Goldman Sachs Is Buying Carl Icahn’s “High Yield Bond Bubble”

High-yield bond issuance has surged in recent days as 'wide' spreads have encouraged investors to take the dip once again (despite firms' record leverage and increasing desperation to roll the wall of maturing debt). However, it's not all guns blazing, as one manager noted, "while the market reopens, it reopens with issuers having to be a little more investor friendly." Despite Carl Icahn's warning that "the high-yield bond market is in a major bubble that's gonna burst," Bullard's "QE4" comments sparked Goldman to add US junk bonds and Aberdeen says selling EU and buying US corporate debt "is the trade that kind of screams at you right now." The dash-for-trash down-in-quality is back as CCC-demand surges and, as one trader notes the market's schizophrenia: "one day the market feels like it is shut down and you can’t sell anything and you wake up this morning and you can price any part of the curve."

There is nothing to fear but the lack of The Fed itself…

On the one hand…

Carl Icahn:

"The Fed is really holding the market up…. The Fed turned this market around here because it let it be known that the Fed funds rate isn't going to be raised in March. I am concerned about the high yield market, I think that's in a major bubble, but nobody knows when it's gonna burst…"

and on the other…

Goldman Sachs Asset Management:

GSAM dded to its U.S. junk bond holdings amid recent selloff, according to money manager’s head of Asia-Pacific fixed income Philip Moffitt, seeing U.S. as ‘Beacon’ amid the recent rout.

 

High-yield bonds more attractive than investment-grade debt, Moffitt says in interview in Sydney

 

Says underlying structure of U.S. growth is quite strong

 

GSAM is “reasonably constructive” on high-yield market in Asia

 

Says he’s “worried about China” and expects a higher risk premium on assets related to the country

Aberdeen Asset Management:

New issuance has been heavy but concessions generous: "There was a good 10 to 15 basis-point concession probably because the underwriters on both wanted to get the deals done, done properly, and have them trade well."

 

"We have been sort of on the margin selling a little bit of euro to buy dollar securities but it hasn’t been wholesale yet. But that is the trade that kind of screams at you right now."

 

"Defaults are going to remain quite benign and with yields approaching 6.5 percent for high yield, it is tough not be interested in talking about good double BB and single B companies,” he said from London. “I still think high yield’s good value, and it is a lot better now."

 

"We are using this as an opportunity to put money to work, we are reducing some of our loan exposure and buying high-yield bonds. Where we have the discretion to add high yield to our investment-grade accounts, we are using that as well.”

And then there's this from Citi's Matt King:
 

The following sums up the scizophrenia nicely:

“The market is very forgiving,” Timothy Cox, executive director of debt capital markets at Mizuho Securities USA Inc. in New York, said in a telephone interview. “One day the market feels like it is shut down and you can’t sell anything and you wake up this morning and you can price any part of the curve. The market is very open.”

As everyone jumps back on the down-in-quality, dash-for-trash trade:

57% of two-way flow in single-Bs has been client buying, followed by 53% in CCCs, Trace shows.

*  *  *
On a side note, the marked swings in Treasuries of the last 3 days suggest notable rate-locks as banks hedge (and unwind) rate risk from the expected issuance (hedge into issuance, unwind on post)

 

*  *  *

And remember, our dream-crushing discussion of the rise in cash on corporate balance sheets

US companies are carrying far more net debt than in 2007

 

Another curiosity is this notion that US companies have substantially reduced their debt pile and are therefore cash rich. The latter is indeed true. Cash and equivalents are at historically high levels, but rarely do those who mention the mountains of corporate cash also discuss the massive increase in debt seen over the last couple of years.


 

In fact, debt levels have been growing to such an extent that net debt (i.e. excluding the massive cash pile) is 15% higher than it was prior to the financial crisis.




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Video: The Hard-Won Beauty of Entrepreneurship

In the latest video from Reason, we profile a couple
millenial-aged entrepreneurs and find out what motivated them to
take the huge emotional and financial risks entailed with starting
a business. Watch above or click on the link below for video, full
text, supporting links, downloadable versions, and more Reason TV
clips.

View this article.

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Meet Janet Dupree:72, Alcoholic, HIV-Positive, $16,000 In Student Debt: “I Won’t Live Long Enough To Pay It Off”

One would think that Janet Lee Dupree, 72, a self-professed HIV-infected alcoholic, would be slowly putting aside material worries as she prepares to set the intangibles in her life in order for one last time. One would be wrong.

Janet Dupree has had her wages garnished

As she admits, “I am an alcoholic and I have HIV,” she tells the BBC. “That’s under control.” So what is the cause of most if not all consternation in the final days of Dupree’s life? “I was sick and I didn’t worry about paying back the debt.” As a result, Dupree defaulted on her loan, and since she turned 65 she has had money withheld from her Social Security benefits.

“Just recently I received a notification that they are going to garnish my wages because I am still working,” says Dupree, who works 30 hours a week as a substance abuse counsellor.

The debt in question: Dupree owes $16,000 in student loans she acquired in 1971 and 1972.

Or make that “student loans” – debt which is crippling the last days of a person who hasn’t seen the inside of a classroom in four decades.

Dupree, who lives in Citra, Florida, admits she forgot for many years that she had borrowed the money – originally $3,000 – in order to complete her undergraduate studies in Spanish.

The stunning story of how the exponentially rising…

 

… notional amounts of (anything but) student debt is crushing millions of Americans as recounted by the BBC:

  • Outstanding student loan debt in the US amounts to $1tr
  • 3% of households headed by individuals 65 or over carry student debt (706,000 households)
  • 24% of households headed by individuals 64 or under carry student debt (22 million households)
  • The outstanding federal debt for older adults grew from $2.8bn in 2005 to $18.2bn in 2013
  • 27% of federal student loans held by individuals aged 65 to 74 are in default, compared to 12% of loans to people between the ages of 25 and 49

In 2005, older adults owed $2.8bn (£1.61bn) in federal student debt. By 2013, that figure that had ballooned to $18.2bn, according to a report released last month by the Government Accountability Office (GAO).

These seniors account for 706,000 households in the United States – small compared to the 22 million households with non-seniors who hold student load debt, but a growing problem. People over 65 also defaulted on their student loan debt at a much higher rate than other segments of the population, says Charles Jeszeck, author of the GAO report.

Students in the US often take out loans, both privately funded and financed by the US Department of Education, to pay their school fees. While other loans, such as a home mortgage, can be forgiven if a borrower files for bankruptcy, student loans cannot.

According to the GAO study, the number of individuals whose Social Security benefits were offset to pay student loan debt increased from about 31,000 to 155,000 between 2002-13. Jeszeck tells the BBC that this situation can cause considerable problems for older adults who, like Dupree, may have to extend their working life well beyond retirement age.

“They face the potential of reduced social security benefits and a lower standard of living, possibly a poverty-level standard of living in retirement,” Jeszeck says.

Rosemary Anderson, 57, says she is fortunate not to have defaulted on her student loan, but she already knows she will grow old with a debt “hanging over her head”.

Between 1991-2000 she borrowed $64,000 in order to complete both her undergraduate and her graduate studies in organisational behaviour and development.

Soon after, though, she began what she calls a “steep decline into financial hell”.

She says she divorced her husband of 24 years, had health issues that prevented her from working full time, and had her salary reduced when the financial crisis hit.

Anderson, who works as a member of the emergency management team at the University of California, Santa Cruz, couldn’t afford her monthly loan payments, so she entered into a series of deferment options with the Department of Education.

Today, she owes $128,000 and is hoping to get additional help from the government in reducing that amount.

The vast majority of older borrowers took out their loans in order to pay for their own studies, although a small percentage used the loans for their spouses, children or grandchildren.

Many borrowed money to pay for mid- or late-career retraining, or may have acquired loans with a very long repayment term. Others defaulted at a younger age, were unable to dig themselves out of the problem and carried it through into retirement.

The Department of Education says it is “committed to working with older borrowers to help them understand and manage debt”, as William Leith, chief business officer for federal student aid, explained in a recent Senate hearing where different measures were discussed.

A department spokesperson told the BBC that there are “many repayment options available, including those based on income, as well as forgiveness programmes”.

Meanwhile, Rosemary Anderson is worried. She says never imagined that she would have this problem at her age.

She feels fortunate to have a job but recognises that she will have to continue working as long as she is physically able to.

Retirement is not part of my vocabulary,” she says.

“I will never live long enough to pay off my loan.”




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Phoenix Creating Mental Health Board for PD After Fatal Shooting of Hammer-Wielding Woman

In August Officer Percy Dupra shot and killed Michelle Cusseaux in Phoenix, Arizona, after the woman
allegedly wielded a hammer while police were executing an order to
bring her to a mental health facility. This week the city announced
reforms in response to the shooting.

The Phoenix New Times
reports
:

“August 14, 2014, was a tragic day not only for the Cusseaux
family, but for our department as well,” [Police Chief Daniel]
Garcia said at a press conference yesterday, where Cusseaux’s
mother was in the audience.

The main change going forward is the creation of a mental health
advisory board that reports directly to the police department.

“This is not a task force, this is not a temporary board,” Mayor
Greg Stanton said. “This is a board that’s going to be made up the
top mental-health professionals in our community, providing
constant guidance to the police department.”

According to the police department, all cops received two hours
of mental health training after the Cusseaux shooting. Police will
also try to minimize their involvement in mental-health crises—cops
were there to take Cusseaux to a mental hospital on a court
order.

For those not convinced the advisory board, made up mostly of
local mental health providers, the city has apparently used them
for the police department before. From the Times:

Councilman Michael Nowakowski said he was placed on a police
advisory board 20 years ago, and it’s still active.

“I know that these advisory boards work,” he said. “These
advisory boards have direct communication to the chief and top
administrators of the Phoenix Police Department. This is where
change happens.”

Garcia says more reforms are on the way but wouldn’t say
specifically how the shooting of Cusseaux informed the reforms,
because that shooting is still being investigated.

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California Pension Fund Mystified That Folks Are Upset About Budget-Busting Bonuses

That will be an extra $75 a month for flag-raising duties.In August, Victor Nava of the
Reason Foundation
highlighted
what is ultimately the destruction of a significant
feature of California Gov. Jerry Brown’s modest public employee
pension reforms. He sought to stop one source of pension
spiking—the pursuit of temporary bonuses and extras in pay that
ultimately permanently boost an employee’s pension payout—by
requiring pensions to be calculated from base pay, not including
these bonuses.

No problem, said the California Public Employees’ Retirement
System (CalPERS). They’ll just declare all sorts of bonuses to be
part of their base pay and force them right back into the pension
calculations. CalPERS voted to have 99 bonuses sometimes given to
certain public employees for various tasks that most of us would
classify as expected job duties (like officers directing traffic)
as part of their base pay. And so California’s multi-billion-dollar
pension crisis gets worse.

Today the Los Angeles Times follows up on the fears
raised by Nava to explore the potential financial impact of this
vote. Note that CalPERS doesn’t know the potential cost to
taxpayers of the decision they made. They voted without any sort of
estimate. So the Times took the city of Fountain Valley,
an Orange County community with a population of around 55,000, and
had CalPERS
determine what the bonuses are going to cost
:

CalPERS found the Fountain Valley perks could hike a worker’s
gross pay as much as 17%. About half the city’s workforce received
the extra pay that will also increase their pensions, most of them
police and fire employees.

Fountain Valley taxpayers are spending between $147,000 and
$179,000 in total compensation, pension and other benefits for each
full-time officer on its force, according to city documents.
Sergeants, lieutenants, two captains and the chief receive
more.

CalPERS executives told the Times they didn’t
understand why people are so upset with them:

The action simply clarifies the 2012 reform law, which was
designed to stem rising pension costs, said Brad Pacheco, a
spokesman for the agency.

CalPERS always assumed that new employees would continue to
benefit from bonuses just as those hired earlier did, Pacheco
said.

“We just changed the definition of ‘base pay’ to include things
that are obviously not base pay. Why is everybody so upset with
us?”

When it comes to salary negotiations though, you better believe
all those bonuses (and the fact that they permanently boost
pensions) will not be part of the numbers tossed out so that
employee representatives can make wages appear more modest.

The Times notes that pension contributions from the
state and municipal governments within California have jumped from
$1.9 billion to $8.1 billion in 10 years. That’s not even getting
into the massive problem of growing health care costs for
government employees.

Nava noted some of the justifications for bonus pay in his
August story, but the Times has a longer list
here
.

Below, Reason Foundation Vice President of Policy Adrian Moore
discusses how to end the public sector pension crisis:

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Philly Police Have Paid Out $40 Million in Lawsuits Since 2009

Newly-released documents indicate that misconduct
by police officers has cost the city of Philadelphia $40 million in
lawsuits since the beginning of 2009. That’s about $19,000-worth of
bad cops every single day for nearly six years. Excessive force
alone has cost the city more than $13,400,000.

The data comes from Tom Feathers at MuckRock, a
blog dedicated to making Freedom of Information requests. Feathers

explains
how he came up with this enormous number:

MuckRock analyzed lists of civil lawsuits brought
against the cities’ police departments, which were obtained through
public records requests. The data only includes cases brought since
Jan. 1, 2009, not all cases closed since 2009.

We sorted out cases brought as a result of alleged actions that
we determined to be police misconduct – wrongful shooting deaths,
excessive force, illegal searches, etc.

We chose not to include lawsuits that appeared to arise out of
negligence rather than intentional police actions, such as car
crashes involving police cruisers.

In some instances, where the nature of the case could not be
determined, we excluded lawsuits.

In total, MuckRock sifted through 1,745 cases, and
determined that 1,223 were clear cases of misconduct. “Of those,
the city settled 584 and lost two, roughly 48 percent, at an
average of $69,401 per lawsuit,” writes Feathers.

He
highlights the two most expensive cases, each of which cost $2.5
million. Officer Larry Shields, who was involved in another
shooting the month prior, entered the apartment of a man named
Stephen Moore and “opened fire without saying a word.” Another case
involved an officer unloading 62 rounds into two men on a chase,
killing one. Officers claimed they saw the men reach for guns, but
no weapons were ever found.

Philadelphia’s costly problem can’t be explained away by a
couple of big cases, though. Feathers contextualizes it. He put
together data on “IndianapolisSan
Francisco
San
Jose
, and Austin,”
which have “a combined population more than double Philadelphia’s
estimated 1,526,006 residents.” They have in total settled or lost
only 122 misconduct cases, a mere 20 percent of Philadelphia’s.

So, what are law enforcement officers guilty of? As stated
above, excessive force has cost the city over $13 million. That’s
because the city has settled 223 cases of it, by far the most
frequent type of misconduct. Next is assault and battery at 160
cases. There have been a relatively small number of shootings – 29
to be exact – but those have actually been the costliest, with the
city paying out $13,800,000. 

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Steve Chapman: Should We Strip Terrorists of Citizenship?

Ted CruzTexas Republican Sen. Ted Cruz doesn’t trust
Barack Obama to protect Americans against Ebola, defeat the Islamic
State, oversee the IRS, or revamp the health insurance system. He
decries the expansion of federal power Obama has brought about. But
Cruz wants to give him another power by letting him decide that
some Americans will no longer be Americans.

That’s the implication of the senator’s Expatriate Terrorist
Act, which would let the government go to court to revoke the
citizenship of anyone who joins or aids a foreign terrorist group
that targets Americans. Cruz thinks this step is necessary to
prevent citizens who leave to fight for the Islamic State from
returning to carry out “unspeakable acts of terror here at
home.”

It’s not necessary, in strict point of fact, writes Steve
Chapman. Federal law already makes it a crime to murder Americans
and to provide material assistance to terrorist organizations. So
anyone who becomes a terrorist for the Islamic State can be
arrested and prosecuted and incarcerated for a long time.

View this article.

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You Asked For Market-Lifting Miracles Theo, I Give You Another NYSE Break

As John McClane might respond to Hans Gruber’s tortured paraphrase.. “The circuits that cannnot be cut are cut automatically in response to a terrorist incident. You asked for miracles, Theo, I give you the [A Broken NYSE]”

  • *NYSE EURONEXT EXPERIENCING INTERMITTENT MKT DATA ISSUES

Source: NYSE

So just as we requested yesterday…

Yippee ki-ay, motherfucker” to paraphrase the inimitable John McClane.




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EXCLUSIVE: Was Ebola Accidentally Released from a Bioweapons Lab In West Africa?

Accidents at Germ Labs Have Occurred Worldwide

Nations such as Russia, South Africa and the U.S. have long conducted research into how to make deadly germs even more deadly. And accidents at these research facilities have caused germs to escape, killing people and animals near the facilities.

For example, the Soviet research facility at Sverdlovsk conducted anthrax research during the Cold War. They isolated the most potent strain of anthrax culture and then dried it to produce a fine powder for use as an aerosol. In 1979, an accident at the facility released anthrax, killing 100.

The U.S. has had its share of accidents.  USA Today noted in August:

More than 1,100 laboratory incidents involving bacteria, viruses and toxins that pose significant or bioterror risks to people and agriculture were reported to federal regulators during 2008 through 2012, government reports obtained by USA TODAY show.

 

***

 

In two other incidents, animals were inadvertently infected with contagious diseases that would have posed significant threats to livestock industries if they had spread. One case involved the infection of two animals with hog cholera, a dangerous virus eradicated from the USA in 1978. In another incident, a cow in a disease-free herd next to a research facility studying the bacteria that cause brucellosis, became infected ….

 

The issue of lab safety and security has come under increased scrutiny by Congress in recent weeks after a series of high-profile lab blunders at prestigious government labs involving anthrax, bird flu and smallpox virus.

 

***

 

The new lab incident data indicate mishaps occur regularly at the more than 1,000 labs operated by 324 government, university and private organizations across the country ….

 

"More than 200 incidents of loss or release of bioweapons agents from U.S. laboratories are reported each year. This works out to more than four per week," said Richard Ebright, a biosafety expert at Rutgers university in New Jersey, who testified before Congress last month at a hearing about CDC's lab mistakes.

 

The only thing unusual about the CDC's recent anthrax and bird flu lab incidents, Ebright said, is that the public found out about them. "The 2014 CDC anthrax event became known to the public only because the number of persons requiring medical evaluation was too high to conceal," he said.

 

CDC officials were unavailable for interviews and officials with the select agent program declined to provide additional information. The USDA said in a statement Friday that "all of the information is protected under the Public Health Security and Bioterrorism Preparedness and Response Act of 2002."

 

Such secrecy is a barrier to improving lab safety ….

 

Gronvall notes that even with redundant systems in high-security labs, there have been lab incidents resulting in the spread of disease to people and animals outside the labs.

 

She said a lab accident is considered by many scientists to be the most likely source of the re-emergence in 1977 of an H1N1 flu strain that had disappeared in 1957 because the genetic makeup of the strain hadn't changed as it should have over those decades. A 2009 article in the New England Journal of Medicine noted the 1977 strain was so similar to the one that disappeared that it suggests it had been "preserved" and that the re-emergence was "probably an accidental release from a laboratory source."

 

***

 

In 2012, CDC staff published an article in the journal Applied Biosafety on select agent theft, loss and releases from 2004 through 2010, documenting 727 reported incidents, 11 lab-acquired infections and one loss of a specimen in transit among more than 3,400 approved shipments.

 

The article noted that the number of reports received by CDC likely underestimates the true number of suspected losses and releases.

Indeed, there have been many accidents involving germ research. For example, the New York Times noted in 2005:

In 2002, the discovery of lethal anthrax outside a high-security laboratory at the military's premier biodefense laboratory, the Army Medical Research Institute of Infectious Diseases at Fort Detrick in Maryland, led to sampling throughout the institute.

And the Los Angeles Times reported in 1988:

The Senate report noted that accidents have occurred in the handling of potentially deadly biological material. Vials of biological warfare agents have been misplaced or spilled, it said, employees have been exposed to deadly toxins and a fire once broke out in the high-containment laboratory of the Army's leading germ warfare facility at Ft. Detrick, Md.

Researchers are creating some very dangerous bugs. The Frederick News Post – an excellent local newspaper for the community surrounding the U.S. Army Medical Research Institute for Infectious Diseases at Fort Detrick – reported in 2010 that the facility would eventually aerosolize Ebola:

Ludwig said researchers at the facility will likely start out working on vaccines for filoviruses such as Ebola and Marburg, as well as new anthrax vaccines.

 

***

 

The facility will have the capability to produce viruses in aerosolized form that would simulate a potential biological attack on the test animals. Ludwig said aerosol is the means of exposure researchers are most concerned with given its implications to battlefield and homeland defense.

A University of Wisconsin-Madison scientist has re-created the 1918 Spanish flu in the lab. The Guardian noted in June:

In an article published last month, [Marc Lipsitch, professor of epidemiology at Harvard School of Public Health] argued that experiments like Kawaoka's could unleash a catastrophic pandemic if a virus escaped or was intentionally released from a high-security laboratory.

 

***

 

Many of the groups that create dangerous viruses to understand their workings are funded by the US National Institutes of Health (NIH). Lord May [the former president of the Royal Society and one time chief science adviser to the UK government] said he suspected the NIH supported the work because officials there were "incompetent" and believed the justifications that scientists told them. "This is work that shouldn't be done. It's as simple as that," he said.

 

***

 

The study identifies particular mutations that made the virus spread so easily. But that is not much use for surveillance, said Lipsitch, because there are scores of other mutations that could have the same effect.

 

***

 

Simon Wain-Hobson, a virologist at the Pasteur Institute in Paris, said he feared that governments and funding bodies would only take the risks seriously once an accident had happened. "It's madness, folly. It shows profound lack of respect for the collective decision-making process we've always shown in fighting infections. If society, the intelligent layperson, understood what was going on, they would say 'What the F are you doing?'"

Obama Now Claims that He's Shutting Down Domestic Germ Program

The New York Times reported last week that President Obama is so concerned about these accidental releases that he's clamping down on germ research:

Prompted by controversy over dangerous research and recent laboratory accidents, the White House announced Friday that it would temporarily halt all new funding for experiments that seek to study certain infectious agents by making them more dangerous.

 

It also encouraged scientists involved in such research on the influenza, SARS and MERS viruses to voluntarily pause their work while its risks were reassessed.

 

***

 

The announcement, which was made by the White House Office of Science and Technology Policy and the Department of Health and Human Services, did not say how long the moratorium would last. It said a “deliberative process to assess the potential risks and benefits” would begin this month and stretch at least into next year.

 

The move appeared to be a sudden change of heart by the Obama administration, which last month issued regulations calling for more stringent federal oversight of such research and requiring scientists and universities to disclose that their work might be risky, rather than expecting federal agencies to notice.

 

***

 

The moratorium is only on research on influenza virus and the coronaviruses that cause SARS and MERS.

 

***

 

The debate over the wisdom of “gain of function” research erupted in 2011 when the labs of Ron Fouchier of Erasmus University in the Netherlands, and Yoshihiro Kawaoka of the University of Wisconsin-Madison, separately announced that they had succeeded in making the lethal H5N1 avian flu easily transmissible between ferrets, which are a model for human susceptibility to flu.

 

The debate heated up further this year when the Centers for Disease Control and Prevention admitted it had suffered laboratory accidents that exposed dozens of workers to anthrax and shipped deadly avian flu virus to another federal lab that had asked for a more benign flu strain.

 

***

 

The White House said the moratorium decision had been made “following recent biosafety incidents at federal research facilities.”

 

***

 

Many scientists were furious that such work had been permitted and even supported with American tax dollars. But others argued that it was necessary to learn which genetic mutations make viruses more dangerous. If those mutations began appearing naturally as the viruses circulated in animals and people, warnings could be issued and vaccines designed, they said.

 

***

 

Richard H. Ebright, a molecular biologist and bioweapons expert at Rutgers University, argued that the long history of accidental releases of infectious agents from research labs made such work extremely risky and unwise to perform in the first place.

Germs Abroad

The U.S. conducts germ research worldwide.  As the Los Angeles Times pointed out in the 1988 article:

The Army conducts or contracts for germ warfare work at 120 sites worldwide ….

The National Journal's Global Security Newswire reported in 2011 that such sites include bioweapon germs such as Anthrax and Ebola in Africa:

The Obama administration has requested $260 million in fiscal 2012 funding to bolster protective measures at African research sites that house lethal disease agents, the Examiner reported on Sunday (see GSN, April 14).

 

The Defense Department funding would be used to safeguard against extremist infiltration facilities in Kenya, Uganda and elsewhere that hold potential biological-weapon agents such as anthrax, Ebola and Rift Valley fever.

The heads of germ research for the Russian and South African governments both say that they intentionally created more lethal forms of deadly germs such as Ebola.

Specifically, the former head of Russia's biological weapons program told PBS:

In the 70s and beginning of 80s the Soviet Union started developing new biological weapons–Marburg infection biological weapon, Ebola infection biological weapon, Machupo infection, [or] Bolivian hemorrhagic biological weapon, and some others.

The head of South Africa's Apartheid-era biological weapons program also worked on weaponizing Ebola. The New Yorker noted in 2011:

Dr. Wouter Basson, and the various apartheid-era clandestine weapons programs he oversaw as leader of Project Coast…

 

South Africans call him Dr. Death. He is regularly compared by the local press, never very persuasively, to Josef Mengele. . .

 

***

 

There were revelations of research into a race-specific bacterial weapon; a project to find ways to sterilize the country’s black population ….

 

***

 

Basson’s scientists were working with anthrax, cholera, salmonella, botulinum, thallium, E. coli, ricin, organophosphates, necrotizing fasciitis, hepatitis A, and H.I.V., as well as nerve gases (Sarin, VX) and the Ebola, Marburg, and Rift Valley hemorrhagic-fever viruses. They were producing crude toxins (and some strange delivery systems) for use by the military and police, and they were genetically engineering extremely dangerous new organisms—creating, that is, biological weapons.

And see this.

Dr. Basson alleges that the UK and U.S. helped South Africa with its biowarfare research:

The U.S. has – in the past – intentionally deployed germ warfare abroad. For example, the Senate's Church Committee found that the CIA decided to bump off the heads of Congo and Cuba using lethal germs.  And the United States sold anthrax to Saddam Hussein in 1985, for the express purpose of using it against Iran. (CIA files also prove that the U.S. supported Saddam Hussein’s use of chemical weapons against Iran.)

Top Bioweapons Expert Speaks Out on Ebola

Washington's Blog spoke with one of America's leading experts on the dangers of research into deadly germs, Dr. Francis Boyle.

Dr. Boyle wrote the Biological Weapons Anti-Terrorism Act of 1989, the American implementing legislation for the 1972 Biological Weapons Convention.

Dr. Boyle served on the Board of Directors of Amnesty International (1988-1992), and is a professor of international law at the University of Illinois, Champaign.

WASHINGTON'S BLOG: You said recently that laboratories in West Africa run by the Centers for Disease Control and Tulane University are doing bioweapons research.  What documentary evidence do you have of that?

You mentioned that a map produced by the CDC shows where the laboratories are located on the West Coast of Africa?

DR. FRANCIS BOYLE:  Yes. They've got one in Monrovia [the capital of Ebola-stricken Liberia] … one in Kenema, Sierra Leone [the third largest city in the Ebola-hotzone nation], which was shut down this summer because the government there believed that it was the Tulane vaccines which had set this whole thing off.

And then they have another one in Guinea, where the first case [of Ebola] was reported.

All of these are labs which do this offensive/defensive biowarfare work.

And Fort Detrick's USAMRIID [the U.S. Army Medical Research Institute for Infectious Diseases] has also been over there. So it's clear what's been going on there.

CDC has a long history of doing biowarfare work. I have them doing biowarfare work for the Pentagon in Sierra Leone as early 1988.

WASHINGTON'S BLOG:   And how do you know that? Have you seen official documents?

DR. FRANCIS BOYLE:  An official government document: the Biological Defense Research Program, May 1988.  I analyzed it in my book, Biowarfare and Terrorism.

It's clear that [the U.S. bioweapons researchers] were using Liberia to try to circumvent the Biological Weapons Convention.  And CDC – for years – has been up to its eyeballs in biowarfare work.

They always try to justify the development of offensive biological weapons by claiming it's being done for "defensive" purposes.  That's just a lie … and it's always been a lie.

It's been the case on Ebola and just about every other biowarfare agent you can think of.

WASHINGTON'S BLOG:  Does that type of research violate the Biological Weapons Convention?

DR. FRANCIS BOYLE: Well, of course! It also violates the Biological Weapons Anti-Terrorism Act [which Boyle drafted], which was passed unanimously by both houses of the United States Congress and signed into law by President Bush, Senior.

That Act creates life in prison for this type of "Dr. Menegle" type work.

WASHINGTON'S BLOG:  And Obama recently said – as quoted in the New York Times article – that he's "curtailing" this type of defensive research, or putting it on hold.

Do you believe him?

DR. FRANCIS BOYLE:  That's the smoking gun, right there. Read that article [the New York Times article quoted above, which notes "a sudden change of heart by the Obama administration" about labs creating ever-deadlier versions of germs which are already lethal]. 

The reason they've stopped it is to cover themselves, I think, because they know that this type of work was behind the outbreak of the [Ebola] pandemic in West Africa.

But that's an admission right there, de facto.

_ _ _

Dr. Boyle made it clear that he is not suggesting – as some others are – that Ebola was intentionally released into the African population. He says he has seen no evidence of intentional release.  He's speaking about an accidental release of germs from a biowarfare research lab.

He's convinced, in fact, that this Ebola epidemic in Africa started with the release from a U.S. bioweapons lab in West Africa.   One of the reasons for his conviction that the outbreak started with the release from a bioweapon lab is that this Ebola strain seems to be much worse than those previously seen in the wild.

As Dr. Boyle told us:

It seems to me that [the Ebola epidemic in West Africa] has U.S. biowarfare programs written all over it.




via Zero Hedge http://ift.tt/1xdwzt2 George Washington

Trannies Up Over 10% From Bullard Lows, Shorts Squeezed Most In 3 Years

The last few days have seen stocks explode higher, led by Dow Transports (up 10.3%) following Bullard’s QE4 jawboning. The Dow Industrials is back in the green for 2014. While the catalyst may have been Bullard (and/or Williams and Gartman), the “tool” is the “most shorted” stocks – which have seen their best run (biggest squeeze) in 3 years

Shorts squeezed most in 3 years…

 

sending Trannies and Nasdaq soaring…

 

and The Russell 2000 back to unchanged for October…

 

Charts: Bloomberg




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