Israel hits Iran, everyone wants to delete illegal aliens, Kamala loses a one-person debate, WaPo refuses to pick Kamala over Hitler, the WNBA continues to bleed cash, and Tim Walz gets his ABBA on. It’s the Friday LinkSwarm!
Reminder: Early voting in Texas is going on now and extends through November 1st, and Joe Rogan’s interview with Donald Trump is tonight.
A new Fox News poll shows that two-thirds of American voters favor deporting illegal aliens—a dramatic increase over the past decade.
Republican presidential candidate Donald Trump has made mass deportation a major policy promise throughout his campaign, as the open border policies of the Biden-Harris administration have allowed millions of illegal aliens to enter the U.S.
The October 2024 poll of registered voters shows that support for deportation has increased dramatically since 2015. Among nonwhite voters, 57 percent now support mass deportations, while only 33 percent said they did in 2015.
Additionally, 91 percent of Republicans now say they support deportations—a 21-point increase since 2015. Rural voters’ support has risen by 20 points, urban voters by 19 points, and men’s support increased by 16.
Democrat support for deportations has increased to 42 percent from 34 percent in 2015.
Voters were also asked if they were in favor of allowing illegal aliens who have jobs to apply for legal status. While 68 percent said they were in favor in 2015, it dropped to 58 percent in favor this year.
Another Fox News poll shows that immigration is voters’ second top issue as they head into the November election. The economy is the number one issue for 40 percent of voters, while 17 percent said immigration and 15 percent said abortion.
is out of gas. The weather is choppy, the navigation system completely unreliable, and the best guess is that you’re still short of the runway. (Oh, and the captain had a stroke while in the cockpit a few hours ago, leaving only a flight attendant as the pilot. She refuses to read the instruction manual or listen to the passengers.) Yes, it’s easy enough to spin up lovingly bespoke metaphors for how the Harris campaign is handling the late stages of the 2024 race — a race they very much could still win, I must always emphasize — but I’ll conclude this one by saying that if last night’s Kamala Harris CNN town hall (with Anderson Cooper hosting in the Philadelphia suburbs) is any indication, the plane may already be disintegrating in midair, before it even hits the ground.
You may have noticed that I’ve had a decidedly muted reaction to Harris’s other recent “serious” media interviews, whether Bret Baier at Fox News or Bill Whitaker on 60 Minutes, in the sense that while Harris was predictably awful in both sit-downs (almost relentlessly so), she was boring and unrevelatory in her awfulness. In other words, we learned nothing new about the depths to which she is capable of sinking performatively that we didn’t already know. They were water-treading exercises for the most part.
Last night’s CNN town hall, on the other hand, was memorably bad. This is the moment her campaign dreaded, the moment when the fundamental emptiness and inadequacy of their candidate was revealed for all the world to see without helpful edits or someone to bail her out. There Harris stood exposed — with an unpersuaded audience and a moderator in Cooper who handled his task without showing any particular solicitude for her electoral fortunes — and she withered in the spotlight. (As Dylan might have said, “Even the vice president of the United States sometimes must have to stand naked.”) There are moments from this event — many moments, oh so terribly many of them — that will haunt Harris in retirement forever should she lose, the sorts of ghastly stammering failures destined to go into YouTube clip reels ten years later explaining “How We Got Here….”
As for myself, I found Harris’s answer to Anderson Cooper’s pointed question about the border fence to be perhaps the lowest moment of her entire public career to date, and I mean that in the specific sense that nobody who watches it — not even her fiercest partisans — will be able to come away from it with anything save a reflex-level revulsion.
I did not have Anderson Cooper cooking Kamala on my bingo card but here we are.
She’s exposed as a total hypocrite here. First the wall was racist, stupid and xenophobic but now that she needs votes she’s pandering. pic.twitter.com/ctk6nmQcvZ
“What was most remarkable about the disaster is how even CNN’s own analysts panned Harris’s performance as well, some with a palpable sense of disgust.”
Some excerpts of that:
NEW: CNN’s Scott Jennings says Kamala Harris is a “double-threat” because she can’t think on her feet and can’t answer the expected questions.
CNN has railed on Harris after her town hall event.
Next, after weeks of courting Gov. Josh Shapiro as her running mate, Harris rejected him for Gov. Tim Walz of Minnesota – the state that gave us Gov. Jesse “the body” Ventura and Saturday Night Live’s Al Franken as a U.S. Senator.
Another misstep for Harris. While Shapiro isn’t Biden, he is well known in greater Philadelphia and seems comfortable campaigning in Scranton and towns like it across the state.
It still isn’t clear if Harris rejected Shapiro because he is Jewish and supports Israel’s right to defend itself or because he is a tireless campaigner, well-received on the stump, who might show her up. Did she reject Shapiro because picking him would offend “the Squad” in Congress and endanger the electoral votes of Michigan, home to a large Muslim population? Or did she spurn the Pennsylvania governor because she didn’t want her supporters murmuring: “We should’ve run him?
Harris compounded her mistake by picking Walz, who represents the Democratic Party’s modern left wing. Walz won’t help Harris win votes in Pennsylvania; in fact, he makes it harder. She picked someone who is un-relatable everywhere, from Philadelphia’s neighborhoods to small town and rural Pennsylvania. And, he’s just plain “weird.”
It gets worse. Her message, agenda, and policies are not resonating here.
She has tried to stress that the economy is actually good – “Bidenomics is working,” she maintained. They tried charts, graphs, and “experts.” No one in Philadelphia’s neighborhoods is buying it, especially blacks and Hispanics, who are being crushed by inflation and violent crime.
So Harris pivoted to a new message: she would “fix” the economy and “fight” inflation. Her now comically repeated line about being “raised in a middle-class family” draws blank stares, laughs, or anger, even among some in her usual base.
It’s even worse in rural Pennsylvania, where Walz and “second man” Doug Emhoff tried a “real men for Kamala tour,” complete with ads and Zoom calls about why men should support her.
Then they sent “Elmer Fudd” – aka Walz – out hunting. In newly purchased hunting clothes, using the wrong rifle (plus demonstrating that he didn’t know how to load it), Walz resembled something like King Charles attending the Indianapolis 500.
Harris was against fracking – that is, before she was for it, as she now claims to be. No one in rural Pennsylvania is buying it. Her “values haven’t changed,” as she herself says. Rural Pennsylvanians know that her preferred policy would hurt the economy of northern, central and western Pennsylvania, to say nothing of the national economy and national security.
Democrats want to win Pennsylvania, of course – but they have selected the wrong candidate, through the wrong method. Harris then dug the hole deeper by picking the wrong running mate. And to top it off, they’re running on a misguided, if not delusional, platform.
“Black, Latino, and Asian Trump supporters shout down white, liberal Harris supporters in Lancaster.”
The left-wing, liberal, and Democratic narrative about former President Donald Trump being a racist is falling apart.
For years, labeling Trump as a racist was an integral part of Democrats’ political strategy. It was never really true, mind you. It was just baseless hyperbolic hysteria that was at the foundation of the Democratic political propaganda machine. They have used it against every Republican presidential candidate for the last 40 years.
They used it to brainwash, scare, and manipulate racial minorities and white liberals in the previous two presidential elections, in which Trump was the GOP nominee. They wanted to create a narrative that the only people who supported Trump were a bunch of lowly, uneducated, racist white people. It worked in 2016, and it worked in 2020. It’s not working in 2024.
The sanctimony of white, liberal Democrats is predicated on their unhinged arrogance of moral superiority involving race. The white, liberal Democrats think racial minorities cannot succeed in the United States without white, liberal Democrats saving them. The white, liberal Democrats think they are more intelligent, enlightened, and compassionate than Republicans. So, imagine their surprise when, outside the venue that hosted a town hall for Trump in Lancaster, Pennsylvania, on Saturday, it was black, Latino, and Asian Trump supporters shouting down Vice President Kamala Harris’s white, liberal supporters.
I witnessed, firsthand, white, liberal Harris supporters screaming that Trump is a racist and then demeaning the many black, Latino, and Asian Trump supporters holding Trump signs and wearing MAGA hats and shirts. These smug, arrogant white people were trying to tell racial minorities what was best for them. It was a sight to behold, but not one that has not become commonplace in American society. It was a reflection of just how out of touch with reality white, liberal Harris voters are.
Dominicans for Trump sign holders outside Trump town hall in Lancaster, Pennsylvania. (Photo by Christopher Tremoglie)
The crowd at the town hall was diverse, with a larger-than-expected minority presence, given the tall tales of Harris supporters’ fails regarding diversity and race among Trump supporters. It was immediately noticeable upon arriving at the town hall. Those in attendance were greeted by boisterous Asian Americans waving American flags in front of Trump posters, wearing red MAGA hats, and chanting the name “Trump!”
A few hundred feet away, a group of Dominican Trump voters were cheering for the former president and shouting down anyone who dared insult the GOP nominee. They stood outside the venue holding signs that read “Dominicans for Trump” and “Boricuas for Trump.”
A Harris supporter passed the group and chastised them, asking how they could be a minority and support a racist and a bigot. A person holding a “Boricuas for Trump” sign shouted back at them, asking the white Harris supporter who they thought they were telling a Dominican who to support. The Harris supporter kept walking. Other incidents played out similarly nearby.
Later, this group gathered at a main intersection near the Lancaster Convention Center and engaged in a shouting match with a group of Harris supporters, who had gathered to protest Trump. There did not appear to be any mention of race, just two groups shouting back and forth at each other. However, again, I noticed the Harris supporters were white, and the most vocal Trump supporters were black, Latino, and Asian.
Also: “Initial GOP Early Vote Turnout in Texas Substantially Higher Than 2020 Levels.”
But don’t get cocky! “Schumer-Backed Democratic PAC Makes $5 Million Texas Ad Buy Backing Allred….Schumer’s group, Senate Majority PAC (SMP) had mostly abstained from the Texas race, playing ball in other, seemingly more competitive races like in Ohio and Montana — much to Congressman Colin Allred’s (D-TX-32) chagrin. But clearly the calculus has changed for the group, which has now put substantial skin in the game in Texas.”
The Democratic Party’s election dirty tricks begin. “Montana Dem Operative Caught Tampering With Ballot Box…The operative, Laszlo Gendler, has been paid by the Democratic Senatorial Campaign Committee (DSCC), according to OpenSecrets.org, as Montana Talks reported. The DSCC is attempting to help incumbent Democrat Senator Jon Tester against GOP senatorial candidate Tim Sheehy.”
A decade and a quarter of a billion dollars later, students and faculty are more frustrated than ever….
A decade ago, Michigan’s leaders set in motion an ambitious new D.E.I. plan, aiming “to enact far-reaching foundational change at every level, in every unit.” Striving to touch “every individual on campus,” as the school puts it, Michigan has poured roughly a quarter of a billion dollars into D.E.I. since 2016, according to an internal presentation I obtained. A 2021 report from the conservative Heritage Foundation examining the growth of D.E.I. programs across higher education — the only such study that currently exists — found Michigan to have by far the largest D.E.I. bureaucracy of any large public university. Tens of thousands of undergraduates have completed bias training. Thousands of instructors have been trained in inclusive teaching.
Michigan inaugurated what it now calls D.E.I. 1.0, it intentionally placed itself in the vanguard of a revolution then reshaping American higher education. Around the country, college administrators were rapidly expanding D.E.I., convinced that such programs would help attract and retain a more diverse array of students and faculty.
Today that revolution is under withering attack. Energized by backlash to the Black Lives Matter movement and the right-wing campaign against “critical race theory” in public institutions, at least a dozen states have banned or limited D.E.I. programs at public universities. After the Oct. 7 attacks, as campuses across the country erupted with protests against Israel, critics accused D.E.I. programs of fostering antisemitism. In the fever of the 2024 campaign, Republican influencers and politicians have recast D.E.I. as an all-purpose boogeyman — the root cause of defective airplanes, the collapse of a Baltimore bridge and the near-assassination of Donald J. Trump.
But even some of Michigan’s peer institutions have soured on aspects of D.E.I. Last spring, both the Massachusetts Institute of Technology and Harvard’s Faculty of Arts and Sciences said they would no longer require job candidates to submit diversity; such “compelled statements,” M.I.T.’s president said, “impinge on freedom of expression.”
Michigan hasn’t joined the retreat. Instead, it has redoubled its efforts, testing the future of an embattled ideal. A year ago, the university inaugurated what it calls D.E.I. 2.0. At Michigan’s flagship Ann Arbor campus, the number of employees who work in D.E.I.-related offices or have “diversity,” “equity” or “inclusion” in their job titles increased by 70 percent, reaching 241, according to figures compiled by Mark J. Perry, an emeritus professor of finance at the university’s Flint campus and a D.E.I. critic. (The school’s own figures, which count the D.E.I. work force differently, show less growth over time and a much smaller staff as of last year.) When school began in August, brightly colored flags around campus promoted the goals of D.E.I. 2.0.
According to a confidential report I obtained, a committee appointed by Michigan’s provost — and stocked with professors with D.E.I.-related appointments — urged the school this summer to continue using diversity statements in hiring and promotion, arguing that eliminating them “would be seen as a capitulation to the winds of political expediency.”
In many respects, Michigan’s entire D.E.I. initiative can be understood as a sustained act of defiance against such pressures. Nearly two decades ago, voters in Michigan banned racial preferences in university admissions and hiring. When the Supreme Court outlawed affirmative action across the land last year — stripping selective colleges of their most powerful tool for building racially diverse classes — Michigan’s president, Santa J. Ono, went on PBS’s “NewsHour” to offer his university as the model for achieving diversity in a post-affirmative action world.
But over months of reporting this year, I found a different kind of backlash building, one that emanated not from Washington or right-wing think tanks but from inside the university’s own dorms and faculty lounges. On Michigan’s largely left-leaning campus, few of the people I met questioned the broad ideals of diversity or social justice. Yet the most common attitude I encountered about D.E.I. during my visits to Ann Arbor was a kind of wary disdain.
D.E.I. at Michigan is rooted in a struggle for racial integration that began more than a half-century ago, but many Black students today regard the school’s expansive program as a well-meaning failure. The university now has a greater proportion of Hispanic, Asian and first-generation students and a more racially diverse staff. But in a state where 14 percent of residents are Black, the school’s Black undergraduate enrollment has long hovered stubbornly at around 4 percent, before ticking up just past 5 percent this fall. (The figures are slightly higher if, as school officials strongly urged, you include students who identify as more than one race.) …
Michigan’s own data suggests that in striving to become more diverse and equitable, the school has also become less inclusive: In a survey released in late 2022, students and faculty members reported a less positive campus climate than at the program’s start and less of a sense of belonging. Students were less likely to interact with people of a different race or religion or with different politics — the exact kind of engagement D.E.I. programs, in theory, are meant to foster.
Social Justice is racist garbage that destroys everything it touches.
'We must not publish a study that says we're harming children because people who say we're harming children will use the study as evidence that we're harming children, which might make it difficult for us to continue harming children.' pic.twitter.com/hS4CcswkXg
Hezbollah launches a drone attack against Israeli Prime Minister Benjamin Netanyahu’s house, though they cause no injuries. Honestly, this is a huge step up from their usual targeting of women and children, as a country’s political leaders are a legitimate war target.
“Half of Millennials and Gen Z homeowners are, quote, trapped in their starter homes, which are now losing tens of thousands in value thanks to the same Federal Reserve that put them in a housing hell to begin with.”
Ammo.com sent over a report on defensive gun use in the U.S. “Although many dispute the plausibility of more than one million DGUs yearly, it is entirely plausible. With millions of gun owners in the U.S. and millions of unreported crimes, more civilians likely stop threats than are harmed by them. Furthermore, states with permitless carry and stand-your-ground laws experience reduced violent crime rates. Therefore, armed civilians are, at least, not a danger to society.”
Another one. “North Texas Teacher Arrested for Sexual Relationship With Former Student. Carroll ISD middle school teacher Angela Barnes was charged with sexual assault of a child and improper relationship between an educator and student.”
Lin Chen pleaded guilty in federal court today to illegally exporting U.S. technology to a prohibited end user in China, in violation of the International Emergency Economic Powers Act (IEEPA) and the Export Administration Regulations (EAR). The plea was accepted by the Hon. William Alsup, Senior U.S. District Judge.
In pleading guilty, Chen, 65, a citizen of the People’s Republic of China (PRC), admitted to acting on behalf of Jiangsu Hantang International Trade Group Corp., Ltd. (JHI), a company headquartered in Nanjing, PRC, to procure a wafer cutting machine on behalf of Chengdu GaStone Technology Co., Ltd. (GaStone), an entity located in Chengdu, PRC. Chen admitted to knowing that GaStone was designated on the U.S. Department of Commerce’s Entity List on Aug. 1, 2014. Federal regulations restrict the export of certain items to companies, research institutions, and other entities identified on the Department of Commerce’s Entity List. Under applicable Department of Commerce regulations, wafer cutting machines, which are used to cut thin semiconductors used in electronics (also known as silicon wafers), require a license for export to end-users such as GaStone.
According to the plea agreement, by no later than Dec. 4, 2015, Chen knew that GaStone was prohibited from receiving restricted exports without a license, including a DTX-150 Scribe and Break Machine, a machine for processing silicon wafer microchips. On approximately Dec. 10, 2015, Chen worked with a co-defendant to arrange the sale of a DTX-150 to GaStone by shipping it to the PRC in the name of JHI without an export license from Commerce. Chen used JHI’s status as an intermediary to conceal GaStone as the true end-user of the technology.
That’s a slice-and-dice machine, not some cutting-edge process tech that’s embargoed to China. They might have been able to get that legally by just filling out the proper forms.
The last full-sized Kmart closes. I would say “Thanks, Joe Biden,” but this particular death, thanks to Walmart and Amazon, has been a long time coming.
“WNBA will lose $40 million this season. So naturally the players are thinking of opting out of their labor agreement to ask for more money… (Hat tip: Dwight.)
Postcards From Barsoom has an extensive, reasonably compelling case that men gravitate toward jobs that allow them to compete with other men, mainly to impress women, and as become the majority in each of these fields, those particular arenas no longer convey status for achievement, because men do not win status by defeating women. Thus men who enter female-dominated fields for greater access to women are barking up the wrong tree, because even their co-workers will view them as low status. This theory has a certain amount of explanatory power, and posits that the feminization of academia begat social justice, not vice versa, but seems to me to be too totalizing an explanation for our current woes. (Hat tip: Sarah Hoyt at Instapundit.)
More bad Biden Recession news, Kamala Harris wants a $5 trillion tax increase, a power-mad Brazilian judge wants to punish Elon Musk for refusing to censor his political enemies, more Texans sue the Biden Administration for failing to secure the border, Texas trims the voter roles, Harris County gets closer election supervision, two DEI-infected video games tank hard upon release, and the Navy runs put of pants.
After tumbling in April, and rebounding modestly in June, analysts expected a continued gain in pending home sales in July, but it wasn’t meant to be: moments ago the NAR reported that in July, Pending Home Sales tumbled 5.5% MoM, a huge miss to the 0.2% expected gain (and down from a 4.8% increase in June), and also slumped 4.6% YoY, a modest improvement from the 7.8% plunged in June but also missing expectations of a -2.0% drop.
That dragged the Pending home sales index to 70.2%, a fresh record low.
The Pending Home Sales Index is a leading indicator for the housing sector, based on pending sales of existing homes. A sale is listed as pending when the contract has been signed but the transaction has not closed, though the sale usually is finalized within one or two months of signing.
“A sales recovery did not occur in midsummer. The positive impact of job growth and higher inventory could not overcome affordability challenges and some degree of wait-and-see related to the upcoming U.S. presidential election,” NAR Chief Economist Lawrence Yun said in a statement.
Sales decreased in all four US regions, especially in the Midwest and South.
Vice President Kamala Harris wants to extract a $5 trillion tax increase from American households and businesses, her campaign confirmed on Monday.
The Harris campaign officially endorsed the laundry list of new and higher taxes included in the Biden-Harris administration’s fiscal year 2025 budget, a plan that would increase taxes by $5 trillion over ten years.
The burden of Harris’s tax increases will hit households in the form of diminished wage growth and higher costs of goods and services. These Harris tax increases will make the U.S. less competitive vs. our adversaries.
Harris also endorsed further increasing the size and power of the already-supersized IRS and erode taxpayer rights by watering down procedures designed to protect taxpayers from abusive and dishonest IRS agents (details below.)
Kamala Harris’s tax increases include:
Small business tax rate hike to 39.6%
Small business owners pay business taxes on their individual tax return. The Harris endorsed budget raises the top marginal income tax rate to 39.6% from the current 37%.
Corporate tax rate higher than the EU and communist China.
Kamala Harris wants to hike the current 21% federal corporate income tax rate to 28%, higher than communist China’s 25% and the EU average of 21%, her campaign said Monday.
The Kamala Harris federal 28% rate is higher than the Asia average corporate tax rate of 19.8%, the EU average of 21%, the world average of 23.5%, and the OECD average of 23.7%. (See the Tax Foundation’s comprehensive listing here.)
The Harris federal 28% rate is also higher than Canada (26.2%), the UK (25%) Sweden (20.6%), and even Russia (20%), Afghanistan (20%), and Iraq (15%).
After adding state corporate income taxes, the combined federal-state tax burden in most states will easily exceed 30% under the Harris plan.
The Harris rate hurts the USA vs. China with its 25% rate. And note: Industry sectors of strategic use to the Chinese government pay an even lower rate of 15%.
American workers will bear the brunt of Harris’s corporate tax increase.
The non-partisan Joint Committee on Taxation affirmed in congressional testimony that corporate tax rate hikes hit “labor, laborers.” A study compiled by the Tax Foundation found that “labor bears between 50 percent and 100 percent of the burden of the corporate income tax, with 70 percent or higher the most likely outcome.”
Capital gains and dividends tax more than twice as high as communist China
Here is a direct quote from the Biden-Harris budget: “Together, the proposals would increase the top marginal rate on long-term capital gains and qualified dividends to 44.6 percent.“
Yes, you read that correctly: A Kamala Harris capital gains and dividends tax rate of 44.6%
China’s capital gains tax rate is 20%. Is it wise to have higher taxes than China?
Under the Harris plan, the combined federal-state capital gains tax exceeds 50% in many states. California will face a combined federal-state rate of 57.8%, New Jersey 55.3%, Oregon at 54.5%, Minnesota at 54.4%, and New York state at 53.4%.
Unconstitutional wealth tax on unrealized gains
The Harris-endorsed budget calls for an annual 25 percent minimum tax on the unrealized gains of individuals with income and assets exceeding $100 million. Once in place, it won’t be long before the threshold is lowered to hit more and more Americans.
Americans overwhelmingly oppose taxes on unrealized gains, by a factor of three to one, including 76% of independents. Americans know that a “gain” isn’t “real” until it is actually realized, in hand.
This Harris tax is similar to the wealth taxes pushed by radical progressives such as Sens. Elizabeth Warren (D-Mass.) and Bernie Sanders (I-Vt.).
Capital gains taxes should only be paid when a gain is realized. Harris’s wealth tax would break with current tax policy and impose tax Americans based on the value of an asset on a particular arbitrary date.
This unprecedented tax would give even more power to the IRS, encourage taxpayers to move assets overseas, and will only expand to hit millions of Americans over time.
I don’t agree with every single item on this new RFK, Jr. hit job on Democrats, but it is pretty brutal, and the perfect thing to post to really annoy your facebook friends the next time they post an anti-Trump meme:
A federal judge has ruled that Elon Musk’s lawsuit against leftwing pressure group Media Matters can go forward.
X, formerly known as Twitter, filed the suit in November after Musk threatened to bring a “thermonuclear lawsuit” against the left-leaning nonprofit and “all those who colluded” for “completely misrepresenting” the real user experience on X.”
According to the lawsuit, Media Matters – founded by Democratic operative David Brock, who left the organization in 2022, used manipulative and deceptive tactics to convince advertisers like Apple, IBM and Disney that ‘hateful’ content was being displayed next to their brands – leading them to pause their X advertising campaigns.
X claims Media Matters fabricated the results. From the original complaint:
Media Matters has opted for new tactics in its campaign to drive advertisers from X. Media Matters has manipulated the algorithms governing the user experience on X to bypass safeguards and create images of X’s largest advertisers’ paid posts adjacent to racist, incendiary content, leaving the false impression that these pairings are anything but what they actually are: manufactured, inorganic, and extraordinarily rare.
Media Matters executed this plot in multiple steps, as X’s internal investigations have revealed.
First, Media Matters accessed accounts that had been active for at least 30 days, bypassing X’s ad filter for new users. Media Matters then exclusively followed a small subset of users consisting entirely of accounts in one of two categories: those known to produce extreme, fringe content, and accounts owned by X’s big-name advertisers. The end result was a feed precision-designed by Media Matters for a single purpose: to produce side-by-side ad/content placements that it could screenshot in an effort to alienate advertisers.
But this activity still was not enough to create the pairings of advertisements and content that Media Matters aimed to produce.
Media Matters therefore resorted to endlessly scrolling and refreshing its unrepresentative, hand-selected feed, generating between 13 and 15 times more advertisements per hour than viewed by the average X user repeating this inauthentic activity until it finally received pages containing the result it wanted: controversial content next to X’s largest advertisers’ paid posts.
Pretty much everyone saw this coming. “Elon’s SpaceX To Rescue Stranded Astronauts After NASA Dumps Boeing.”
Speaking of Elon Musk, a Brazilian Supreme Court Judge has declared that Twitter/X must censor the accounts of political enemies he specifies, and Musk, citing the Brazilian constitution, is having none of it.
On Thursday night, X’s Global Government Affairs account posted a dire warning over service availability in Brazil, after dictatorial Supreme Court Judge Alexandre de Moraes punished them for not complying “with his illegal orders to censor his political opponents,” according to the post.
More:
When we attempted to defend ourselves in court, Judge de Moraes threatened our Brazilian legal representative with imprisonment. Even after she resigned, he froze all of her bank accounts. Our challenges against his manifestly illegal actions were either dismissed or ignored. Judge de Moraes’ colleagues on the Supreme Court are either unwilling or unable to stand up to him.
We are absolutely not insisting that other countries have the same free speech laws as the United States. The fundamental issue at stake here is that Judge de Moraes demands we break Brazil’s own laws. We simply won’t do that.
In the days to come, we will publish all of Judge de Moraes’ illegal demands and all related court filings in the interest of transparency.
Unlike other social media and technology platforms, we will not comply in secret with illegal orders.
To our users in Brazil and around the world, X remains committed to protecting your freedom of speech.
Meanwhile, Musk says that SpaceX is going to continue to provide Starlink in Brazil to schools and hospitals for free…
* * *
One day after Brazillian Supreme Court Judge Alexandre de Moraes threatened to suspend social media platform X unless Elon Musk appoints a new legal representative in 24 hours, the judge – dubbed “Brazil’s Darth Vader” by Musk – issued a subpoena against the company.
Today, he blocked the financial accounts of Musk-owned Starlink Holdings, due to the absence of an attorney.
Alexandre de Moraes might be the second-most powerful person in Brazil.
He does not quite have the reach of the president. But as a judge on the Supreme Court, until recently the president of the Electoral Court, and especially as head of two sprawling investigations against groups spreading disinformation, Moraes has wielded a rare combination of judicial powers. He has unilaterally handed out fines, ordered arrests, social media bans and other sanctions, and even acted as investigator and judge at once.
Moraes, 55, has used those powers prolifically, including against several members of the right-wing opposition to Luiz Inácio Lula da Silva’s government.
Brazilian conservatives have long contended he is abusing his power. But “Xandão” (“Big Alex”), as he is semi-jokingly called by supporters and detractors alike, earned the gratitude of many members of Brazil’s political establishment who believed his actions were fundamental to defending democracy during and after Jair Bolsonaro’s tumultuous 2018-22 presidency.
Now, that goodwill is being put to the test. As international voices add to a swelling domestic chorus, criticism of Moraes is starting to break through into the mainstream of Brazilian discourse.
The most public clash has been between Moraes and the South African billionaire Elon Musk, who has vigorously resisted the judge’s efforts to control speech on his X platform and other social media. Late Wednesday, Moraes used X itself to send Musk an ultimatum to appoint a new legal representative for his company in Brazil, and threatened a total ban of the platform in Latin America’s largest country unless he complied. Several Brazilian legal experts told Estado de S.Paulo newspaper that Moraes was overstepping his powers—that his use of social media to deliver the order was invalid, and that any suspension would be illegal.
Also recently, reporting by Fabio Serapião and Glenn Greenwald, the well-known American journalist who lives in Brazil, in Folha de S.Paulo newspaper indicated that Moraes and his lieutenants skirted official procedure in preparing sanctions for targets of his investigations.
These controversies have put renewed focus on several questions: Is Moraes censoring the opposition, or guarding Brazilian democracy? What should be the balance between allowing political speech on social media—and fighting back against disinformation and other threats? And finally: Has Moraes’ power outlived its usefulness, placing due process and the rule of law under threat in a different but also harmful way?
“It’s clear he’s pushing the limits,” said Conrado Hübner, a professor of constitutional law at the University of São Paulo and columnist at Folha. “There’s no precedent, nothing remotely similar to having a minister leading … investigations that almost become permanent institutions.”
“It’s been a year and a half since the 2022 election and the departure of a president who threatened institutions,” wrote the editorial board of Folha on August 26. “But for minister Alexandre de Moraes and his colleagues at the Supreme Court, it’s as if it was still that time—at least as a pretext for maintaining the anomalous concentration of power in this magistrate and his court.”
Snip.
Moraes banned the social media accounts of right-wing influencers Rodrigo Constantino and Paulo Figueiredo, for allegedly spreading Covid-19 misinformation and casting doubt on the Brazilian electoral system. He also banned the accounts of department store chain owner and right-wing influencer Luciano Hang, allegedly for agitating for a coup in a pro-Bolsonaro message group. Blogger Allan dos Santos, in self-imposed exile in Florida, had his passport revoked after calling for the dissolution of the STF, and being accused of involvement in an “organized crime network” that operates through monetized videos online. The U.S. refused an extradition request—reportedly because it determined Santos’s actions aren’t considered a crime in the U.S.
“It’s persecution, pure and simple,” Santos said.
The political temperature has moderated in Brazil over the past year, as a degree of institutional harmony has returned under Lula’s watch. But Moraes has remained on the offensive, threatening earlier this year to block Telegram, an encrypted messaging service, for refusing to comply with his orders. (Pavel Durov, the service’s founder, was arrested in France earlier this week for failing to prevent illegal activity on the platform.)
As part of the reporting on leaked documents from Moraes’ office in August, Greenwald wrote that former Bolsonaro advisor Filipe Martins had been detained under an order by Moraes for almost six months without charges, based on evidence that (Greenwald wrote) had been disproven. Less than a week later, Moraes ordered him released.
In reporting over the last several weeks, Greenwald and a co-author have used leaked messages to level accusations that Moraes directed his aides to compile reports on individuals, setting them up for social-media bans and other sanctions, and pass off the reports as having come from other legal organs or as anonymous complaints. The reports exacerbated concerns that Moraes was blurring the lines between legal roles—and so did his response, which was to order an inquiry into the source of the leaks.
Some of those actions sound familiar… (Hat tip: Glenn Greenwald.)
Hamas terrorist official Ghazi Hamad said during a recent interview that the terror group views its October 7 massacre as an enormous success because it damaged attempts to establish diplomatic ties between Israel and the Arab states.
Hamad, who previously said that the terror group aims to repeatedly carry out October 7-style attacks, said during an interview earlier this summer that was only translated this week that the terrorist attack — in which 1,200 were murdered, 5,300+ wounded, and hundreds more taken hostage — was “able to slap at the progress of the normalization of effort, and this is, of course, a very important political success.”
He said that the attack has also been successful in creating divisions among Israelis and uniting other Islamic terrorist organizations to attack Israel.
“US Strike Eliminates Senior Al-Qaeda-Linked Terrorist Leader In Syria. A U.S. military drone strike has killed a senior leader of Hurras al-Din, a group in Syria aligned with the al-Qaeda terrorist group, the U.S. Central Command (CENTCOM) said in an Aug. 23 statement. The strike targeted Abu-‘Abd al-Rahman al-Makki, a prominent figure within the group’s Shura Council, responsible for overseeing terrorist activities from Syria, according to the statement.”
Are you an senior citizen living in Communist Cuba? Good luck surviving on $10 a month.
Cubans continue to flee a worsening economy in record numbers while the elderly have been left behind, fighting to survive on the communist regime’s $10 monthly pension and a critical lack of basic supplies.
Food, power, medical equipment, and pharmaceutical shortages have ignited persistent protests this year and driven Cuba’s ongoing exodus of working-age adults.
The result has been nothing short of devastating for the country’s retirees.
“It’s a nightmare in every direction. This is an SOS. Cuba is about to collapse in a fatal way,” said Ramon Saul Sanchez, a long-time anti-Cuban regime activist and president of the Democracy Movement in Miami.
“People can’t really imagine, especially from outside, making elderly people live in such inhumane conditions,” Sanchez told The Epoch Times.
“Because of the deterioration of the economy and the lack of interest of the Cuban regime, they aren’t helping those who need it,” he said. “Retirement pension maybe allows you to buy a dozen eggs a month. That’s it.”
Another lawsuit from Texas over the Biden Administration’s refusal to secure the border, but this one wasn’t from Ken Paxton. ” Border Counties, Residents Sue Biden Administration, Alleging Refusal to Enforce Immigration Laws.”
A grim scene of death, destruction, and crime is described among the harms suffered by two Texas border counties in a lawsuit against the Biden administration, alleging that the “willful and unconstitutional” refusal to enforce federal law has resulted in unprecedented harm inflicted upon the rural communities.
Kinney and Atascosa counties, Kinney County Sheriff Brad Coe, and rancher Dr. Michael Vickers are the plaintiffs in the petition filed in the federal district court for the Southern District of Texas this past week naming President Joe Biden, Department of Homeland Security (DHS) Secretary Alejandro Majorkas, and other federal immigration officials as defendants.
The plaintiffs raised unique arguments not yet seen in other legal disputes over the border crisis, including that the Biden administration violated the U.S. Constitution’s Take Care Clause and a law requiring environmental impact studies.
The Take Care Clause in Article II, Section 3 states that the president “shall take Care that the Laws be faithfully executed.”
“Immediately upon being sworn into office, the current Administration has pursued immigration policies that are not only at odds with Congress’s statutory scheme and directives but are objectively calculated to dismantle proven border security programs or craft novel administrative processing ‘pathways’ to permit inadmissible aliens to enter and remain inside the country,” the lawsuit alleges.
Among the examples contained in the complaint, the Biden administration is accused of abusing prosecutorial discretion to effectively rewrite immigration law, paroling more illegal aliens into the nation in the past year than lawful aliens.
The administration also adopted a policy allowing illegal aliens with criminal backgrounds to remain in the country, contrary to laws that require deportation.
“Collectively, Defendants’ actions signaled to potential border crossers—and to the human trafficking and drug cartels that coordinate illegal border crossing—that the Administration is unwilling to secure our border,” the lawsuit states, adding, “Defendants have completely abdicated their statutory responsibilities, allowed or encouraged the southern border to be overrun, and are violating their duty to take care that the laws be faithfully executed.”
The plaintiffs then described the harms they have suffered as a result of the alleged policies, with Vickers noting illegal aliens have caused $50,000 worth of damages on his ranch since 2021, not including trash the aliens have left behind that has harmed both livestock and the environment.
Vickers said he must also constantly remain armed, noting that with the increased illegal immigration, numerous gang members are also coming to his ranch, including MS-13, Tango Blast, the Pistoleros, and the Mexican Mafia.
Citing another shocking result of the policies, he said that since 2021 over 270 dead bodies have been found within 15 minutes of his home.
The counties also described the unprecedented burden the crisis places on local government.
The lawsuit explains that in 2020, before the Biden administration implemented its current border policies, Kinney County handled 134 criminal charges.
From there, it skyrocketed within a year to 2,708 criminal cases and continued to climb to 6,800 in 2022. Most recently, it faced 5,826 cases in 2023.
The crime has strained the rural communities’ limited financial resources.
The lawsuit asks the court to enjoin the Biden administration’s policies that run contrary to federal law, citing causes for relief under both an administrative rule-making statute and the Take Care Clause.
State Rep. Shawn Thierry (D-Houston) is switching parties to the GOP, she announced Friday at an event in Washington, D.C. held by Moms for Liberty.
“The Democratic Party has veered so far left, so deep into the progressive abyss, that it now champions policies I cannot, in good conscience, support — policies like promoting sex changes for vulnerable children and dismantling Title IX protections for women in sports. That’s why I am leaving the left and joining the party of family, faith, and freedom,” Thierry said in a release.
“I now stand with colleagues, friends, neighbors, women, and mothers in the Republican Party.”
Thierry lost her primary runoff to Lauren Simmons, and the legislature is out of session, so no change in the legislative status quo.
Current rate per megawatt hour: $36. What New York pays for wind power $155 per megawatt hour.
Here’s an interesting ruling: “US judge tosses machine gun possession case, calls ban unconstitutional.”
A federal judge has dismissed charges against a Kansas man for possessing a machine gun, saying prosecutors failed to establish that a federal ban on owning such weapons is constitutional.
The decision, by U.S. District Judge John Broomes in Wichita on Wednesday appeared to mark the first time a court has held that banning machine guns is unconstitutional after the conservative-majority U.S. Supreme Court in 2022 issued a landmark ruling that expanded gun rights.
In that ruling, New York State Rifle & Pistol Association v. Bruen, the Supreme Court established a new test for assessing firearms laws, saying restrictions must be “consistent with this nation’s historical tradition of firearm regulation.”
The Supreme Court clarified that standard in June as it upheld a ban on people subject to domestic violence restraining orders having guns, saying a modern firearms restriction needs only a “historical analogue,” not a “historical twin,” to be valid.
Broomes, an appointee of Republican then-President Donald Trump, said prosecutors in Tamori Morgan’s case failed to identify such a historical analogue to support charging him with violating the machine gun ban.
The Texas Secretary of State’s Office (SOS) will send multiple staff members to Harris County to inspect records and procedures and assist the elections division during the 2024 general election, citing multiple issues uncovered in a state audit of the county’s management of past elections.
According to a press release from Secretary of State Jane Nelson, the SOS “will assign state inspectors to Harris County to perform checks on election records, including tapes and chain-of-custody, and will observe the handling and counting of ballots and electronic media during the November 2024 election period.”
SOS will also send staff to assist the county for the duration of the election period, from early voting to Election Day and through tabulation.
The SOS announced the planned “enhanced presence” along with the final results of an audit of the 2022 elections, which included findings the county had not followed state law in maintaining voter registration rolls and in providing the required minimum amounts of ballot paper to all polling sites.
Ballot paper shortages halted voting at multiple locations on Election Day 2022.
According to state law, officials must provide each polling site with ballots equivalent to 125 percent of voter turnout in the last corresponding election. Under former Elections Administrator Clifford Tatum the county only provided 600 ballots to locations that had processed twice that many voters in 2018; a former county employee has been charged with six felonies in relation to the ballot paper allocation.
SOS Elections Division auditors also found that the county had not provided adequate training to election workers, which contributed to widespread equipment failures across multiple elections, and had failed to comply with state paperwork requirements.
During a Texas House Committee on Elections hearing on Monday, SOS Elections Director Christina Adkins briefed lawmakers on the results of the audit. She noted that after moving from a paperless system to paper ballots in May 2021, Harris County had not provided hands-on training for election judges and clerks.
As a result, Adkins said voting ceased for an hour or more at multiple polling locations during the November 2021 elections, with 17 sites not processing any voters until more than an hour after the scheduled opening due to equipment problems. Despite the issues, then-County Elections Administrator Isabel Longoria did not revise training procedures prior to the March 2022 primary election, which had similar problems.
Adkins also noted that Harris County failed to include 10,000 ballots in preliminary counts after the March 2022 primaries, a discrepancy that was identified by a reconciliation report required by election reform legislation enacted in 2021. The ballots were kept on a thumb drive, but Adkins noted that counties develop their own tracking procedures for the devices.
”I don’t recall that they had a lot of paperwork to show us on tracking that process,” said Adkins.
The county has also struggled to maintain voter registration rolls. Adkins told lawmakers that Harris is one of 33 counties that use a third-party vendor for management of voter rolls, leading to significant discrepancies between state and local databases.
The final audit noted that while the discrepancies “may seem minor in comparison to the total number of registered voters, the inconsistencies make it difficult to validate election data.”
In his stated effort to uphold election integrity in Texas, Gov. Greg Abbott announced that more than one million people have been removed from the state’s voter rolls.
As part of the announcement, Abbott provided a chart that shows over 1.1 million voters in various categories are flagged as “removed,” including over 457,000 deceased individuals and over 463,000 voters on the “suspense list.”
Additionally, over 134,000 voters failed to respond to an address confirmation notice, while over 6,500 are noncitizens and over 6,000 have felony convictions.
Abbott highlighted Senate Bill (SB) 1, which was signed into law in 2021, that added provisions designed to prevent fraud by adding criminal statutes, prohibiting unsolicited mail-in ballot applications, and setting additional ground rules for early voting and voter registration.
“Election integrity is essential to our democracy,” said Abbott in his recent press release.
“I have signed the strongest election laws in the nation to protect the right to vote and to crack down on illegal voting. These reforms have led to the removal of over one million ineligible people from our voter rolls in the last three years, including noncitizens, deceased voters, and people who moved to another state.”
Abbott added that the Texas Secretary of State has “an ongoing legal requirement to review the voter rolls, remove ineligible voters, and refer any potential illegal voting to the Attorney General’s Office and local authorities for investigation and prosecution.”
“Illegal voting in Texas will never be tolerated.”
In addition to SB 1, Abbott has signed multiple other bills to crack down on illegal voting. This includes House Bill (HB) 1243, which increases the penalty for illegal voting to a second-degree felony; SB 1113, which empowers the Secretary of State to withhold funds from counties that fail to remove noncitizens from voter rolls; and HB 574, which criminalizes knowingly counting invalid votes.
Whereas O’Rourke spent much of his time on the road doing a glorified whistle-stop tour of the state, Allred’s camp has opted for carpet bombing the Dallas, Houston, San Antonio, Corpus Christi, Beaumont, and Rio Grande Valley media markets with ads.
According to the Cruz campaign, the television spend breakdown so far is $5.9 million for Allred and $265,000 for Cruz; Allred’s campaign declined to confirm any numbers. National political ad-tracking firm AdImpact put the Cruz deficit among all entities and groups at a much larger figure: $21.7 million to $2.2 million.
I expect Cruz to win by more than he did in 2018, especially in a Presidential election year, but I’m sure Ted could use more money.
A three-judge panel of the U.S. Court of Appeals for the 5th Circuit held that a novel type of search warrant used to collect digital record data is unconstitutional under the Fourth Amendment.
The case arose from the robbery of a postal service worker in Mississippi, where surveillance video showed one of the robbers checking his cell phone during his escape after taking a mailbag containing $60,706 at gunpoint from the postman.
After coming up short of other ways to identify the perpetrators, postal inspector agents obtained what are known as geofencing warrants, which ultimately led to Gilbert McThunel’s arrest and conviction for the crime.
Geofencing warrants, the court explained, are different from normal search warrants that are based on probable cause and allow the police to search a known specific person or thing. Instead, law enforcement uses geofencing warrants when the identity of the suspect isn’t known, such as in this instance.
The warrants work in reverse from traditional search warrants. Most commonly, as with this case, investigators ask Google to search a database containing data from every one of their users who has their location history enabled on their smartphones.
Approximately one-third of Google’s 592 million users have their location history feature turned on, which silently tracks the location of the device through cell signals, Wi-Fi, and Bluetooth every two minutes, uploading that location data to a “Sensorvault.”
When Google receives a geofencing warrant, the company must search all records in the Sensorvault for location data that corresponds to the warrant — for all accounts that were within a certain geographic location at a certain time.
I’m conflicted on this. I can see situations where a geofence warrant may be justified for serious crimes, but they also offer a real possibility of government abuse (such as January 6th defendants).
California continues to California: “Dems Pass Bill to Give Illegal Immigrants $150,000 Home Loans — but the Program Is Broke.”
The latest business slammed by the Biden Recession: RVs. Also, holy crap, have RVs gotten ridiculously expensive. I guess they’re pricing them against owning a home these days…
Dwight alerted me to this story last week, and I told him “I’m waiting for the followup when the police capture the man and it turns out his name is Abbas Mohammed Jihad.” Well: “3 people were killed and 6 others injured at a diversity festival in Solingen, Germany, when a man with a knife went on a rampage…According to reports from the scene, and according to a German newspaper, witnesses heard the unidentified attacker shouting “Allahu Akbar” during what is being called a potential act of terrorism.” Sometimes it sucks to be so psychic…
Dispatches from Tim Walz’s Minnesota: CBS News was running a segment on car thefts and a car theft happened while they were filing.
She dug deeper into the nonprofit’s bank records and found much more that concerned her. Mansion rentals. Vet bills. Luxury clothes. Finally, a stay at a Cancun resort. Ms. Banks scrolled back through Facebook to the week that resort bill was paid. She saw her boss, [Raheem AI president] Brandon D. Anderson, posing in a pool.
The photo was tagged: “Cancun.”
Snip.
They investigated and questioned more than $250,000 in charges since 2021 alone, internal documents show.
Among them: Mr. Anderson — who was paid a salary of $160,000 — had spent $1,500 of the charity’s money at a chiropractor; $5,000 on veterinary care; and an astounding $46,000 on ride-share services like Uber and Lyft. Most confoundingly, the nonprofit had paid $80,000 for luxury vacation rentals, including a service that let members stay in luxury mansions around the world, according to the board’s accounting.
And since Raheem AI is an anti-police organization, no one wanted to go to the cops… (Hat tip: Dwight.)
A teacher in Round Rock Independent School District was arrested for sex crimes involving children.
Domingo Perez Jr., also known as Dominic, was a science teacher at Stony Point High School through the 2023-2024 school year.
Perez was arrested and booked into the Williamson County Jail on August 21.
He is facing charges of indecency with a child by sexual contact—a second-degree felony punishable by 2 to 20 years in prison—and possession of 50 or more images or videos of child pornography, a first-degree felony punishable by up to life in prison.
Yes, they are trying to Trans your kids:
These images were reportedly taken inside @MMSDschools in Wisconsin.
This school is trying to destroy "heteronormative thinking" and replace it with a "queer affirming network?"
Concord and Dustborn were two AAA gaming title that had three things in common: they both cost a lot of money, they both pushed social justice, and they both tanked hard on release. Unlike Black Myth Wukong, which social justice game journalist sites criticized relentlessly and which sold 10 million copies…
Critical Drinker calls The Crow reboot the worst film of the year. “A violent, grimy and bleak exercise in stupidity.”
Comedian Gary Gulman on how the states got their abbreviations. Conan O’Brien said this was one of the funniest bits ever on his show, and it’s pretty good.
I hope you survived Independence Day will all your digits intact! Slow Joe’s poll numbers plumb new depths, everyone knows the media is complicit in hiding his mental decline, Israel settles all family business, Rishi’s snap election is a debacle for the Tories, Wall Street looks to get the hell out of the Rotten Apple, and California legalizing weed was a big win…for illegal weed. It’s the Friday LinkSwarm!
Voters that say Biden has the mental health to be President: It was only 35% pre-debate, look where it’s dropped to now post-debate, 27%.
How ’bout that he should be running for President? It’s 37% pre-debate, it’s now 28%…
I have never seen numbers this bad for an incumbent president during my lifetime … These numbers looked NOTHING like this in 2020. These numbers were bad already … they have gotten considerably worse even in just a few days after that first presidential debate.
How bad is Biden doing? This should come with the standard Instapundit “don’t get cocky” disclaimer, as well as a disclaimer that I haven’t examined this guy’s methodology and model at all, but even if the margins are half what he’s saying, it’s still really, really bad for Biden.
As in “Biden is winning Illinois…by three points” bad. New York is within striking distance for Trump. And right now he’s even edging Biden in New Jersey. (Hat tip: Ace of Spades HQ.)
Biden says that no one is pushing him out of the race, though even Lightbringer McLegTingle himself has reportedly joined the chorus of concern over Slow Joe’s debate meltdown.
According to ‘several people familiar with his remarks,’ and perhaps most notably conveyed via the Washington Post, not only has Obama grown more concerned following the debate (and having to physically guide the 81-year-old off of a stage last month), the former president “has long harbored worries about his party defeating Donald Trump in November, repeatedly warning Biden in recent months about how challenging it will be to win reelection.”
Not only that, “Just before the debate, Obama conveyed to allies his concerns about the state of the race.”
So Obama gets to save face, while adding to the growing chorus of Democrats who have expressed everything from quiet panic to public hints, to outright calls for Biden to drop out of the race.
Usual “sources close to” caveats apply.
The mainstream media is shocked, shocked that Democrats lied about Biden’s cognitive decline as they actively aided and abetted them.
If you’re looking for a broader takeaway from all this, take how the press covered up Biden’s infirmity because it wanted to protect the Democrats, and apply it to literally every single thing that it does, on any topic, in any year, in any circumstance, forever.
— Charles C. W. Cooke (@charlescwcooke) July 3, 2024
They all knew:
Now that all the liberal journalists are claiming they didn't try to cover up Biden's deteriorating mental condition, here's a supercut of them claiming any and all damaging videos of Biden are fake and/or deceptively edited. pic.twitter.com/XI5zeTGih5
— Nicholas Fondacaro (@NickFondacaro) July 3, 2024
Democrats decided to shut Joe Biden down for a week. Not because they wanted to, but because they figured they had to. It was the only chance Biden had — thin as it turned out to be — to get through a 90-minute session in which he’d be asked questions he couldn’t answer with note cards, in which he’d be challenged vigorously and need to be quick on his shuffling feet.
Here’s the thing, though. What we saw on Thursday night was the result of that week of preparation and rest. And it was a disaster. So . . . what must the prep have been like?
Biden’s closest aides and the top Democrats with whom they are in constant communication know better than anyone in America that the president cannot function, that he cannot do the job. Yet, rather than ease Biden out, invoke the 25th Amendment if he wouldn’t go voluntarily, and ensconce in the Oval Office the vice president they insisted in 2020 would be ready to take over if the octogenarian collapsed, they decided they had to try to drag Biden across the finish line.
Why?
Because the Democratic Party is a trainwreck.
As catastrophic as Biden is in his senescence, he remains useful cover for the fact that the youth, energy, and money in the Democratic Party is woke-leftist, Islamist, counter-constitutionalist, post-American, and unelectable.
This doesn’t mean the whole Democratic Party is that way. But it does mean that sensible Democrats have to mind their tongues and genuflect in the crazies’ direction if they want to remain viable. They may personally believe, like the majority of Americans believe, that the border needs to be secure; that we can’t allow millions of illegal aliens a year to enter the country; that we don’t want boys and men invading the formerly safe spaces of girls and women; that mere statistical racial disparities in outcomes do not establish racism; that crime — especially recidivist crime — is a serious problem; that we need to back Israel’s wars against Hamas, Hezbollah, and their Iranian patrons; that a radical “green energy” transition the country is not ready for weighs too heavily on the budgets of everyday Americans even as it drives the national economy deeper into the ditch; and that America, warts and all, is fundamentally good — rightly, the envy of the world. But woe betide the Democrat who gives voice to such commonsense views.
Democrats have thus rolled the dice with Biden, and with the nation’s security, because the alternative is dealing with that rift.
Joe Biden is a lifelong mediocrity. But he has the fortuity of being both a Democrat from another era and Obama’s vice president. Because he’s a doddering blank slate, Democrats of all camps could project onto him their kind of Democrat. He could run in 2020 as the guy who could face down the radicals, and then govern under the thumb of the radicals — but with enough rhetorical feints to the old establishment Dems that they might yet rally around him . . . especially with no alternatives except the hard left and Donald Trump.
Why Joe Biden? Because Democrats want to stay in power and propping him up, as impossible as that has now become, seemed to be the best plan. Sadly, it may yet be.
Unemployment is at a three year high. And those are just the official figures. The truth is probably far worse.
Rigging the 2020 election through Zuckerbucks. “(a) tax-exempt non-profits are prohibited by federal law from engaging in partisan political activity, and (b) the Zuckerberg-funded ‘cabal’ had no other purpose except to guarantee Biden’s election.” And it did this through get-out-the-vote efforts exclusively in heavily Democratic precincts.
If you look at the Livemap, Israel also seems to have stormed various towns in the West Bank this week.
Israel may be in a “settle all family business” sort of mood…
“National Education Association members will vote on several anti-Israel resolutions at the union’s annual ‘Representative Assembly’ in Philadelphia this week, including the adoption of an official position holding that Israel is conducting a ‘genocide’ in Gaza and that opposing the Jewish state’s existence is not antisemitic.” I’m sure they’d rather focus on Gaza than undertake radical courses of action like teaching kids to read.
Six years after California legalized marijuana, the bodies keep piling up. Earlier this year, six men were murdered in the Mojave Desert. Four of the men had been burned after being shot with rifles. In 2020, seven people were killed at an illegal pot operation in Riverside County.
Violence like this was supposed to disappear after legalization. Legalization advocates argued that making the drug trade legal would end the grip of the cartels. Instead, the legal market has failed, and the cartels are taking over sizable parts of California and the rest of the country.
California’s legal drug revenues have fallen consistently, as have those in other legal drug states including Colorado, whose model helped sell the idea that drug money would fix everything.
Despite falling revenues, Colorado legislators brag about $282 million in drug revenue. That number may sound high, but it’s a drop in the bucket considering the money that the state and cities like Denver are spending on homelessness, drug overdoses and law enforcement.
While the legal drug business is also collapsing in California, the state is spending a fortune fighting marijuana even as it tries to tax it. Gov. Gavin Newsom paradoxically promised to close the budget deficit with $100 million in drug revenue, meant to be used to fund law enforcement and fight substance abuse. The state seized over $300 million in illegal pot this year and uses satellite imagery and heavily-armed raids to fight untaxed marijuana.
But despite all those efforts, illegal marijuana has won and legal marijuana has lost.
The Los Angeles Times warned two years ago:
“Proposition 64, California’s 2016 landmark cannabis initiative, sold voters on the promise a legal market would cripple the drug’s outlaw trade, with its associated violence and environmental wreckage.
“Instead, a Los Angeles Times investigation finds, the law triggered a surge in illegal cannabis on a scale California has never before witnessed.
“Rogue cultivation centers like Mount Shasta Vista now engulf rural communities scattered across the state, as far afield as the Mojave Desert, the steep mountains on the North Coast, and the high desert and timberlands of the Sierra Nevada.
“Residents in these places describe living in fear next to heavily armed camps…”
Some of the growers are private citizens, but they aren’t likely to remain in business for long.
Cartels and gang members dominate the business. And open borders allowed them to bring massive numbers of laborers to boost their ranks. Not only California, but places as far afield as Maine that have large open areas and limited law enforcement resources, have been overrun by drug operations that more closely resemble parts of Latin America and Asia than the USA.
The coasts, from Southern California up to Oregon, are controlled by Mexican cartels which have expanded so much that they’re running short of workers even during the Biden open borders boom. Some have taken to brazenly advertising for illegal workers in Europe.
A local California DA described “Mexican cartel groups coming up to grow pot, and people from Bulgaria, France and Russia.” The vast exodus across the border has made it possible for cartels to freely bring in any workers they want, even as drug legalization and open borders effectively ended any real penalties for either illegal migration or marijuana.
Asian organized crime may be less on the radar, but it is no less ruthless or violent.
A few years ago, four Chinese people were murdered at an Oklahoma illegal pot farm. Chinese organized crime had “taken over marijuana in Oklahoma and the United States,” the head of the Oklahoma Bureau of Narcotics and Dangerous Drugs revealed.
Once again, “the mafias set their sights on Oklahoma when the state’s voters approved a ballot measure that legalized the cultivation and sale of marijuana for medicinal purposes.” Now the Triads run their own compounds “ringed by fences, surveillance cameras and guards with guns and machetes” with 3,000 illegal grows having a value estimated at as high as $44 billion a year.
The Triads are not just in the illegal marijuana business, they traffic in everything from heroin to fentanyl. Legalizing marijuana, however, provided them with a profitable and semi-legal market that gives them a base to expand their efforts trafficking in even more lethal drugs.
Drug legalization has failed on every level. The legal drug business is collapsing. MedMen, which once promised to be the Apple of weed, fell from a $3 billion valuation to a bankruptcy with $411 million in liabilities. Despite the green crosses and online apps, 80% of Californian’s pot is still the old-fashioned illegal kind. Politicians may be boasting about hundreds of millions in revenue, but the cartels are making tens of billions and they’re taking over entire forests.
The future isn’t pot shops, weed apps or MedMen: it’s Mexican and Chinese organized crime compounds that are spreading across the West and parts of New England like a plague.
Also in California, State Farm is jacking home owners insurance into the stratosphere.
State Farm requested massive increases to its California residential insurance rates, which calls its financial stability into doubt amid an ongoing crisis in the state’s insurance market.
The company’s California subsidiary, State Farm General, the state’s largest writer of homeowners insurance, according to the Insurance Information Institute, submitted a request on Thursday to the California Department of Insurance for the following rate hikes:
30% increase in homeowners insurance
336% increase in condominium owners insurance
352% increase in renters insurance
With California’s property insurance market already facing an availability and affordability crisis, driven largely by rising wildfire risk, the timing could hardly be worse.
Gee, maybe you shouldn’t have legalized shoplifting in the name of “social justice.”
The Supreme Court of the United States (SCOTUS) has ruled unanimously in a case involving a 2021 Texas social media transparency law, sending it back to the U.S. 5th Circuit Court of Appeals.
House Bill (HB) 20, which requires major social media platforms to be more transparent and prohibit viewpoint-based censorship, passed in the 87th Legislature. It faced an immediate legal challenge, resulting in a temporary block by a federal district court. This decision was appealed to the 5th Circuit, which temporarily lifted the block, allowing the law to take effect.
Justice Elena Kagan delivered the opinion for SCOTUS, writing, “Texas has never been shy, and always been consistent, about its interest: The objective is to correct the mix of viewpoints that major platforms present. But a State may not interfere with private actors’ speech to advance its own vision of ideological balance.”
So the Supreme Court will not save Americans from big tech companies teaming up with secret government entities to impose censorship on their platforms. Americans will have to do that for themselves.
The Tories got slaughtered in Rishi Sunak’s spectacularly ill-advised snap election, handing Labour, which seemed on life-support just a few years earlier, a 170 seat majority. “Labour got 3 times as many seats, but did not win – the Conservatives lost, and lost badly, punished by the electorate. Reform were the real winners – although they only got 4 seats.” Sir Keir Rodney Starmer KCB KC will now become Prime Minister, Sunak is going to go down as one of the Tories worst leaders, and Nigel Farage will finally sit in parliament. Will Labour take this as a greenlight to go full speed ahead on unlimited immigration and hard green NetZero? I wouldn’t put it past them.
Belarus does more sabre rattling on the Ukraine border. I suspect this is just a feint to tie up Ukrainian units on the border, as Putin puppet Aleksander Lukashenko might face a real revolt from his military if he tried to send units into Ukraine.
Remember all that panic over investors buying up housing? Thanks to the Biden Recession, they’re now unloading them at firesale prices. “It’s impossible to make money on mortgage properties with interest rates where they are today.” Well, unless they took out fixed rate mortgages, which real estate companies are evidently loath to do. “Inventory [in this Florida zip code] has gone up 800 to 900%.”
So I thought about doing a post on this Chinese-constructed, Malaysia-based, eco-themed Forest City ghost city just outside Singapore, with the obvious “post apocalyptic” slant, but one thing stopped me: It actually looks kinda cool and well-maintained, and if the usual shoddy tofu dregs building processes have been used, they’re not apparent in this brief tour. Everything looks classy and expensive. And for once, you can’t entirely blame the CCP for the debacle, since the Malaysian government evidently changed foreign ownership rules after most of it had been constructed.
This is a weird story: “Walter Ringfield Jr., the 27-year-old Phoenix resident charged with stealing keys to voting equipment from Maricopa County elections headquarters, has a history of theft allegations – and an apparent interest in running for public office.” He stole keys to a tabulating machine that couldn’t be used without access to other keys he didn’t have for a job he was temping at. Could be a another Democratic attempt at election fraud, or the guy just might be a klepto.
Michigan lawmakers want to make the AR-15 the official state gun. Nice. Texas already has a state gun, the Colt Walker pistol, which is pretty important historically. Tennessee’s official state gun is the Barrett M82, which I think wins the firepower crown, until someone names the Ma Deuce the offical state gun…
Half a year gone already. This week: The debate confirmed that pretty much everything Republican said about Biden being old and out of it was true, people can’t afford housing anymore, the Supreme Court reigns in the administrative state, a whole bunch of layoffs come down the pike, two sorta, kinda coups, fake meat doesn’t pay, and we say farewell to a Texas original. It’s the Friday LinkSwarm!
President Joe Biden looked old and disoriented during Thursday’s CNN debate with Donald Trump. He spoke in a quiet and hoarse voice, made some incoherent answers, and often stumbled over his own words.
It was a lackluster performance that played directly into Republican depictions of the 81-year-old president – the oldest president in American history — as too old and frail to serve another four years in office. Trump said as much during the debate.
“He’s not equipped to be president,” Trump said. “You know it and I know it.”
The debate was a highly personal affair between two men who made little effort during their nearly two hours on stage to contain their disdain for one another.
Biden called Donald Trump a “loser,” and a “whiner” with the “morals of an alley cat.” Trump accused Biden of turning the United States into a “third-world nation” and of being the “worst president in history by far, and everybody knows it.”
Trump turned in a spirited performance, hammering Biden on inflation and the immigration crisis under his watch. But Biden’s struggles seemed to be the major takeaway for CNN’s post-debate panel, which reported that senior Democrats are in an “aggressive panic” over their party leader’s apparent frailty.
Speaking about improvements he’s claiming at the border, Biden at one point seemed lost, saying: “I’m going to continue to move until we get the total ban on, the total initiative relative what we’re going to do with more border patrol and more asylum officers.”
“I don’t really know what he said at the end of that sentence,” Trump replied. “I don’t think he knows what he said either.”
At another point, Biden got visibly lost when talking about his plan to raise taxes on the wealthy to wipe out the debt, saying he wanted to make sure “that we’re able to make every single solitary person eligible for what I’ve been able to do with, with, with the Covid, excuse me, with dealing with everything we had to do with, look, we finally beat Medicare.”
“Well, he’s right,” Trump said, “he did beat Medicare. He beat it to death.”
He stammered. He stumbled. And, with fewer than five months to November, he played straight into Democrats’ worst fears — that he’s fumbling away this election to Donald Trump.
The alarm bells for Democrats started ringing the second Biden started speaking in a haltingly hoarse voice. Minutes into the debate, he struggled to mount an effective defense of the economy on his watch and flubbed the description of key health initiatives he’s made central to his reelection bid, saying “we finally beat Medicare” and incorrectly stating how much his administration lowered the price of insulin. He talked himself into a corner on Afghanistan, bringing up his administration’s botched withdrawal unprompted. He repeatedly mixed up “billion” and “million,” and found himself stuck for long stretches of the 90-minute debate playing defense.
And when he wasn’t speaking, he stood frozen behind his podium, mouth agape, his eyes wide and unblinking for long stretches of time.
“Biden is toast — calling it now,” said Jay Surdukowski, an attorney and Democratic activist from New Hampshire who co-chaired former Maryland Gov. Martin O’Malley’s 2016 presidential campaign in the state.
In text messages with POLITICO, Democrats expressed confusion and concern as they watched the first minutes of the event. One former Biden White House and campaign aide, granted anonymity to discuss the matter, called it “terrible,” adding that they have had to ask themselves over and over: “What did he just say? This is crazy.”
Sales of previously owned homes are sitting at a 30-year low and didn’t move much in May as prices hit a new record and mortgage rates remain high.
So-called existing home sales in May were essentially flat, down 0.7% from April to a seasonally adjusted, annualized rate of 4.11 million units, according to the National Association of Realtors, or NAR. Sales fell 2.8% from May of last year …
The median price of an existing home sold in May was $419,300, a record-high price in the Realtors’ recording and up 5.8% year over year. The gain was the strongest since October 2022. Prices gained in all regions.
The Realtors noted in a release that the mortgage payment for a typical home today is more than double what it was five years ago.
It’s almost as though the Biden Recession, constrained supply (a great deal from blue locale regulation that prevent housing from being built), and high interest rates mean that no one wants to buy or sell.
According to a new report, the average renter can’t afford a typical U.S. apartment.
According to Redfin, the typical U.S. renter household earns about $54,712 per year, which is 17.3% less than the $66,120 needed to afford the median-priced apartment at $1,653 per month. This means that 61% of renters can’t afford their housing without significant financial stress.
Snip.
Inflation, which has surged during Biden’s presidency, certainly exacerbates this issue. Rising costs for essentials like food, gas, and utilities leave renters with even less disposable income to cover their housing costs. Despite promises to address affordability and economic inequality, the Biden administration has doubled down with claims that inflation is going down and that wage growth has outpaced it — which isn’t true. Biden has made it more difficult for Americans to achieve financial stability.
Pixar (part of Disney) (175 people, 14% of the company, who must have been thrilled to get a pink slip and then see unwoke Inside Out 2 go on to be Disney’s biggest movie of the year)
The Supreme Court on Friday issued a ruling overturning the 1984 Chevron v. National Resources Defense Council case, striking down a previous decision that granted federal agencies immensely broad power to draw up regulations without congressional approval.
The Court ruled in both Loper Bright Enterprises v. Raimondo and Relentless v. Department of Commerce — two nearly identical cases — that regulatory agencies will no longer be able to fill in the blanks of vague legislation in 6-2 and 6-3 decisions, respectively. Justice Ketanji Brown Jackson recused herself from the first case because she sat on the federal appeals court that had previously heard the case.
In his majority opinion, Chief Justice John Roberts wrote that it is not the place of agencies to clarify ambiguous legislation.
“Perhaps most fundamentally, Chevron’s presumption is misguided because agencies have no special competence in resolving statutory ambiguities,” he wrote. “Courts do. The Framers, as noted, anticipated that courts would often confront statutory ambiguities and expected that courts would resolve them by exercising independent legal judgment.”
Writing a concurrence, Justice Neil Gorsuch argued that the concept of Chevron deference “undermines” many of the principles on which the United States was founded.
“It precludes courts from exercising the judicial power vested in them by Article III to say what the law is,” he wrote. “It forces judges to abandon the best reading of the law in favor of views of those presently holding the reins of the Executive Branch. It requires judges to change, and change again, their interpretations of the law as and when the government demands.”
This is a huge blow to the unchecked administrative state and a key decision in helping reign in untrammeled executive regulatory power.
This looks like it will put a crimp in Biden’s amnesty plans: “SCOTUS rules 6-3 that there’s no constitutional guarantee for non-citizen spouses to be admitted to the US.”
Russia’s newest S-500 air defense system has been deployed to Crimea to defend against ATACMS strike. Result? It was destroyed by an ATACMS strike. “This is a big embarrassment for Russia, that its newest and best missile system has had its clock clean by 30-year-old missiles.”
“War crimes arrest warrants issued for top Russian officials. The International Criminal Court (ICC) has issued an arrest warrant for Russia’s former defence minister, Sergei Shoigu, and the chief of general staff, Valery Gerasimov.” It would make one hell of a Dog The Bounty Hunter episode…
Andrew Cuomo (D-isgrace) admits that the bogus Trump hush money kangaroo trial should never have been held. “If his name was not Donald Trump and if he wasn’t running for president. I’m the former AG in New York. I’m telling you, that case would have never been brought. And that’s what is offensive to people. And it should be!” Broken clock, twice a day.
Federal judges in Missouri and Kansas issued separate rulings on June 24 blocking key sections of the Biden administration’s Saving on a Valuable Education (SAVE) program, which is designed to lower student loan payments and forgive debts.
A new version of the program that would reduce payments and shorten maximum repayment periods was set to take effect in July.
U.S. District Judge Michael Crabtree for the District of Kansas ruled that the Republican states were likely to succeed in their claim that the department lacked explicit congressional authority to enact this portion of the program.
“Defendants have offered colorable, plausible interpretations of the Higher Education Act that could authorize the SAVE Plan, but those interpretations fall short of clear congressional authorization,” Judge Crabtree, who was appointed under President Barack Obama, wrote on Monday.
However, he declined to block the program entirely, expressing concerns about the practicality of reversing parts of the plan that had already been implemented. He also said that Republicans’ delay in filing their lawsuits undermined their arguments that there was an immediate need to halt the entire program.
In a separate decision on the same day, U.S. District Judge Judge John Ross for the Eastern District of Missouri, also a President Obama appointee, blocked the department from forgiving “any further loan[s]” under SAVE until he decides the full case. His order said that such actions would likely strip state loan operators of revenue.
Judge Ross also suggested that the SAVE program might have exceeded the authority of Education Secretary Miguel Cardona and that Missouri would likely be harmed by the program.
Just imagine if a Republican judge got a chance to rule on it…
“Kenya Protesters Storm Parliament, Police Fire Live Rounds, After Lawmakers Unleash Eco-Austerity.” Seems like $2.7 billion in taxes to serve nebulous “green” goals is unpopular in a country where the per capita GDP is $2,099. Thanks, IMF…
And an attempted coup in Bolivia evidently failed. President Luis Arce is a bit of a socialist scumbag, so it remains to be seen if he intends to follow in Venezuela’s footsteps to economic ruin.
Not only are the massive crowds a problem, but this year the Saudi city is under an excessive heat warning, with highs at times having reached between 110 and 115°F during the day, and 100°F even at night. This has resulted in what could be a record amount of heat injuries and deaths by the pilgrimage season’s end. On Monday the Saudi weather service recorded a temperature of 125 degrees Fahrenheit at Mecca’s Grand Mosque.
Many of the dead were “unauthorized pilgrims” who hadn’t paid their Hajj fee. “This group was more vulnerable to the heat because, without official permits, they could not access air-conditioned spaces provided by Saudi authorities for the 1.8 million authorized pilgrims to cool down after hours of walking and praying outside.”
More accused perverts in classrooms. “Former Denton ISD Coach Arrested for Online Solicitation of a Minor. A mother from another school district says she tried to warn Denton ISD of an inappropriate encounter her daughter had with district employee Justin Wallace Carter.”
“A Uvalde County grand jury has indicted former school district police Chief Pete Arredondo and another former district officer on charges of child endangerment, the first criminal charges brought against law enforcement for the botched response to the deadliest school shooting in Texas history, the San Antonio Express-News reported. Arredondo and Adrian Gonzales face felony charges of abandoning or endangering a child.” (Hat tip: Dwight.)
A fun edition of What’s My Line featuring America’s most decorated war hero.
Kinky Friedman, RIP. He was a Texas original, an entertaining musician, a successful author, and the last interesting Democrat in Texas. Dwight already posted “The Ballad of Charlie Whitman,” so I direct you over there. I have an inscribed (not to me) first of A Case of Lone Star, and I should probably read that next.
Greetings, and welcome to a LinkSwarm so large I had to start working on it Wednesday! Unemployment rises too much to rig it away, home sales crash to Carter levels, Europe’s voters rise up to throw out the left, Hunter is guilty guilty guilty, another blow to the Biden Administration’s tranny Title IX rewrite, Israel rescues some hostages and smokes a Hezbolli terror master, and California continues to do California things.
Every so-called “strong” jobs report has been a disaster if one puts in even a little work to dig below the pristine, if fake, surface. And while we expected this charade to continue indefinitely, and certainly at least until the November election, at which point suddenly all the truth about the ugly labor market would be revealed to usher in the new president amid an economic crisis, we were shocked when none other than the Fed chair admitted today that the Biden admin was rigging jobs data.
In response to a question from a Bloomberg journalist during the post-FOMC presser, asking the Fed chair to comment on the state of the labor market, the Fed Chair said that two years ago the labor market was “overheated” and has since gotten back to “normal”, largely thanks to “supply from to immigration” – translation: illegal aliens have been the main reasons for the increase in employment and the drop in wages and thus, overall inflation, which as we discussed recently, is the narrative that is being pushed out to mitigate demands by most Americans to halt illegal immigration.
Where things got very interesting, however, is when Powell was discussing the demand-side of the labor market: here, he addressed the dropping quits level, the decline in job openings and wages, but more importantly, the rising unemployment rate – from 3.4% to 4.0% which clearly goes against the narrative of red hot payrolls – all of which the Fed chair summarized as strong job creation, yet caveated by saying that “there is an argument that [payrolls] may be a bit overstated.”
Note: he didn’t say “understated” because the “-stating” always goes in just one direction: the one that makes the resident of the White House look good.
In other words, the jobs – like so many things about this Potemkin economy – are a lie, and while Powell immediately realized what he had said, and tried to couch it by adding that payrolls are “still strong”, suddenly the entire narrative of a strong labor market imploded in front of our eyes, because if the Biden admin will lie about a “bit” of the jobs report, it will lie about any part of it.
And, as we have shown above and every month this year, lie is precisely what the Biden administration has been doing, month after month, year after year.
And the biggest stunner, as Edward Snowden put it so eloquently, is that he’s “not sure I’ve ever seen the chairman of the Federal Reserve publicly accuse the White House of cooking the books on employment numbers, but here we are.”
Speaking of which: “Initial Claims Surge To 10-Month Highs As California Joblessness Soars.” “Did we suddenly get a peek at economic reality? The number of Americans applying for jobless benefits for the first time surged last week to 242k (up from 229k and well above the 225k exp). That is the highest since August 2023.” And California, which just happened to implement a minimum wage hike, led far and away with the most claims…
Home sales have dropped so far during the Biden Recession that they’re now back to 1978 levels.
The recession in the U.S. existing home sales market has been so deep that we’re back to late ‘70s levels—despite us now living in a much bigger country:
April 1978: 4.09 million U.S. existing home sales print
April 2024: 4.14 million U.S. existing home sales print*
1978: 223 million U.S. population
2024: 341 million U.S. population
The reason, of course, is that housing affordability has deteriorated so much that many buyers and sellers alike have pulled back from the market. Many homeowners who would otherwise like to sell and buy something else are staying put rather than trading in their 3% mortgage rate for a 7% mortgage rate.
The bad news?
According to a forecast published this week by Goldman Sachs, the recovery for existing home sales could be a slog.
1978: Jimmy Carter was still President, the Bee Gees dominated the music charts thanks to Saturday Night Fever, and a brand new comic strip about a lasagna-loving cat named Garfield debuted. And the average price of a home was somewhere around $56,000. (Yet, somehow, home sales were still stronger during the 1981-82 interest rate hikes than under Carter in 1978…)
A jury of Hunter Biden’s peers found him guilty on all three felony charges on Tuesday after a six-day trial that demonstrated that the first son lied on a federal gun-purchase background-check form when he claimed not to be a drug addict.
The verdict was reached after the jury deliberated for three hours, beginning Monday afternoon with the conclusion of closing arguments. Hunter was surrounded by family members, including wife Melissa Cohen Biden and his uncle James Biden, as the verdict was read. First lady Jill Biden missed the verdict announcement and rushed to greet Hunter afterward.
Hunter was found guilty on two charges for lying about his crack-cocaine addiction on federal gun paperwork when he bought a Colt Cobra revolver at a sporting-goods store in Wilmington in October 2018. He was also found guilty on a third charge for possessing the firearm while he was using crack cocaine.
The first son faces up to 25 years in prison, though he’ll likely receive a lighter sentence as a first-time, nonviolent offender. Judge Noreika, who presided over the trial, said that a sentencing hearing will be held in September.
Though Hunter Biden still has a pending tax trial, don’t hold your breath about him going to trial for his role as the Biden crime family’s bagman…
I’ve pointed out time and again (including yesterday) that Biden Justice Department AG Merrick Garland’s “special counsel” appointment of Biden Justice Department Delaware U.S. Attorney David Weiss in the Hunter Biden case is a fraud on the public.
In a pretrial ruling denying the younger Biden’s motion to dismiss the case, Judge Maryellen Noreika has confirmed that Garland’s appointment of Weiss did not comply with federal regulations for appointing special counsels. That, however, was not a basis to dismiss the case — particularly with Garland and Weiss quietly citing the last special-counsel regulation, §600.10 (of Title 28, Code of Federal Regulations), which provides that no one may hold the Justice Department accountable for flouting its own regulations.
To be clear, I have never contended that Garland lacked the authority to assign Weiss, or whoever he wanted to assign, to investigate the Biden case. As Judge Noreika correctly explained, federal statutory law — in particular, §§509, 510, 515, and 533 — vest attorneys general with sweeping power to run the Justice Department as they see fit, including power to designate any DOJ lawyers they choose to run investigations anywhere in the country.
Weiss, for example, is now prosecuting Hunter Biden in Los Angeles, on the tax case scheduled to begin trial on September 5, in addition to the gun case in Weiss’s own Delaware district. That’s because Garland doubled-down in assigning the investigation of the president’s son to the same prosecutor — Weiss — who had just schemed with defense lawyers on a failed sweetheart plea deal that was designed to make all conceivable cases against said son disappear (and only after Weiss had consciously dithered as the statute of limitations steadily eviscerated serious criminal offenses).
Garland is the attorney general, and he has that power. It is power he wields with no fear that Congress will slash the DOJ’s budget, censure him, impeach him, or do anything else but caterwaul over how he abuses it. My point is that Garland has been engaged in a nearly four-year fraud — trying to con the country into believing the Justice Department is neither protecting its boss nor trying, to the extent politically feasible, to protect the president’s son.
The AG refused to appoint a special counsel for the Biden investigation, despite the president’s (and other Biden family members’) being implicated in Hunter’s malfeasance, particularly crimes arising out of his peddling of his father’s political influence for huge pay days from agents of corrupt and anti-American regimes.
Europe’s ruling center left just got smashed in European elections.
Early projections of the EU-election results show that the continent’s right-wing parties have made significant advances as voters signal their dissatisfaction with illegal immigration and inflation. Formerly powerful left-wing parties seem to have been routed, while centrists stayed the course.
This antiestablishment sentiment was expressed most strongly in Germany and France, two of the European bloc’s most powerful countries.
The French results prompted President Emmanuel Macron to dissolve the French parliament in preparation for snap elections on June 30 and July 7, as his party lost badly to Marine Le Pen’s National Rally, which is part of the Identity and Democracy coalition in the European Parliament.
Before crowds in Paris, Le Pen responded to Macron’s announcement: “This historic vote shows that when people vote, people win. . . . We are ready to exercise power, to end mass migration, to prioritize purchasing power, ready to make France live again.”
In Germany, Chancellor Olaf Scholz and his Social Democrats were trounced by a combination of support for the right-wing CDU/CSU and Alternative for Germany (AfD). The left-wing Social Democratic Party (14.6 percent) and the Greens (12 percent) underperformed. Katarina Barley, speaking for the Social Democrats, called it “a bitter evening.” “I am very disappointed.” The AfD, having won 14 percent as of this reporting, is intent on carrying its EU wins to the national elections in October 2025.
Italian prime minister Giorgia Meloni was the only leader of a European power to see success, with the right-wing politician’s allied faction, European Conservatives and Reformists, placing first in Italy.
In Spain, the conservative People’s Party took 34.2 percent of the vote, a rejection of socialist prime minister Pedro Sánchez and his Socialist Workers’ Party, which received 30.2 percent. Two other right-wing parties, Vox and Se Acabó La Fiesta (The Party’s Over), received another 14.2 percent between them.
The Greens ceded more ground than any other party in the EU, losing more than a quarter of their seats.
For decades, the ruling Euroelite have insisted that there is no alternative to their high tax, high spending, high debt, high regulation, high immigration, environmental leftist EU superstate. Voters seem to have finally grown tired enough of it that they’re willing to embrace Marine Le Pen if that’s what it takes to make their voices heard.
In his opinion, Thomas wrote that, though a bump stock does increase a rifle’s rate of fire, it does not turn it into an automatic weapon.
“A bump stock does not convert a semiautomatic rifle into a machinegun any more than a shooter with a lightning-fast trigger finger does,” Thomas wrote. “Even with a bump stock, a semiautomatic rifle will only fire one shot for every ‘function of the trigger.’”
Justice Samuel Alito wrote in his concurrence that, while the ATF’s interpretation of the Firearm Owners’ Protection Act was an incorrect reading of the statute, there are legislative remedies for the issue of bump stocks.
“The horrible shooting spree in Las Vegas in 2017 did not change the statutory text or its meaning,” Alito wrote. “That event demonstrated that a semiautomatic rifle with a bump stock can have the same lethal effect as a machinegun, and it thus strengthened the case for amending §5845(b). But an event that highlights the need to amend a law does not itself change the law’s meaning.”
“The Lies and Fall of Ibram X. Kendi.” “This man gave America the simplest, most easily applicable binary solution to all of our racial problems. It didn’t matter that it was stupid, at least not from the perspective of his personal enrichment. For a while, it sold…What we lived through in 2020, during the Floyd meltdown and its aftermath, was a onetime necrotic bloom during which the first carrion-feeders on the scene were able to fatten themselves up to spectacular proportions on the collapsed body of American progressive racial and political angst.”
The US has broadened its sanctions on Russia, including a fresh crackdown on banks dealing with sanctioned entities.
It expands a December programme to target foreign banks deemed to be aiding Russia’s war effort in Ukraine.
The US also placed sanctions on the Moscow stock exchange, leading to it halting trading in dollars and euros.
It also moved to try to restrict Russia’s use of technology, including chips and software.
US President Joe Biden signed an executive order in December that imposed sanctions on banks dealing with about 1,200 individuals and companies deemed to be helping Russia’s war machine.
Those measures, which expose banks to the risk of being cut off from the US financial system, have now been expanded to about 4,500 entities.
The US will also target gold-laundering.
Peter Harrell, a former White House senior director for international economics, told the Reuters news agency that the US “is shifting towards something that begins to look like an effort to set up a global financial embargo on Russia”.
As part of this effort, the US Treasury announced that it would impose sanctions on parts of Russia’s financial system, including the Moscow Exchange, which is one of Russia’s main stock exchanges.
The stock exchange, which is Russia’s largest foreign exchange market, said the sanctions had forced it to stop trading in dollars and euros.
The US also focused on technology. Chips and other technology made in the US have been found in downed Russian equipment on Ukraine battlefields, including drones, radios, missiles and armoured vehicles.
The sanctions aim to make it more difficult for companies to supply that tech.
The US will target shell firms in Hong Kong selling chips to Russia.
There are YouTubers saying “Russian economy is crippled” etc., but I remain skeptical. The chips going into Russian drones aren’t anything special, they’re COTS stuff and EPROMs you can get almost anywhere.
“Israeli Military Rescues Four Hostages from Gaza.” Naturally this is good news for decent human beings everywhere and a tragedy for the radical left.
“Lebanon: Israeli Airstrike Kills One Of Hezbollah’s Most Senior Terror Commanders. The Israel Defense Forces (IDF) on Tuesday night eliminated one of Hezbollah’s senior-most terror commanders operating in Lebanon. Sami Taleb Abdullah, who headed Hezbollah’s Nasr terrorist force, and three other Hezbollah commanders were killed in an Israeli airstrikes on a terrorist base located in southern Lebanon.” Good. Remember how commentators have repeatedly opined on the possibility of Hezbollah opening up a “second front” while Israel settles Hamas’ hash? They seem to have done very little but the usual pinprick terror attacks. With all the terror money Iran is sloshing around to Hamas and the Houthi’s, one wonders if they’re stretched to thin to send much Hezbollah’s way…
Western District of Louisiana Chief Judge Terry Doughty in an order Thursday declared that Title IX, a federal education law that bars sex-based discrimination, “was written and intended to protect biological women from discrimination.”
“Such purpose makes it difficult to sincerely argue that, at the time of enactment, ‘discrimination on the basis of sex’ included gender identity, sex stereotypes, sexual orientation, or sex characteristics,” Doughty, a Trump appointee, wrote. “Enacting the changes in the Final Rule would subvert the original purpose of Title IX.”
Of course the U.S. Women’s basketball has left Caitlyn Clark off the team. Because we all know queer identity trumps winning a medal for your country…
On the upside, also not competing: “Lia” Thomas. Turns out the Olympics don’t want men competing in women’s swimming. Who could have possibly seen that coming?
“In Hindsight Fans Realize They Were Too Quick To Call The Holiday Special The Worst Star Wars Project Ever…After watching the latest Disney Star Wars offering The Acolyte, however, many fans admit they might have been too harsh to call the holiday show the worst thing to come out of the franchise.”
How bad does housing suck if you’re poor and live in Shanghai, China? This much:
“Shanghai’s landlords are quite ingenious, managing to convert even the smallest spaces into rentable rooms at high prices.”
Bathroom with a ladder to a crude loft above it? 600 yuan. (Exchange rate is currently running just above 7 yuan to the dollar.)
At least that had air-conditioning. For 300 yuan, you can get a room barely big enough for a small bed with two holes punched in the wall for ventilation.
For the same price, you can get a bathroom with a bed in the crawlspace right behind the toilet. “After using the toilet, the smell lingers in the room. Also don’t turn the shower head [over the tiny sink] on too high or it’ll soak the bed.”
One room is a twice-coffin size crawlspace off a balcony for 1,500 yuan.
But wait! For a mere 50 yuan, a guy rented a 0.3 square meter crawlspace he can’t fully lie down in. “Some local netizens from Shanghai commented that a closet could not be rented for 50 yuan, the price being at least 120 yuan.”
“This design is really thoughtful! Knowing you’d have to squat to cook noodles, they smartly place a toilet right here, complete with a door!”
“Here’s another place for 500 yuan rent combining living room, bedroom, kitchen and bathroom all in one!” Complete with cardboard box bed in the entry. “There’s a simple induction cooker for cooking, but it’s a tight squeeze for anyone a bit larger, though there is an exhaust fan. This stove is too far from the toilet. It’s inconvenient to cook while you are using a toilet, but when you shower you can easily stir fry at the same time.” No AC, but the landlord said they could add it for 200 extra yuan rent…
Of course, those exciting bed-in-toilet apartments are only available to people who can afford to pay any money for rent. Many can’t. “There are also groups known as Knights of the Bridge Underpass. In big cities, you can deliver food without renting a place. We found a bridge where several delivery guys and girls live.”
We’ve covered problems with youth despair in China before, including both the “lie flat” and “let it rot” movements.
“How do you deal with water and electricity?…First you can use water from public toilets, but this water is only for washing and laundry, not drinking.” To be fair, they show sinks in public toilets, so I imagine that’s where they’re getting their water, but it’s China, so who knows?
“Drinking water is bought from villagers nearby.”
“Electricity can be sourced from the batteries of delivery ebikes, which are rented for 300 to 400 a month. You can swap many each day, then connect an inverter to the battery you get 220 volt household electricity, and that solves that problem.” (220 volts was evidently standardized by the nationalist government in 1930.)
There’s a video blogger who lives in his solar equipped van, and he seems much better off than any other housing option covered in this video.
“It’s not just Shanghai. Nearly all major Chinese cities host these workers, often labeled as a low-end population. These include delivery workers, ride share drivers, factory or construction site laborers, or college students from out of town.” During America’s industrial boom, working in a factory allowed you to buy a house. Thanks to China’s factory boom, factory workers can enjoy living under a bridge.
“Working odd jobs, they hustle in every corner of the city, typically working over 10 hours a day without a single day off. The city’s prosperity doesn’t touch them. Their daily focus is simply on earning more money.”
The situation is slightly better in Beijing, which has 3 square meter apartments for 2000 yuan, and Shenzhen offers “urban villages” (I think we’d call them apartment complexes) with 1 bedroom apartments for 700 yuan a month.
In Guangdong, the so-called “Shango Gods” have completely given up on life and just live under bridges.
“The unemployed crowd together both men and women in an area filled with unbearable odors.”
“They work one day and rest for a week. A day’s pay can be 200 yuan, enough to sit in an Internet cafe for a week. They eat steamed buns, buy three or four to last the day.”
“In many cities, there are many of these so-called Shango Gods who have completely given up on life. ‘Already seeing no hope. This kind of life is actually pretty good. Wherever you go, just find a place to lie down and don’t think about anything, because no matter how hard you try, without connections it won’t work.'”
America is hardly free of homelessness or tiny apartments. But America’s homeless population is overwhelmingly mentally ill alcoholics and drug addicts living off handouts whose plight is catered to by a Homeless Industrial Complex that rakes off graft pretending to help them, not able-bodied young people willing to work but unable to afford even the meanest accommodations. And the smallest New York City apartments you can find on YouTube all look lightyears better than the horrors seen in Shanghai.
Communists have long bragged about working for the proletariat, but in Communist China, the actual proletarians have been reduced to living under bridges.
Israel’s Iran strike is shrouded in mystery, California is shockingly “permissive” on sex trafficking children, Warhammer goes woke, and a new Doom speed-running record. It’s the Friday LinkSwarm!
Senior US military sources:The target of the Israeli strike was an Iranian military base in Isfahan near Natanz, not the nuclear facilities themselves. “The Israelis hit what they intended to strike,” The targets within this strike included Iranian air defense systems at the air base including those used to protect their nearby nuclear facilities. It was a message to the Iranians, “We can reach out and touch you.” The Russian made air defense systems were shown to be ineffective. There was one target but multiple strikes within that target. The Israelis used missiles and unmanned aircraft – in other words no manned aircraft (F35’s or others) were used as part of this strike
Both Israeli and Iranian sources are being cagey about what actually was hit. Right now it’s looking like it was a very limited strike, almost just a “See? We can hit them if we want to” strike to satisfy the Biden Administration’s endless calls for “restraint” while they continue to pound Hamas into a fine red paste. But it does offer a certain amount of support for the Kayfabe theory of Middle East politics…
The penalty for the equivalent of child trafficking in “progressive,” “forward-thinking,” “compassionate” California is a maximum penalty of a year in jail, and a minimum of two days in jail, plus a $10,000 fine which may or may not be paid depending on sentencing details.
Plenty has been said in recent years about soft-on-crime policies in states led by Democrats, and with good reason. Perhaps it should come as no surprise that political movements that believe the execution of preborn children is morally and legally permissible would also enforce such loose penalties for child endangerment and exploitation. But this seems, even for liberals, unconscionable.
Thankfully, it’s not that way everywhere. Other states with right-leaning leadership handle child predation, shall we say, “differently.”
But California especially loves setting sex offenders free if they’re illegal aliens.
It turns out that Katherine Maher is no ordinary ascendant progressive media executive. No, this woman’s social-media history reveals her to be the Kwisatz Haderach of white wokeness, presumably bred through generations of careful genetic selection to be the supernaturally perfect embodiment of Affluent White Female Liberalism. (As many have noted, she not only acts but looks like Titania McGrath.) It’s vaguely unreal: If there was a trendy progressive take floating around on Twitter and popular within media circles, then you can reliably bet she was there to voice it in the most preeningly insulting way possible.
(Hat tip: Ed Driscoll at Instapundit, who also offers lots of choice Chris Rufo commentary on tweets from Maher.)
“Texas Congresswoman Beth Van Duyne (R-TX-24) has taken out a full-page advertisement in the New York Post in an effort to recruit law enforcement from New York City, encouraging them to ‘escape New York and move to Texas. Sadly, the corrupt and crumbling Empire State is so purposefully anti-law and order, that you should no longer put your careers and lives in the hands of politicians who couldn’t care less about you or your families,’ the advertisement states.”
I’ll take “Headlines You Don’t Want To Read At Breakfast” for $400: “New York Suffers Record Rise in Potentially Deadly Disease Caused by Rat Urine. New York City has seen a record jump in the number of human leptospirosis, a disease caused by rat urine that can cause kidney damage, liver failure, and even death.”
“A far-left extremist that firebombed a pro-life office in Wisconsin in 2022 has been sentenced to 7.5 years in federal prison, along with three years of supervised release and a $32,000 fine.”
Republicans aim to use ballot initiatives to overturn unpopular Democratic Party policies. “Republicans in Washington are moving to get three major ballot initiatives passed. These measures will repeal Democrat-passed policies that are becoming unpopular among locals. The three changes would repeal the state’s sanctuary status for illegal immigrants, end an attempt to ban natural gas, and a change to the laws to strip squatters of their rights.”
You’ll need to click Show More for this one:
i remember in feb and march of 2020 being astonished by this lockdown idea and loudly yowling "do you have any idea what shutting down the world for 2 weeks would do to global supply chains and economic function?"
Has Warhammer gone woke? “I can’t help thinking that you finally started to bow to pressure from ‘Modern Audiences,’ and you were almost certainly encouraged to do this by a sudden infusion of investment money from BlackRock.”
The moment you make any concession, no matter how tiny, you’ve already given the game away. You’ve made it known that you’re prepared to bow down to their demands if they put enough pressure on you. And so, inevitably, their demands are never going to end. They’ll literally never be happy because there’s always going to be some other thing, some other piece of problematic lore, some other rule or exclusionary detail that has to be altered to comply with their constantly evolving demands, and all in the name of inclusion and diversity.
Because these people don’t care about your hobby, they don’t care about integrating into a community of like-minded individuals. All they care about is that the community bends and reshapes itself to suit them, until eventually they bend it so much that it breaks. People like that are complete and utter poison for any hobby, any fandom, any franchise. All they ever manage to do is stir up conflict, resentment and division, driving people away and turning fans against the very company that tries to pander to them, because their very reason for existing is to undermine and destroy the thing they claim that they’re trying to save.
And if you’ve got any common sense whatsoever or any love for the fandom that you’re so passionate about, you’ll think very carefully before bending the knee to them.
How severe? How about $105 billion drop in loans in just two weeks.
“This credit crunch greatly increases the chances that America is going to have a deflationary recession or depression at some point in 2023. And, in fact, we could already be in it.” Ya think?
“We’re going to see the unemployment rate start to spike in America in the second half of 2023, In fact, we’re already seeing a big increase in unemployment claims data from the Federal Reserve shows that continued unemployment claims has surged since September.”
“We’re seeing a big surge in mortgage defaults right now across America, particularly on what’s called FHA mortgages. FHA mortgages are these first-time home buyer loans that the US government sponsors and allows people to only put three to five percent down. Well, these loans now have a 12% default rate in the most recent month of February 2023.”
Debt-to-income ration is now higher than it was at the pre-subprime meltdown peak in 2008.
“The Biden Administration has been very aggressive in wanting to expand mortgage access to low-income borrowers who can’t afford these mortgages. And they do this under the guise of expanding the benefits of home ownership to everyone, but really what they’re doing is they’re saddling at-risk economic households with a lot of debt near the peak of a housing bubble.”
“When banks tighten the belt and businesses can no longer get loans, businesses have to shut down, or what businesses have to do is, they have to start liquidating their holdings and taking whatever cash they have and use it to pay expenses. This is actually a concern of mine.”
“This bank credit crunch which is occurring right now could cause even more bank runs in the future” as people pull money out of the bank to cover expenses.
Quantitative tightening is back on.
“Mortgage application demand is on par with what we saw basically in the worst of the last housing crash in 2008, 2009, 2010, and so, no, there is no recovery.”
“The regular home buyer is still out of the housing market and is not returning.”
“The money supply in America is contracting…every other time in history it contracted, which was four times, we had a depression, a panic and a banking crisis.”
Cheerful enough. But if you’re a car dealer, things are even worse:
Banks are cutting off backing loans and providing credit to dealerships.
Not just used car dealers, but even national brand, nameplate dealerships.
This all started back in 2020, when banks started lending way too much money on cars that simply aren’t worth it, to consumers that simply couldn’t afford these payments, and shouldn’t have got the car in the first place…Let’s fast forward to 2023. We’re seeing record high repossession rates, and we’re seeing record high portfolio sell-offs, where people are just liquidating their paper because they don’t want to take on the risk of all these really bad auto loans, because they owe too much money. People are not making payments and they see the value of cars going down.
The fewer banks dealers can pit each other against for loan terms, the higher the interest rate consumers have to pay.
Dealers (not the banks) are also the ones who get screwed if a customer misses their first through third car payment.
Texas car dealer: “He was floored because he sells a lot of trucks between $45- and $65,000 trucks. Four of his banks told him that they’re no longer lending over twenty five thousand dollars.” (Previously.)
“I promise you this: it’s only gonna get worse.”
But wait! It gets worse!
“Capital One is going to start pulling their floor plans from dealers.”
“Floor plans” are the lines of credit dealers use to purchase cars to populate their lots, even the big nameplate dealers.
“Dealers are overexposed right now. They have paid way too much for their inventory and now they are having a hard time selling it.”
“It is so much harder now than it has been in the last two years to get people approved for loans to be able to sell these vehicles.”
“[Banks] do not want to get stuck holding the bag on these cars.”
“Dealers have been stupid. They have overpaid and they have too much inventory right now.”
“Some of these dealers, if they’re having cars 60, 90 days and maybe they’re getting a little bit behind on their payments [the] floor plan company will actually go to these dealers lots and they will take these cars that have been sitting too long, they’ll take them to the auction.”
“If they didn’t have the cash, the liquidity, to begin with, then they have to start liquidating cars, and they have to liquidate them fast to be able to pay their flooring lines…if they lose these flooring lines, they might as well not be in business, they don’t have the cash to be able to buy more inventory to be able to sell it to make more money.”
Banks pulling their floor lines could potentially crash the whole car market.
Things are going to get worse for car dealers before it gets better, and six months from now might be a great time to buy a car, assuming you’re not too busy shooting starving looters trying to steal your canned goods…
If you can remember all the way back to pre-Flu Manchu 2020, housing prices were soaring and there were a raft of articles decrying how commercial investors were snapping up housing as fast as they possibly could, pricing ordinary Americans out of the market.
Now, some two years later, it’s evident that a lot of those commercial investors kept buying right up through the peak of the market, and are now proceeding to lose their shirts on those deals thanks to the Biden Recession.
Take, for example, OpenDoor, the company that sends out those endless “We want to buy your home” letters. They promised investors they were going to use the Internet to revolutionize home-buying by flipping homes at scale and cut out the middle man. How well did they succeed?
Now that they’ve had a while to run their system, the answer is: Not so well.
Takeaways:
One thing I was unaware of: Commercial investors in residential real estate fund their purchases through variable interest rate debt.
OpenDoor’s outstanding debt balance “has ballooned from $271 million to $6.1 billion.”
Every point rise in interest rates costs OpenDoor $40 million more in interest rate payments.
“OpenDoor is truly a modern day house of cards. The company’s revenue grew from $1.8 billion in 2018 to over $8 billion in 2021. To grow they scaled, going from 18 markets to 44 markets in the U.S. In those four years, the company went from flipping 7,000 homes a year back in 2018 to now flipping 21, 000 homes most recently in 2021.”
“Despite OpenDoor’s top-line growth, the company has incurred loss after loss after loss, each bigger than the last, even in a strong rebound year in 2021. Where the company sold a record number of homes, OpenDoor incurred a record loss of over $600 million.”
Some math snipped. “OpenDoor would need to sell roughly sixty thousand homes a year just to break even with how much it costs the company to exist in its current burn rate. Every time the interest rate goes up a single point, OpenDoor needs to sell an additional 2,000 homes in order to offset that additional $40 million.”
The end of the video touches on how Zillow lost $881 million by trusting an algorithm that had them paying above-marker prices. We covered that briefly here some nine months ago. Here’s a video with more details:
But it’s not just OpenDoor and Zillow. Here’s a video that explains why all the large-scale commercial buyers of residential real estate (including those buying to rent it out rather than flip) are screwed by rising interest rates:
Takeaways:
The Fed “is now committing to not only continue increasing interest rates, they’re committing to keeping interest rates elevated for the foreseeable future.”
“These real estate investors are going to be losing money in the housing market on their investments, and that they are going to have to fire sale their portfolio as a result.”
“Over the last year, the investor profit or the cap rate in America is about 4.5%, which was pretty good in 2021, when interest rates were zero, but now that interest rates are projected to go to 3.8%, we can see that investors who buy real estate in America are basically getting very little premium over buying a short-term government bond.”
“As this investor demand continues to go down, home prices are also going to continue to go down in America, because in many markets investors were quarter of the demand, a third of the demand for homes over the last of couple years, and in some neighborhoods investors were 50—60% of the demand.”
“A lot of people think [commercial buyers pay] cash, but folks, it’s never cash, it’s always a bank in the background giving these hedge funds and private equity funds money to buy single-family homes.”
“They’ll give these hedge funds maybe 70—75% percent of the money to go do it, like a normal loan. The thing is, the loans that these Wall Street investors use to buy homes are often adjustable rate loans, where every time the fed hikes interest rates, the Wall Street investor has to pay more in debt service and interest on their existing portfolio.”
“We’re gonna get to a point soon over the next six months where these Wall Street investors are having to pay more to their bank and their warehouse lender than they’re going to receive in income and rent from their tenant. Like, literally, these Wall Street investors not only are going to see the value of their property going to go down, they’re going to begin losing money in terms of cash flow.”
So not only will investors have to sell, but frequently they won’t have any choice.
Because their lender, their bank, is going to do something called a margin call. At a certain point, they’re gonna say “Hey Wall Street buyer who I’m giving money to, the value of the homes has gone down and now you can barely afford to pay interest. You’re gonna have to now just pay us off, or pay us down,” and when the bank does that margin call, these investors are then going to be forced to sell off their portfolio, because they’re going to need the cash, causing a massive, widespread dump of inventory onto the U.S. housing market.
He doesn’t mention Austin by name in this video, but he does in another pegging it as the #5 market most likely to see price drops. “This is a market in absolute freefall.” “In the span of just five months, the number of homes for sale in Austin has increased from 1460 and February to nearly 8 000 in July.” He thinks home prices could down by 40%. Naturally, as an Austin-area home-owner, I think that’s way too much, but I do expect significant retreats from the highs reached early this year.
He also thinks inflation is going to get worse (which is probably a good bet).
(In another video covering some of the same ground, he mentions BlackRock, one of the biggest boogeymen in public perceptions of buying residential real estate. Guess what? “BlackRock is not a big player in terms of owning, managing and buying real estate in the U.S.”)
Like the fear of Japan buying everything in the late 1980s, fear that institutional investors will make owning a home impossible for ordinary Americans turned out to suffer from the same recency bias, assuming that what is going on right this minute will continue for the foreseeable future.
Like assuming that the giant ants are unstoppable, or that Hispanics will always vote for Democrats, assuming that housing prices will always go up and that credit will always be cheap are categorical mistakes that the market will eventually punish you for making, and the companies that made it are now bleeding red ink.
People who sold during the bubble made out like bandits, and people who bought during it got screwed, but what can’t go up forever won’t. Bubbles pop. Absent government distortions of the market*, supply and demand have a way of adjusting.
Anyway, if you need to buy a house, nine months from now is probably going to be a great buyer’s market…
*And yes, lots of cities and states try their damnedest to prevent new housing from being built. I’m looking at you, California.
