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The Six Largest Wall Street Banks Issue Market Red Alerts

The Six Largest Wall Street Banks Issue Market Red Alerts

Morgan Stanley, Bank of America, Deutsche Bank, Citigroup, Credit Suisse And Goldman Sachs.

These are some of the biggest Wall Street banks that have issued "red alert" warnings on…

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The Six Largest Wall Street Banks Issue Market Red Alerts

Morgan Stanley, Bank of America, Deutsche Bank, Citigroup, Credit Suisse And Goldman Sachs.

These are some of the biggest Wall Street banks that have issued "red alert" warnings on the US stock market in just the past few days, with some expecting an imminent correction of 10-20%, while others expect a slow burning drift lower over the next few months. Below we summarize the highlights of their surprisingly downbeat views.

Morgan Stanley

We start with Morgan Stanley, which yesterday published its latest Global Macro Forum slide deck (available for professional subscribers), and where the bank's chief cross-asset strategist Andrew Sheets warns that equity market internals have continued to follow a "mid cycle transition", a process which usually ends with quality stocks - like the FAAMGs market "generals" - getting hit, "which poses outsized risk to the high-quality S&P 500" through October.

Sheets frames his pessimistic view by disclosing the five themes which he believes will define markets though year-end. These are:

  1. Policy divergence and the start of tapering: MS expects the Fed to signal its intent to taper at the September meeting. As central bank policy becomes less easy, it also becomes more divergent. This will provide support for long DXY, short PLN/HUF, short US duration and gold, caution on US and Taiwan equities.

  2. Vaccination divergence: The world has two strategies to combat COVID-19 – vaccination and suppression. The Delta variant has made the latter difficult, increasing risks to growth in regions with low vaccination rates. The bank sees this as bullish for EU equities.

  3. Valuation divergence: 2021 to date has seen a wide adjustment in valuations. Sheets' advice: "Focus on areas with greater levels of valuation adjustment. We add Brazil versus EM equities to our top trades."

  4. Echoes of 2004: Sheets thinks that 2004 offers a useful guide for a 'mid-cycle transition’. He suggests taking default risk over spread risk and like loans over bonds in credit.

  5. Doing things > buying things: The pandemic saw demand for goods jump and demand for services collapse. As the recovery continues, expect a reversal. We think this supports energy > metals, and are cautious on US consumer discretionary.

While regular readers are aware of Morgan Stanley's long-running theme that the US economy is undergoing a mid-cycle transition, for those unfamiliar, here is one way that the bank's chief equity strategist Michael Wilson has framed it previously, showing that the ISM Manufacturing Index always lags the Prices Paid, which has recently reversed (shown inverted on the chart below) and suggests of significant downside tot he closely watched indicator.

As part of this "mid-cycle transition", several months ago the bank urged clients to transition out of small caps and into quality stocks...

... we are now on the verge of ending the mid-cycle transition, which according to Michael Wilson ends either in "fire," with a market correction of 10-20% as a result of higher rates...

... or "ice" as consumer spending grinds to a halt.

Putting it together, Andrew Sheets lists the following 5 key market takeaways:

  1. September and October represents a tricky period for central bank communication, economic data and market technicals: The bank sees risks to both US equities and US bonds given current valuations, and as a result Morgan Stanley is downgrading US stocks to Underweight and global equities to Equal Weight.

  2. For the global economy, Morgan Stanley thinks that many current inflationary pressures are temporary, but the timing of peak inflation varies by region and country. On growth, the bank believes that "we’ve passed the peak in activity, with August particularly weak in the US, but the end of the cycle is not nigh."

  3. In rates, it will come as no surprise that MS thinks that core rates have bottomed and will move higher into 4Q21 and into 2H22, after all this is the biggest consensus trade across Wall Street (and is thus likely wrong): Central bank withdrawal of policy accommodation and a near-term trough in economic data should both help to push yields higher. Sheets also thinks USD also grinds higher into year-end.

  4. For equities, Sheets warns that market internals have continued to follow a ‘mid-cycle transition’: That process, as noted above, usually ends with quality stocks getting hit, which poses outsized risk to the high-quality S&P 500. Both ‘fire’ (rates higher) and ‘ice’ (the growth slowdown is worse than expected) pose risk to a market that has barely de-rated year-to-date.

Putting it all together, on Wednesday morning Sheets spoke to Bloomberg TV, saying that “we are going to have a period where data is going to be weak in September at the time when you have a heightened risk of delta variant and school reopening" adding that “If the data does stay soft, the market valuations just haven’t adjusted like other parts of the market have.”

Bank of America

Regular readers will know that Bank of America has been one of the most bearish big banks in 2021, with its Chief Investment Officer spouting a weekly dose of fire and brimstone (as an example see his "Bear Case In 12 "Charts Of Darkness"), while the bank's chief equity strategist Savita Subramanian having held to the lowest 2021 year-end S&P price target at just 3,800, tied with Stifel's Barry Bannister for most bearish strategist.

Well that changed today, when just like Michael Wilson a few weeks ago, she finally hiked her year-end S&P price target to 4,250 from 3,800, admitting that she is "marking our models to market", i.e., merely catching up with stocks, i.e., the Fed's balance sheet, but not before warning that "downside risks remain" and asking "what good news is left?" Indeed, while higher, her new price target still implies 6% downside from current prices. The table below reveals how she got to that particular price, and also how Subramanian got her 2022 year-end S&P price target of 4,600... which is just 2% higher from spot.

But far from turning bullish, her note published this morning titled "Should you keep dancing if the music slows down?" (available for professional subscribers) is a scathing critique of everything that is broken with the market, and a cautionary tale to anyone who believes that buying the S&P at its all time high of 4,500 is a good idea.

Next, Subramanian warns that "sentiment is all but euphoric with our Sell Side Indicator (see SSI) closer to a sell signal than at any point since 2007"...

... an indicator which explains 25% of subsequent S&P500 returns...

... while wage/input cost inflation and supply chain shifts are starting to weigh on margins.

The BofA strategist also calculates that interest rate risk is at a record high, with S&P 500 equity duration equivalent to a 36-year zero-coupon bond, where every 10bp increase in the discount rate equates to a 4% decline. Finally, "valuations leave no margin for error."

Having reluctantly hiked the price target, Subramanian - like Wilson - is quick to caution that "this may not end now. But when it ends, it could end badly."

If taper means no upside to the S&P 500, tightening would be worse. Canaries are chirping – PPG, a barometer of industrial activity, aborted guidance on supply chain woes; credit spreads have stealthily widened, and our valuation model (~80% explanatory power for S&P 10yr returns) now indicates negative returns (-0.8% p.a.) for the first time since ‘99.

As noted above, Subramanian also looked at one of her favorite indicators - price to normalized earnings - which has a very strong relationship to subsequent S&P 500 returns over the long haul. With the S&P 500 current sporting a trailing normalized PE ratio of 29x, the BofA strategist calculates that the 10-year annual 12-month price return of -0.8%, "represents the first negative returns since the Tech Bubble." In other words, ten years from now stocks will be... lower than where they are now.

Deutsche Bank

While not nearly as bearish as Morgan Stanley (and its equity Underweight rating) or Bank of America (with its gloomy near-term and 10 year forecasts), Deutsche Bank has also joined the bandwagon of bears, and in the bank's latest House View (available for professional subscribers), titled "The New World: Moving Beyond Covid", the bank writes that "the global economy performed strongly over the summer, but the delta variant has led to increasingly frequent data misses versus expectations. This has seen us downgrade our near-term US growth outlook just as high inflation readings have shifted attention to when central banks will taper asset purchases." 

Looking ahead, DB notes that while tapering discussions will raise the stakes for this month’s Fed and ECB decisions but "September will see other pivotal events for the outlook too. The German election has tightened up significantly, and polls suggest that only three-party coalitions can form a majority, meaning negotiations could take some months. US government funding runs out on September 30, and a potential fight over the debt ceiling is approaching. Furthermore, the House will vote on the bipartisan infrastructure bill by September 27, and we should soon find out the next Fed Chair."

ANd while financial markets have remained buoyant, and equity indices have repeatedly hit fresh highs, Deutsche Bank's strategists "expect an imminent correction" even though they see the S&P 500 rising back around current levels by year end.

Some more details on the coming pullback in markets which DB believes will see the S&P drop 6%-10%:

  • Indicators of macro cyclical growth are peaking and data surprises are now negative

  • Earnings upgrades are likely done as the bottom up consensus has upgraded forward estimates significantly.

  • Inflation risks are rising.

  • And overall positioning is high while the retail investor is in retreat, though buybacks and inflows are still strong.

But, as noted above, and in seeking to break from the uber-bears, DB notes that it then sees equities rallying back as its baseline remains for strong growth but only a gradual and modest rise in inflation.

The summary of the bank's market views is below:

Goldman Sachs

Perhaps the most cheerful take of all, came from Goldman's Christian Mueller-Glissmann, who in a Bloomberg interview echoed what we first observed a few weeks ago, namely that “High valuations have increased market fragility,” adding that "if there is a new negative development, it could generate growth shocks that lead to rapid de-risking.”

“The key point here is there is very little buffer left if you get large negative surprises,” said Mueller-Glissmann.

Writing in a GOAL Kickstart note on Tuesday (available for professional subscribers) Mueller-Glissman said that "the S&P 500 has continued to make all-time highs despite the weaker macro. In fact, realized vol dipped to 8% during the summer pointing towards a new low vol regime, resulting in particularly strong risk-adjusted returns. After the clear 'good news is good news' regime in Q1, for the S&P 500 'bad news' has become 'good news' again last quarter."

This, the Goldman strategist notes, "is consistent with more support from dovish 'monetary policy' or search for yield: long-duration secular growth stocks have been boosted by the decline in real yields, helping broad indices which now have a larger weight in these stocks."

Meanwhile, dissecting macro surprises shows that while global MAP scores were still positive until recently, the US MAP turned negative, led by labor data while consumer and manufacturing held up better. All in all this has supported dovish Fed policy expectations creating a 'Goldilocks' backdrop .

However, as Goldman warns, "more recently macro surprises have also turned more negative across the board." During periods of negative macro surprises the right tail risk for equities has historically been more limited - average returns and hit ratios for the S&P 500 tend to be lower. Option markets have reflected this - for the next 3m the likelihood of very positive S&P 500 returns (above 8%) is priced lower than normal, even lower than during slowdown phases. On the other hand, Mueller-Glissman notes that the likelihood of a 5% S&P 500 rally is still elevated compared to the average during low vol regimes.

Meanwhile, the recent low realized volatility has pushed the volatility risk premium close to the post-2000s highs and Goldman's options research team expects realized volatility until the end of the year to be lower than what is implied.

The conclusion: "With equities close to all-time highs, elevated equity valuations and a less favorable growth/inflation mix near term, call overwriting can still be attractive as a carry overlay."

Citigroup

The threat of growing market fragility was also touched upon by Citi's Chris Montagu who in his latest Viewpoint note, wrote that investor positioning has become ultra-bullish, with longs on the S&P 500 outnumbering shorts by nearly 10 to 1. In his view, half of those bets are likely to face losses on a drop in the index of as little as 2.2%. And even a small correction could be amplified by forced long liquidation.

As Montagu observes, the main equity indexes continue to set new highs, but the underlying positioning differs greatly by region. US equity positioning is extended and very one-sided net long, which leads to asymmetric risk of positioning amplifying any small market correction. Investors continue to add to this long bias. Meanwhile, positioning is much lighter in Europe and less likely to significantly drive price action near term. In Japan the recent rally in Nikkei 225 initially only saw limited investor participation, but there are signs that futures investor flows are accelerating even as ETFs continue to see modest outflows.

Focusing just on the US, Montagu writes that "investors have steadily been adding to net long exposure throughout the summer" and remain very long. Meanwhile, if one includes “legacy” positions and in particular the large swing towards net longer around the June FOMC meeting, then positioning looks even more extended as "investors continued to add to the long bias last week, but only at the moderate steady rate seen throughout the rest of the summer."

WIth that in mind, Montagu warns that "risk is asymmetric to the downside with crowded positioning in the form of longs outnumbering shorts nearly 10 to 1." According to his calculations "these longs sit on an average 2.4% profit and half of positions in loss on a move below 4,435 (~2.2% correction). That means a small correction could be amplified by forced long liquidation pushing the market further down."

Finally, the Nasdaq is similarly stretched with the concentration of long positions leaving the market more vulnerable on a sell-off, and while older positions sit on large profits which act as a buffer on minor volatility, "nearly a quarter of positions are more recent and with no profit buffer."

In short, one serious swoon lower could quickly transform into a rout.

Credit Suisse

We round out the gloomish bank compendium by skimming the latest note from Credit Suisse equity strategist Andrew Garthwaite who while turned bearish on U.S. equities while predicting that rising bond yields and inflation expectations are likely to help European equities outperform their regional peers.

Europe’s PMI momentum is “much better than in the U.S., and markets have unusually decoupled from this,” Garthwaite said, while noting that he is "small underweight" on U.S. equities as tax and regulations pose a higher risk than other regions, and points to “extreme” valuations.

* * *

So is a correction, or perhaps even bear market, assured? Of course not, and there are two key catalysts that could prevent such an outcome, besides the Fed of course. On one hand, banks can unleash another record burst of stock buybacks as they did three weeks ago just as stocks were about to breach the key 4,350 support level. And then, there is the continued risk appetite among retail investors.

In his latest Flows and Liquidity notes, JPM quant Nick Panigirtzoglou saw retail investors as the key force behind recent gains, noting that they plowed almost $30 billion of cash into US stocks and ETFs in July and August, the most in a two-month period. And it is these retail investors - whose performance has trounced that of hedge funds in the past two years, that could also be the support pillar that keeps the market stable, as long as easy money policies persist, according to JPM.

“Retail investors have been buying stocks and equity funds at such a steady and strong pace that makes an equity correction looking rather unlikely,” JPMorgan global strategists including Nikolaos Panigirtzoglou wrote in a Sept. 1 note. “Whether the coming Fed policy change changes retail investors’ attitude towards equities remains to be seen.”

"So far this year retail investors have been buying stocks and equity funds at such a steady and strong pace that makes an equity correction looking rather unlikely" Panigirtzoglou wrote, adding that "whether the coming Fed policy change changes retail investors’ attitude towards equities remains to be seen."

At the same time, he also concedes the counter argument "that the strength of the retail flow has pushed equities up by so much and has made investors globally more overweight equities, many of them unwilling, that the risk of profit taking should be naturally high. Indeed, in support of this counter argument, updating our most holistic of our equity position indicators, i.e. the implied equity allocation of non-bank investors globally, points to an equity allocation of 46% currently, only slightly below the post Lehman crisis high of 47.6% seen in 2018"

And while the JPM quant admits that he is sympathetic to this counter  argument, "in the absence of a material slowing in the retail flow into equities, the risk of an equity correction remains low." As such, in his view monitoring this retail flow on a daily and weekly basis going forward "is key to the equity market outlook."

And since JPMorgan knows this, the Fed certainly knows this, and we are confident that even the smallest market hiccup will prompt a furious response at the Marriner Eccles building, because we are now well beyond the point of no return and Jerome Powell and company simply can not afford even the smallest drop in stocks without risking a full-blown market meltdown, much to the chagrin of the banks above who are predicting just that.

Tyler Durden Thu, 09/09/2021 - 04:33

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Spread & Containment

Potential COVID-19 Treatment Found in Llama Antibodies

The need to uncover effective COVID-19 treatments remains imperative, as case counts remain steady eighteen months into the pandemic. Recent findings point to unique antibodies produced by llamas—nanobodies—as a promising treatment. The small, stable,…

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A significant milestone in the COVID-19 pandemic was crossed this week. The number of deaths in the United States due to COVID-19—more than 675,000—has surpassed the number of deaths that occurred during the 1918 flu pandemic. In addition, there are still roughly 150,000 new cases every day. Eighteen months into the pandemic, the need for effective treatments against COVID-19 remains as great as ever.

One possible treatment, neutralizing single domain antibodies (nanobodies), has significant potential. The unique antibody produced by llamas is small, stable, and could possibly be administered as a nasal spray—an important characteristic as the antibody treatments currently in use require administration by infusion in the hospital. Now, new research shows that nanobodies can effectively target the SARS-CoV-2 virus.

The team from the Rosalind Franklin Institute found that short chains of the molecules, which can be produced in large quantities, showed “potent therapeutic efficacy in the Syrian hamster model of COVID-19 and separately, effective prophylaxis.”

This work is published in Nature Communications in the paper, “A potent SARS-CoV-2 neutralizing nanobody shows therapeutic efficacy in the Syrian golden hamster model of COVID-19.

The nanobodies, which bind tightly to the SARS-CoV-2 virus, neutralizing it in cell culture, could provide a cheaper and easier to use alternative to human antibodies taken from patients who have recovered from COVID-19.

“Nanobodies have a number of advantages over human antibodies,” said Ray Owens, PhD, head of protein production at the Rosalind Franklin Institute. “They are cheaper to produce and can be delivered directly to the airways through a nebulizer or nasal spray, so can be self-administered at home rather than needing an injection. This could have benefits in terms of ease of use by patients but it also gets the treatment directly to the site of infection in the respiratory tract.”

Credit: Rosalind Franklin Institute

The research team was able to generate the nanobodies by injecting a portion of the SARS-CoV-2 spike protein into a llama called Fifi, who is part of the antibody production facility at the University of Reading. They were able to purify four nanobodies capable of binding to SARS-CoV-2. Four nanobodies (C5, H3, C1, F2) engineered as homotrimers had pmolar affinity for the receptor-binding domain (RBD) of the SARS-CoV-2 spike protein. Crystal structures showed that C5 and H3 overlap the ACE2 epitope, while C1 and F2 bind to a different epitope.

Regarding their effectiveness against variants, the C1, H3, and C5 nanobodies all neutralized the Victoria strain, and the highly transmissible Alpha (B.1.1.7 first identified in Kent, U.K.) strain. In addition, C1 neutralizes the Beta (B.1.35, first identified in South Africa).

When one of the nanobody chains was administered to hamsters infected with SARS-CoV-2, the animals showed a marked reduction in disease, losing far less weight after seven days than those who remained untreated. Hamsters that received the nanobody treatment also had a lower viral load in their lungs and airways after seven days than untreated animals.

“Because we can see every atom of the nanobody bound to the spike, we understand what makes these agents so special,” said James Naismith, PhD, director of the Rosalind Franklin Institute. If successful and approved, nanobodies could provide an important treatment around the world as they are easier to produce than human antibodies and don’t need to be stored in cold storage facilities, added Naismith.

“Having medications that can treat the virus,” noted Naismith, “is still going to be very important, particularly as not all of the world is being vaccinated at the same speed and there remains a risk of new variants capable of bypassing vaccine immunity emerging.”

The researchers also hope the nanobody technology they have developed could form a so-called “platform technology” that can be rapidly adapted to fight other diseases.

The post Potential COVID-19 Treatment Found in Llama Antibodies appeared first on GEN - Genetic Engineering and Biotechnology News.

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China Syndrome? Is Evergrande A Symptom Of Deeper Malaise

China Syndrome? Is Evergrande A Symptom Of Deeper Malaise

Authored by Bill Blain via MorningPorridge.com,

“If that’s true, we are very close to the China Syndrome ”

Evergrande’s imminent default is rocking markets – but few believe…

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China Syndrome? Is Evergrande A Symptom Of Deeper Malaise

Authored by Bill Blain via MorningPorridge.com,

“If that’s true, we are very close to the China Syndrome ”

Evergrande’s imminent default is rocking markets – but few believe the collapse of a Chinese property developer could trigger a global financial crisis. What if Evergrande is just a symptom of a deeper malaise within the Chinese economy and its political/business structures? Maybe there is more at stake than we realise? What if Emperor Xi decides he needs a distraction?

Amid this week's market turbulence, and the overnight headlines, Evergrande dominates thinking this morning. The early headlines say the risk is “easing”. Don’t be fooled. S&P are on the wires saying it’s on the brink of default and is unlikely to get govt support. It’s Asia’s largest junk-bond issuer. Anyone for the last few choc-ices then?

The market view on the coming Evergrande “event” is mixed. Some analysts are dismissing it as an internal “China event”, others reckon there may be some systemic risk but one Government can easily address. There is some speculation about “lessons” to be learnt… There are even China supporters who reckon its proof of robust China capitalism – the right to fail is a positive!

I’ve got a darker perspective.

The massive shifts we’ve seen in China’s political/business public persona over the past few years have been variously ascribed: a reaction to Trump’s protectionism, China taking its place as a leading nation, Xi flexing his military muscle, and now a clampdown on divisive wealthy businesses to promote common prosperity.

What if Evergrande is just a symptom of something much deeper?

That that last 30-years of runaway Chinese growth has resulted in a deepening internal crisis, one that we barely perceive in the west? What if the excesses that have spawned Evergrande and the illusion every Chinese can afford luxury flats and a western standard of living is about to implode? Crashing oriental minor chords!

The looming Chinese property debacle will be fascinating, but it many respects will be similar and yet very different to the multiple market unwinds we’ve seen in the west. How it plays out will have all kinds of implications for growth, speculation and how global investors perceive China in the future. Folk are variously describing it as China’s Lehman Brothers, or the next “Minsky Moment” when speculation ends with a sharp jab of reality to the kidneys.

I’m thinking back to a story I read a few years ago about the Shanghai Auto-fair pre-pandemic. Evergrande New Electric Vehicles had the largest stand and was showing off 11 different EVs. Not one of these were actually available to buy – they were all models of as-yet unproduced cars. The company was valued at billions and yet never sold a single vehicle. This morning, it’s just another worthless business Evergrande is trying to flog. (See this story on Bloomberg TV: China’s Zombie EV Makers.)

The market is asking itself a host of questions about Evergrande’s collapse: How bad will its tsunami of Chinese contagion deluge global markets? When it’s going to happen? What knock-on effects will cascade through markets?

Perhaps the most important question is: Who will be exposed “swimming naked” when the Evergrande tide goes out? Who will be left with the biggest losses? As the company is definitely bust, these losses rather depend on just how China’s authorities respond.

Step back and think about it a moment – try putting these in context:

  • Fundamentally all business is about identifying a consumer need and filling it.

  • Fundamentally, greedy businessmen tend to get carried away because the political-financial system enables them.

  • Fundamentally, it’s just another burst bubble and who cleans up the mess.

  • In Evergrande’s case a thousand flowers of capitalism with Chinese characteristics grew into an unsustainable business – fundamentally no different from debt-fuelled sub-prime mortgages, or CDOs cubed, in the West.

The big difference this time is its China! China has done things… differently. The path China pursued in its recovery and growth since 1980 has not been without… consequences.

Thus far we’ve praised China for its spectacular growth and the creation of valuable companies under the red banner of Chinese capitalism. It is going to be “interesting” to see how the subsequent mess is cleared out. Questions about Moral Hazard are going to be shockingly simple – Government has made it abundantly clear that any wrongdoing by company executives will be punished in the harshest possible way.

More importantly, Chinese politics and business works on a very different playing field to the west. Forget the rule of law or the T&C’s of Evergrande bonds. It easy to dismiss and characterise the way Chinese business works as institutionalised systemic corruption – but it’s a system Ancient Roman Emperors would recognise as a patron/client relationship. Emperor Xi’s clients and his princelings will continue to benefit from his patronage in return for their support at his court, and will be protected in a meltdown. The system Xi presides over will have little motivation to intervene to protect western investors who find themselves caught in the Evergrande fiasco.

Where Xi will have to take notice is outside the rich, wealthy princeling cadre which increasingly owns and runs China. There will be massive implications for wealth/inequality among the Chinese people from a property collapse. With a third of Chinese GDP dependent on the property sector, (and about 4 million jobs at Evergrande), the collapse of one of the biggest players, and the likelihood others will follow is much more than just a systemic risk.

Property is a key metric in the aspirations to wealth of the rising Chinese middle classes. The same smaller Chinese investors and savers will likely prove the largest losers from the property investment schemes they were sucked into. These real losses will rise if hidden bank exposures trigger a domestic banking crisis – which apparently isn’t likely (meaning it is..). There are reports of investor protests in key China cities – putting pressure on the govt to act to mitigate personal losses.

Xi’s clampdown on big tech is painted as the Party’s programme to engineer a more socially-equal economy. He has pinned the blame for rising inequality on “corrupt” business practices and has his cadre’s waving books on Xi thought, mouthing slogans about “common prosperity” and “frugality”. These are going to look increasingly hollow if the middle classes bear the coming Evergrande pain, and the Party Princelings continue to prosper.

The really big risk in China is not that Evergrande is going to default – it’s much bigger. If the Party is seen to fail in its promise to deliver wealth, jobs and prosperity for the masses – then that is very serious. China’s host of failed EV companies, an economy still reliant on exporting other nations tech, and a massively overvalued property sector (that the masses still equate with prosperity) all suggest a much less solid economy than the Party promotes.

If the illusion of a strong economy is unravelling – who knows what happens next, but in Ancient Rome the answer would be simple… Blame someone else, and invade..

This could get very “interesting…” and not in a good way.

Tyler Durden Wed, 09/22/2021 - 08:45

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White House Reporters Have Launched ‘Formal Objection’ About Biden Refusing To Answer Questions

White House Reporters Have Launched ‘Formal Objection’ About Biden Refusing To Answer Questions

Authored by Steve Watson via Summit News,

CBS News reported Tuesday that the press pool of White House reporters have launched a formal objection

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White House Reporters Have Launched 'Formal Objection' About Biden Refusing To Answer Questions

Authored by Steve Watson via Summit News,

CBS News reported Tuesday that the press pool of White House reporters have launched a formal objection over the fact that Joe Biden refuses to answer any questions, with reporters routinely being yelled down and physically pushed away by Biden’s handlers.

The revelation came after an embarrassing scene in the Oval Office with British Prime Minister Boris Johnson answering questions, but Biden not being allowed to by aides.

Watch:

Johnson took the three questions from British reporters

CBS reporter Ed O’Keefe said that “Johnson took 3 questions. White House aides shouted down U.S. attempts to ask questions. I asked Biden about southern border and we couldn’t decipher what he said.”

CBS radio correspondent Steve Portnoy later reported that “The entire editorial component of the US pool went immediately into Jen Psaki’s office to register a formal complaint that no American reporters were recognized for questions in the president’s Oval Office.”

Portnoy, also president of the White House Correspondents Association, added that the complaint also extended to the fact “that wranglers loudly shouted over the president as he seemed to give an answer to Ed O’Keefe’s question about the situation at the Southern Border. Biden’s answer could not be heard over the shouting.”

“Psaki was unaware that the incident has occurred and suggested that she was not  in a position to offer an immediate solution,” Portnoy continued, adding “Your pooler requested a press conference. Psaki suggested the president takes questions several times a week.”

In addition, National Review notes that after Biden’s UN speech yesterday, French reporter Kethevane Gorjestani “was asked by a very startled Australian reporter whether WH wranglers were always so strict about ushering the pool out without questions.”

The pathetic display is a continuation of the way Biden’s handlers have been acting since even before he took office, shooing away reporters, giving Biden strict instructions on who he can take questions from, and even muting his mic when he goes off script.

A week ago, Republican Senator James Risch demanded to know who is in charge of controlling when the President is allowed to be heard, noting during a Senate hearing that “This is a puppeteer act, if you would, and we need to know who’s in charge and who is making the decisions.”

“Somebody in the White House has authority to press the button and stop the president, cut off the president’s speaking ability and sound. Who is that person?” Risch asked.

Tweeting out the video, leftists insisted the claims were ‘bizarre,’ ‘ridiculous’ and ‘absurd’:

*  *  *

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Tyler Durden Wed, 09/22/2021 - 10:15

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