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“Stocks Only Go Up” & The Rise Of The Pezzonovante

"Stocks Only Go Up" & The Rise Of The Pezzonovante

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"Stocks Only Go Up" & The Rise Of The Pezzonovante Tyler Durden Tue, 06/16/2020 - 17:25

Authored by Jim Rickards via The Daily Reckoning,

How crazy have markets become lately?

One new investor has said, “Stocks only go up,” while unemployed people are using their stimulus check to trade stocks:

“It was basically free money,” said one of them… “It’s like a gambling game.”

If you want to talk about craziness, just look at Hertz…

Fools Rush In

Hertz filed for bankruptcy on May 22. Then a bizarre thing happened. Some of those newbie investors who had just received their coronavirus stimulus checks opened online retail accounts at brokers like Robinhood and started buying Hertz!

The stock was sure to end up with zero value, but they didn’t care. If you bought it for $1.00 per share and could dump it for $3.00 per share, you tripled your money even if the stock ends up at zero.

That’s crazy enough, but then things got crazier.

Hertz saw its stock price going up and decided to sell $1 billion of stock in a new issue.

Investment bank Jefferies Co. agreed to underwrite the deal. The SEC signed off on the offering document.

Of course, in bankruptcy you have to get approval from the bankruptcy court. Many assumed the judge would put an end to the nonsense, but he didn’t. The judge approved the deal.

Just to be clear, if Hertz raises $1 billion, that money will go straight to creditors. Stockholders will still get zero. That’s why the judge approved the deal, because his job is to help the creditors.

This will be an expensive lesson in bankruptcy law for those who buy the equity, unless they sell to another sucker just in time.

I wish them all well.

Stocks Can Go Down After All

But the frenzied market rally of the past few weeks hit a snag last week. The Dow lost 5.5% on the week, while the S&P gave up 4.7%, making it the worst week since March 20.

I guess stocks go down after all.

The market was down big yesterday morning, extending last week’s losses, before rebounding yesterday afternoon on Fed headlines.

But it’s clear that investors are getting nervous about the resurgence in U.S. coronavirus infections, which places the prospects of a V-shaped recovery further in doubt (it wasn’t going to happen anyway).

The Good News

Well, we’ve all lived through the first wave of coronavirus infections (technically the SARS-CoV-2 virus and the COVID-19 disease).

Along with that came an unprecedented economic lockdown that has triggered a global depression.

Even during the Spanish flu pandemic of 1918–19 that killed 100 million people, there was no full-scale lockdown, although many large gatherings, sporting events and concerts were cancelled.

We’re just now starting to come out of our self-quarantines and small businesses are gradually reopening. That’s the good news.

The Bad News

The bad news is we’re hearing a lot about a so-called “second wave” of infections that could bring back another lockdown.

One professor of medicine at the Vanderbilt University School of Medicine has said, for example, “The second wave has begun.”

These concerns are causing market declines and volatility. But I don’t think many people really understand what a true second wave is.

There are new outbreaks of the disease, but these are still part of the first wave. We’re still experiencing the first wave, in other words.

Watch out for the Second Wave

The virus has a predictable pattern in a given locale. That generally means about an eight–10-week course with a peak after five weeks, then a gradual diminution.

But it does not hit every locale at the same time. What’s happening in Florida, Arizona, Texas and elsewhere today is just another version of what already hit New York. It’s just happening later in the timeline because of population density and different lockdown rules.

But again, it’s still the first wave. A true second wave happens after a period of relative calm. The virus mutates into a more lethal form and strikes again.

Those with antibodies from the first wave may do better, but others are highly susceptible to the second wave and the fatality rate can be much higher.

That’s what happened in the Spanish flu a century ago. The first wave was March–June 1918. It was fatal but tailed off quickly. The second wave hit in October 1918 and was much more fatal.

Bodies were piled up like firewood. They ran out of coffins. They ran out of grave diggers. They ran out of graveyards and dug mass graves, wrapped people in sheets and dusted them with disinfectant and threw them in. That’s how bad that was.

COVID-19 isn’t anywhere near as bad as the Spanish flu was. But if we get a second wave, it could be more lethal than the first. It is likely to strike in December 2020. Let’s pray it doesn’t happen, but it’s too soon to rule it out.

The Rise of the Pezzonovante

What we can count on is that power-hungry politicians and bureaucrats will continue to throw their weight around...

Pezzonovante is a colorful Sicilian term famously used in the script for The Godfather. It basically means “big shot” or “self-important.”

It’s used in a derogatory sense to describe politicians who think they’re better than everybody else. One of the unpleasant side effects of the coronavirus lockdown is the rise of a new pezzonovante class among U.S. politicians.

It is true that political figures, especially governors and mayors, do have emergency powers to deal with public health crises or natural disasters. However, all such powers must be conducted in a constitutional framework with consideration for economic, medical and other factors balanced out.

The problem is that every elected official has an inner dictator who can’t wait to start bossing people around with arbitrary executive orders and no due process of law. That’s what’s been happening since the lockdowns began.

State governors were issuing “lockdown” orders, arresting people without face masks and revoking business and liquor licenses from small-business owners trying to earn a living, all without legal authority.

When these neofascist tactics are challenged in court, the state often loses. But not every small-business person can afford the legal fees to bring suit.

The lockdown did slow the spread of the virus and did save some lives, that’s true. But, the gains may only be temporary.

Remember, “flattening the curve” does not mean reducing total infections and deaths. It just means stretching them out over a longer period so the hospital system is not overwhelmed.

Let’s look at one pezzonovante…

An Offer You Can’t Refuse

New York Gov. Andrew Cuomo was responsible for 5,000 unnecessary deaths because he ordered COVID-19 patients to be forced into assisted living facilities where residents got ill and died as a result.

Now he’s threatening to reimpose a lockdown on New York beach resorts and Manhattan if people don’t follow his version of “social distancing” and face mask etiquette.

(Never mind that the science of face masks is not at all clear; many experts take the view that they don’t work and can do more harm than good except for medical personnel who face constant exposure.)

The point is that transparency and good communication with the public combined with voluntary compliance can get the job done. Orders and threats don’t help and prompt many people to do the opposite.

Leaders like Andrew Cuomo will just delay the economic recovery without doing anything to slow the spread of the virus. This is just one example of the new pezzonovante throwing their weight around without concern for the public good.

The “inner dictators” are on the loose and economic recovery will suffer as a result.

Unfortunately, they’re not going away.

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Are Voters Recoiling Against Disorder?

Are Voters Recoiling Against Disorder?

Authored by Michael Barone via The Epoch Times (emphasis ours),

The headlines coming out of the Super…

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Are Voters Recoiling Against Disorder?

Authored by Michael Barone via The Epoch Times (emphasis ours),

The headlines coming out of the Super Tuesday primaries have got it right. Barring cataclysmic changes, Donald Trump and Joe Biden will be the Republican and Democratic nominees for president in 2024.

(Left) President Joe Biden delivers remarks on canceling student debt at Culver City Julian Dixon Library in Culver City, Calif., on Feb. 21, 2024. (Right) Republican presidential candidate and former U.S. President Donald Trump stands on stage during a campaign event at Big League Dreams Las Vegas in Las Vegas, Nev., on Jan. 27, 2024. (Mario Tama/Getty Images; David Becker/Getty Images)

With Nikki Haley’s withdrawal, there will be no more significantly contested primaries or caucuses—the earliest both parties’ races have been over since something like the current primary-dominated system was put in place in 1972.

The primary results have spotlighted some of both nominees’ weaknesses.

Donald Trump lost high-income, high-educated constituencies, including the entire metro area—aka the Swamp. Many but by no means all Haley votes there were cast by Biden Democrats. Mr. Trump can’t afford to lose too many of the others in target states like Pennsylvania and Michigan.

Majorities and large minorities of voters in overwhelmingly Latino counties in Texas’s Rio Grande Valley and some in Houston voted against Joe Biden, and even more against Senate nominee Rep. Colin Allred (D-Texas).

Returns from Hispanic precincts in New Hampshire and Massachusetts show the same thing. Mr. Biden can’t afford to lose too many Latino votes in target states like Arizona and Georgia.

When Mr. Trump rode down that escalator in 2015, commentators assumed he’d repel Latinos. Instead, Latino voters nationally, and especially the closest eyewitnesses of Biden’s open-border policy, have been trending heavily Republican.

High-income liberal Democrats may sport lawn signs proclaiming, “In this house, we believe ... no human is illegal.” The logical consequence of that belief is an open border. But modest-income folks in border counties know that flows of illegal immigrants result in disorder, disease, and crime.

There is plenty of impatience with increased disorder in election returns below the presidential level. Consider Los Angeles County, America’s largest county, with nearly 10 million people, more people than 40 of the 50 states. It voted 71 percent for Mr. Biden in 2020.

Current returns show county District Attorney George Gascon winning only 21 percent of the vote in the nonpartisan primary. He’ll apparently face Republican Nathan Hochman, a critic of his liberal policies, in November.

Gascon, elected after the May 2020 death of counterfeit-passing suspect George Floyd in Minneapolis, is one of many county prosecutors supported by billionaire George Soros. His policies include not charging juveniles as adults, not seeking higher penalties for gang membership or use of firearms, and bringing fewer misdemeanor cases.

The predictable result has been increased car thefts, burglaries, and personal robberies. Some 120 assistant district attorneys have left the office, and there’s a backlog of 10,000 unprosecuted cases.

More than a dozen other Soros-backed and similarly liberal prosecutors have faced strong opposition or have left office.

St. Louis prosecutor Kim Gardner resigned last May amid lawsuits seeking her removal, Milwaukee’s John Chisholm retired in January, and Baltimore’s Marilyn Mosby was defeated in July 2022 and convicted of perjury in September 2023. Last November, Loudoun County, Virginia, voters (62 percent Biden) ousted liberal Buta Biberaj, who declined to prosecute a transgender student for assault, and in June 2022 voters in San Francisco (85 percent Biden) recalled famed radical Chesa Boudin.

Similarly, this Tuesday, voters in San Francisco passed ballot measures strengthening police powers and requiring treatment of drug-addicted welfare recipients.

In retrospect, it appears the Floyd video, appearing after three months of COVID-19 confinement, sparked a frenzied, even crazed reaction, especially among the highly educated and articulate. One fatal incident was seen as proof that America’s “systemic racism” was worse than ever and that police forces should be defunded and perhaps abolished.

2020 was “the year America went crazy,” I wrote in January 2021, a year in which police funding was actually cut by Democrats in New York, Los Angeles, San Francisco, Seattle, and Denver. A year in which young New York Times (NYT) staffers claimed they were endangered by the publication of Sen. Tom Cotton’s (R-Ark.) opinion article advocating calling in military forces if necessary to stop rioting, as had been done in Detroit in 1967 and Los Angeles in 1992. A craven NYT publisher even fired the editorial page editor for running the article.

Evidence of visible and tangible discontent with increasing violence and its consequences—barren and locked shelves in Manhattan chain drugstores, skyrocketing carjackings in Washington, D.C.—is as unmistakable in polls and election results as it is in daily life in large metropolitan areas. Maybe 2024 will turn out to be the year even liberal America stopped acting crazy.

Chaos and disorder work against incumbents, as they did in 1968 when Democrats saw their party’s popular vote fall from 61 percent to 43 percent.

Views expressed in this article are opinions of the author and do not necessarily reflect the views of The Epoch Times or ZeroHedge.

Tyler Durden Sat, 03/09/2024 - 23:20

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Veterans Affairs Kept COVID-19 Vaccine Mandate In Place Without Evidence

Veterans Affairs Kept COVID-19 Vaccine Mandate In Place Without Evidence

Authored by Zachary Stieber via The Epoch Times (emphasis ours),

The…

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Veterans Affairs Kept COVID-19 Vaccine Mandate In Place Without Evidence

Authored by Zachary Stieber via The Epoch Times (emphasis ours),

The U.S. Department of Veterans Affairs (VA) reviewed no data when deciding in 2023 to keep its COVID-19 vaccine mandate in place.

Doses of a COVID-19 vaccine in Washington in a file image. (Jacquelyn Martin/Pool/AFP via Getty Images)

VA Secretary Denis McDonough said on May 1, 2023, that the end of many other federal mandates “will not impact current policies at the Department of Veterans Affairs.”

He said the mandate was remaining for VA health care personnel “to ensure the safety of veterans and our colleagues.”

Mr. McDonough did not cite any studies or other data. A VA spokesperson declined to provide any data that was reviewed when deciding not to rescind the mandate. The Epoch Times submitted a Freedom of Information Act for “all documents outlining which data was relied upon when establishing the mandate when deciding to keep the mandate in place.”

The agency searched for such data and did not find any.

The VA does not even attempt to justify its policies with science, because it can’t,” Leslie Manookian, president and founder of the Health Freedom Defense Fund, told The Epoch Times.

“The VA just trusts that the process and cost of challenging its unfounded policies is so onerous, most people are dissuaded from even trying,” she added.

The VA’s mandate remains in place to this day.

The VA’s website claims that vaccines “help protect you from getting severe illness” and “offer good protection against most COVID-19 variants,” pointing in part to observational data from the U.S. Centers for Disease Control and Prevention (CDC) that estimate the vaccines provide poor protection against symptomatic infection and transient shielding against hospitalization.

There have also been increasing concerns among outside scientists about confirmed side effects like heart inflammation—the VA hid a safety signal it detected for the inflammation—and possible side effects such as tinnitus, which shift the benefit-risk calculus.

President Joe Biden imposed a slate of COVID-19 vaccine mandates in 2021. The VA was the first federal agency to implement a mandate.

President Biden rescinded the mandates in May 2023, citing a drop in COVID-19 cases and hospitalizations. His administration maintains the choice to require vaccines was the right one and saved lives.

“Our administration’s vaccination requirements helped ensure the safety of workers in critical workforces including those in the healthcare and education sectors, protecting themselves and the populations they serve, and strengthening their ability to provide services without disruptions to operations,” the White House said.

Some experts said requiring vaccination meant many younger people were forced to get a vaccine despite the risks potentially outweighing the benefits, leaving fewer doses for older adults.

By mandating the vaccines to younger people and those with natural immunity from having had COVID, older people in the U.S. and other countries did not have access to them, and many people might have died because of that,” Martin Kulldorff, a professor of medicine on leave from Harvard Medical School, told The Epoch Times previously.

The VA was one of just a handful of agencies to keep its mandate in place following the removal of many federal mandates.

“At this time, the vaccine requirement will remain in effect for VA health care personnel, including VA psychologists, pharmacists, social workers, nursing assistants, physical therapists, respiratory therapists, peer specialists, medical support assistants, engineers, housekeepers, and other clinical, administrative, and infrastructure support employees,” Mr. McDonough wrote to VA employees at the time.

This also includes VA volunteers and contractors. Effectively, this means that any Veterans Health Administration (VHA) employee, volunteer, or contractor who works in VHA facilities, visits VHA facilities, or provides direct care to those we serve will still be subject to the vaccine requirement at this time,” he said. “We continue to monitor and discuss this requirement, and we will provide more information about the vaccination requirements for VA health care employees soon. As always, we will process requests for vaccination exceptions in accordance with applicable laws, regulations, and policies.”

The version of the shots cleared in the fall of 2022, and available through the fall of 2023, did not have any clinical trial data supporting them.

A new version was approved in the fall of 2023 because there were indications that the shots not only offered temporary protection but also that the level of protection was lower than what was observed during earlier stages of the pandemic.

Ms. Manookian, whose group has challenged several of the federal mandates, said that the mandate “illustrates the dangers of the administrative state and how these federal agencies have become a law unto themselves.”

Tyler Durden Sat, 03/09/2024 - 22:10

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Low Iron Levels In Blood Could Trigger Long COVID: Study

Low Iron Levels In Blood Could Trigger Long COVID: Study

Authored by Amie Dahnke via The Epoch Times (emphasis ours),

People with inadequate…

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Low Iron Levels In Blood Could Trigger Long COVID: Study

Authored by Amie Dahnke via The Epoch Times (emphasis ours),

People with inadequate iron levels in their blood due to a COVID-19 infection could be at greater risk of long COVID.

(Shutterstock)

A new study indicates that problems with iron levels in the bloodstream likely trigger chronic inflammation and other conditions associated with the post-COVID phenomenon. The findings, published on March 1 in Nature Immunology, could offer new ways to treat or prevent the condition.

Long COVID Patients Have Low Iron Levels

Researchers at the University of Cambridge pinpointed low iron as a potential link to long-COVID symptoms thanks to a study they initiated shortly after the start of the pandemic. They recruited people who tested positive for the virus to provide blood samples for analysis over a year, which allowed the researchers to look for post-infection changes in the blood. The researchers looked at 214 samples and found that 45 percent of patients reported symptoms of long COVID that lasted between three and 10 months.

In analyzing the blood samples, the research team noticed that people experiencing long COVID had low iron levels, contributing to anemia and low red blood cell production, just two weeks after they were diagnosed with COVID-19. This was true for patients regardless of age, sex, or the initial severity of their infection.

According to one of the study co-authors, the removal of iron from the bloodstream is a natural process and defense mechanism of the body.

But it can jeopardize a person’s recovery.

When the body has an infection, it responds by removing iron from the bloodstream. This protects us from potentially lethal bacteria that capture the iron in the bloodstream and grow rapidly. It’s an evolutionary response that redistributes iron in the body, and the blood plasma becomes an iron desert,” University of Oxford professor Hal Drakesmith said in a press release. “However, if this goes on for a long time, there is less iron for red blood cells, so oxygen is transported less efficiently affecting metabolism and energy production, and for white blood cells, which need iron to work properly. The protective mechanism ends up becoming a problem.”

The research team believes that consistently low iron levels could explain why individuals with long COVID continue to experience fatigue and difficulty exercising. As such, the researchers suggested iron supplementation to help regulate and prevent the often debilitating symptoms associated with long COVID.

It isn’t necessarily the case that individuals don’t have enough iron in their body, it’s just that it’s trapped in the wrong place,” Aimee Hanson, a postdoctoral researcher at the University of Cambridge who worked on the study, said in the press release. “What we need is a way to remobilize the iron and pull it back into the bloodstream, where it becomes more useful to the red blood cells.”

The research team pointed out that iron supplementation isn’t always straightforward. Achieving the right level of iron varies from person to person. Too much iron can cause stomach issues, ranging from constipation, nausea, and abdominal pain to gastritis and gastric lesions.

1 in 5 Still Affected by Long COVID

COVID-19 has affected nearly 40 percent of Americans, with one in five of those still suffering from symptoms of long COVID, according to the U.S. Centers for Disease Control and Prevention (CDC). Long COVID is marked by health issues that continue at least four weeks after an individual was initially diagnosed with COVID-19. Symptoms can last for days, weeks, months, or years and may include fatigue, cough or chest pain, headache, brain fog, depression or anxiety, digestive issues, and joint or muscle pain.

Tyler Durden Sat, 03/09/2024 - 12:50

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