 – 16:01

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

What Homeschoolers Knew Before Everyone Else


Since the COVID-19 pandemic began, school kids across the country have suffered—not much from the disease itself, but from three school years that have been interrupted by pandemic mitigation measures. Though in-person public schools have suffered, home-based educational alternatives have thrived.

The families of nearly 2.6 million kids have turned to homeschooling since the pandemic began. The homeschooler population is almost double what it was before the pandemic, with 11 percent of American households now homeschooling their kids. Charter school enrollment also boomed, and home-based virtual institutions drove much of that growth in many states.

Long before the pandemic, millions of students were completing their education at home. I became one of them in 2005. From kindergarten through 10th grade, I attended a virtual charter school in Pennsylvania. I completed readings, assignments, and exams with the help of my mother at first, and independently later on. After a final two years as a traditionally homeschooled student in Utah, I finished high school having never set foot in a brick-and-mortar school.

This educational journey was far less common in the pre-pandemic years, partly due to strict regulation of alternative schooling and partly due to the perception that these options were inferior to public brick-and-mortar education. But now that an entire nation’s worth of students has been forced to experience nontraditional education, families and lawmakers are beginning to see the benefits that have always existed outside the traditional public school system.

The journey to acceptance has been a lengthy one. Homeschooling was once extremely rare, and not even legal in all 50 states until 1993.

After legalizing the practice, states enacted their own regulations for home-based education. By 2015, more than half required education in certain subjects. Twenty-three states had attendance requirements, while 13 required homeschooling parents to have certain qualifications. Kids in 24 states weren’t legally permitted to participate in extracurricular activities at their local public schools or attend those schools part time. Others required (and still require) annual achievement tests, portfolio reviews from school system representatives, and detailed attendance records. New York, which has some of the strictest homeschooling laws, dictates that a “home instruction program will be put on probation and the parent must submit a remediation plan” if “a child’s annual assessment does not comply” with state regulations.

Even so, at times different states have sought greater involvement in how parents teach their children. An unsuccessful 2004 bill in Montana would’ve banned parents from homeschooling kids with developmental disabilities. In March 2008, California ruled that parents without teaching credentials couldn’t educate their kids at home. Though reversed a few months later, the ruling put the parents of an estimated 166,000 children at risk of prosecution (as their children would have been deemed truants). Virtual home-based programs have been under fire since their launch, too—including in my home state of Pennsylvania, where a state representative in 2019 introduced a bill that would’ve required all cyber charter schools to cease operations.

But perceptions changed when COVID-19 hit and school districts sent kids home. Parents began to realize that home education is often the right fit for kids with special needs and disabilities, those who have concerns about bullying or systemic racism, or those who take issue with one-size-fits-all instruction. (Not to mention the extreme learning loss caused by pandemic-era schooling.) In June 2021, the Department of Education reported that public school enrollment “fell by its largest margin in at least two decades.” Public schools lost 1.4 million students.

Every student, to some degree, experienced home-based education—and the ones who stuck with it didn’t always fit the stereotypical mold of homeschooled students. Between April and October 2020, the percentage of black families homeschooling their kids had jumped from 3 percent to 16 percent. The percentage of homeschooling Hispanic families nearly doubled.

Families are voting with their feet, and lawmakers are paying attention. Last April, the National Conference of State Legislatures reported that at least 19 state legislatures saw bills that would roll back homeschooling regulations. Nearly half of all states had considered legislation that would launch or broaden education savings account programs, through which parents may withdraw kids from public schools and receive a deposit of public funds to use on alternative programs. Colorado, Virginia, New York, and New Jersey had all seen legislation introduced on tax credits for homeschooling families. Lawmakers in other states have put forth bills that would allow homeschoolers to participate in local public schools’ athletic programs and extracurricular activities, take Advanced Placement and college entrance exams at district brick-and-mortar schools, and access scholarship programs at in-state colleges.

These reforms are overdue and could tip the scales for families considering home-based education. Homeschooling made me an entrepreneurial learner and enabled me to pursue educational opportunities outside the four walls of a classroom. I scored well on standardized tests and was accepted to most of the four-year universities I applied to. I graduated college summa cum laude, even though I entered with no high school diploma. Lawmakers should make that path more accessible, not less.

I’m not an anomaly, despite skeptics like Harvard law professor Elizabeth Bartholet claiming that “we have zero evidence that, on average, homeschooled students are doing well.” Students educated at home “typically score 15 to 30 percentile points above public-school students on standardized academic achievement tests,” according to the National Home Education Research Institute. Over three-quarters of peer-reviewed studies on academic outcomes show that homeschooled students “perform statistically significantly better than those in institutional schools.” Recognizing their unique backgrounds, many top U.S. universities actively recruit homeschoolers—including Harvard.

The U.S. became a nation of involuntary home-learners during the pandemic. Predictably, this approach didn’t suit everyone—homeschooling never has. But more families than ever before have seen the benefits of alternative, home-based education. Once-controversial instructional methods are finally entering the mainstream.

The post What Homeschoolers Knew Before Everyone Else appeared first on Reason.com.

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