UPS Teamsters Warn: “Nationwide Strike Imminent” If Friday Deadline Not Met

UPS Teamsters Warn: “Nationwide Strike Imminent” If Friday Deadline Not Met

The Teamsters Union, with hundreds of thousands of members who are United Parcel Service (UPS) drivers, “walked away from the national bargaining table” and demanded that the shipping giant deliver its “last, best, and final offer” by Friday.

“The largest single-employer strike in American history now appears inevitable,” Teamsters General President Sean O’Brien said in a statement.

“Executives at UPS, some of whom get tens of millions of dollars a year, do not care about the hundreds of thousands of American workers who make this company run,” O’Brien said.

UPS Teamsters have 340,000 members. The union has been locked in negotiations with UPS since mid-April. Earlier this month, it called a strike in the event the company refuses to negotiate a fair agreement before the current five-year contract expires on July 31. 

UPS has quite a problem on its hands. The company delivers 20 million packages daily in the US alone – making it the second-largest ground courier behind the US Postal Service.

“With a deadline of Friday to return a last, best, and final offer, UPS risks putting itself on strike by August 1 and causing devastating disruptions to the supply chain in the US and other parts of the world,” the union said. 

None of this should surprise readers, as we detailed at the start of the year, “It’s Going To Be Spicy”: UPS Faces Upcoming Union Fight, Spike In Labor Costs.

“We have an economy today that is reliant on parcel delivery and no one in the game handles more packages per day or provides better service than Teamsters at UPS,” the union continued. 

With an economy addicted to e-commerce and package delivery, a strike would unleash a devastating economic hit. 

Tyler Durden
Thu, 06/29/2023 – 14:20

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Experts Reveal ‘Major Shortcomings’ With FDA Analysis Of Safety Outcomes In COVID-19 Vaccinated Recipients

Experts Reveal ‘Major Shortcomings’ With FDA Analysis Of Safety Outcomes In COVID-19 Vaccinated Recipients

Authored by Megan Redshaw J.D. via The Epoch Times (emphasis ours),

The U.S. government’s safety surveillance system monitoring COVID-19 vaccine adverse events is “woefully inadequate” and may be missing safety signals, according to researchers who say the U.S. Food and Drug Administration (FDA) made multiple decisions to ensure its first published analysis only identified known safety signals.

In a peer-reviewed letter published June 16 in the journal Vaccine, a team of experts revealed “major shortcomings” with the FDA’s near real-time surveillance study assessing outcomes in U.S. COVID-19 vaccine recipients.

Dr. Joseph Fraiman, an emergency room physician associated with the Baromedical Research Institute in New Orleans, and his co-authors raise serious concerns about whether the surveillance system is fit for its purpose and how the FDA performed its analysis.

“The FDA has repeatedly stated that it is conducting intensive, historically unprecedented monitoring of COVID-19 vaccine safety and that the only serious harms associated with mRNA COVID-19 vaccines are anaphylaxis, myocarditis, and pericarditis,” the researchers said in an email to The Epoch Times. “However, in our letter, we detail why the U.S. government’s safety surveillance system is woefully inadequate and, as a result, potentially missing safety signals.”

In its first-ever surveillance analysis published Oct. 26, 2022, in Vaccine, the FDA assessed 17 adverse outcomes following COVID-19 vaccination with Pfizer, Moderna, and Johnson & Johnson’s vaccines and concluded 15 outcomes did not meet the threshold for a statistical signal.

The FDA based its analysis on medical and pharmacy claims data of 16 million vaccinated individuals aged 12 to 64 from Optum, HealthCore, and CVS Health using their Biologics Effectiveness and Safety (BEST) System—an active post-marketing surveillance program to ensure the safety and effectiveness of biologic products, including vaccines.

The FDA concluded myocarditis and pericarditis met the requirements to trigger an early detection safety signal for Pfizer’s COVID-19 vaccine in two of three large commercial insurance databases assessed, while anaphylaxis met the statistical threshold for Pfizer and Moderna vaccines in all three databases.

The agency did not detect any other adverse outcomes, including those previously acknowledged. Their results, the FDA said, were “consistent with published literature.”

FDA Analysis ‘Not Sensitive Enough’ to Detect Safety Signals

In the letter to the editor, researchers said the FDA only identified COVID-19 vaccine safety signals for already established adverse events, and the analysis was not sensitive enough to detect safety signals for some known adverse events, such as myocarditis.

Myocarditis is inflammation of the heart muscle that can lead to cardiac arrhythmia and death. The heart condition is a recognized side effect of the mRNA COVID-19 vaccines, according to previous research and medical examiners. Yet the FDA did not detect myocarditis for Moderna’s COVID-19 vaccine in any data source and only detected it with Pfizer’s vaccine in two of three sources.

“This raises serious concerns about whether the surveillance system is fit for its purpose,” the researchers wrote. “Another major concern is the FDA’s approach towards false positives.”

The study also “failed to identify a single new positive despite running several hundred different analyses,” suggesting the system is “too strongly weighted toward avoiding false positives and will too easily miss true positives,” they added. “The FDA made multiple decisions to ensure their surveillance did not identify false positives at the expense of sacrificing the ability to identify true positives.”

According to the letter, safety surveillance systems should be optimized for high sensitivity—erring on the side of caution—to ensure real safety problems are not missed. A highly sensitive approach will result in some false positives, but upon further study, can quickly be identified as a true positive or false positive.

“In contrast, because fewer associations are identified at the surveillance stage, fewer associations will result in further study, and more true associations will be missed,” the researchers wrote.

FDA Used Test Margin to Minimize Risks and Reduce Harms

Experts also raised concerns the FDA used a test margin for its analysis for each adverse event of special interest based on “expert guidance to avoid minimal risk increases that were ‘unlikely to be clinically relevant.’” Yet the agency did not provide details concerning how or which experts determined whether a risk was “minimal” or “unlikely” to be clinically relevant.

“Given a vaccine administered to billions, we are concerned that even minimal risk increases would imply harm to thousands, or perhaps millions, of younger people, many of whom may be at low risk of serious complications from coronavirus infection,” they wrote.

Tyler Durden
Thu, 06/29/2023 – 14:00

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The Coup That Never Was: The Supreme Court Rebuffs ‘Power Grab’ Theory

The Coup That Never Was: The Supreme Court Rebuffs ‘Power Grab’ Theory

Authored by Jonathan Turley,

Below is my column in the Hill on the ruling this week in Moore v. Harper — and the coup that never happened. After months of dire predictions of a coup in the making, the Court overwhelmingly rejected the underlying “independent state legislature,” as some of us predicted. There was little discussion of the prior hysteria or attacks on the integrity of the conservative justices. Political and media pundits will simply move on to the next jump scare item on the docket.

Here is the column:

The fall of American democracy arrived yesterday morning with a thud.

For months, liberal law professors and pundits have filled the media with dire predictions that the Supreme Court was about to carry out a long-planned “coup” and “power grab — one even wrote that the court could be on the brink of establishing “one-party rule” in the United States.

The dire warnings concerned a hearing of an appeal in Moore v. Harper, in which North Carolina legislators argued that state courts could not override state legislatures on federal election districts. The “independent state legislature” (ISL) theory has never garnered great support among constitutional experts, and many of us stated that we doubted that the Court would embrace the theory.

That did not stop liberal groups from raising the alarms — and more importantly the donations — off the case. Nothing fuels election fundraising like abject fear. Notably, many of the greatest alarmists were also pundits who previously called for packing the Court to install an instant liberal majority … to save democracy, of course.

Harvard Professor Laurence Tribe called for such a radical change after the Republicans won the 2016 election, declaring that “the time is overdue for a seriously considered plan of action from those of us who believe McConnell and Republicans, abetted by and abetting the Trump movement, have prioritized expansion of their own power.”

It does not matter that this term, as in prior terms, a majority of cases have been decided on a unanimous or near-unanimous basis. It does not even matter that the court, with its conservative majority, has delivered repeated victories for the Biden administration, including last week’s 8-1 ruling in favor of President Joe Biden’s immigration policies.

Likewise, it will not matter that the conservative “coup” never came. Chief Justice John Roberts demolished the ISL theory as a barrier to judicial review.

From the prior coverage, one would expect an announcement that the three dissenters in the 6-3 decision — Justices Clarence Thomas, Neil Gorsuch and Samuel Alito — would be granted exile in Belarus after the failed coup. But actually, only Justices Thomas and Gorsuch embraced the theory. Alito only sided with the minority on the grounds that the case should have been thrown out as moot.

It turns out that there were no “right-wing justices making up law to create an outcome of one-party rule,” no “activist, conservative majority … untroubled by violating long-established precedents when they get in the way of achieving its substantive political ends.”

Dennis Aftergut had even warned readers that this was all part of a grand effort of the far right in pumping dark money into the courts: “You don’t need to read the tea leaves to see where the court’s far-right wing wants this to go. Just follow the money,” he wrote.

But the left’s use of dark money does not appear to be as much of a threat to our existence. Critics point to such groups as the Sixteen Thirty Fund, “a nonprofit incubator that provides its tax and legal status to nonprofits, which allows them to avoid filing publicly available tax forms. The Sixteen Thirty Fund is managed by the Washington, D.C.-based consulting firm Arabella Advisors, which oversees a large network that pulled in $715 million in secretive donations for left-wing groups and causes it houses in 2019 alone.”

Demand Justice, headed by former Hillary Clinton aide Brian Fallon, is tied to that dark money group and is leading the charge to pack the court. Fallon once responded to the disclosure of the Clinton campaign funding the infamous Steele Dossier by calling it “money well spent.”

Nothing says democracy like dark money and false conspiracy theories.

In fairness to some of the less bombastic critics, the acceptance of the independent state legislature theory would have produced a radical change in how elections are handled in the United States. However, Moore v. Harper quickly devolved into the latest example of hysteria over a conservative cabal on the court.

The fact is that the independent state legislature theory was based on a good-faith but clearly minority view of the meaning of one line from Article I, Section 4 of the Constitution, referring to the “Manner of holding Elections for Senators and Representatives…prescribed…by the Legislature thereof.”

Many legitimately feared that barring judicial review would invite gerrymandering. Again, however, many of the loudest voices were the least compelling.

The court-sanctioned Marc Elias warned of the conservative plotting around Moore v. Harper but was himself accused of trying to rig elections for the Democrats. Elias, the former general counsel to the Clinton campaign, was a critical figure in pushing the Steele Dossier and false Alfa Bank allegations. He was also accused of lying to the media when asked if the campaign had funded the dossier. Elias was also involved in Democratic gerrymandering efforts and even made his own election machine conspiracy theories.

The grand conspiracy behind Moore v. Harper was explained by Quinta Jurecic in The Atlantic, that “any state-level effort to upend the 2024 presidential election on the basis of … the independent state legislature theory would depend, in part, on the fact that the theory is difficult for laypeople to understand — and therefore open to distortion.”

It was apparently equally difficult for the Supreme Court to understand.

The court will continue to issue some divided opinions along ideological lines. Indeed, we are waiting for cases that are likely to break along those lines this week. These justices hold consistent jurisprudential views that will continue to be manifested in their opinions. However, for every case with six conservatives voting together, there seems to be one with three conservatives voting together in dissent.

The liberal justices are rarely portrayed in the mainstream media as ideological robots or dark-money cutouts. After all, they are viewed as right on the law.

Fear not, however — the next Supreme Court coup conspiracy theory is likely already in the making.

Tyler Durden
Thu, 06/29/2023 – 13:20

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WSJ Checkmates ‘Bidenomics’ In One Move

WSJ Checkmates ‘Bidenomics’ In One Move

Ouch!

A 40 minute presentation of propaganda and misinformation by President Biden was destroyed overnight with one unquestionable, government-data-driven, sentence by The Wall Street Journal Editorial Board:

“The Bureau of Labor Statistics says real average hourly earnings have fallen 3.16% during the Biden Presidency.”

As we noted yesterday ahead of Biden’s speech, real wages are down on a YoY basis for 26 straight months (i.e. since the president’s term began), but that never stopped the exaltation of so-called “Bidenomics” by The White House and its media lackeys…

…despite the shockingly low approval rating on the economy confirming that ‘we, the people’ ain’t buying the Biden bullshit.

WSJ take up the tale from therewhy are voters so unhappy?

The answer can be found in one lesson by looking at the nearby chart. It tracks average real hourly earnings for all workers in the private economy across the Biden Presidency, and it tells an ugly story about the impact of the worst inflation in 40 years and the standard of living.

This is the inflation that Mr. Biden did so much to ignite with all of his spending.

That’s a 3.16% decline in real earnings for the average worker across the 29 months of the Biden Presidency.

These are official Labor Department statistics which means Mr. Biden can’t deny them.

So, as WSJ notes, he had someone fudge the point by writing in his Chicago remarks that, “Look, pay for low-wage workers has grown at the fastest pace in over two decades.”

We’d like to see how his economists cherry-picked the data to justify that one.

All of which reminds The WSJ Editorial Board of the old Marx Brothers joke: Who are you going to believe, me or your own eyes? Regarding Bidenomics, Americans should believe their own eyes.

Tyler Durden
Thu, 06/29/2023 – 13:00

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Banks Crippled As $1 Trillion in Deal Value Vanishes in 1H Slump

Banks Crippled As $1 Trillion in Deal Value Vanishes in 1H Slump

By Shikhar Balwani, Bloomberg ECM reporter and strategist

The world’s dealmakers are roughly $1 trillion down in one of the worst years for takeovers and stock market listings in a decade.

That’s the year-on-year drop in the value of mergers and acquisitions and initial public offerings in the first half, a period in which inflationary pressures, financing constraints and geopolitical tensions nixed activity across regions and sectors.

And with the traditional summer lull on the doorstep, and fears of a recession lingering, the next six months could bring more pain on Wall Street, where banks have already been slashing bonuses and jobs in response to the slump.

“Deals are being delayed,” said Dominic Lester, head of investment banking for Europe, the Middle East and Africa at Jefferies Financial Group Inc. “Boards are having difficulty valuing assets, and are therefore taking longer to commit to transactions.”

Companies raised just $68 billion via IPOs in the opening six months of 2023, Bloomberg-compiled data show. That’s down more than a third year-on-year, with only 2016 having seen a lower first-half total since the global financial crisis.

The forces dragging down listings are much the same as those for M&A: concerns about a global economic slowdown and a mismatch in pricing expectations between companies and investors.

“The elephant in the room really is that we are expecting a recession. The timing of that recession is challenging and it will be largely consumer-led,” said Stephanie Niven, a London-based portfolio manager at investment firm Ninety One. “That’s why investors are cautious. The market itself hasn’t exactly priced a recession.”

For ECM bankers, brights spot have been found in the east, with China accounting for roughly half the money raised via IPOs this year. The country has cut curbs on local companies seeking listings overseas and made rule changes to encourage more at home.

Seed giant Syngenta Group this month won exchange approval for its 65 billion yuan ($9 billion) IPO, moving the world’s biggest potential listing this year a step closer to completion.

“The next six months of 2023 will definitely have some IPOs, the market is not closed and good companies can always get out,” said Mike Bellin, partner and IPO services leader at PricewaterhouseCoopers LLP. “A lot of the companies we’re talking to are thinking it’s more of a 2024 timeframe.”

Tyler Durden
Thu, 06/29/2023 – 12:40

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France Mobilizes 40000 Police After All Hell Breaks Out

France Mobilizes 40,000 Police After All Hell Breaks Out

Social unrest exploded across France this week, forcing the government to deploy 40,000 police officers to quell the violence. The turmoil was sparked after police fatally shot a 17-year-old teenager of North African descent during a traffic stop. 

The police killing of the teenager occurred on Tuesday, captured on video, shocked the country, and has since unleashed riots across major cities. 

The epicenter of the unrest is around Nanterre, located on the western outskirts of Paris. A map of the unrest shows riots are occurring nationwide. 

On Wednesday night, chaos worsened, leading Interior Minister Gérald Darmanin to announce that 40,000 officers would be immediately deployed. He said:

“The professionals of disorder must go home. There will be a lot more police and gendarmes present tonight.” 

French President Emmanuel Macron held an emergency security meeting today about the violence. He said the “violence against police stations, schools, town halls, against the Republic, is unjustifiable.” 

“The unrest across France, set off by the deadly police shooting of a teenager of North African descent during a traffic stop, has revived memories of riots in 2005 that gripped France for three weeks,” The Independent said. 

Tyler Durden
Thu, 06/29/2023 – 12:20

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Turns Out ‘Bidenomics’ Means Top-Down Economic Control

For the last two years, President Joe Biden has been crediting various supposed successes in the economy to “my economic plan.” Now that plan has a self-referential name: “Bidenomics.”

Biden appeared in Chicago this week to give a long-winded speech on his economic agenda. The basics will be familiar to anyone who has watched a Biden speech or read economic policy coverage for the last few years: Biden touted a playbook that consists of subsidies and spending, rules and regulations, unions and jobs. This was not an announcement of new policies or new ideas so much as a summary, and a name, for what he’s already done.

Biden even recycled his old tagline, saying repeatedly that he intends to build an economy from “the middle out and the bottom up—not the top down.” It’s an ironic refrain from someone whose approach to economics is decidedly focused on top-down control.

Biden’s economic success story is dubious by any measure. For instance, he touted recent plans to heavily subsidize semiconductor factories, arguing that these subsidies would both make America a bigger player in the world market for computer chips and deliver high-paying jobs to the heartland.

But the Biden administration’s quest to fund semiconductor factories has hit a number of snags, including a lack of skilled workers and higher-than-anticipated construction costs. On several major projects, there are simply not enough workers to fill the jobs. Meanwhile, Biden has larded those projects with unrelated social goals, like child care. Even those with long experience in the semiconductor industry have criticized Biden’s plans: Last year, Morris Chang, founder of the Taiwan Semiconductor Manufacturing Company (TSMC), which is currently in the midst of building a chip plant in Arizona, warned that America’s efforts to subsidize domestic production would be an “expensive exercise in futility.”

In his speech, Biden also repeated a figure he’s touted before—that those without college degrees would make an average of $100,000 to $130,000 working in chip-plant fabs. But even Biden’s own advisers have hedged on the particular statistic: “It doesn’t mean that every job is going to pay six figures,” a senior Biden administration official told Time. “That’s the average. When you aggregate all the jobs—the four-year degree jobs, the two years, the training certificates—you will get a number like $135,000…But of course it’s a mix of jobs.”

Many fab-plant jobs, in other words, particularly low-skilled work, will pay much less than the six figures Biden advertised. Graduates of quick chip-fab training programs, Time reports, typically earn about $43,000.

Biden’s speech wasn’t just about his administration’s quixotic quest for semiconductor subsidies. He also ran through what amounts to the greatest hits, or misses, of his administration’s economic agenda: “promoting competition” (presumably by waging a series of losing antitrust battles), pushing green energy (via poorly targeted subsidies that might make energy more expensive), promoting unions and union jobs (which will raise barriers to entry, lower productivity, and increase costs in ways that could lead to higher inflation). Bidenomics turns out to mean pursuing the policies he’s already pursued, and putting his name on them.

Biden may be taking credit, but voters aren’t on board. Inflation—the highest in four decades—has added about $768 in monthly costs to the average American household’s budget, according to Moody’s Analytics. It’s ironic that Biden tried to convert his semiconductor subsidy program into what turned out to be a misleading story about high wages, because wage declines are at the root of America’s economic pessimism. Persistent inflation, a substantial portion of which was caused by Biden’s overspending, has resulted in a historic drop in real wages. Typical households now have less buying power than they did when Biden entered office. That’s Bidenomics.

Indeed, the best way to understand Biden’s speech is not as an announcement of new economic policy, but as a branding exercise in the run-up to next year’s election. (A memo sent out in conjunction with the speech was authored by Biden’s political messaging advisors, not his economic team.) Biden wants voters to understand that he’s taking credit for the nation’s economy. But according to polls from USA Today/Suffolk and Pew Research Center, majorities of Americans believe inflation is a major problem, and living in the country is too expensive. Voters understand perfectly well that this is Biden’s economy—and they don’t like it.

The post Turns Out ‘Bidenomics’ Means Top-Down Economic Control appeared first on Reason.com.

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The Unsurprising Affirmative Action Decision in Students for Fair Admissions v. Harvard

Today in Students for Fair Admissions v. Harvard, the Supreme Court effectively ended the current regime of diversity-justified-race-based affirmative action in higher education. As the opinion for the Court by Chief Justice Roberts puts it:

University programs must comply with strict scrutiny, they may never use race as a stereotype or negative, and—at some point—they must end. Respondents’ admissions systems—however well intentioned and implemented in good faith—fail each of these criteria. They must therefore be invalidated under the Equal Protection Clause of the Fourteenth Amendment.

While the majority opinion is somewhat cagey about the extent to which it is overturning its prior precedents such as Grutter and Fisher as a formal matter, it does seem clear that going forward current practices at many elite universities will now be held unlawful. Here is the Court’s conclusion:

For the reasons provided above, the Harvard and UNC admissions programs cannot be reconciled with the guarantees of the Equal Protection Clause. Both programs lack sufficiently focused and measurable objectives warranting the use of race, unavoidably employ race in a negative manner, involve racial stereotyping, and lack meaningful endpoints. We have never permitted admissions programs to work in that way, and we will not do so today.

At the same time, as all parties agree, nothing in this opinion should be construed as prohibiting universities from considering an applicant’s discussion of how race affected his or her life, be it through discrimination, inspiration, or otherwise. See, e.g., 4 App. in No. 21–707, at 1725–1726, 1741; Tr. of Oral Arg. in No. 20–1199, at 10. But, despite the dissent’s assertion to the contrary, universities may not simply establish through application essays or other means the regime we hold unlawful today. (A dissenting opinion is generally not the best source of legal advice on how to comply with the majority opinion.) “[W]hat cannot be done directly cannot be done indirectly. The Constitution deals with substance, not shadows,” and the prohibition against racial discrimination is “levelled at the thing, not the name.” Cummings v. Missouri, 4 Wall. 277, 325 (1867). A benefit to a student who overcame racial discrimination, for example, must be tied to that student’s courage and determination. Or a benefit to a student whose heritage or culture motivated him or her to assume a leadership role or attain a particular goal must be tied to that student’s unique ability to contribute to the university. In other words, the student must be treated based on his or her experiences as an individual—not on the basis of race.

Many universities have for too long done just the opposite. And in doing so, they have concluded, wrongly, that the touchstone of an individual’s identity is not challenges bested, skills built, or lessons learned but the color of their skin. Our constitutional history does not tolerate that choice.

The majority opinion is generally unsurprising to anybody who has followed the issue and the litigation, and the same is generally true of the other separate opinions and dissents in the case as well. That said, many of them are still worth reading. I would particularly highlight Justice Thomas’s concurring opinion which offers—I think for the first time on the modern Court—”an originalist defense of the colorblind Constitution” and Justice Gorsuch’s concurring opinion which highlights the way these cases could and should be resolved more simply on the basis of Title VI of the Civil Rights Act.

Three additional observations:

One interesting claim made by the majority that I haven’t seem discussed so often is that “three out of every five American universities do not consider race in their admissions decisions.” (Footnote 9.) I had initially assumed that this reflected the large number of colleges that don’t really have selective admissions, and partly it does, but according to the Respondents’ Brief, where this figure comes from, even 40% of relative selective colleges don’t use race in admissions. This may provide some useful perspective to those of us who focus too often only on a subset of the bigger picture.

In any event, in my view the remaining two important questions for the effect of Students for Fair Admissions are these:

First, what kind of so-called “race neutral alternatives” will be allowed? The Court makes pretty clear that it will not be easy to use something like a “diversity statement” as a de facto affirmative action policy. But what about things like: eliminating standardized testing requirements, or giving preferences on the basis of geography, where the purpose of these things is to achieve a certain racial outcome? This is already the subject of litigation in the lower courts, especially in the magnet school context, and it is hard to imagine the Court will be able to avoid opining on it in the next decade. (My colleague Sonja Starr has an excellent article on this litigation which I recommend to those interested in these issues, though I do not agree with everything in it.)

Second, and more bluntly, how much will schools be able to just cheat? I think it is sometimes alleged, for instance, that some public institutions in states that have banned the use of race in admissions still use it de facto—but it has proved difficult in practice to prove whether or not this is true. Maybe this isn’t true, but in any event, the aftermath of Students for Fair Admissions is likely to test a range of enforcement possibilities, from discovery under the Federal Rules of Civil Procedure to, under some administrations, the powers of the Department of Justice and the Department of Education.

How exactly today’s decision will affect the world, it seems to me, depends a lot on these things.

The post The Unsurprising Affirmative Action Decision in Students for Fair Admissions v. Harvard appeared first on Reason.com.

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Economic Data Isn’t As Strong As The Headlines Claim

Economic Data Isn’t As Strong As The Headlines Claim

Authored by Michael Maharrey via SchiffGold.com,

A lot of the economic data this month looks strong. But when you dig a little deeper, you find that this “strength” is an illusion.

Following is a breakdown of several of these data points with some help from our friends at Passant Gardant.

Consumer Confidence

The Conference Board Consumer Confidence Index came in at 109.7 versus an expectation of 104. Last month, Consumer Confidence was 102.3.

“Consumer confidence improved in June to its highest level since January 2022, reflecting improved current conditions and a pop in expectations,” Conference Board chief economist Dana Peterson said. “Greater confidence was most evident among consumers under age 35, and consumers earning incomes over $35,000. Nonetheless, the expectations gauge continued to signal consumers anticipating a recession at some point over the next 6 to 12 months.”

But what exactly is driving consumer confidence higher?

Lower inflation expectations.

And lower inflation expectations were primarily driven by a big drop in energy prices.

Gasoline prices are down over 20% from this time last year.

Falling gasoline prices aren’t a sign of a healthy economy. In fact, the expectation of a recession has put a drag on oil prices.

Rising Home Sales

Home prices rose 0.5% month-on-month in April and new home sales surged 20% year-on-year in May. But this sale of new homes is primarily a function of tight inventory in the existing housing market. Existing home sales were only up 0.2% and were down 20.4% from a year ago.

Home sales typically rise in the spring, so these positive numbers may well be an anomaly. Rising prices (another sign of sticky price inflation) coupled with rising interest rates will continue to put a drag on the housing market.

Durable Goods Orders Up

Orders for manufactured US goods jumped 1.7% in May. Economists had expected a decline. This was immediately sold as a sign of a strong economy. But even MarketWatch conceded, “The industrial side of the economy is just muddling along.”

In fact, the entire increase was attributed to the extremely volatile transportation sector and defense spending for the war in Ukraine.

Excluding transportation, the last two months balance out to zero. Excluding defense, durable goods orders fell. Far from signaling a strong economy, the actual economic signal is contraction.

May Retail Sales Beat Expectations

Retail sales increased by 0.3% month over month and grew by 1.6% year-over-year. That sounds like Americans are buying a lot of stuff. But in reality, they are paying the inflation tax.

Retail sales are not adjusted for inflation. When you factor in rising prices, sales of actual stuff were basically flat month-on-month. And year-on-year the sale of goods and services on a quantity basis is down substantially when you adjust for 4% price inflation.

Furthermore, much of this spending is being put on credit cards. Again, this is not a sign of a strong economy.

Jobs

Month after month, we get strong employment reports.

But as we have reported, the Bureau of Labor Statistics data doesn’t make any sense. Furthermore, insofar as there are new jobs, many of them are due to people taking second and third jobs in order to make ends meet.

Conclusion

Don’t reflexively believe the headlines. Just because headline numbers look good doesn’t mean the economy is humming along. You always need to dig deeper.

Passant Gardant summed it up this way.

“The government and mainstream media always try to paint data as rosy as possible in order to support consumer confidence, falsely believing that keeping people spending will somehow improve the economy.

In reality, all it does is trick people into further overextending themselves and make things much worse.

True economic growth is supported by a high savings rate and investment with low consumer spending.

What we have is an extremely sick economy made much worse by central planners and mainstream media.”

Tyler Durden
Thu, 06/29/2023 – 12:00

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Ex-Pfizer Employee Charged With Insider Trading After 2400% Gain On Covid Drug News

Ex-Pfizer Employee Charged With Insider Trading After 2,400% Gain On Covid Drug News

A former Pfizer employee was charged with insider trading by the Securities and Exchange Commission after booking gains of 2,458% buying out-of-the-money call options one day ahead of the company’s Paxlovid announcement, the SEC alleges.

Former Pfizer statistician Amit Dagar and his close friend and business partner, Atul Bhiwapurkar, were charged in connection with the company’s November 5, 2021 announcement that a randomized, double-blind study of its COVID-19 antiviral treatment, Paxlovid, was successful – which sent the company’s stock up nearly 11%.

According to the SEC’s complaint, Dagar was a senior statistical program lead for the Paxlovid drug trial, which began in July 2021 as part of the company’s efforts to address the global health pandemic. On the day before the Paxlovid announcement, the complaint alleges, Dagar learned material, nonpublic information about the success of the trial. Specifically, the SEC alleges that Dagar’s supervisor informed him via chat that “we got the outcome,” there was a “lot of work lined up,” and that there would be a “press release tomorrow,” to which Dagar responded with “oh really” and “kind of exciting.” Several hours after that exchange, Dagar allegedly purchased short term, out-of-the-money Pfizer call options, including options that expired the very next day, and then tipped Bhiwapurkar, who also purchased similar call options in Pfizer. The complaint alleges that Dagar’s and Bhiwapurkar’s trading generated approximately $214,395 and $60,300 respectively in illicit profits, which amounted to one-day investment returns of 2,458 percent and 791 percent. -SEC

“As alleged in our complaint, Amit Dagar misused his access to confidential clinical trial results to enrich himself and his friend,” said Joseph Sansone, Chief of the SEC’s Market Abuse Unit. “Dagar and Bhiwapurkar allegedly leveraged this information by trading out-of-the-money call options to generate massive one-day returns. Thanks to our surveillance, the defendants must now face the consequences of their greed.” 

The complaint against the pair was filed in U.S. District Court for the Southern District of New York, and charges both men with violating the antifraud provisions of Section 10(b) of the Securities Exchange Act of 1934 and Exchange Act Rule 10b-5 thereunder and seeks injunctive relief, disgorgement with prejudgment interest, and civil penalties. 

Meanwhile, the US Attorney’s Office for the Southern District of New York announced parallel criminal charges against Dagar and Bhiwapurkar.

Tyler Durden
Thu, 06/29/2023 – 11:40

via ZeroHedge News https://ift.tt/YFQ875z Tyler Durden