Mostly Monday Reads: Another Fine Mess
Posted: February 24, 2025 Filed under: Black Women Lead, Broligarchy, FARTUS, kakistocracy, kleptocracy, The American Triumvirate and Shadow Minister Putin | Tags: 2, @johnbuss.bsky.social, Bernie Sanders, Elonia Musk, FARTUS, HUD hack, John Buss, Joy Reid, Medicaid, NYC Mayor, sanctuary cities 5 Comments
“Of course, they’ll blame Biden for the missing gold. The plan all along. John Buss, @johnbuss.bsky.social
Good Day, Sky Dancers!
The grift and chaos are real. There is nothing golden about this new Gilded Age. The rich guys may have been rotten back then, but they did it by building railroads and steel plants. This new set throws their Dad’s money at things and tells everyone they are smart when they are anything but intelligent.
The Republican party deserves ignominious defeat at the polls.
Musk’s claws are all over Medicaid, and he’s being aided by Republican Congress Critters. Trump’s recent shake-down of the mayor of New York City is already giving Musk his jollies by throwing immigrants housed at the Roosevelt Hotel the boot. But that’s only one of 53 sites that will be shuttered without indicating who is waiting to hear their case in a court of law, which is likely a good portion if not all of them. Neo-Nazi encampments are on the rise too. But take heart: hackers have joined voters in trolling these folks. The midterm elections cannot come fast enough for me. Let’s take this news in order.
This analysis of the coming Medicare evisceration is provided by the site The Last Billionaires and is written by Jason Sattler. Guillotines one? “Here’s how Republicans are planning to throw millions off Medicaid and lie about it. Trump is teaching his minions to say, “We didn’t insure anyone”/”They deserved it.”
A lot of the horror in the Donald Trump sequel is new.
Sure, he was terrible the first time James Comey and Vladimir Putin made him president. But his misery couldn’t measured in donated kidneys that had to be junked, cures for diseases that won’t be found, and intentional infant deaths due to HIV.
That’s what Elon Musk has given us by singlehandedly electing Trump a second time.
However, one aspect of this Trump administration is nearly identical to the last. He wants to give rich people sloppy, unnecessary tax cuts and then “pay” for those tax cuts by basically ending Medicaid as we know it.
You’ll remember that he succeeded in the giveaways to the rich, but thanks to millions of activated Americans and John McCain’s thumb, he failed to gut Medicaid. Thankfully, because you may also remember that Trump bungled us into the worst response to COVID-19 in the rich world with a yearlong supercut of unforced errors that would have been infinitely worse if he’d succeeded in his dream of swiping insurance from masses of struggling workers and their families.
This time around, Trump, MAGA, and the Nerd Reich are determined to punish us for the few weeks rich people had to take out Olive Garden rather than enjoying the lush dining room by destroying the best medical research system ever created and simultaneously gutting the worst health insurance system in the rich world.
To be clear, we’re not sure how the details of this will look.
Republicans only need 50 votes in the Senate, which they have for pretty much anything Trump wants. The House is a mess. Speaker Mike Johnson only has a few votes to lose. While there are no true moderate Republicans in Congress, there are Republicans in losable districts—more than enough of them to lose the House in 2026 if democracy continues somewhat usually. If things go wrong enough, the GOP could even conceivably lose the House in special elections before November 2026.
One way they could go wrong is if Republicans touch a third rail and gut the largest provider of insurance in America. And that’s Trump’s plan. He has endorsed $880 billion in cuts for Medicaid, which is actually $44 billion MORE than House Republicans under his and Paul Ryan’s direction tried to cut Medicaid last time.
Because they tried this before, we have a decent idea of what the result would be, according to the Congressional Budget Office:
“In calendar year 2026, Medicaid enrollment is estimated to be 8 million lower under the AHCA than under current law due to the combination of two factors: (i) a decline of 6 million in enrollment for newly eligible adults under current law and (ii) a decline of 2 million in enrollment for all other Medicaid enrollees attributable to more frequent — 2 — eligibility redeterminations, the repeal of retroactive eligibility, and optional State work requirements for adults.”
That’s at least 8 million who’d be thrown off the program due to paperwork and ridiculous requirements that undermine the very nature of Medicaid, which exists to supplement Americans who can’t get insurance because they’re aged and not rich or taking care of a family member or trying to find a job or a kid.
As Kelly Hooper of Politico reminds us “Republicans’ plans for Medicaid have a political problem. GOP lawmakers expected to vote soon on slashing the insurance program for low-income people represent tens of millions reliant on it.
House Republicans who represent large numbers of Medicaid recipients are pushing back on their leaders’ plans to slash billions in funding for the insurance program for low-income people.
That dissension could grow considering that President Donald Trump has made the GOP more appealing to the working class. Republicans rely on low-income voters more than they have in decades, with Trump the first Republican presidential candidate to win the poorest third of the electorate since the 1960s.
A POLITICO review of enrollment in Medicaid by congressional district found that 11 Republicans in competitive seats represent larger-than-average Medicaid populations — collectively nearly 2.7 million recipients. A vote to cut the program presents a politically sensitive decision that may come back to haunt them in 2026.
With a 218-215 House split — the tightest in modern history — Republicans will be fighting for every seat during the midterms to keep control of the chamber. And they can only lose one vote in the House and still pass their budget bill.
House Republican leaders plan to use Medicaid cuts to pay for tax relief, border security and energy production in the coming weeks.
“The bulk of these cuts would have to be in Medicaid, and that’s why they’re not going to get the requisite votes they need to get it passed with the margins that they have right now,” said Bill Hoagland, senior vice president at the Bipartisan Policy Center and a former GOP Senate Budget Committee staffer. “Leaders are going to have a lot of difficulty getting the votes to pass this resolution.”
Nationally, about 24 percent of people in the United States are enrolled in Medicaid, according to an estimate compiled by NYU Langone Health. Just over 72 million people nationwide had Medicaid coverage as of October 2024, according to the Centers for Medicare and Medicaid Services.
Garret Graff has written “An Obituary for the FBI. America’s dream of a politically independent bureau is officially dead” at his blog Dooms Day Scenario. This year, Richard Nixon’s FBI and DOJ will be a quaint takeover by comparison.
The Sunday night announcement that Dan Bongino — a bombastic MAGA podcast host, fiery right-wing troll, one-time Secret Service agent, and three-time failed Republican congressional candidate — would be the new FBI deputy director and join the newly confirmed director Kash Patel, another MAGA loyalist better known for his hucksterism of Trump merchandise than his management, leadership, or law enforcement experience, and lead the FBI marked an almost certainly permanent alteration of the fabric of the institution.
In the entire modern history of the bureau, the deputy director — the #2 person who serves as the day-to-day operational leader of the FBI — has always been a civil servant and career special agent, one who has worked his (they’ve always been men) way up the ranks over a two-decade career and is deeply familiar with the workings of the bureau, its wide-ranging missions, and curious culture.
All previous modern directors, meanwhile, have had deep experience with the FBI — working in senior roles in law enforcement, atop the Justice Department, or as federal judges. Patel and Bongino, who does not require Senate confirmation in the role, bring none of that acquired expertise or wisdom to the role; neither has worked for the FBI for a single day and neither has meaningful senior management experience.
Both have been installed, effectively, to troll the libs — and, more dangerously for every American, to weaponize the normally fiercely independent bureau in service to Donald Trump personally. Don’t take my word for it — Bongino said it himself in 2018: “My entire life right now is about owning the libs.” He added then: “We win, you lose, the new rules are in effect.” Or try this video:
More recently, he said this on his podcast: “What matters? Anyone? Power.” Listen to that clip, watch the glee on his face as he says, and imagine him as the second most-powerful person in a vital national law enforcement agency that holds enormous sway over Americans of all stripes, and tell me that isn’t one of the darkest things you’ve seen yet out of the Trump administration.
Dan Bongino, who hosts a popular pro-Trump podcast and has appeared regularly on Fox News, will serve under Kash Patel. http://www.ft.com/content/510e…
— Financial Times (@financialtimes.com) 2025-02-24T17:46:58.462Z
FARTUS’ shakedown of the Mayor of New York City is already paying off big time. This is from NBC News. “NYC Mayor Eric Adams to close Roosevelt Hotel migrant center targeted by Musk, Trump administration. The hotel’s closure comes as Adams promises to close another 53 emergency shelter sites by June.” I wonder if they’ll ship The Statue of Liberty out, too?
New York City Mayor Eric Adams announced Monday that the city will close the Asylum Seeker Arrival Center at the Roosevelt Hotel, a site that was the frequent target of criticism from Elon Musk and the Trump administration.
Over 173,000 migrants completed registrations at the Manhattan hotel since its opening in May 2023, accounting for nearly three quarters of the 232,000 migrants who entered the city since the spring of 2022, the Adams administration reported.
“While we’re not done caring for those who come into our care, today marks another milestone in demonstrating the immense progress we have achieved in turning the corner on an unprecedented international humanitarian effort,” Adams said in a Monday statement.
The mayor added that his administration has “skillfully managed this crisis,” and that the Roosevelt Hotel has been “key in allowing us to effectively manage our operations.”
On top of closing the arrival center at the hotel, Adams also announced the closure of the Humanitarian Emergency Response and Relief Center located at Roosevelt.
The mayor cited a downtick of migrant registrations as well as the success of migrants who have “sought care” from the city to take their “next steps in their journeys,” as inspiring the move to shut down the core center at Roosevelt Hotel.
Adams’ administration said that while an average 4,000 migrants were arriving each week to New York City during the “height of the international asylum seeker crisis,” the average number of registrants in the city has dropped down to the about 350 migrants per week in recent months.
“Now, thanks to the sound policy decisions of our team, we are able to announce the closure of this site and help even more asylum seekers take the next steps in their journeys as they envision an even brighter future, while simultaneously saving taxpayers millions of dollars,” Adams said in a statement.
Remember, seeking asylum is not illegal in the US. It’s a process that’s part of an international treaty that we signed. Our government’s site about the process is still online. You may read about it here. However, bribing foreign politicians is a big no-no. The BBC reports that “Ex-Reform UK Wales leader accused of taking Russian-linked bribes.” Sound familiar?
The former leader of Reform UK in Wales has appeared in court accused of accepting bribes to make statements in the European Parliament that would benefit Russia.
Nathan Gill, 51, from Llangefni on Anglesey, is facing eight counts of bribery and one count of conspiracy to commit bribery.
The court heard Mr Gill, who was a UKIP and later a Brexit Party MEP between 2014 and 2020, was alleged to have received money from his co-defendant and former Ukrainian politician Oleg Voloshyn.
He appeared at Westminster Magistrates Court by video link on Monday, speaking to confirm his name, date of birth and address.
While FARTUS is still trying to turn the US Military into his own private force, he still has these guys and they are building. This is from The Guardian. “Neo-Nazi group plots rebuild as Trump’s FBI chief takes helm, audio reveals. Exclusive: Terrorist group the Base appears defiant as new administration aims to deprioritize threat from far right.”
An international neo-Nazi terrorist group with origins in the US appears to be quickly rebuilding its global and stateside ranks, according to information obtained by the Guardian from its digital accounts.
Founded in 2018, the Base has been the intense focus of a years-long FBI counter-terrorism investigation that has resulted in more than a dozen of its members arrested. It has plotted an assassination, mass shootings and other actions in Europe, which made it a proscribed terrorist organization in several countries.
By 2022, it seemed to disappear. Yet its founder and leader, Rinaldo Nazzaro, a former US special forces contractor residing in Russia, used the safety of Russian apps before the November election to recruit and reorganize during a tense political moment. At one point, he even solicited ex-American soldiers with an offer of $1,200 a month to put members through paramilitary training somewhere in the Pacific north-west.
The Base’s regrouping comes at a time when the Trump administration has made it a policy goal to move away from policing far-right extremism and during the appointment of Kash Patel – a Maga acolyte who lauds January 6 attackers and has peddled Qanon conspiracy theories – to helm the FBI. Experts say federal law enforcement ignoring far-right groups such as the Base could expose Americans to increased domestic terror threats.
Nazzaro’s efforts, so far, appear to be paying off: the Guardian was tipped to an audio message released in mid-February from an assumed new leader of the Base with an American accent, discussing the ambitious future of the group.
After criticizing other neo-Nazi organizations such as Blood Tribe for publicly protesting against drag-queen story hours in the midwest, the voice preached covert action and quiet preparations for armed cells throughout the US rather than flashy activism.
“Are we just going to be reactionary? Or are we going to be part of the solution? The military solution,” they said. “Because inevitably we’re going to end up in some sort of military situation, what are the choices?”
The voice then describes a “black scenario” where the US government soon collapses and there’s a need to “provide for your family” and for “white women”.
“There is no political solution, only a military solution,” they can be heard saying under heavy voice modulation. “So act accordingly.”
So, there have been various ways to express concern about what has happened these first 6 weeks under the FARTUS Triumvarite and Kakistocracy. MTN has this about recent contributions by hackers. “Hack at Department of Housing and Urban Development Trolls Donald Trump and Elon Musk | Report
The hack has ended, but the images are circulating on the internet.”
A hack at the Department of Housing and Urban Development this morning has now trolled Donald Trump and Elon Musk by playing a short, AI-generated video of Donald Trump kissing Elon Musk’s feet with the title “Long Live The Real King” over the video. Below is a screen grab taken by reporters this morning at the Department:
The video was on display for a short period of time this morning before being taken down by Housing and Urban Development officials. The “long live the real king” message on the video likely refers to a recent statement made by Donald Trump stating “long live the king” after he said that he would be ending congestion pricing in New York City.
It is unclear at this point who is responsible for the hack this morning, whether it was done internally by a HUD employee, or whether authorities have any leads.
Well, it stands to irritate them more than many of our protests since internet surfing, trolling, and golfing appear to be the only presidential duty these days. I’m not sure how long it will take to stop all of this and try to rebuild our infrastructure, but this sure will kill a lot of people in the process. Just the firing of all the best and brightest of the top brass in the military is a huge loss of knowledge and leadership. The Republicans are working on those billionaire tax cuts already, so the bilking of the Treasury continues.
The U.S. Army Chorus sang ‘Les Mis’ at the White House Governors’ Ball. The U.S. Army Chorus ‘Do You Hear the People Sing?’ performance from ‘Les Misérables’ is going viral?
So, our lonely eyes turn to the Democratic Party. Nicholas Wu, writing for Politico, filed this report today. “House Democrats are ramping up their attacks on the GOP agenda. Minority Leader Hakeem Jeffries urged “maximum attendance” this week ahead of a tight vote.”
House Democrats are sharpening their attacks on the Republican policy agenda ahead of an expected Tuesday budget vote, with Minority Leader Hakeem Jeffries laying out a plan for pushback in a letter to Democratic colleagues Monday.
With one House Republican, Rep. Victoria Spartz (R-Ind.) already publicly opposing the plan and others privately dug in against it, Jeffries urged “maximum attendance” from his caucus to keep the pressure on Speaker Mike Johnson and his minuscule GOP majority. Democrats are also playing up the backlash some Republican members of Congress faced at recent town halls (some of it organized by liberal advocacy groups) as they try to harness grassroots resistance to the GOP.
House Democrats will gather Tuesday on the House steps, Jeffries said, to “make sure that the country can hear from everyday Americans whose lives will be devastated by the Republican budget scheme.”
Even Bernie Sanders is back on the road again. This time, he’s holding town meetings in deeply red republican states and cities. So, I’m going to use this article from the Nebraska Examiner. “Overflow Omaha crowd launches U.S. Sen. Bernie Sanders’ ‘Fighting Oligarchy’ tour. ‘We are living in two Americas,’ says the Vermont senator and former presidential candidate.” Hey, it’s an improvement over giving speeches on the floor to a camera.
U.S. Sen Bernie Sanders kicked off his “Fighting Oligarchy” nationwide tour in Omaha Friday night, drawing an overflow crowd of more than 2,500, with hundreds more turned away.
The progressive independent from Vermont spoke to supporters about what he said is division in the United States under the leadership of President Donald Trump and billionaire entrepreneur Elon Musk of the Department of Government Efficiency.
Sanders said he chose Omaha as his first tour stop because of its working-class voters who were swayed toward Republican candidates in the 2024 election. The former presidential candidate said he wants to encourage people, similar to those living in the Omaha-based 2nd Congressional District, to recognize policies that could hurt them and their livelihoods.
He said that 60% of Americans are living paycheck to paycheck while rich people are receiving tax cuts.
His tour continues Saturday in Iowa, aimed at promoting democracy and encouraging the working class to stand up to signs of oligarchy.
“We are living in two Americas,” said Sanders. “What we do now will impact our lives. [Americans] need a grassroots movement that says no to oligarchy.”
Kitty Brougham, 65, of Omaha was among those cheering at the Omaha Marriott Downtown at the Capitol District.
She said she wanted to attend the event because she was losing hope. She is the mother of Sammie Peterson, 24, a transgender woman, and is worried for her future.
“I am watching my country be taken away from me,” said Brougham. “I needed hope.”
Sanders’ call to stand up inspired Peterson as well. She said she has not been very politically active in the past but feels that now is the time. As she worries for her future, she finds the ability to speak out.
Sanders spoke for about 30 minutes, at one point reciting the Gettysburg Address and reminding supporters that America was built on pushback against oligarchs. He encouraged people to speak up and said they are stronger when they come together — regardless of political party.
Originally set for the Laborers International Union building, the event was moved to the larger Marriott to accommodate a turnout estimated at 2,580 in the ballroom and two overflow rooms. Organizers said hundreds of others were turned away due to space constraints.
Alexander Beavers, 13, a middle school student from Omaha, was with his family cheering from the front row.
“Trump already ruined the state,” said Beavers.
Now, if these folks’ comments could only show up on the front page of any of the legacy national newspapers.
I don’t look forward to MSNBC really making a big effort for anything if this is typical of their reactions. You may have been here when I did an interview as one of the original “Reiders” back in the day on Zerlina Maxwell’s podcast. I’ve been a fan of hers forever. I attended her book signing at Baldwin Books when she launched a tour of her book on the Evers. This has me both sad and mad. They’ve canceled her show. They’re also moving Jen Psaki to Rachel’s current and old spot. Two women of color out their shows. Alex Wagner will be an at-large reporter. That is sure to be tough on her young family.
I just want to say thank you to everyone who has reached out with kindness and encouragement, both personally and in these social media streets. So very proud of The Reidout @joy.msnbc.com team, who are truly family, and all of our supporters & friends. See you tomorrow night at 7, one more time ‼️
— Joy-Ann Reid (@joyannreid.bsky.social) 2025-02-24T05:16:06.613Z
This is from The Independent. “Joy Reid’s staff had ‘tense’ meeting with MSNBC chiefs after learning her show was being axed in media, report says. Joy Reid hosted ‘The ReidOut’ for more than four years on MSNBC.”
MSNBC has canceled Joy Reid’s evening news show and held a “tense” meeting with her staff after the news was leaked to the press.
The final episode ofThe ReidOutwill air this week, The New York Times reports. Her slot will be replaced by a show led by a trio of hosts: Democratic strategist Symone Sanders Townsend, former Republican National Committee chair Michael Steele and journalist Alicia Menendez. They currently host The Weekend, which airs on Saturday and Sunday mornings.
Rebecca Kutler, the network’s newly-appointed leader, made the call amid larger plans to overhaul MSNBC’s programming, according to the Times.
Now, media journalist Oliver Darcy reports Reid’s staff found out they were losing their jobs in a tense and emotional 30-minute impromptu meeting Sunday morning. Staffers were reportedly frustrated they learned about the show shutting down from media reports, rather than directly from leadership.
Reid has hosted a 7 p.m. show on the network since 2020. She had been with the company since 2014.
The network has also removed Alex Wagner from her weekday evening spot, and Darcy reports Kutler held a “similar” meeting with the show’s staff. However, Wagner is expected to stay with MSNBC as a contributor.
Now, many are mourning Reid’s departure.
“I owe the television part of my career to Joy Reid, as do so many other Black voices y’all never would have heard of if not for her,” journalist Elie Mystal wrote on X. “And *that’s* why she’s gone. They can treat black folks as interchangeable, but everybody Black knows that Joy was indispensable.”
I’m getting too old for this shit.
#BlueskyResistance #Voices4Victory #ProudBlurAdvertisement at a London bus stop. Ya gotta love the British…
— Libby Whittemore (@libbage55.bsky.social) 2025-02-24T14:58:45.189Z
What’s on your reading and blogging list today?
Wednesday Reads
Posted: August 21, 2024 Filed under: 2024 DNC, 2024 presidential Campaign, Kamala Harris 2024 | Tags: Barack Obama, Bernie Sanders, Doug Emhoff, fund-raising, michelle obama, Milwaukee, Stephanie Grisham, Tim Walz, TV ratings 9 CommentsGood Morning!!
I’m on the third day of a some kind of stomach thing, so this post may be brief. I’ve been sleeping a lot, and last night I dozed off and slept through most of Doug Emhoff’s speech and all of Michelle and Barack Obama’s speeches. I’ll have to try and watch them later on. I did watch the ceremonial roll call of the states, and it was a lot of fun. The DNC played “walk up” songs and the state-by-state speeches were upbeat and enthusiastic.
NBC5 Chicago: DNC roll call playlist: Full list of each state’s ‘walk-up’ songs from night 2 of DNC.
Sure, there were big speeches from The Obamas, Illinois Gov. J.B. Pritzker, and Vermont Sen. Bernie Sanders at the Democratic National Convention last night. But Tuesday at the DNC in Chicago felt more like a dance party than a buttoned-up political event.
DJ Cassidy strode on stage in a bright blue double-breasted suit and spun tunes for every state during the event’s ceremonial roll call, as they nominated Kamala Harris and Tim Walz to the Democratic presidential ticket. Minnesota got “1999” by native son Prince, Kansas got “Carry on Wayward Son” by, well, Kansas. “Born in the U.S.A.” by Bruce Springsteen played as New Jersey weighed in.
See the whole list at the link. Unlike the Trump campaign, the Democrats got permission from all of the featured artists. In contrast, the Trump campaign yesterday posted a video with Trump walking from his plane to “Freedom,” by Beyonce, who gave Kamala Harris exclusive permission to use that song.
CNN with takeaways from last night’s speakers:
Barack and Michelle Obama electrified the Democratic National Convention on Tuesday, delivering back-to-back speeches that eviscerated Donald Trump and urged Americans to reject the Republican nominee once and for all.
The former first lady, in one of the most memorable speeches in convention history, called on Democrats to drop the “Goldilocks complex” and work hard to elect Vice President Kamala Harris.
“We cannot indulge our anxieties about whether this country will elect someone like Kamala, instead of doing everything we can to get someone like Kamala elected,” she said.
Then, the former president — in a speech that evoked memories of his emergence into the American political consciousness and his own winning campaigns — said that the “vast majority of us do not want to live in a country that’s bitter and divided.”
“We do not need four more years of bluster and bumbling and chaos. We have seen that movie before, and we all know that the sequel is usually worse,” Obama said.
Their speeches closed a night during which Democrats had sought to introduce Harris in more personal terms to Americans who are only now learning about the vice president, just a month after she ascended to the top of the party’s 2024 ticket.
Second gentleman Doug Emhoff told the story of their relationship and why his children call the vice president “Momala.” Maryland Senate candidate Angela Alsobrooks explained how Harris came to be someone she considered a friend and mentor.
CNN also summarized speeches by Republicans who now support Harris/Walz:
Throughout the night, the DNC featured former Republicans making the case for independents and Trump critics to vote for Harris.
One of the prime-time speaking slots went to Mayor John Giles of Mesa, Arizona, a self-declared lifelong Republican who said the Biden-Harris administration had delivered results for his conservative community.
“I have an urgent message for the majority of Americans who, like me, are in the political middle: John McCain’s Republican Party is gone, and we don’t owe a damn thing to what’s been left behind,” Giles said. “So let’s turn the page. Let’s put country first.”
Giles’ speech capped off a series of appearances Tuesday by Republicans, or people who’d left the party, rallying support for Harris….
Stephanie Grisham, a former Trump White House press secretary and chief of staff to former First Lady Melania Trump, described herself as a “true believer” who spent her holidays at Mar-a-Lago. But she resigned on January 6, 2021, after Trump failed to immediately move to stop his supporters from attacking the US Capitol.
Grisham used her remarks to condemn Trump’s behind closed doors, telling that audience that he mocks his supporters in private and has called them “basement dwellers.”
“He has no empathy, no morals and no fidelity to the truth,” she said.
The one sour note was Bernie Sanders, who apparently has no sense of humor and rarely if ever smiles. According to the BBC, he didn’t “feel the Bern” from the audience.
BBC: Obamas, dancing delegates and other takeaways from DNC day two.
During back-to-back speeches, Barack and Michelle Obama mixed gags with serious exhortations to Democrats to get out and vote in November – pointing out that Ms Harris was in a close race with Donald Trump.
Mr Obama characterised the Republican presidential candidate as being selfish and dangerous, quipping that he was obsessed with crowd sizes.
And Mrs Obama mocked Trump for his use of the term “black jobs” on the campaign trail. She suggested that Trump might himself be seeking one of those jobs – in a reference to her husband’s previous tenure of the White House.
By contrast, Ms Harris represented “hope”, Ms Obama said, echoing her husband’s campaign messaging from 2008.
On Bernie Sanders:
Bernie Sanders gave his own speech on Tuesday night – but the energy in the arena was described as “minimal” by the BBC’s North America correspondent, Anthony Zurcher. A murmur of people talking could be heard at the same time.
That is in contrast to the hero’s welcome that the veteran senator received in 2016, the year he challenged Hillary Clinton for the Democratic presidential nomination. Then, his supporters streamed into the Wells Fargo Center in Philadelphia.
Eight years later, Mr Sanders could still be witnessed railing against oligarchs and corporate interests, but the atmosphere was very different.
One explanation was that the building was filled with delegates who originally supported Joe Biden – rather than the Sanders faithful. But it could also signal that the senator has no clear successor to lead the Democratic progressive left.
The TV ratings for the first night of the DNC beat out the RNC. Deadline: Democratic National Convention Draws 20 Million On First Night, Surpassing RNC Viewership.
The first night of the Democratic National Convention averaged 20 million viewers across 13 networks, surpassing the audience for the initial day of the Republican National Convention, according to Nielsen.
The numbers are for the 10 p.m. ET to 12:30 a.m ET time frame, as the proceedings went way overtime, finishing with the address by President Joe Biden.
The DNC audience was greater than the first night of the party’s convention in 2020, when it drew 19.75 million viewers. But it was down significantly from 2016, when the DNC drew 25.95 million.
The first night of the DNC on Monday drew 15.32 million 55 and over, 3.51 million in the 35-54 demo and 851,000 aged 18-34, per Nielsen.
MSNBC topped the networks, drawing 4.6 million viewers, compared to 3.2 million for CNN, 2.8 million for ABC News, 2.4 million for Fox News, 2 million for CBS News and 1.8 million for NBC News. The figures are also Nielsen via MSNBC.
Harris and Waltz in Milwaukee last night
While the convention was taking place in Chicago, Kamala Harris and Tim Waltz appeared in Milwaukee a the same venue where the RNC was held–and it was packed to the rafters with an estimated 15,000 people. Harris gave her acceptance speech to both audiences simultaneously through a TV hookup.
The Milwaukee Journal Sentinel: Kamala Harris, Tim Walz hold rousing rally at Fiserv Forum in Milwaukee, Republican VP nominee JD Vance in Kenosha: Recap.
Vice President Kamala Harris held a rousing rally before thousands of supporters Tuesday night in Milwaukee, Wisconsin, while the second day of the 2024 Democratic National Convention in Chicago was taking place.
Harris accepted the party’s nomination for president in Milwaukee after the roll call vote of delegates in Wisconsin’s neighboring state of Illinois at the DNC. It was the Democratic presidential nominee’s third visit to the state since she took over the top of the ticket in late July.
Meanwhile, Republican vice presidential nominee JD Vance traveled to Kenosha for a press conference focused on crime and public safety.
Their appearances continue to show Wisconsin’s importance in the November presidential election.
The Journal Sentinel had live coverage from both the Harris/Walz and Vance events on Tuesday. Below are all the highlights from the political events in Wisconsin today.
Since the screen just outside Fiserv Forum that was supposed to show a stream of the DNC was malfunctioning, rally goers migrated to screens in the nearby Drink Wisconsinbly bar and the screen outside the Mecca Sports Bar and Grill to watch second gentleman Doug Emhoff speak out of Chicago.
They cheered as Emhoff left the stage and former first lady Michelle Obama was announced as the next speaker.
Gloria Boileau of Milwaukee said Harris brought “electric” energy inside Fiserv Forum. She spoke excitedly about the Harris-Walz ticket.“Knowing that they are the common people that we are and they will be in the White House representing us, that was electric,” Boileau said.
Read more from Milwaukee at the link.
The AP on tonight’s speakers: Tim Walz and Bill Clinton will speak at the Democratic National Convention’s third day.
Vice presidential nominee Tim Walz and former President Bill Clinton will headline the Democratic National Convention on Wednesday, the third day of the party’s choreographed rollout of a new candidate, Kamala Harris, and her pitch to voters.
In a delicate balancing act, Harris and the parade of Democrats speaking on her behalf all week are looking to harness the exuberance that has swept over their party since President Joe Biden stepped aside while making clear to their supporters that the election will be a fierce fight and frustratingly close.
“So much is on the line in this election,” Harris said Tuesday in Milwaukee, where she spoke at a professional basketball arena in battleground Wisconsin as the convention continued 90 miles away in Chicago. “And understand, this not 2016 or 2020. The stakes are higher.”
And in Chicago hours later, former President Barack Obama offered his own caution: “Make no mistake, it will be a fight,” Obama said. For all the energy and memes and rallies that have defined the campaign since Harris became the nominee, Obama said, “this will still be a tight race in a closely divided country.” [….]
And while the theme of Tuesday was “a bold vision for America’s future,” the disparate factions of Harris’ evolving coalition demonstrated, above all, that they are connected by a deep desire to prevent a second Trump presidency.
Harris continues to raise lots of campaign cash.
Reuters: Exclusive: Harris’ election effort raises around $500 million in a month, sources say.
U.S. Vice President Kamala Harris’ election effort has raised around $500 million since she became the Democratic presidential candidate, sources told Reuters, an unprecedented money haul that reflects donor enthusiasm going into the Nov. 5 election.
Four sources familiar with the fundraising effort told Reuters that figure had been banked for Harris in the four weeks since she jumped into the race on July 21.
Campaign cash is critical for advertising and get-out-the-vote efforts that help bring people to the polls and persuade undecided voters to swing a candidate’s way.
Harris entered the fray after President Joe Biden stepped aside from the top of the Democratic ticket, unleashing floods of funding that had dried up in the weeks after Biden’s disastrous debate against Republican Donald Trump.
Harris raised $200 million in the first week of her campaign while she quickly wrapped up support to become the party’s nominee.
Harris’ team raised $310 million in July, bringing the total amount of money raised by her and Biden before he dropped out to more than $1 billion, the most rapid crossing of that fundraising threshold in history, according to the campaign.
Trump’s campaign said it raised $138.7 million in July and had cash on hand of $327 million. The former president’s campaign outraised Biden in the second quarter.
Harris is also working to mobilize supporters to volunteer for the campaign. ABC News: Harris-Walz team has largest mobilization week of campaign cycle.
The Harris-Walz campaign effort to calcify the renewed enthusiasm from their party at the top of the ticket is seeing their biggest week of mobilization of the entire election cycle as the party’s national convention charges on in Chicago.
Ahead of the convention, the campaign launched what they characterize as a “weekend of action,” where over 10,000 volunteers barnstormed battlegrounds, making near 900,000 calls and knocking on more than 100,000 doors, contacting in sum over a million voters, per details first shared with ABC News. The campaign says that they were able to recruit over 24,000 volunteers.
Yet the most ambitious investments in organization will come at the latter half of the week — with the campaign hosting its largest telephone banking night of the cycle Wednesday, planning to launch 4,000 volunteers to work the lines.
On Thursday, the campaign will host 500 watch parties across the country in every state as Harris delivers her formal acceptance speech as the party’s newly minted nominee, a process that has come together in the short span of a month.
The campaign also held volunteer trainings and launched organizing resources on Monday and Tuesday….
These efforts are part of the campaign’s new efforts to mine the honeymoon buzz around Harris and Gov. Tim Walz, moving on turning any energy into action; mission critical with what continues to be a dead-heat race between Harris and former President Donald Trump several major battleground polls. This also comes as several grassroots voter groups host large-scale virtual telethons of sorts drawing big celebrity names to recruit volunteers and entice hefty donations, often netting millions of dollars each call.
More reads to check out, links only:
NOTUS on whining journalists: Accessibility and Access: Reporters Have Complaints About the DNC.
Meredith Shiner at The New Republic: Beware the Pundit-Brained Version of the Democratic Convention.
The Independent: How Kamala Harris became Donald Trump’s supertroll and found his weak spot.
The New Republic: Trump’s Latest Scheme to Beat Harris May Have Crossed Legal Lines.
Stephen Robinson at Public Notice: Trump sets the stage for another coup attempt.
The Hill: Republicans worry Trump blowing their chances for Senate majority.
Center for Politics: North Carolina Moves to Toss-up, Setting Up November Battle for Magnificent Seven Swing States.
The Daily Beast: Trump Surprised by Who Hurt His Feelings the Most at the DNC.
AP: Voters in Arizona and Montana can decide on constitutional right to abortion.
Have a great day everyone!!
Melt Down Monday: Another Fine Mess Trumplicans got us into
Posted: March 13, 2023 Filed under: just because | Tags: Bank Runs, Bernie Sanders, CryptoCurrency, Dodd-Frank bill, Elizabeth Warren, FDic, Federal Reserve Bank, Flash Digital Bank Runs, Janet Yellen, junk bond king, Katie Porter, SEC, Silicon Valley Bank, US Treasury 15 Comments
My body still tells me to say Good Morning!
I’m only on my second cup of coffee while waiting for my Irish Oats to cook. The clock tells me it’s afternoon, but something about me refuses to believe it. Why am I rudely being pushed into a part of the day rather than enjoying my lazy morning and looking forward to my Night Life? The best thing about teaching Grad school is that I no longer teach morning classes. Thanks to Dubya (wrecked the country) Bush, I only have that sacred space with its full glory for about 4 months a year. I’m grading midterms and wading through a seriously unnecessary set of bank failures in a bit of a fog. This is my version of No Exit.
Every time I teach my Grad Derivatives class in the Spring, some unnecessary financial crisis pops up. It’s not a huge one like another thing for which we can thank Dubya (wrecked the economy), Bush, and his cronies. This will not be the next “Great Recession” creator.
The Republicans under Theodore Roosevelt and Ulysses S Grant determined that you cannot trust huge actors in concentrated markets to regulate themselves. They called them trusts back then. They muck things up worse than the regulations while taking advantage of their customers for extraordinary profits until the jig is up. They also lead to substantial negative spillover costs paid for with taxpayer money. Many times, especially with situations like the Norfolk situation, victims of these costs never fully recover their losses. Real economists know this. It’s why Republicans haven’t had one around since Bernanke.
I wrote extensively about why the financial system ran amok and wrecked the economy around 2008. I am again writing about a very similar situation. Much of it’s rooted in the chipping away of protections set up to protect us from a recurrence of the Great Recession removed by Trump, the Republicans, and any elected official that basically gets vast donations from Wall Street and Banks. NBC News Sahil Kapur follows the ties between that and what’s happening now. “Silicon Valley Bank collapse puts new spotlight on a 2018 bank deregulation law. Democratic Sen. Elizabeth Warren, who led the push against that Trump-era law, now wants to restore those rules on financial institutions. Biden is also calling on Congress to act.”
Five years ago, Warren was the most outspoken opponent of the Republican-led Congress’ push to undo regulations imposed under the 2010 Dodd-Frank law for small and midsize banks. The bill, led by Sen. Mike Crapo, R-Idaho, sought to reclassify the “too big to fail” standard, which came with enhanced regulatory scrutiny. By raising the threshold from $50 billion in assets to $250 billion, medium-size banks were exempted from those regulations.
“Had Congress and the Federal Reserve not rolled back the stricter oversight, S.V.B. and Signature would have been subject to stronger liquidity and capital requirements to withstand financial shocks,” Warren wrote Monday. “They would have been required to conduct regular stress tests to expose their vulnerabilities and shore up their businesses. But because those requirements were repealed, when an old-fashioned bank run hit S.V.B., the bank couldn’t withstand the pressure — and Signature’s collapse was close behind.”
Sen. Bernie Sanders, I-Vt., who also opposed the 2018 law, blamed it for Silicon Valley Bank’s collapse.
“Let’s be clear. The failure of Silicon Valley Bank is a direct result of an absurd 2018 bank deregulation bill signed by Donald Trump that I strongly opposed,” he said in a statement. “Five years ago, the Republican Director of the Congressional Budget Office released a report finding that this legislation would ‘increase the likelihood that a large financial firm with assets of between $100 billion and $250 billion would fail.’”
The 2018 battle featured intense lobbying by banks — including Silicon Valley Bank and an array of smaller community banks — that were seeking regulatory relief.
The bill passed the House 258-159, winning 225 Republicans and 33 Democrats. In the Senate, it needed some Democrats to defeat a filibuster and achieve 60 votes. Warren infuriated some colleagues when she called out some Senate Democrats by name for trying to weaken Dodd-Frank rules.
In the end, 17 Democrats joined a unanimous Senate Republican conference to pass it. Trump signed it into law.
The entire financial industry plays a role in the economy held by no other. The safekeeping role is why rules for bank deposits, the FDIC insurance mandates exist, and capitalization laws are in place. I think no one teaches about the Bank Holidays and Runs we experienced during the Great Depression. The more you chip away at what used to be legal differences and responsibilities between banks with deposits and fiduciary responsibility and their ability to play around with risky loans and investments, the more these things will reoccur. Also, speculative investors like hedge funds’ special tax treatment lower their risk costs and increase their ability to make investment decisions that have a likelihood of implosion. The rollback of substantial sections of Dodd-Frank was integral to last week’s runs.
https://twitter.com/ritujay/status/1634432765692366849
More importantly, the recent failures of financial institutions and companies involved with Cryptocurrencies will be part of the focus as state and federal regulators–including the Fed–do a post-mortem on both Silicon Valley and the Signature Bank in New York. These banks look like Country Clubs for risky and poorly managed loan portfolios. They have many big accounts backed up by cryptocurrency, a highly speculative and risky asset. This is from CNBC. “Regulators close crypto-focused Signature Bank, citing systemic risk.” The reporter is Yun Li.
The banking regulators said depositors at Signature Bank will have full access to their deposits, a move similar to that which was made to ensure depositors at the failed Silicon Valley Bank will get their money back.
“All depositors of this institution will be made whole. As with the resolution of Silicon Valley Bank, no losses will be borne by the taxpayer,” the regulators said.
The regulators shuttered Silicon Valley Bank on Friday and seized its deposits in the largest U.S. banking failure since the 2008 financial crisis — and the second-largest ever. The dramatic moves come just days after the tech-focused institution reported it was struggling, triggering a run on the bank’s deposits.
Signature is one of the main banks to the cryptocurrency industry, the biggest one next to Silvergate, which announced its impending liquidation last week. It had a market value of $4.4 billion as of Friday after a 40% sell-off this year, according to FactSet.
As of Dec. 31, Signature had $110.4 billion in total assets and $88.6 billion in total deposits, according to a securities filing.
To stem the damage and stave off a bigger crisis, the Fed and Treasury created an emergency program to backstop all deposits at both Signature Bank and Silicon Valley Bank using the Fed’s emergency lending authority.
The FDIC’s deposit insurance fund will be used to cover depositors, many of whom were uninsured due to the $250,000 cap on guaranteed deposits.
While depositors will have access to their money, equity and bondholders at both banks are being wiped out, a senior Treasury official said.
The article is written by DDay. “The Silicon Valley Bank Bailout Didn’t Need to Happen. The debate over protecting all deposits in a blink looks past the incompetence that got us here.” Buried in the fine print of the joint statement is something exciting. It states that “certain unsecured debtholders” and shareholders are not protected. Certain unsecured debtholders may likely apply to crypto-tainted accounts used to secure debt. The Fed has been anxious to get more involved with the rogue market. Will today’s Republican Congress let them?
The brightest minds in and around San Francisco Bay had an unadulterated meltdown over the weekend over the failure of Silicon Valley Bank. This was a failure that they themselves caused, mind you, engineering a digital flash bank run that forced SVB to realize heavy losses, mostly from interest rate hikes and the bank’s unbelievable failure to even attempt to manage interest rate risk.
The venture capitalist–led mob quickly moved on to another dire warning: Because over 90 percent of SVB’s depositors exceeded $250,000 in guaranteed FDIC insurance, the government must make them 100 percent whole, immediately, or every regional bank in America will see the same failure. Hedge fund titan Bill Ackman, venture capitalist David Sacks, and angel investor Jason Calacanis led the charge, saying that thousands of startup firms will have trouble making payroll, and other regionals won’t be able to stop a torrent of withdrawals. They essentially took out a match next to a gas pump and demanded that federal regulators not force them to light it.
It worked. Federal officials announced a backstop to “fully protect all depositors” at both Silicon Valley Bank and Signature Bank, which was also closed on Sunday. “Depositors will have access to all of their money starting Monday, March 13,” the joint announcement by Treasury, the Federal Reserve, and the FDIC read. A special bank assessment will offset losses, they say; all shareholders and bondholders “will not be protected,” with senior management fired. A $25 billion fund has been initiated to protect deposits, even though the theory is that no taxpayer funds will be implicated.
Run on San Antonio’s City-Central Bank and Trust Company during the Depression, 1931
Have I ever mentioned how much I’d admire California Representative Katie Porter?
THE FIRST WORDS OUT OF THE MOUTH of Rep. Katie Porter (D-CA) when I talked to her on Sunday were: “Can you believe we have to talk about this shit again?” She was referring to a conversation we had in 2018, when she was still just a financial expert and a candidate for Congress, about S.2155, which I call the Crapo bill, a reference to its co-author (Idaho Republican Sen. Mike Crapo) and its underlying contents.
Some of these provisions don’t mitigate risk; they encourage it. For depository institutions with fiduciary responsibilities, it’s like giving Bourbon-drenched pecan pie to alcoholics. Remember when Bill Gates sold Tesla short? Anyone with an excellent eye for financial statement analysis can see this stuff coming. But wait, how do you explain that “KPMG Gave SVB, Signature Bank Clean Bill of Health Weeks Before Collapse. Accounting firm faces scrutiny for audits of failed banks“? This is from Jonathan Weil and WSJ.
Silicon Valley Bank failed just 14 days after KPMG LLP gave the lender a clean bill of health. Signature Bank went down 11 days after the accounting firm signed off on its audit.
What KPMG knew about the two banks’ financial situation and what it missed will likely be the subject of regulatory scrutiny and lawsuits.
KPMG signed the audit report for Silicon Valley Bank’s parent, SVB Financial Group SIVB 0.00%increase; green up pointing triangle, on Feb. 24. Regulators seized the bank on March 10 after a surge of withdrawals threatened to leave it short of cash.
“Common sense tells you that an auditor issuing a clean report, a clean bill of health, on the 16th-largest bank in the United States that within two weeks fails without any warning, is trouble for the auditor,” said Lynn Turner, who was chief accountant of the Securities and Exchange Commission from 1998 to 2001.
Two crucial facts for determining whether KPMG missed the banks’ problems are when the bank runs began in earnest and when the bank’s management and KPMG’s auditors became aware of the crisis.
This reminds me of Moody’s, which had no idea how to rate tranches of mortgage-based swaps and completely missed the boat on the Mortgage crisis in 2008. You may also remember Moody’s role during the Junk Bond Kings’ rule in the late ’80s. This was also a time of intense deregulation of the industry.
. Moody’s also missed this current one. “Moody’s Failed to Warn About Silicon Valley Bank’s Problems. The prestigious rating agency still gave the bank of startups an A rating until its collapse on March 10, repeating the same errors of the subprime crisis in 2008.” This is from The Street and Luc Olinga.
Fifteen years after the subprime mortgage crisis which devastated the global economy, rating agencies continue to make the same mistakes.
At least, this seems to be the case with the prestigious rating agency Moody’s Investors Service.
Regulators shut down California’s Silicon Valley Bank on March 10, after its US Treasury bets went awry, due to the interest rate hike by the Federal Reserve.
Consequently, the Federal Deposit Insurance Corporation (FDIC) seized its assets and created a new entity, which will begin operating on March 13.
Created in 1983, Silicon Valley Bank, which presented itself as a “partner for the innovation economy,” offered higher interest rates on deposits than its larger rivals, to attract customers. The company then invested the clients’ money in long-dated Treasury bonds and mortgage bonds with strong returns.
Moody’s Gave Silicon Valley Bank an A Rating
This strategy had worked well in recent years. The bank’s deposits doubled to $102 billion at the end of 2020 from $49 billion in 2018. In 2021, deposits increased to $189.2 billion.
But everything turned upside down when the Federal Reserve began to raise interest rates, which made existing bonds held by SVB less valuable. As a result, the bank had to sell the bonds at a discount to cover withdrawals from its customers. In selling these bond positions, SVB had to take a significant loss of $1.8 billion.
Due to this loss, SVB suddenly announced that it needed to raise additional capital of $2.25 billion, by issuing new common and convertible preferred shares. This decision caused panic and a run on the bank.
While investors saw nothing coming, this is also the case with Moody’s Investors Service, whose role is to assess the intrinsic value of a company and its ability to meet its obligations, including its ability to pay lenders back. Rating agencies must flag the financial risks associated with a company.
But everything turned upside down when the Federal Reserve began to raise interest rates, which made existing bonds held by SVB less valuable. As a result, the bank had to sell the bonds at a discount to cover withdrawals from its customers. In selling these bond positions, SVB had to take a significant loss of $1.8 billion.
Due to this loss, SVB suddenly announced that it needed to raise additional capital of $2.25 billion, by issuing new common and convertible preferred shares. This decision caused panic and a run on the bank.
While investors saw nothing coming, this is also the case with Moody’s Investors Service, whose role is to assess the intrinsic value of a company and its ability to meet its obligations, including its ability to pay lenders back. Rating agencies must flag the financial risks associated with a company.
American Union Bank, New York City. April 26, 1932.
I’ve lived through a banking crisis in charge of strategic planning and financial statement forecasting for one of the original too big to fail Savings and Loan Companies in the early 1980s. I was also trying to hedge our loan commitments using GNMA futures which is why Derivatives are real to me. Any time interest rates start moving in the wrong direction and any bank that hasn’t realigned their related risks, like being long on one side of the balance sheet and short on the other, you’ll lose big.
I had to tell the head of Financial Operations there was no way to break even when every rate marks an asset to market with every tick, and you’re mismatched. I was barely 25 at the time. I also saw loan brokers selling mortgages where due diligence was lacking in 2005. A student told me he was being offered a mortgage based on his student loan as income. I can’t imagine any in-house loan officer being that ignorant. That’s what happens when you farm out your core business ou to salespeople earning money by volume. I can’t imagine how Moody’s or major Auditing firms keep missing this. They’re probably as captured by their customers as the politicians are captured by their lobbyists and checks. Right Senator Sinema?
James Stewart and Donna Reed in a scene from the film ‘It’s A Wonderful Life’, 1946. (Photo by RKO Radio Picture/Getty Images)
So, these bank runs don’t exactly look like the ones in those black-and-white photographs from the 1930s. This is a good explanation from Fast Company. What exactly is a Digital Flash Bank Run? It’s not a DC comic. Silicon Valley Bank: An ‘It’s a Wonderful Life’ bank run for the digital age. The downfall of the Valley institution, which has been called “the backbone of the startup economy,” was caused by a good old-fashioned bank run, but one that ran at internet speed.”
The run began on Thursday, after a powerful Silicon Valley VC—Peter Thiel’s Founders Fund—had begun advising its portfolio companies to withdraw their money from SVB, sources told Fast Company. Other VCs soon caught wind of the advisory and began advising their own portfolio companies to withdraw funds from SVB, the people said. As the withdrawals accelerated, the bank began taking steps to stem the tide and preserve its solvency—just like George Bailey did in the 1946 classic It’s a Wonderful Life.
SVB Financial Group CEO Greg Becker seemed to be reading from director Frank Capra’s script when he uttered the fateful words “stay calm” during a Thursday conference call with customers, as fears over the bank’s solvency grew. Those words probably only increased depositors’ anxieties. And the withdrawals likely continued to snowball.
“The whole thing was predicated on a few folks who put out calls to make withdrawals,” Spencer Greene, a general partner at the venture fund TSVC, tells Fast Company. “I think the folks who made those calls weren’t correct on the facts, but once the thing got going it was hard to stop.” In other words, before the run started there was not sufficient evidence to suggest the bank was facing serious solvency issues.
Northern Rock Bank run, September 2007
Just another point, we knew these things could happen. Here’s a 2019 article speculating about a digital bank flash run by Joe McGrath, writing for The Raconteur. “Turmoil, panic and bank runs in a digital future.”
Potentially, cash can now be transferred from accounts in greater amounts, more quickly than before and, even if banks enforce temporary limits on online withdrawals, what effect would the resulting panic have on the banking system as a whole?
“In a world without physical cash, the rules of engagement for situations such as a bank run will require a different framework,” says Simon Fairbairn, director of solution development, western Europe, for Ingenico Group. “The rules and systems of today will need to evolve to accommodate the demands of a run.”
Mr Fairbairn questions whether present digital banking infrastructure is sufficient to cope with sustained pressure of this nature. “Regulation, compliance, technology; processes have all evolved to try and prevent the sins of the past, but until tested, can we really be sure it won’t already be found wanting,” he says.
It may sound like scaremongering, but Mr Fairbairn’s cautious view has broad support from many in the financial services community.
“A digital bank run in a hypothetical future would be much more dangerous as it would happen in seconds and minutes when clients could simply use mobile banking apps to transfer money to another account,” says Susanne Chishti, chief executive of Fintech Circle.
“Such a digital bank run would be much more difficult to contain and an appropriate technical response for such a scenario would have to be coded in at the outset to offer any chance of being effective.”
In 2020, Harvest Finance experienced the first type of digital bank run. “Harvest Finance: $24M Attack Triggers $570M ‘Bank Run’ in Latest DeFi Exploit, Harvest Finance has seen its total value locked drop by more than $500 million in the 12 hours since being hit by a flash loan attack.” DeFi is short for Decentralized Finance, which is based on peer-to-peer finance services on blockchains. Welcome to the Wild West World of cryptocurrency and bitcoins. This should give you pause.
An arbitrage trade exploiting weak points in decentralized finance (DeFi) protocol Harvest Finance led to some $24 million in stablecoins being siphoned away from the project’s pools on Monday, according to CoinGecko.
According to reports, an attacker used a flash loan – a technique that allows a trader to take on massive leverage without any downside – to manipulate DeFi prices for profit. The exploit sent the platform’s native token, FARM, tumbling by 65% in less than an hour, followed by the project’s total value locked (TVL), which dropped from over $1 billion before the exploit to $430 million as of press time.
The funds were eventually swapped for bitcoin (BTC), but not before being swept through Ethereum mixing service Tornado Cash.
The jargon term for this was a “bad harvest.” Stay out of this stuff is the only thing I have to say, which is the advice I would have given to these banks. Unfortunately, Silicon Valley is rife with Elon Musk Clones taking risks for adventure and attention. All traders have their own language. I’m still surprised youngest daughter can keep her department of derivatives traders and products on a leash. They’ve always thought of themselves as Wild West Cowboys. (See Lions of Wall Street.) But then, she and the brokerage firms she’s worked for are licensed and babysat by the SEC to keep the nonsense in check. We both stay out of this market.
So, a part of this and a bit more will be a lecture for me tomorrow. Last year the Game Stop thing did this to me. You’ll be glad to know billionaire Carl Icahn is happy about that crash. Someone always is because there are two sides to every trade. If you’re head’s spinning, you’re doing just fine. I got a Ph.D. and real-life experience in the stuff, plus a daughter that lives it daily and who I consult for a reality check. It still makes my head spin.
What’s on your reading and blogging list today?
And the SEC is far behind
Down in the swamp with the gators and flamingos
A long way from Liechtenstein
I’m a junk bond king playing Seminole Bingo
And my Wall Street wiles
Don’t help me even slightly
‘Cause I never have the numbers
And I’m losing nightly
I cashed in the last of my Triple B bonds
Got a double-wide on the Tamiami Trail
I parked it right outside the reservation
Fifteen minutes from the Collier County Jail
(Warren Zevon, backed up by Neil Young live)
Tuesday Reads
Posted: December 29, 2020 Filed under: morning reads, U.S. Politics | Tags: 5G conspiracy theory, Anthony Quinn Warner, Bernie Sanders, coronavirus pandemic, Covid-19, defense bill, Donald Trump, Mitch McConnell, Nashville bombing, post-holiday surge, QAnon, stimulus checks, veto override 12 Comments
Good Morning!!
Just 22 more days until Biden’s inauguration, and one more week until Congress counts the electoral votes on January 6. There’s still plenty of time for Trump to throw tantrums and pardon more war criminals, but his time in the White House is almost over. Unfortunately, it looks like January will be nightmarish.
Justin Hendrix at Substack: January will be one of the worst months in American history.
Simply put, the COVID-19 pandemic is raging across the country, and the record number of new cases since Thanksgiving is about to produce tens of thousands of additional hospitalizations, pushing health systems beyond the limit and likely driving daily death counts well beyond where they are today. Consider just a few data points:
- The IHME model now predicts more than 100,000 Americans will die in January alone, taking the total known pandemic death toll over 450,000.
- Hospitalizations, now at record highs, will likely explode. Last night the Covid Tracking Project reported a record number of hospitalized Americans, at 118,720, despite a number of states not reporting new figures due to the holiday. If that number seems enormous, consider that California’s model suggests that the state, which just crested 20,000 current hospitalizations, may itself reach 100,000 in January.
- The vaccination rollout is not going to plan. While it may improve in the coming days, official promises that 20 million Americans would receive the vaccine by the end of the year have fallen far short of the goal. As of December 26th, the CDC tracks less than 2 million first doses administered.
Imagine- nearly double the American death toll of the Vietnam War- across its nine years- in a single month. A quarter the number of all American losses in the roughly four years it fought in World War II- in a single month. In the face of this mounting disaster, the President is golfing in Florida. The Vice President and Head of the White House Coronavirus Task Force is vacationing in Vail, Colorado. The nation is effectively without leadership as we approach an event horizon of a black hole of death and anguish more acute than anything we’ve seen for generations.
Click the link to read the whole thing.
December was already bad enough. Eyewitness News Los Angeles: December deadliest month in US since COVID-19 pandemic began; January projections ‘nightmarish,’ expert says.
December has been the nation’s deadliest month since the COVID-19 pandemic’s start — with more than 63,000 Americans lost to the virus in the past 26 days.
In comparison, the entire month of November saw about 36,964 deaths, CNN reported.
The grim death toll comes on the heels of several brutal months for the US, with COVID-19 ravaging communities from coast to coast, crippling hospital systems and prompting new widespread restrictions.
The authorization of two COVID-19 vaccines earlier in December offered some hope of a light at the end of the tunnel. But experts continue to warn that while the end is in sight, the pandemic is not over and another surge stemming from the Christmas holiday could be on its way.
“We very well might see a post-seasonal — in the sense of Christmas, New Years — surge,” Dr. Anthony Fauci said on CNN’s “State of the Union” Sunday morning, pointing to holiday travel and private gatherings taking place despite the advice of health experts.
The nation’s top infectious disease expert described the potential rise in cases as a “surge upon a surge,” telling CNN’s Dana Bash, “If you look at the slope, the incline of cases that we’ve experienced as we’ve gone into the late fall and soon to be early winter, it is really quite troubling.”
NBC News: Biden adviser warns of ‘worst’ January ever from post-Christmas Covid surge.
Despite the rollout of two new vaccines, the pandemic is accelerating and the United States should brace itself for “one of the worst months in this nation’s history in January,” one of President-elect Joe Biden’s top Covid-19 advisers warned Monday.
“There is no doubt about that,” the expert, Dr. Celine Gounder, said on CNBC. “That cake is in the oven already, with the travel that has happened over the holidays.”
That dire warning came as the number of Covid-19 infections rose past 19.2 million after Christmas and the number of deaths from coronavirus neared 334,000, the latest NBC News data showed.
Gounder, a member of the Biden’s Covid-19 advisory board, described a nightmarish scenario in which local health officials are forced to erect field hospitals because hallways and even some parking lots are already packed with sick patients.
And an even bigger crisis, Gounder said, will be finding enough doctors and nurses to treat everybody.
“You can’t stand up new doctors and nurses the way you can field hospitals,” Gounder said. “You can’t just create them out of thin air.”
Yesterday the House voted to increase the stimulus checks from $600 to $2,000, as Trump demanded. The Washington Post reports: House votes to boost stimulus checks to $2,000 with bipartisan support.
The state of play: It’s still an uphill battle. But Republican senators are feeling more pressure from constituents — pumped by Trump — to do more.
Tuesday Reads: Six Primaries Today, But Coronavirus Still Tops the News
Posted: March 10, 2020 Filed under: Foreign Affairs, morning reads, U.S. Politics | Tags: 2020 Democratic primaries, Bernie Sanders, coronavirus, COVID19, Donald Trump, Italy, Joe Biden 24 Comments
The 2020 presidential contenders
Good Morning!!
Today there will be primaries in 6 states with 352 delegates up for grabs: Michigan, Washington, Missouri, Mississippi, Idaho, and North Dakota. What to watch for in each state, according to Buzzfeed News:
The 2020 Democratic primary radically changed last Tuesday, when Joe Biden surpassed even the highest expectations to build a delegate lead over Bernie Sanders. This Tuesday, the race could effectively lock into place.
Six states with a total of 352 delegates vote in the Democratic presidential primary today, which isn’t really a second Super Tuesday, even though many are calling it that (California, which voted last week, had 415 delegates on its own). But with Biden already up just about 80 delegates over Sanders going into Tuesday, a strong performance in these states could give him a lead that will be tough for Sanders to overcome. And alternatively, a surprising result for Sanders could make the primary more competitive than some assume it is right now, leading into states later this month that on paper look strong for Biden.
The biggest haul of delegates will come from Michigan, followed by Washington.
Michigan…is the big state tonight, with 125 delegates. Sanders won the primary here in 2016 over Hillary Clinton in a surprise, helping to revive his campaign even as the two basically split delegates evenly (67 for Sanders and 63 for Clinton).
Sanders and Biden have both spent much of the last week focused on winning the state. A win for Biden, especially one by a decisive margin, could be brutal for Sanders. A win for Sanders could prove that his promised coalition of young people — including young people of color — and the white working class still has life. Recent polls have shown a double-digit lead for Biden, but they showed one for Clinton ahead of the 2016 primary, too….
Washington…is tonight’s second-biggest state, with 89 delegates. Sanders won the state in a blowout in 2016 and is hoping to win by a decent margin again this year.
But Sanders has a disadvantage this year relative to 2016: The state will no longer hold caucuses, where he performed well with hyper-engaged, organized supporters. Washington this year is conducting its primary entirely by mail. About 22% of ballots were returned before Super Tuesday, which could limit a Biden bounce. Voting by mail has also reduced fears about the state’s coronavirus outbreak limiting turnout. But the result here isn’t necessarily certain: There’s been limited recent polling, and neither candidate has campaigned here in the last week.
NBC News: Democrats vote: What the polls show for Biden and Sanders in Michigan, other states.
A Detroit Free Press poll released Monday found that Biden has a 24-point lead over Sanders, with the former vice president drawing 51 percent of Democratic voters’ support to Sanders’ 27 percent. A Monmouth University poll, also released Monday, saw Biden with 51 percent of likely Democratic primary voters, while 36 percent supported Sanders. The RealClearPolitics polling average puts Biden up by 22.6 points.
Still, the Free Press noted, Sanders overcame a similar polling margin to win the state four years ago: The paper’s 2016 survey by the same pollsters gave Hillary Clinton a 25-point lead, but Sanders eventually won by 1.4 percentage points thanks to an unexpected surge of younger voters….
Biden has a narrow lead in Washington after eroding Sanders’ early lead with his Super Tuesday momentum. According to the RealClearPolitics polling average, Biden’s up by 2 points over Sanders.
The progressive-leaning state has 89 delegates — it’s the second-biggest trove of the day after Michigan — and Sanders won it handily in 2016….
Biden is also leading the polls in Missouri and Mississippi. Results in the tiny states of Idaho and North Dakota are anyone’s guess.
Obviously, the coronavirus is is leading the news today, despite the importance of the primaries. Here’s the latest.
Is what’s happening in Italy a preview for the U.S.? CBS News: Coronavirus brings Italy’s “darkest hour,” and takes a mounting toll in the U.S.
As Italians woke up to the most severe restrictions on their every-day lives since World War II, China said it was easing virus-control measures in the province where the COVID-19 disease emerged late last year. The contrasting conditions on two of the biggest battlefronts against the virus showed its severity, and the feasibility of corralling and controlling it.
AlJazeera: Italy in nationwide lockdown to prevent spread of coronavirus.
Italy has imposed unprecedented travel restrictions on its 60 million people to control the deadly coronavirus outbreak in the country.
“I am going to sign a decree that can be summarised as follows: I stay at home,” Conte said on television, announcing that the entire country would effectively be placed on lockdown from Tuesday.
“Travel must be avoided across the entire peninsula unless it is justified by professional reasons, by cases of need or for health reasons,” Conte said.
These measures extend a quarantine zone that Italy had imposed on its northern heartland around Milan and the greater Lombardy region, Venice, and Pesaro Urbino on Sunday.
The restrictions will run until April 3.
All schools and universities will immediately close. Serie A football matches and all other sporting events are also being suspended for the coming month.
All ski resorts are out of action and cinemas, museums, nightclubs and similar venues must remain shut after being ordered to close their doors over the weekend, the decree said.
While religious institutions will stay open, as long as people can stay a metre from one another, ceremonies such as marriages, baptisms and funerals are banned.
Read more at the link.
The Trump administration’s coronavirus strategy is still gaslighting and covering up.
Time Magazine: The Trump Administration Is Stalling an Intel Report That Warns the U.S. Isn’t Ready for a Global Pandemic.
The office of the Director of National Intelligence (DNI) was scheduled to deliver the Worldwide Threat Assessment to the House Intelligence Committee on Feb. 12 and the hearing has not been rescheduled, according to staffers and members of the House and Senate intelligence committees. The DNI’s office declined requests for a comment on the status of the report. Democratic staffers say they do not expect the report to be released any time soon.
The final draft of the report remains classified but the two officials who have read it say it contains warnings similar to those in the last installment, which was published on January 29, 2019. The 2019 report warns on page 29 that, “The United States will remain vulnerable to the next flu pandemic or large-scale outbreak of a contagious disease that could lead to massive rates of death and disability, severely affect the world economy, strain international resources, and increase calls on the United States for support.”
The 2019 warning was the third time in as many years that the nation’s intelligence experts said that a new strain of influenza could lead to a pandemic, and that the U.S. and the world were unprepared. “Although the international community has made tenuous improvements to global health security, these gains may be inadequate to address the challenge of what we anticipate will be more frequent outbreaks of infectious diseases because of rapid unplanned urbanization, prolonged humanitarian crises, human incursion into previously unsettled land, expansion of international travel and trade, and regional climate change,” the 2019 threat assessment warned.
Rather than acting on these recurrent warnings and bolstering America’s ability to respond to an outbreak, the Trump administration has instead cut back money and personnel from pandemic preparedness.
Click the link to read the rest.
Apparently, Trump doesn’t want immigrants to know how to protect themselves from the virusThe Miami Herald : Trump administration orders immigration courts to immediately remove coronavirus posters.
Immigration court staff nationwide have been ordered by the Trump administration to take down all coronavirus posters from courtrooms and waiting areas.
The Executive Office for Immigration Review, which falls under the Department of Justice, told all judges and staff members in an email Monday that all coronavirus posters, which explain in English and Spanish how to prevent catching and spreading the virus, had to be removed immediately.
“This is just a reminder that immigration judges do not have the authority to post, or ask you to post, signage for their individual courtrooms or the waiting areas,” wrote Christopher A. Santoro, the country’s acting chief immigration judge in a mass email to immigration court administrators nationwide.
“Per our leadership, the CDC flyer is not authorized for posting in the immigration courts. If you see one (attached), please remove it. Thank you.”
The information in the flyers came from the CDC. Why doesn’t the Trump administration want people in these courts to have the information?
Will the Republicans change their attitudes now that some GOP lawmakers–and maybe even Trump and Pence–have been exposed to the virus?
The Daily Beast: CPAC Attendees Want to Know Who the Mystery Coronavirus Patient Is.
Revelations that a man infected with the novel coronavirus hobnobbed with top Republicans at the annual Conservative Public Action Conference last month has prompted a wave of fright among Republican operatives who attended the conference and fear they may have been exposed, too. And as the fear has mounted so too have complaints that the conference’s planners have been too secretive about the man’s identity.
“If you’re not rich and important, you don’t get to know if you were exposed to someone with Coronavirus at CPAC,” Breitbart reporter Brandon Darby tweeted Monday….
The American Conservative Union, which organizes the annual event in National Harbor, Maryland, announced Saturday afternoon that a man who was infected with the coronavirus attended CPAC. Since then, four prominent Republicans—Sen. Ted Cruz (TX), Rep. Paul Gosar (AZ), Rep. Doug Collins (GA), and Rep. Matt Gaetz (FL)—have announced that they’re self-quarantining after interacting with the man.
Gaetz has undergone a test for the virus. In contrast, Rep. Louie Gohmert (R-TX), who also had contact with the infected man, said he won’t self-quarantine.
Gaetz flew on Air Force One with Trump yesterday and rode with him in the presidential limosine. Doug Collins was seen shaking hands and talking with Trump after the conference. For unknown reasons, Trump has not been tested for the virus.
Politico: ‘My phone’s been blowing up’: CPAC attendees rip the group’s virus messaging.
A CPAC attendee infected with coronavirus attended multiple days of the conference on a gold-level VIP ticket as well as a Friday night Shabbat dinner associated with the event, according to people familiar with the situation.
The infected attendee was a CPAC regular who made a hobby of meeting high-profile conference speakers and taking photographs with them. His gold-level ticket gave him access to a private lounge directly outside the green room for speakers on the conference’s main stage.
As of early Monday evening, event organizers have contacted “just over a dozen” people who they have identified as having direct contact with the infected attendee, according to Ian Walters, spokesman for the American Conservative Union, which organizes the annual Conservative Political Action Conference.
The ACU’s handling of the case has led to grumbling from some conferencegoers, who have complained of a two-tiered system: VIPs have been notified directly even to be told they did not interact with the infected man, while ordinary rank-and-file attendees have by and large been left to wonder, receiving only vaguer information in mass emails. Meanwhile, critics have noted the irony of prominent officials downplaying the outbreak even as the disease may silently have been spreading among the Trump administration’s own members and supporters.
More stories to check out today:
The Atlantic: COVID-19 Has Dangerously Inverted the Long-Standing White House Theme.
Jennifer Senior at The New York Times: President Trump Is Unfit for This Crisis. Period.
Brian Klass at The Washington Post: The coronavirus is Trump’s Chernobyl.
The Atlantic: The Dangerous Delays in U.S. Coronavirus Testing Continue.
Tom Bossert at The Washington Post: It’s now or never for the U.S. if it hopes to keep coronavirus from burning out of control.
AP: Trump talks down virus as his properties face possible hit.
The Daily Beast: Trump Chatted With Taliban Leaders on Secret U.S. Kill-or-Capture List.
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