U.S. Government Tries to Mug the Mayor of London

Boris JohnsonIt was only a matter of time before America’s
economic grab for global imperium, embodied in tax laws and,
particularly, the Foreign Account Tax Compliant Act (FATCA), ran up
against somebody who might actually be able to push back. Not
content to roll those who reside within its own borders, the
federal government insists that U.S. citizens and even long-term
residents who now live abroad and may not have had a glimpse of
amber waves of grain in many years owe Uncle Sam a piece of the
take—and that financial institutions around the world must snitch
on them to ease the mugging.

Such a broad definition of those subject to the IRS’s tender
ministrations reaches far and wide. It reaches so far that American
tax authorities say Boris Johnson
(pictured), the mayor of London,
owes capital gains taxes to the land of his birth, even though
he hasn’t lived here since he was five years old.

The thing about Boris Johnson, who
says he won’t pay, is that he’s not your average pushover for
the thugs who keep the U.S. government fat and happy. He’s not just
the mayor of an important city, but he’s a player in Britain’s
ruling Conservative Party, and
discussed as a potential future prime minister of the
country.

Perhaps ironically, the U.K. was once forced to spin off an
important North American subsidiary partially over tax issues. That
subsidiary appears to have learned the wrong lessons from the
unpleasant incident.

All of which is to say, while the U.K.
knuckled under to U.S. demands that it act as a deputy American tax
collector, Johnson is pretty well positioned to put a hitch in
that arrangement.

The question is whether Johnson, as a connected poitical figure,
makes separate peace with the IRS, emphasizing that the IRS’s reach
applies only to the powerless. That might have some interesting
international ramifications. Or will he carve out a wider exception
that gives others a little relief from America’s official
muggers?

Or maybe the IRS will just exercise America’s imperial muscle
and try to make even Johnson turn out his pockets to demonstrate
its power.

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Come, Journey With Me On An Adventure of Fundraising, Massive Disintermediation and the Confrontation of the Worlds Most Powerfu

 

I’d like to share a little about my fundraising efforts for Veritaseum, one of the most exciting, disruptive and likely controversial start-ups in the FinTech space… ever.

Veritaseum is the company behind my brainchild, “UltraCoin”. For those who don’t know, UltraCoin utilizes the technology behind the Bitcoin blockchain to create unbreachable contracts and unbreakable promises which can then be programmed to mimic the functions of practically any business that entails the transfer of value… Essentially any business. it does so with more trust, more safety, more flexibility and less cost than any legacy situation that makes heavy use of middlemen that extract rents in exchange for questionable value add. 

I believe that this “invention” is likely the economic and paradigm shredding equivalent of the advent of the Internet, simply on larger scale. First, there’s the sheet potential of scale for Bitcoin, and the precedent of its predecessor and compatriot in protocol-based disintermediation, the Internet…

SOB 7

bitcoin adoptioon metriccs

bitcoin vs Interent growth

Second is our patent pending value transfer technology embedded into the blockchain itself. It, in a nutshell, totally and absolutely disintermediates banks, brokerages and exchanges through the use of these programmable “unbreakable promises”…

AAPL short tradeaapl trade

Most with just slight modicum of imagination and insight would be hard pressed not to be exicted, or at the very least, extremely curious about these new technologies, products and services. This is particularly true since the financial services sector is so ripe for disintermediation – reference BitLicense Part 4: Fact- Bank Product Prices Rise Faster Than Income & ALL Other Expenses, Fact- UltraCoin Can Drop Bank Product Prices Dramatically.

Banking Risk Reward and Demise - The Age of Programmable Currencies Page 10Banking Risk Reward and Demise - The Age of Programmable Currencies Page 11Alas, I have received practically no attention from the traditional VC community and even less from the Bitcoin community, and this is despite a sterling track record of calling paradigm shifts such as this one, patents pending and the first functional product in the industry.

So, what is a middle-aged nascent entrepenuer to do? There actually is a meaningful pool of potential investors who do see value in what I described above. My ex-client and subscriber base. Many of my followers have taken it upon themselves to autonomously approach me for investment, including prominent UHNW families (globally known), technology entrepreneurs with recent liquidity events ($600M+), and long time readers who have connections. I’ll share the story of one such long time (since 2009) reader below.

Of the early seed investors, this British chap was actually the first to send in money. He called and said he heard me say i was starting a bitcoin-based company and said he wanted to invest. I told him I have another seed investment coming and I was closing the valuation in this round. He wired the money from overseas in less than 48 hours. I was impressed. He used to run a fund-of-funds marketing company and told me that he had many powerful contacts in the UK. I was reluctant at first, and uber-busy. I had just secured verbal commitments for $12 million (on a $4M round) when this chap finally convinced me to swin across the pond. I’ll be honest, I was reluctant. So, there I was, arriving at Picadilly Circus going down to the Royal Automotive Club where he arranged for me to stay and have my first introductory meeting with him and his associate.

Cavalry-and-Guards-Club

This is olde English money, and quite a lovely place to boot. So, jet-lagged, and with much work to do in a place that doesn’t allow computer or cell phone use in any of the public areas (yes, quite old school) I meet in the dining area…

20141116 114752

We go over the string of meeting that have been set up and the “Thought Leader’s dinner” that has been setup up on my behalf as the keynote speaker. The first two meetings were one’s that I set up myself from the states through my contacts from India and Wall Street banks. They third stop was to drop off some coins in the Thames River, just under London Bridge. Guess who caught them???

20141117 124105 1

Expect one helluva show when this airs. That’s all I’ve got to say on that topic for now. After a couple of more meetings I headed over to the Cavalry & Guards Club on Piccadilly for the dinner. An interesting, old money club that is steeped in English military history. 

Cavalry-and-Guards-Club

The dinner began with quick tutorial on the history of the club and its importance re: the battle of Waterloo, etc. The dinner included over 40 extremely interesting people. Here’s the place setting before we got started – each and everyone of the invtees placed at the table appeared. Standing room only – and all to hear what yours truly had to say about Bitcoin’s investment potential.

20141117 185449

The room was packed with brainpower – packed! Since they are big on privacy, I will not reveal names, but I can reveal statistics. Over $35 Billion dollars of assets under management directly controlled by the people sitting in those seats. Over $1.2 Trillion controlled by the corporate entities that they represented. Industries included banking, asset management, insurance, real estate, telecomm, energy, commodities trading and medical. Nearly half were successful serial entrepeneurs in their own right, with several having had their own multiple liquidity events. Even a member from the Bitcoin foundation was present. The vast majority were bitcoin skeptical. As for my presentation??? Let’s say there’s some big money, some olde money, and some money that many thought would never flow into this space any time soon that is quite anxious to investigate crashing the party.

B2rf9caIEAAlqE11111

Between Europe and the US, I plan on raising the largest investment to ever go into a distributed trust (the core tech behind bitcoin) ever!




via Zero Hedge http://ift.tt/1AhLIhP Reggie Middleton

Homebuilder Hope Hammered As Housing Starts Tumble

With surging homebuilder sentiment, we suspect the disappointing plunge in Housing Starts (-2.8% vs +0.8% exp) will surprise a few but there is hope… as Building Permits rose 4.8% (vs 0.9% expectations) on the back of an 8% surge in multi-family / rental units. This is the highest level fo Permits since June 2008 (but still over 50% below peak permits levels in 2005). The only region with any increase in starts was the South.

 

Permits beat but Starts miss…

 

Fool me once…or twice… but three times…?

 

 

The breakdown: Permits jumped entirely due to an 8% surge in rental akak multi-family units, led by the West where there was a 22% jump in permits.

 

On the other hand, single-family dropped even as single-family units posted a small pick up.

The one caveat: single-family units declined in all regions except the South, where starts jumped by 10%

Finally, no matter what the permits or starts data indicates, something curious is that the level of actual housing completions for single-family houses dropped 7.4% to 585K. This was the lowest monthly print in all of 2014! It appears once started, builders – super confident as they may be – are taking their good time to complete the project.




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Some Feminists Think Jokes Cause Rape, But ‘Alcohol Is Not the Problem’

Brown BearReason contributor Wendy McElroy and
liberal feminist Jessica Valenti debated campus sexual assault,
rape culture, and due process at Brown University on Tuesday
afternoon. The debate preemptively generated student protests,
alternative events, and even a statement from Brown President
Christina Paxson.

These reactions had one thing in common: disdain for McElroy’s
perspective that rape is the work of a small number of serial
predators, rather than a cultural phenomenon. Paxson lamented that
view in her campus-wide email, writing, “I disagree. Although
evidence suggests that a relatively small number of individuals
perpetrate sexual assault, extensive research shows that culture
and values do matter.”

McElroy’s contrarian perspective on rape was in fact so
traumatizing for certain members of the campus that they felt they
needed to create alternative events. Some students organized a
“BWell Safe Space.” According to
The Brown Daily Herald:

Students who may feel attacked by the viewpoints expressed at
the forum or feel the speakers will dismiss their experiences can
find a safe space and separate discussion held at the same time in
Salomon 203. This “BWell Safe Space” will have sexual assault peer
educators, women peer counselors and staff from BWell on hand to
provide support.

No student should feel the need to be protected from an opinion.
But those who sought further insulation from McElroy’s perspective
were invited to attend another alternative event, which
promised “The Research on Rape Culture.” Samantha Miller of the
Foundation for Individual Rights in Education
explained why this nonsense is insulting to students, as well
as the debate participants:

Given the debate organizers’ prior arrangements to provide
support to anyone who actually felt the need for it, Paxson’s
choice to counterprogram the event makes little sense in terms of
“emotional safety.” But it makes all the sense in the world if you
assume the real goal is to provide an intellectual cocoon for
students—an effort to create a ideological bubble on campus in
which students’ beliefs will be free from challenge.

It’s a miracle the debate even took place at all, considering
how allergic Brown seems to be to constructive discussion of
controversial topics, but McElroy and Valenti were able to make
their points. McElroy’s main argument, according to
The Herald:

McElroy said rape culture exists in places like parts of
Afghanistan where “women are married against their will” and
“murdered for men’s honor” but not in North America, where “rape is
a crime that’s severely punished.”

What’s more, those who politicize rape and assert the existence
of rape culture imply that all men are guilty or that the accused
do not deserve due process, McElroy said.

It is unacceptable that men can now be disciplined for rape
through college hearings based on a preponderance of evidence
rather than the traditional criminal justice standard of guilt
beyond a reasonable doubt. “Let’s not build justice for women on
injustice for men,” McElroy said, closing her talk.

And Valenti’s:

Valenti never tackled the question of whether a preponderance of
evidence or guilt beyond a reasonable doubt should be the standard
for conviction of men in college hearings, but she did talk about
other aspects of sexual assault as it relates to college campuses,
such as the fact that alcohol plays a role in most sexual assault
incidents.

“Alcohol is not the problem,” Valenti said, chuckling at the
notion. “What we need to discuss is the way rapists use alcohol as
a weapon to attack and then discredit their victims.” Rapists
benefit from others’ insistence that a victim’s inebriation is to
blame for his or her assault, she added.

Both speakers addressed how students might move forward in
eliminating rape and sexual assault on campus.

“Stopping someone from telling a rape joke or saying they got
‘raped’ by a test” would be a start, Valenti said, but she also
urged students to hold university administrators responsible for
addressing rape on campus.

Since the college already saw fit to rebut McElroy, I will only
deal with Valenti. I find her view on rape not only misguided, but
positively deleterious to the cause of lessening sexual assault.
The idea that stopping someone from telling a joke is “a start” to
preventing rape is utter nonsense. People jokingly say, “you’re
killing me,” when they don’t get what they want; it doesn’t mean
they anticipate being murdered. When I say that I was beaten up in
an argument, I don’t mean that I suffered physical pain. Professing
to have been “raped by a test,” may be an off-color remark, but it
has nothing to with actual sexual assault. Pretending otherwise is
ludicrous.

Valenti’s cavalier attitude about alcohol abuse is even worse.
No one paying serious attention to the campus rape problem could
conclude that “alcohol is not the problem.” Binge drinking and
alcohol-induced incapacitation are the conditions under which
campus rape occurs. In fact, Valenti knows this, since she admits
that alcohol is the rapist’s weapon of choice. A teen culture of
responsible alcohol consumption would be the best deterrent to
sexual assault, and we should be discussing strategies for
fostering that (like
lowering the drinking age!). Telling students that dangerous
drinking is just random some side effect is not merely dishonest,
but actually dangerous.

Only in the warped world of the modern college campus—where
protecting students’ delicate feelings and upholding liberal
orthodoxy is more important than giving them the truth about rape
and alcohol abuse—could Valenti’s views escape criticism while
McElroy’s earned an official condemnation.

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Rand Paul Votes Against NSA Reform Bill, Sex Offenders Don’t Have to Give Up Internet Names, Netflix Shelves Cosby Special: A.M. Links

  • The
    USA Freedom Act, aimed at curbing National Security Agency
    surveillance abuses,
    fell two votes short     of the 60 it needed to proceed to the
    Senate floor. Sen. Rand
    Paul voted against the bill     because it would have extended a
    Patriot Act provision allowing for phone records
    searches. 
  • The 9th Circuit Court of Appeals
    ruled that a California law     intended to fight sex trafficking
    violates the First Amendment by requiring registered sex offenders
    to turn over email addresses, Internet names, and other Web
    information. 
  • Netflix
    is postposing     a planned Bill Cosby comedy special in the wake
    of accusations that the comedian sexually assaulted several women,

    including supermodel Janice Dickinson    . 
  • Uber said Tuesday that it’s investigating the claim that one of
    its top executives tracked a
    Buzzfeed reporter     who was writing a story about the
    company. 
  • District of Columbia residents will face
    fines for not shoveling snow     from sidewalks in front of their
    property this winter. 
  • Bob Marley’s family is launching an international
    marijuana brand called Marley Natural     that will sell “heirloom
    Jamaican cannabis strains” and cannabis-infused lotions. 

Follow Reason on Twitter, and
like us on Facebook. You
can also get the top stories mailed to you—sign up
here.

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Crashing Steel Prices Lead To Largest Chinese Bankruptcy, “Will Be Followed By Others”

With growth rates for steel products at or near record lows and prices for end-product having plunged to record lows, it is little surprise that the Steel industry would provide the largest Chinese bankruptcy yet in this cycle. As Bloomberg reports, unlisted Haixin Iron & Steel – which halted production and defaulted on CNY3 bn in March – has started bankruptcy proceedings. Having spent 8 months hoping for the government bailout that every Western onlooker believes is every firm’s god-given right, a reorganization application for the Wenxi, Shanxi province-based company (with $1.7 billion of total debt) was accepted by the Yuncheng City Intermediate People’s Court. This is just the start as “Haixin Group’s bankruptcy will be followed by others,” according to researcher Mysteel.com’s Chief Analyst Xu Xiangchun.

 

Output growth (or degrowth) of Steel product is near record lows and still prices are crashing…


As Bloomberg reports,

Haixin Iron & Steel Group, an unlisted Chinese steelmaker that halted production in March because of a capital shortage, started bankruptcy proceedings, making it the largest mill in the nation to enter the procedure.

 

A reorganization application for the Wenxi, Shanxi province-based company was accepted by the Yuncheng City Intermediate People’s Court, according to a statement posted on chinacourt.org, a government site that lists legal proceedings. Creditors are required to claim their rights by Feb. 22, the statement said.

 

China’s slowing economy and the country’s measures to tackle pollution are taking a toll on its steelmakers already plagued by industry overcapacity. Haixin Group’s bankruptcy will be followed by others, according to researcher Mysteel.com Chief Analyst Xu Xiangchun.

 

“Instead of reorganization efforts conducted by local governments, this is an inevitable trend that China will take more ailing steel mills to the courts to protect creditors,” Xu said by phone from Beijing.

 

…

 

Haixin Group has 10.5 billion yuan of debt, compared with 10.1 billion of assets, the official Xinhua News Agency reported yesterday, citing “public data.”

*  *  *
But apart from the entire Steel industry being on the verge of bankruptcy… China is doing great!

“There has to be a restructuring of the Chinese steel industry,” Eder said.

 

“The iron-ore producers are getting more and more aware that their growth expectations have to be redefined. There are enormous over-capacities and more is coming on stream. This will increase the pressure.”

*  *  *

Think it’s irrelevant – of course you do – except the yield on 3.50% govt bond due October 2015 up 5 bps to 3.660%; headed for biggest daily increase in 1-year sovereign yield since July 21, according to data compiled by Bloomberg.

*  *  *

But what should be really worrisome is the potential for global contagion (as Bloomberg adds),

It’s a big change. Every year for the past decade, China has added new mills with the capacity to exceed the annual production of Germany, the largest steelmaker in Europe. The surge in new blast furnaces created a consumption vortex, swallowing half the world’s iron ore and creating unprecedented wealth from Australia’s Pilbara region to Brazil’s Amazon basin. That gravy train, generating annual iron-ore sales of about $160 billion last year, is slowing.

 

The major flaw of producers of iron ore, the most traded commodity after oil, is they tend to be “over-bullish,” said Kirill Chuyko, head of equity research at BCS Financial Group in Moscow.

 

“Humans make mistakes,” said Chuyko, who thinks peak steel has been reached. “Chinese demand is going south.”

Surprise!! Artificially low rates and money-printing has led to massive mal-investment and the blowback is beginning…

Mining giants have wagered $120 billion on belief that steel production in China won’t peak until as late as 2030. As the price of the key steelmaking raw material continued its descent to a five-year low today, it increasingly looks like they got that wrong. It’s a miscalculation that could have huge consequences for companies led by BHP Billiton Ltd. (BHP) and Rio Tinto Group.

 

“I’ve always taken the view that the miners had the best intelligence on this as large investment decisions are based on it,” Richard Knights, a mining analyst at Liberum Capital Ltd. said by phone. “But if they get it wrong by a just a small margin, that has major implications for profitability and the share price for years to come.”

*  *  *




via Zero Hedge http://ift.tt/1t4zaml Tyler Durden

Stunning Photos Of Record Snow Covering Upstate New York: 100 Total Inches Of Snow Expected

As previously reported, the anticipated Polar Vortex 2.0 has struck, pushing temperatures in all 50 states to below freezing, while heavy snow prompted a state of emergency in western New York and contributed to the deaths of four people. According to Reuters, it was the coldest November morning across the country since 1976, according to Weather Bell Analytics, a meteorologist consulting firm. It remains to be seen how many GDP percentage points were wiped out as a result, unless of course, this time it will be different from last winter. Typically, such cold is not seen until late December through February.

But it was the situation in upstate New York, especially around Buffalo and parts of Erie County, where things got most dire and where 60 inches (1.5 m) of snow accumulated, with more falling, said Steven Welch of the National Weather Service near Buffalo. Snow fell at a rate of up to five inches (13 cm) an hour and some areas approached the U.S. record for 24-hour snowfall totals of 76 inches, or over 6 feet, the NWS said.

The record cumulative snowfall through Wednesday is shown in the image below:

New York Governor Andrew Cuomo declared a state of emergency for 10 counties. National Guard troops were deployed to help residents cope with the storm.

The good news, according to CBS, is that the Tuesday storm is fading away: deputy Erie County Executive Rich Tobe told reporters Wednesday morning that the storm had begun to move toward Buffalo’s northern suburbs, and was expected to leave 2-5 more inches of snow in its wake. But he said the break would be short-lived for the hard-hit southern Buffalo suburbs, where forecasters were calling for more snow on Thursday, as much as three feet more, for a total of up to 100 inches over four days – a year’s worth for the region. Still, there should be an 18 hour window to clear roads, he said.

And then it is all set to flip again, with the current freezing period expected to be followed by a “dramatic warming trend this weekend,” raising the possibility of flooding from melting snow.

One of the main culprits for the heavy snow accumulation was the so called “lake-effect” which created a stark divide: In downtown Buffalo and north of the city, there was a mere dusting of precipitation, while in parts south, snow was everywhere. The snow band that brought the snow was very much evident throughout the day as gray clouds persistently hovered over the southern part of the city. The band was so apparent that the wall of snow could be seen from a mile away.

A dramatic time-lapse of the snow-wall can be seen in the video below:

 

But nothing compares to the photos on the ground as shocked residents woke up to find themselves literally burried under 6 or more feet  of snow. Here is a sample of what they saw on Tuesday morning courtesy of Albany Meteorologist Greg Pollak:




via Zero Hedge http://ift.tt/1uaGL1X Tyler Durden

Frontrunning: November 19

  • Yellen Inherits Greenspan’s Conundrum as Long Rates Sink (BBG)
  • West African Mining Projects Take Hit From Ebola Crisis (WSJ)
  • Saudi oil policy uncertainty unleashes the conspiracy theorists (Reuters)
  • Senate Rejection of Keystone XL Measure Sets Up 2015 Showdown (BBG)
  • Ferguson, Missouri, remains on edge ahead of grand jury report (Reuters)
  • Putin Said to Stun Advisers by Backing Corruption Crackdown (BBG)
  • Italian ‘Invasion’ Has Swiss Fuming as Immigration Vote Looms (BBG)
  • Apple and Others Encrypt Phones, Fueling Government Standoff (WSJ)
  • Ukraine rules out direct talks with separatists (Reuters)
  • Nielsen to Measure Netflix Viewing (WSJ)
  • French-government owned Areva Drops Most Since 1999 After Financial Targets Scrapped (BBG)
  • U.S. auto regulator seeks nationwide recall of Takata air bags (Reuters)
  • American Roads Can’t Match French Highways Paved by Tolls (BBG)
  • Dollar General may have to shut more than 4,000 stores (Reuters)
  • Why Japan’s 8% Tax Mauled Economy as Europe Tolerates 20% (BBG)
  • Great White Shark Pulled From Nets at Bondi Beach in Australia (BBG)

 

Overnight Media Digest

WSJ

* The Senate narrowly defeated legislation that would have approved the Keystone XL pipeline, delivering a political setback to Senator Mary Landrieu, who had pushed for the vote as a way to show political clout in her Senate runoff race against Republican challenger Representative Bill Cassidy. (http://on.wsj.com/1yQQX3U)

* U.S. auto-safety regulator National Highway Traffic Safety Administration demanded auto makers issue a nationwide recall of air bags made by Takata Corp after receiving a report of an air bag injury in North Carolina. (http://on.wsj.com/1t3cz9P)

* Two Palestinians attacked a synagogue in Jerusalem, killing three American-Israeli rabbis, a British-Israeli rabbi and a policeman and shifting the focus of violence to deep within the heart of the Jewish half of the city. (http://on.wsj.com/1AfI4oL)

* Next month Nielsen will begin measuring viewership of TV shows on subscription online video services, such as Netflix Inc and Amazon.Com Inc’s Prime Instant Video.(http://on.wsj.com/1vnBudS)

* Ohio Precious Metals LLC in remote Jackson, Ohio, has become an outpost in the multibillion-dollar global gold trade, melting scrap gold and shipping it world-wide. (http://on.wsj.com/11AOb8Y)

* The Justice Department complains that new encryption technology by Apple Inc, Google Inc and others makes it harder for police to gather evidence. (http://on.wsj.com/1vo07rG)

* Goldman Sachs Group Inc has cemented its position as the top Wall Street bank for mergers and acquisitions in one of the busiest years in the business after planned takeover deals this week by Actavis Plc and Halliburton Co . (http://on.wsj.com/1ylqU54)

* The Ebola epidemic in West Africa has led mining companies in the region to put expansion plans on hold. The Ebola epidemic has scared off ships and planes, prompted expatriates to abandon their posts and delayed the rollout of thousands of jobs meant for residents of the West African countries hardest hit by the virus. (http://on.wsj.com/1xNWVmW)

* French prosecutors have launched a preliminary insider-trading probe targeting several senior managers at BNP Paribas SA, seeking to know how much the managers knew about U.S. litigation risks when selling shares. (http://on.wsj.com/1u8Scr6)

* Canada is debating tighter border security for stock trades. The country’s regulators are probing dealers’ practice of routing stock orders to United States trading venues in exchange for rebates, circumventing domestic markets. (http://on.wsj.com/1usUDIw)

* General Mills Inc agreed to keep the phrase “100 percent Natural” off a brand of granola bars and related products as part of a legal settlement, the food industry’s latest concession in the battle over how to define natural foods. (http://on.wsj.com/1t3vuRP)

* Toyota Motor Corp unveiled a $57,000 fuel-cell car and plans for a United States network of hydrogen refueling stations with a message of exclusivity: Don’t expect to see too many of these vehicles soon. (http://on.wsj.com/1wUxrkR)

* Institutional Shareholder Services is recommending shareholders vote against the pay package for Microsoft Corp’s CEO Satya Nadella in a nonbinding vote at the software company’s annual meeting. (http://on.wsj.com/1u8Y4AD)

* AT&T Inc said federal investigators might need a warrant to gather data about cellphone users’ locations, challenging the more permissive legal framework the government has used for years. (http://on.wsj.com/1uGcL3c)

* The Samsung conglomerate’s shipbuilding and engineering units said Wednesday they have scrapped a plan to merge after facing a hefty bill to buy back shares from shareholders opposed to the deal. Samsung Heavy Industries Co, the world’s second-largest shipbuilder by revenue, said in September it would absorb Samsung Engineering Co. (http://on.wsj.com/1xmEgzv)

* United Parcel Service Inc and FedEx Corp are gearing up for a new test of their ability to handle the surge in holiday e-commerce: The frenzy of online shopping that now comes at the beginning of Thanksgiving weekend, instead of afterward. (http://on.wsj.com/1yRcMAg)

* Irving Azoff is trying to pull his clients’ songs from Google Inc’s YouTube. A lawyer for Azoff’s company, Global Music Rights sent two letters to YouTube demanding the company to immediately stop playing about 20,000 of the group’s songs, saying that the online video service had not sought a license from the organization, Azoff said. (http://on.wsj.com/1EYslZd)

* BHP Billiton Ltd is making a bold bet on China’s rising middle class, starting in sand dunes of southern Australia. Beneath the ground at Olympic Dam lies one of the biggest copper deposits in the world-central to a new investment strategy for the resources company. (http://on.wsj.com/1u90u2e)

* Darden Restaurants Inc said its chief financial officer will retire, and it unveiled a cost-savings plan that includes eliminating a management layer at its Olive Garden and LongHorn Steakhouse chains. The company said the moves are expected to save the company $20 million a year. (http://on.wsj.com/14J12qI)

 

FT

Labour’s Rachel Reeves announced jobless migrants who are from the European Union would have to wait for two years before they could claim out-of-work benefits as part of significant hardening of Labour’s position on immigration.

Britain’s government owns enough land to build as many as 2 million homes that is equal to a decade’s supply, a study by estate agent Savills has found.

Ministers at the Department for Communities and Local Government could be caught unaware by serious financial problems at local councils because of inadequate monitoring, the National Audit Office warned.

Britain’s supermarkets have suffered their first fall in revenues in at least 20 years hurt by lower food prices and a vicious price war that has cut the amount customers spend on groceries, according to a report by market researcher Kantar Worldpanel.

NYT

* In a significant shift, federal safety regulators on Tuesday called on automakers to conduct a nationwide recall of vehicles that contain driver’s-side airbags made by the Japanese supplier Takata Corp. The nationwide move, urged by the National Highway Traffic Safety Administration, would expand a recall that has been mostly limited to two states and two territories associated with high humidity. (http://nyti.ms/1EYwbBy)

* New York State’s chief banking regulator on Tuesday announced a $315 million settlement with the Bank of Tokyo-Mitsubishi UFJ, accusing the bank of “misleading regulators” about its business with Iran and other countries blacklisted by the United States. (http://nyti.ms/1xmMDuW)

* Goldman Sachs Group Inc has dismissed a currency trader because of his ties to an inquiry into potential manipulation of benchmark currency rates, a person briefed on the matter said on Tuesday. (http://nyti.ms/1xU0F7l)

* Three months after formally putting itself up for sale, PetSmart Inc appears to have drawn takeover interest from at least two private equity firms. KKR & Co LP and Clayton, Dubilier & Rice, two prominent private equity shops, are preparing a joint bid for the retailer by early next month, a person briefed on the matter said on Tuesday. (http://nyti.ms/1t3BTwt)

* Phone scams involving reloadable prepaid debit card products like the popular MoneyPak card will be the subject of a Senate committee hearing on Wednesday. Executives from three prepaid card companies are expected to testify before the Senate Special Committee on Aging, along with a representative for a trade association that represents retail chains that sell the cards. (http://nyti.ms/1p0PEQ0)

 

Canada

THE GLOBE AND MAIL

** Prime Minister Stephen Harper’s Conservative Party have retained a pair of seats in by-elections on Monday evening, despite a surge by the Liberal Party in the riding formerly held by Jim Flaherty, Canada’s finance minister. (http://bit.ly/1qjrt08)

** The chair of Canada’s largest school board is calling on Ontario Premier Kathleen Wynne’s government to intervene with the board’s highest ranking staffer, alleging that director of education Donna Quan has blocked trustees from probing controversial payments and partnerships. (http://bit.ly/14DBsDG)

** The Competition Bureau is investigating Loblaw Cos Ltd pricing strategies in a probe that is demanding that some of the chain’s key suppliers hand over secret records about their dealings with the grocery giant. (http://bit.ly/1xiBzz2)

NATIONAL POST

** Calvin Nicol, a 31-year-old piercer and tattoo artist was walking home from work along Rideau Street at about 7 p.m. on Nov. 1 when he was attacked by at least four males who Nicol believes singled him out because of his unique look. (http://bit.ly/1yhDodR)

** After release from a U.S. prison, Canada’s embattled Mafia boss Vito Rizzuto summoned top henchmen to secret meetings in Cuba and the Dominican Republic to plot revenge on rivals, a court in Italy has heard. (http://bit.ly/14DLNPR)

** Activist investor Sandell Asset Management Corp is urging pipeline and power giant TransCanada Corp to make big changes to its corporate structure in order to boost its share price. (http://bit.ly/1xLk8pW)

 

China

CHINA SECURITIES JOURNAL

– China plans to allow insurance funds to invest overseas via the Shanghai-Hong Kong stock connect, reported the paper, citing sources.

– Chinese investors prefer blue chips and focus more on long-term returns when they invest in the Hong Kong market via the Shanghai-Hong Kong equity link, according to a recent survey conducted by the China Securities Regulatory Commission (CSRC).

SHANGHAI SECURITIES NEWS

– An electronic platform for recruiting financial talent was launched on Tuesday as a part of Shanghai’s “financial talents” project to meet the goal of developing the city into a financial center by 2020.

SHANGHAI DAILY

– More than 7,000 10-year US visas were issued by the US Consulate General in Shanghai in the past week after the new extended visa scheme was introduced.

CHINA DAILY

– China is seeing an increasing number of methamphetamine users, said Liu Yuejin, a senior official from the Ministry of Public Security. In the first nine months of this year, police uncovered more than 100 violent crimes caused by meth users.

Read more: http://ift.tt/1tdYZzx…
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Britain

Supermarkets still selling chicken contaminated by deadly bug

Supermarkets are selling chicken they know to be contaminated with a bacterium that causes food poisoning and kills more than 100 people a year. (http://thetim.es/1tb7v29)

The Guardian

Christmas computer game releases help inflation edge higher

Inflation edged higher last month, pushed up by more expensive computer game releases in the run-up to Christmas, but overall price pressures remained low. (http://bit.ly/1u7YkQ9)

UK grocery sales in decline for first time in 20 years

UK grocery sales have gone into decline for the first time in at least 20 years as a raging price war and the falling cost of food commodities hit Britain’s supermarkets. (http://bit.ly/1xTQQq9)

The Telegraph

ECB entering ‘very dangerous territory’ warns S&P

The European Central Bank’s plans for 1 trillion euros ($1.25 trillion) of monetary stimulus is fraught with risk and is likely to fail without full-blown bond purchases, Standard & Poor’s has warned. (http://bit.ly/1xBenxe)

London Stock Exchange begins investigation into Quindell’s share price fall The London Stock Exchange is in the early stages of investigating the circumstances surrounding Monday’s 19 pence (0.2966 US dollar) price fall in insurance outsourcer Quindell PLC. (http://bit.ly/1u7oQZZ)

Sky News

United count cost of Champions League absence

Manchester United Plc’s revenue fell by 10 percent in the first quarter of this season, as the club paid the price for its absence from the Champions League. (http://bit.ly/1HhCILy)

Drinks Group Britvic Seeks Board Refreshment

Britvic PLC, the soft drinks manufacturer behind Robinsons and J2O, has begun a search for heavyweight figures to refresh its boardroom nearly a decade after it became a separately listed company. (http://bit.ly/1yPGMg5)

The Independent

Quindell founder Rob Terry apologises after controversial share deal

The founder of troubled outsourcer Quindell has issued an apology for his role in a controversial share deal that resulted in his ousting and left the company’s reputation in tatters. (http://ind.pn/1HhEBYD)

UK inflation rises slightly to 1.3 percent in October

The rate of inflation accelerated slightly to 1.3 percent in October but remains well below the Bank of England’s target of 2 percent for the 11th month in a row. (http://ind.pn/1xlY1r0)

 

Fly On The Wall Pre-Market Buzz

ECONOMIC REPORTS

Domestic economic reports scheduled for today include:
Housing starts for October at 8:30–consensus up 0.8% to 1.025M rate
Housing permits for October at 8:30–consensus up 0.9% to 1.04M rate

ANALYST RESEARCH

Upgrades

Almost Family (AFAM) upgraded to Neutral from Underperform at RW Baird
CF Industries (CF) upgraded to Outperform from Neutral at Credit Suisse
Columbia Sportswear (COLM) upgraded to Buy from Neutral at Citigroup
DSW (DSW) upgraded to Positive from Neutral at Susquehanna
LHC Group (LHCG) upgraded to Neutral from Underperform at RW Baird
Mosaic (MOS) upgraded to Positive from Neutral at Susquehanna
National Grid (NGG) upgraded to Hold from Sell at Deutsche Bank

Downgrades

Beacon Roofing (BECN) downgraded to Hold from Buy at KeyBanc
BlackBerry (BBRY) downgraded to Underweight from Equal Weight at Morgan Stanley
Consolidated Edison (ED) downgraded to Sell from Neutral at UBS
Denbury Resources (DNR) downgraded to Hold from Buy at Wunderlich
Pool Corp. (POOL) downgraded to Hold from Buy at KeyBanc
Synchronoss (SNCR) downgraded to Underperform from Neutral at RW Baird
Total System (TSS) downgraded to Sell from Neutral at Goldman

Initiations

American Axle (AXL) initiated with a Market Perform at FBR Capital
Church & Dwight (CHD) initiated with a Buy at BTIG
Cooper Tire (CTB) initiated with an Outperform at FBR Capital
Coty (COTY) initiated with a Buy at BTIG
Dana Holding (DAN) initiated with an Outperform at FBR Capital
Diplomat Pharmacy (DPLO) initiated with an Outperform at Leerink
Diplomat Pharmacy (DPLO) initiated with an Overweight at JPMorgan
Energizer (ENR) initiated with a Neutral at BTIG
Herbalife (HLF) initiated with a Buy at BTIG
Jarden (JAH) initiated with a Buy at BTIG
Liberty Broadband (LBRDA) initiated with a Buy at Evercore ISI
Nu Skin (NUS) initiated with a Neutral at BTIG
Rackspace (RAX) initiated with an Overweight at Barclays
Stoneridge (SRI) initiated with a Market Perform at FBR Capital
Tuesday Morning (TUES) initiated with an Outperform at Wedbush

COMPANY NEWS

Darden (DRI) reported restructuring, CFO retirement, closure of aviation department
Colony Financial (CLNY) to acquire Cobalt Capital Industrial Real Estate for $1.6B
La-Z-Boy (LZB) raised quarterly dividend 33% to 8c per share
Barrick Gold (ABX) appointed Shaun Usmar as CFO Designate
Jack in the Box (JACK) set long-term annual SSS growth target of 2%-3%
PetSmart (PETM) forecast FY15 SSS growth in the low-single digits
Avon Products (AVP) announced actions to reduce costs including headcount reductions

EARNINGS
Companies that beat consensus earnings expectations last night and today include:

Lowe’s (LOW), PetSmart (PETM), Leju (LEJU), Stage Stores (SSI), Staples (SPLS), China Distance Education (DL), Golub Capital (GBDC), La-Z-Boy (LZB), M/A-COM (MTSI), Jack in the Box (JACK), Vipshop (VIPS)

Companies that missed consensus earnings expectations include:

E-House (EJ), Nord Anglia (NORD), SQM (SQM), Xueda Education (XUE)

Companies that matched consensus earnings expectations include:

LightInTheBox (LITB)

Stage Stores (SSI) backs FY14 EPS view of $1.05-$1.15, consensus $1.01
Staples (SPLS) sees Q4 EPS 27c-32c, consensus 31c
Lowe’s (LOW) sees FY14 EPS about $2.68, consensus $2.63
Jack in the Box (JACK) sees FY15 operating EPS $2.73-$2.88, consensus $2.81

NEWSPAPERS/WEBSITES

Sources: KKR (KKR), CD&R team up to take PetSmart (PETM) private, Reuters reports
NHTSA wants ‘millions of vehicles’ recalled due to Takata air bags, CNBC reports (TM, HMC, FIATY, F, GM, NSANY, VLKAY)
Ackman urges significant cost cuts at Zoetis (ZTS), Bloomberg reports
iPhone 7 (AAPL) could include ‘biggest camera jump ever,’ TheTechBlock reports
RadioShack (RSH) loan from Monarch off table, Bloomberg reports
Dollar General (DG) may have to sell over 4K stores for deal approval, NY Post says (FDO)
Wells Fargo (WFC), U.S. not as optimistic on settling mortgage suit, Reuters says
Investors should think about buying Home Depot (HD) dip, Barron’s says

SYNDICATE

Amicus Therapeutics (FOLD) 13.85M share Secondary priced at $6.50
CorEnergy (CORR) 13M share Secondary priced at $6.80
Moelis (MC) 5.5M share Secondary priced at $31.75
Paramount Group (PGRE) 131M share IPO priced at $17.50
Receptos (RCPT) 3.6M share Secondary priced at $100.00




via Zero Hedge http://ift.tt/1wXzfto Tyler Durden

All Eyes On The Freefalling Yen Which Just Plunged To Fresh 7 Year Lows

Once again all eyes are on the carry-trade driving Yen, whose avalance into oblivion is picking up speed, and where the formerly unimaginable USDJPY level of 120 as presented here in September, is now looking like this week’s business, with the only question how long until Albert Edwards’ next target of 145 is hit leading to nuclear currency warfare between Japan, Korea, China and ultimately, the US and Europe. Unfortunately, for Japan, at this point the terminal currency collapse will do nothing to incrementally boost exports or its economy, and the former Japan finmin was on the tape warning again that the Japanese recession will persist as USDJPY over 115 is now hurting Japan, something which should by now have been clear to most.

Then again with a money-printing Keynesian lunatic in charge, for whom there is now no turning back, Japan really has no options. The good news, at least for the US which is now openly pulling the strings behind Japan’s monetary policy, is that the soaring Yen will continue to drag correlation algos higher, and send the S&P500 to fresh all time highs even as the Japanese economy is devastated.

In other news, the much hyped Stock Connect between China and Hong Kong is a dud with volumes plunging and CLSA calling it a ghost traing. According to Bloomberg, about 2.6 billion yuan, or 20%, of the 13 billion yuan northbound daily quota was taken on day 3 of the link vs 100% and 37% on the 2 opening days. Of the Shanghai connect stocks, 242 were up, and 249 down; of the Hong Kong connect stocks only 81 were up, while 159 down.

Worse, the commodity rout continues, with the slide in iron ore prices has been a particular focus in the commodity complex with Dalian iron futures hitting a second consecutive record low as data in China continues to fail to impress. Nonetheless, precious metal prices have continued to see support with spot gold managing to break out of its tight overnight range to touch the USD 1,200/oz level

European equities enter the North American crossover mostly in the green after picking up off their worst levels which were seen earlier in the session following overnight weakness in Asian equities and pulling back some of yesterday’s gains. In terms of the rebound, nothing fundamental has been attributed the move higher, although it does coincide with the Gilt-led softness seen in fixed income products following the less dovish than expected BoE minutes release, which also saw short-sterling reverse its earlier flattening pattern. Despite the upside for European stocks, the FTSE 100 trades in the red as the continuing decline in iron prices has placed weight on the mining-heavy FTSE index, with names such as Rio Tinto and Antofagasta seeing a bout of underperformance.

Bulletin Headlines Summary

  • GBP/USD pulls off session lows following a less dovish than anticipated BoE minutes release, which has also placed pressure on fixed income products.
  • European equities trade mostly in the green with no sustained direction, although the FTSE 100 underperforms as Iron ore miners continue to feel the squeeze of the slide in iron ore prices.
  • Looking ahead, attention turns towards the release of US housing starts, building permits, DoE crude oil inventories and of course the FOMC minutes release.
  • Treasuries decline with core euro zone sovereigns amid heavy corporate issuance calendar and as investors awaits release of minutes from Fed’s October meeting.
  • Bank of England policy makers voted 7-2 to keep the key interest rate at a record low this month as some of the majority began to raise concerns about potential inflation pressures
  • Obama plans to issue a reprieve for undocumented immigrants whose children were born in the U.S., part of an order that would shield between 4m and 5m from deportation, according to people familiar with the proposal
  • Prime Minister Shinzo Abe invoked the American Revolution in calling a snap election and shelving a further increase in a tax that sank Japan into recession
  • BOJ’s Kuroda secured a wider majority today and warned inflation could fall below 1% after the world’s third- largest economy slid into recession
  • Keystone XL pipeline backers came up one vote short in the Senate and vowed to try again in January, when they expect to have enough support to send a bill to Obama
  • Sovereign yields mostly higher. Asian stocks mostly lower. European stocks gain, U.S. equity-index futures lower. Brent crude and gold higher, copper falls

US Event Calendar

  • 7:00am: MBA Mortgage Applications, Nov. 14 (prior -0.9%)
  • 8:30am: Housing Starts, Oct., est. 1.025m (prior 1.017m)
  • Housing Starts m/m, Oct., est. 0.8% (prior 6.3%)
  • Building Permits, Oct., est. 1.040m (prior 1.018m, revised 1.031m)
  • Building Permits m/m, Oct., est. 0.9% (prior 1.5%, revised 2.8%)
  • 2:00pm: Minutes of October 28-29 FOMC meeting released

FX

One of the more notable movers in FX markets has been GBP following the BoE minutes. Despite residing at session lows in anticipation of an overtly dovish release, GBP saw a sharp move higher as the report revealed a 7-2 split and was not as dovish as some had expected. More specifically, particular focus was paid on comments that a tighter labour market is likely to lead to wage growth soon and the fact that the MPC majority said there is a risk of inflation overshooting the 2% target. Furthermore, CAD has continued to weaken with weakness being attributed to the failure of the Keystone pipeline bill to be passed in the Senate which would have seen the construction of an oil pipeline from Canada to US gulf refineries. Additionally, the decline in iron ore prices has filtered through to FX markets, with AUD seen lower throughout overnight and European trade with yesterday’s jaw-boning of the AUD and cross-related selling in AUD/JPY also placing further weight on the Antipodean currency. Elsewhere, overnight, USD/JPY broke back above 117.00 to trade at its highest since

COMMODITIES

The slide in iron ore prices has been a particular focus in the commodity complex with Dalian iron futures hitting a second consecutive record low as data in China continues to fail to impress. Nonetheless, precious metal prices have continued to see support with spot gold managing to break out of its tight overnight range to touch the USD 1,200/oz level. In the energy complex, despite opening lower following last nights API inventories which revealed a build of 3700k vs. Prev. drawdown of 1500k, energy prices have ebbed higher throughout European trade as participants look ahead to today’s DoE inventories with the headline expected to reveal a drawdown of 1500k, a number which is higher than initially forecasted.

 

DB’s Jim Reid Concludes the Overnight Recap

So after much excitement yesterday following Prime Minister Abe’s snap election announcement, sales-tax delay and planned stimulus package all eyes have turned to the BoJ meeting this morning. In terms of the headlines, as expected QE has remained steady at ¥80tn annually with the board having voted 8-1 in favour. After last month’s 5-4 vote it seems consensus has been built around the new measures which will be a relief to policy makers, especially after the measures announced this week. Taking a closer look at the details, the central bank notes that the outlook in Japan’s economy is ‘expected to continue its moderate recovery trend, and the effects including those of the subsequent decline in demand following the front-loaded increase prior to the consumption tax hike are expected to dissipate gradually’. CPI is expected to remain at the current level for the time being whilst there is some mention that QQE is so far exerting its intended effects with the Bank expected to continue with stimulus for as long as necessary to achieve the 2% target. The result is certainly a positive for Kuroda following what was largely a split decision last month on extending QE. The press conference takes place as we go to print so this is worth keeping an eye on for Kuroda’s take on this week’s fiscal events.

In terms of how markets are reacting post BoJ, the Nikkei is currently trading -0.14% having opened around +0.7% stronger and then declining to trade -0.3% lower post the decision. The JPY has weakened a further 0.37% versus the Dollar to now trade at 117.29 and mark a seven year low. Elsewhere bourses are mixed around Asia. The CSI 300, Hang Seng and Kospi are +0.11%, -0.41% and -0.01% respectively.

As well as the BoJ news to digest today, we’ve also got the FOMC minutes to look forward to later. It’s easy to make an argument either way with regards to what we might expect. On the one hand, we could make a case that the details could be something of a non-event with the focus shifting immediately to the December meeting. On the other hand DB’s Joe Lavorgna summed it up well at the start of the week, commenting that the statement from the October 28th- 29th meeting was notably more hawkish than expected, particularly with regards to the economy and upgrading its assessment of the labour market. Joe also mentions the lack of commentary around a stronger dollar or recently tightening financial conditions, so conceivably these could be mentioned. All in all the key will be whether the minutes rubber stamp the edging up in hawkishness or whether it will throw the doves an olive branch.

Whilst on the US, the S&P 500 continues to extend its record closing highs (+0.51%) after trading in a relatively narrow range over the past week. As well as being supported from the positive tone extending from Abe’s announcement, macro data did little to dampen sentiment. The NAHB housing market index surprised to the upside with the 58 print ahead of expectations of a 55 reading. Digging deeper into the details, all three subcomponents of the index – present conditions, expectations and buyers traffic – rose along with gains in all four regions of the country to cause the index to print just short of September’s post recession high (59). Our US colleagues point out that the NAHB series leads housing construction by around six months and so they expect a marked improvement in residential construction over the next couple of quarters, boosting total housing-related spending which they feel is enough to sustain a 3%-plus real GDP growth over next year. – a pretty bold call. Meanwhile the PPI reading for October was relatively strong. The headline (+0.2% mom) reading and ex. food and energy print (+0.4% mom) beat expectations of -0.1% and +0.1% respectively. Away from the macro prints, the Fed’s Kocherlakota was in the press once again, this time commenting that the Fed is risking its credibility by not acting aggressively enough to bring inflation back up to its 2% target. He also reiterated that inflation will not rise back to this target until 2018 with the potential for a turnaround in inflation through 2015 ‘very unlikely’. Treasuries were generally stronger across the board, the 10yr rallying 2bps whilst the DXY closed down 0.33% at the end of play.

Turning our focus to Europe yesterday, the Stoxx 600 closed +0.61% and the Euro rallied +0.67% versus the Dollar following an unexpectedly stronger German ZEW survey print with the 11.5 reading (0.5 expected) marking the first rise in German investor confidence for eleven months. Closer to home, UK CPI data was largely in line. The +1.3% yoy headline figure a touch higher than the +1.2% consensus although the core print came in slightly under expectations at +1.5% yoy (vs. +1.6% yoy expected). DB’s George Buckley noted that despite yesterday’s print showing a slight rise, he is revising his forecasts down to +0.9% by year end, rising to +1.6% in 2015 and then +1.9% in 2016, highlighting in particular that December will be a likely flashpoint for the CPI given the +6.4% rise in household energy bills last year not being repeated and thus taking 0.3% off the headline rate. Interestingly George also points out a move in sterling could take over three years to fully impact CPI inflation, suggesting that the annual rise in Sterling to peak in July this year will likely impact CPI towards the end of 2016. Elsewhere the RPI print came in line at +2.3% yoy whilst PPI input was softer at -8.4% yoy (-8.3% yoy expected). Gilts closed flat and elsewhere 10y Bunds ended 0.5bp firmer. Credit markets generally underperformed, Xover finished 4bps wider over the day although we highlight that this was perhaps due to more technical factors around significant new issuance. New issuance in the US market is also causing some indigestion.

Just wrapping up the market moves yesterday, WTI and Brent extended declines, down 1.68% and 1.21% respectively and have continued to trade weaker overnight. Ahead of the OPEC meeting next week, the FT has reported the apparent lack of consensus between members which is underlying the struggles the group is facing given surging US output. In terms of an outcome for the meeting, a disagreement between members is surely a worst case scenario so it will be interesting to see if we hear any of the major producers align comments in the mean time.

In terms of the highlights today, we kick off in Europe this morning with the September construction output print (market looking for +1.5% mom) along with current account data whilst later in the day we expect to hear from the ECB’s Praet speaking on the ‘long-term financing of the economy’ in Frankfurt. As well as this, we will be keeping an eye on the BoE’s November minutes today. Over in the US and away from the highlighted FOMC minutes we have October building permits and housing starts data (DB expecting 1.1m versus 1.025m consensus) and the MBA’s new mortgage applications. Given the strong NAHB print yesterday it will be interesting to see whether today’s housing data confirms the trend.




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Jacob Sullum on a New Jersey Decision That Invites Land Grabs

Two years ago, New Jersey’s
Casino Reinvestment Development Authority (CRDA) approved something
called the South Inlet Mixed Use Development Project, which
was intended to “complement the new Revel Casino and assist with
the demands created by the resort.” Two months ago, the bankrupt
Revel Casino closed.

The CRDA nevertheless is still trying to condemn a three-story
brick house at 311 Oriental Avenue in Atlantic City as part of that
Revel-inspired project, the details of which remain vague. In fact,
the CRDA can’t even say what it plans to do with the lot on which
the house sits.

That’s OK, according to Superior Court Judge Julio Mendez, who
on Monday ruled that the CRDA may condemn first and
answer questions later. Jacob Sullum says the ruling shows that no
one’s property is safe when eminent domain becomes unmoored from
the “public use” that is supposed to justify it.

View this article.

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