Posts Tagged ‘Wall Street’

LinkSwarm for July 5, 2024

Friday, July 5th, 2024

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!

Oh, and parts of south Texas might get hit with a hurricane. So batten up and get prepped if it might roll into your neighborhood. Up here, we can use the rain. And that crazy guy trying to build a forest in the desert can probably use it too.

  • The post-debate polls are coming out and CNN is aghast: ‘I have never seen numbers this bad for an incumbent president during my lifetime.'”

    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.

  • They all knew:

    (Hat tip: Ace of Spades HQ.)

  • Also via Ace, the inevitable Downfall parody:

  • Obama and the DNC foisted Sundown Joe on us because they had to.

    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.
  • Ukraine hits a gunpowder factory.
  • “Israeli Airstrike Eliminates Top Hezbollah Terror Commander in South Lebanon. Slain Hezbollah terrorist Muhammad Neamah Naser ‘was considered one of the most senior commanders in Hezbollah killed so far in the war.'”
  • In retaliation, Hezbollah fired 200 rockets and drones into Israel because, really, what else are they going to do?
  • 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.
  • California legalized marijuana and the cartels took over.

    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.”

  • “U.S. Supreme Court Unanimously Rules Against Texas Social Media Censorship Law.”

    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.

  • “A lot of Wall Street people are noticing that New York kinda sucks.” He fingers Miami as the next Wall Street, but I think Dallas also has a shot.
  • The Texas Supreme Court upheld the state’s ban on child genital mutilation.
  • 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.
  • In California, Democrats failed to place ACA7, the bill which would have re-legalized racist discrimination, on the ballot for November.
  • Shocked, etc. “CNN Freelance Journalist Worked With, Supported Hamas.” (Hat tip: Stephen Green at Instapundit.)
  • 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…
  • Mark Steyn looks back at the success of Jaws. (Hat tip: Ed Driscoll at Instapundit.)
  • Via AI, Beach Boys sing “99 Problems.” NSFW, naturally.
  • “Alarming Study Finds 33% Of Americans Are Dumber Than A Bag Of Hammers.”
  • Great Pyr watches baby goats:

    What more could you ask for? (Hat tip: Ace of Spades HQ.)

  • Still between jobs, so hit the tip jar if you’re so inclined.





    Followup: Is The Silver Squeeze A Ruse?

    Tuesday, February 2nd, 2021

    Following yesterday’s story, I got pushback from readers that asserted the supposed WallStreetsBets silver squeeze was, in fact, a ruse from hedge funds to distract retailer investors from the GameStop and AMC squeezes.

    That does in fact seem to be the consensus at WallStreetBets.

    If you haven’t been browsing WSB or doing your own research, you’d probably think that the people on Twitter are correct in saying there is a silver squeeze happening and we should all get in on it. There are quite a few wsb-logo Twitter accounts pushing this. This is BS & the straight up the ANTITHESIS of who we are.

    By buying silver/going long on silver, you would be directly putting money into the pockets of the EXACT HEDGE FUNDS ON THE OTHER SIDE OF $GME 🚀 🚀 🚀 💎 🙌 The hedge funds are LONG silver NOT short silver.

    The media, Wall Street, normies, and every other non-WSB autist are trying to push you to buy silver. This would be a tragic, irreversible decision that not only will most likely not make you any money because the squeeze is fake, it will put you on the sidelines from this righteous and glorious war we are in.

    Another sign it’s a ruse: Citadel Securities, one of the primary hedge funds backers, evidently holds shares in 17 different silver companies.

    That’s one of the problems with a decentralized swarm attack: If nobody’s in charge, then it’s much harder to filter out the noise to determine the true direction of the swarm. That can be a strength, but it also makes the swarm vulnerable to ruses like this. Extracting a signal from the huge wave of noise in everyday financial transactions is a daunting problem under the best of circumstances even when giant hedge funds aren’t baiting friendly MSM outlets with elaborate ruses. (Or, I should say, when giant hedge funds aren’t baiting friendly MSM outlets with elaborate ruses even more than they usually are.)

    Whatever the source, many bullion dealers were reporting a huge run on silver due to a spike in demand, though physical silvere seemed to be doing much better than “paper silver” (i.e., the futures market). Today spot silver prices are back down in early trading.

    Remember, I said yesterday that a silver squeeze was unlikely to work.

    With that out of the way, here are some other WallStreetBets/GameStop/etc. news:

  • Adam Ford with Not The Bee explains the GameStop short squeeze, including more background detail on the origins of the squeeze than was in my original post:

  • Glenn Greenwald goes into more detail on the GameStop squeeze and Melvin Capital:

    The usual Greenwald leftwing caveats apply. (Hat tip: Zero Hedge.)

  • GameStop stock is back up this morning after Robinhood lifted restrictions on buying shares.
  • Texas Attorney General Ken Paxton has launched an investigation into “Robinhood, Discord, Citadel and other trading apps that put curbs on stock trading” in GameStop.
  • Noon Update: And now GameStop, AMC and Silver are all way down right now. Never invest what you can’t afford to lose…

    Corrupt Establishment Moves To Screw Retail Investors, Bail Out Hedge Funds

    Thursday, January 28th, 2021

    Seldom has Wall Street moved so blatantly and illegally as they have today to crush the retail investors carrying out the GameStop Short Squeeze. This is a fast-moving story, so here are a few highlights from today’s developments:

  • The Robinhood trading platform has halted trading of stocks noted for being shorted by hedge funds:

  • Not only that, there are widespread reports that Robinhood is forcibly selling shares of GameStop against the will of account holder:

    If this is true, and it applies to cash-purchased shares and not those bought on margin (a margin call is a different type of beast), then the leadership of Robinhood should be arrested and charged with embezzlement and grand larceny, no matter what their EULA claims they can do.

  • A class action lawsuit has been filed:

  • Barstool Sports on Robinhood’s betrayal:

    Feel free to skip the ad that runs from 2:30-3:00.

  • Pressure from Sequoia Capital and the White House?

    File under “Unproven but it wouldn’t shock me.”

  • Short sellers reportedly sustained losses of $70 billion so far in 2021. (Hat tip: Daddy Warpig.)
  • Sean Davis explains that Wall Street insiders have simply decided that the vile peasants must not be allowed to win:

  • Big tech has joined in to crush the rebellion:

  • Bastards:

  • True, dat:

  • Analogy:

  • Eric Weinstein’s exegesis on the expansion of wrestling’s kaybafe to the political world may also apply to Wall Street. “Were Kayfabe to become part of our toolkit for the twenty-first century, we would undoubtedly have an easier time understanding a world in which investigative journalism seems to have vanished and bitter corporate rivals cooperate on everything from joint ventures to lobbying efforts.” If all of Wall Street is in on a con game against ordinary investors, and is willing to blatantly break the law to keep any insider from being trounced by mere peasants, then we no longer have anything resembling a free market in stocks. And if Wall Street is running a crooked game rather than a free market, then conservatives are no longer obligated to protect Wall Street. Too cynical? Possibly. But it isn’t a hypothesis we can reject out of hand.
  • After dinner mint:

    if Dogecoin is up 500%, now I want a more obscure cryptocoin to speculate on…

  • What really gives me pause is this: Everyone in the world was paying attention to the GameStopo short-selling shenanigans the last few days, and they’re still blatantly, and nakedly, trying to illegally rig the system, even though they’re in the wrong, and even though everyone is watching. If they’re willing to so blatantly break the law with everyone watching, what sort of crimes are they getting away with when we’re not watching?

    The Great GameStop Short Squeeze

    Thursday, January 28th, 2021

    Here’s a Wall Street story that has everything to do with the current political moment.

    GameStop is the video game retailer that almost went out of business last year. This year, a whole bunch of powerful hedge funds bet on GameStop stock going by selling the stock short.

    Tiny problem:

    For those unfamiliar, a short squeeze happens when a rising stock price forces short-sellers out of their position. When panic strikes and those sellers buy back stock, they send shares even higher. Here, you have what InvestorPlace Markets Analyst Tom Yeung calls a powerful feedback loop.

    Yeung also sees GME stock as being a particularly relevant candidate for a short squeeze. Right now, 71.2 million of its shares are being sold short. That is even more than its total outstanding share count!

    This tweet thread explains what that means:

    So the short selling bear hedge funds are totally screwed. The result? Carnage:

    Across most of America, GameStop is just a place to buy a video game. On Wall Street, though, it’s become a battleground where swarms of smaller investors see themselves making an epic stand against the 1%.

    The funds serving the financial elite are starting to walk away in defeat. Big bets they made that GameStop’s stock would fall went wrong, leaving them facing billions of dollars in collective losses. All the wild action pushed GameStop’s stock as high as $380 on Wednesday, up from $18 just a few weeks ago.

    The stunning seizure of power gives some validation to smaller-pocketed investors, many of whom are encouraging each other on Reddit and are trading stocks for the first time thanks to brokerages offering free-trading apps. It’s also left more investors on Wall Street asking if the stock market is in a dangerous bubble about to pop, as AMC Entertainment, Bed Bath & Beyond and other downtrodden stocks suddenly soar as well. The S&P 500 set a record high earlier this week, though it fell Wednesday.

    Two investment firms that had placed bets for money-losing GameStop’s stock to fall have essentially thrown in the towel. One, Citron Research, acknowledged Wednesday in a YouTube video that it unwound the majority of its bet and took “a loss, 100%” to do so.

    Snip.

    Melvin Capital is also exiting GameStop, with manager Gabe Plotkin telling CNBC that the hedge fund was taking a significant loss. He denied rumors that the hedge fund will fail. The size of the losses taken by Citron and Melvin are unknown.

    Before its recent explosion, GameStop’s stock had been struggling for a long time. The company has been losing money for years as sales of video games increasingly go online, and its stock fell for six straight years before rebounding in 2020.

    That pushed many professional investors to make bets that GameStop’s stock will decline even further. In such bets, called “short sales,” investors borrow a share and sell it in hopes of buying it back later at a lower price and pocketing the difference. GameStop is one of the most shorted stocks on Wall Street.

    But its stock began rising sharply earlier this month after a co-founder of Chewy, the online seller of pet supplies, joined the company’s board. The thought is that he could help in the company’s transformation as it focuses more on digital sales and closes brick-and-mortar stores. Its shares jumped to $19.94 from less than $18 on Jan. 11. At the time, it seemed like a huge move for the stock.

    Smaller investors were meanwhile exhorting each other online to keep GameStop’s stock rolling higher.

    The raucous discussions are full of sarcasm, self deprecation and emojis of rocket ships signifying belief that GameStop’s stock will fly to the moon.

    Snip.

    There is no overriding reason why GameStop has attracted this cavalcade of smaller and first-time investors, but there is a distinct component of revenge against Wall Street in communications online.

    “The same rich people that caused the market crash in 2007/08 are still in power and continue to manipulate the market to get even richer, we are just taking back our fair share,” one user wrote on Reddit.

    “hey mom i can’t come up for dinner,” another user wrote. “i’m bankrupting a 10 figure hedge fund with the boys.”

    Beyond personal attacks, the battle has also created big financial losses for Wall Street players who shorted GameStop’s stock.

    As GameStop’s gains grew and short sellers scrambled to get out of their bets, they had to buy shares to do so. That accelerated the momentum even more, creating a feedback loop. As of Tuesday, short sellers of GameStop were already down more than $5 billion in 2021, according to S3 Partners.

    Much of professional Wall Street remains pessimistic that GameStop’s stock can hold onto its immense gains. The company is unlikely to start making big enough profits to justify its $22.2 billion market valuation anytime soon, analysts say. The stock closed Wednesday at $347.51. Analysts at BofA Global Research raised their price target Wednesday — to $10.

    All the mania is raising some concern that investors are taking excessive risks, and reporters asked Federal Reserve Chair Jerome Powell on Wednesday whether the Fed’s moves to support markets through the pandemic is helping to push stock prices too high.

    In short, the hedge funds suffered a serious bloodletting:

    Did the Wall Street titans laid low by retail investors shrug their shoulders over the loss and slink off quietly into the night to lick their wounds? They did not. Instead, our elites staged a fullbore freakout over being beaten at their own game(stop).

    Perhaps the most flagrant example was where noted CNN tool Chris Cillizza declared the GameStop short squeeze an example of Trumpism. Because how dare ordinary people think they can beat the elite at their own games?

    There was the “white supremacy” canard.

    (Babylon Bee: “Merriam-Webster Changes Definition Of ‘White Supremacist’ To ‘Anyone Who Wins In The Stock Market When They’re Not Supposed To’.)

    There’s even the “Russia! Russia! Russia!” cliche:

    And finally, a Berkeley professor wants you know they’re investing in GameStop because they’re not having sex:

    Secretary of the Commonwealth of Massachusetts William Galvin wants a 30-day trading suspension of GameStop, because retail investors can’t be allowed to make money off the mistakes of their betters.

    Likewise, NASDAQ head Adena Friedman says that they’ll halt trading in a stock if mere mortals are making money off it.

    And trading platforms Robinhood and Ameritrade halted trading in GameStop And AMC.

    Here’s Tucker Carlson:

    Here’s a Saagar Enjeti clip from The Hill:

    There are valid reasons for hedge funds and short sellers to exist. But no one, least of all our corrupt political establishment, should let them get away with the classic “I keep my profits private but force the government to underwrite my losses” con game.

    The memes and Tweets are something to behold:

    And this morning?

    This may all seem extremely irrational. But thanks to the Federal Reserve’s endless money pump, the market has been irrational for a long time. And the biggest irrationality was short-sellers shorting more stock than actually existed.

    I should point out that I have no money in GameStop, AMC, or Nokia stock (unless there’s some tucked away in one of my various 401K funds, which I rather doubt). Though honestly, as weird as this year is already going, I’m tempted to put a few hundred dollars in Dogecoin…

    LinkSwarm for November 13, 2020

    Friday, November 13th, 2020

    Greetings, and welcome to a Friday he 13th LinkSwarm! I wonder what tricks the last Friday the 13th of 2020 could hold for us…

  • I’ll probably do another voting fraud update Monday, but here’s a quick state of play:

    The seven states still counting votes, or with recounts ordered, or audits forecast, or credible evidence of fraud or system “glitches” include:

    • Georgia’s 16 electoral votes under a scheduled recount.
    • Pennsylvania’s 20 electoral votes under a scheduled audit and a Supreme Court order.
    • Michigan’s 16 electoral votes with statehouse subpoenas for election officials.
    • Wisconsin’s 10 votes under a scheduled recount and statewide canvas.
    • Nevada’s six votes chasing legal challenges for fraud and a Bill Barr Justice Department investigation.
    • Arizona’s 11 votes still counting and under scrutiny for voter irregularities.
    • And Nebraska’s one electoral vote in their District 2 under investigation.
  • And now in graphic form:

  • Is Wall Street getting ready to move to Dallas?

    Texas Gov. Greg Abbott will welcome representatives from major stock exchanges, including Nasdaq, to Austin on Nov. 20 as the state makes a bid to be the top choice if the exchanges make good on threats to move their trading platforms out of New Jersey.

    The Dallas Morning News reported last month that the governor’s office was in talks with Nasdaq and other exchanges about moving data centers to Dallas that power billions of dollars in trades each day on Wall Street.

    The governor’s office confirmed the meeting, touting the state’s business-friendly environment.

    “Texas continues to be the premier economic destination in the country, attracting more leading businesses than any other state,” spokeswoman Renae Eze said in a statement to The News. “The governor looks forward to meeting with Nasdaq and showcasing Texas’ business-friendly environment, skilled workforce, robust infrastructure, and low taxes, all of which foster greater economic growth in the Lone Star State.”

    The downside is that this would make Dallas natives that much more insufferable… (Hat tip: Instapundit.)

  • Lessons from the election:

    The hidden Trump vote would appear to have thrown off the polls again — a phenomenon that illuminates the inhibited political ethos a punishing media has fostered in this country, where a significant swath of America quite understandably conceals its real views until it enters the privacy of the polling booth. The hidden Trump vote is a rebuke to the ruling class and its ambitions to control the minds of Americans through skewed and hectoring propaganda.

    Pollster Frank Luntz has said that his industry will collapse if Biden loses. No doubt many members of it are trembling over the prospect. Again, a squeaker for Biden, should it happen, doesn’t exonerate them. As things stand at the moment, the betting odds and forecasts are rapidly changing and bear no resemblance to the polling industry’s pre-election picture.

    Nor has the predicted demise of the Republican Senate come to pass. Whatever happens, this election can’t be characterized as the Blue Wave the elite had spent weeks expecting. Ironically, a Red Wave, with Hispanic voters riding it, crashed over the Democrats in Florida. That would suggest at least in one major state that the toxic identity politics of the Dems has backfired. How ironic it would be if the president, whom the Democrats have called a racist and xenophobe day in and day out for four years, should end up winning thanks to increased support from minorities unimpressed by that demagoguery. It would be an upending that Biden richly deserves. He has been utterly shameless in his race-based lying about the president, talking about saving the “soul of America” while engaged in the most cynical form of racial arson.

    It also appears that the Democrats have paid some price for running so far to the left. Kamala Harris, the most liberal member of the Senate, has been a dead weight on the ticket. It would be wonderful if she ends up costing Biden parts of the Rust Belt. After having spent decades pretending to be a moderate, Biden formed a Faustian bargain with the far Left and adopted many of its radical positions. He could have moved to the middle by selecting a less extreme running mate. Instead, he threw his lot in with Bernie, Kamala, and AOC.

  • More on the same theme:

    In the expectations game, the Democratic Party whiffed and whiffed badly. The Biden campaign and its allies managed to drive up turnout — but so did Trump. Republicans put up a hell of a fight, and not just, or even mainly, in the battle for the White House. Democrats have almost certainly failed to win a Senate majority, and so far they have lost some ground in the House as well (while still on track to maintain control of the lower chamber of Congress).

    That means that Biden is on track to be a weak, ineffectual president governing at the mercy of Mitch McConnell’s Machiavellian machinations.

    So much for the Democratic fantasy — the one that seemingly never dies — of unobstructed rule. Democrats didn’t just want to win and govern in the name of a deeply divided nation’s fractured sense of the common good. No, they wanted to lead a moral revolution, to transform the country — not only enacting a long list of new policies, but making a series of institutional changes that would entrench their power far into the future. Pack the Supreme Court. Add left-leaning states. Break up others to give the left huge margins in the Senate. Get rid of the Electoral College. Abolish the police. Rewrite the nation’s history, with white supremacy and racism placed “at the very center.” Ensure “equity” not just in opportunity but in outcomes. Hell, maybe they’d even establish a Truth and Reconciliation Commission to teach everyone who voted for or supported the 45th president just how evil they really are.

    No wonder so many Republicans turned out to vote. Democrats proved to be the most effective GOTV operation for the GOP imaginable.

    Yes, Trump and the Republican cheerleading section online and on cable news and talk radio harped on every extreme proposal. But this wasn’t just a function of the fallacy of composition, where one loony activist says something off the wall and the GOP amplifies it far beyond reason in order to tar the opposition unfairly. These were prominent Democrats — progressive politicians, activists, and scholars and prize-winning journalists at leading cultural institutions — talking this way. Joe Biden himself usually did the smart thing and tried to distance himself from the most radical proposals. But in the end it wasn’t enough to mollify fears of an ascendant left hell bent on entrenching itself in power and enacting institutional reforms that would enable it to lead a moral, political, and cultural revolution.

    And therein lies a paradox that should be obvious but apparently isn’t: Democrats live in a country with a large, passionate opposition. Arrogant talk of demographic inevitabilities and transformative changes to lock Republicans out of power in the name of “democracy” has the effect of inspiring that opposition to unite against them, rendering political success less assured and more tenuous.

    There will be no court packing. No added states. Nothing from the toxic progressive-fantasy wishlist will come anywhere close to passing. Instead, we will have grinding, obstructive gridlock. Some will demand that Biden push through progressive priorities by executive order. But every time he does — like every incident of urban rioting and looting, every effort to placate the left-wing “Squad” in the House, every micro-targeted identity-politics box-checking display of intersectional moral preening and finger-wagging — the country will move closer to witnessing a conservative backlash that results in Republicans taking control of the House and increasing their margin in the Senate in November 2022, rendering the Biden administration even more fully dead in the water.

  • Still more:

    On a House caucus call today, Democratic Representative Abigail Spanberger, reportedly in an agitated state, warned that Democrats “lost races we shouldn’t have lost.” She further claimed that “defund police almost cost me my race because of an attack ad. Don’t say socialism ever again. Need to get back to basics. . . . If we run this race again we will get f***ng torn apart again in 2022.”

    Elsewhere, former Missouri senator Claire McCaskill had this to say: “Whether you are talking guns or . . . abortion . . . or gay marriage and rights for ‘transsexuals’ and other people who we as a party ‘look after’ and make sure they are treated fairly. As we circled the issues we left voters behind and Republicans dove in.”

    I see other Democrats grousing today that their candidates in Florida and elsewhere were falsely labeled “socialist.” I’m sorry, if that’s not the message you want to send, perhaps Nancy Pelosi shouldn’t pose with a gaggle of Marxists on the cover of Rolling Stone. Perhaps Democrats should treat Bernie Sanders as a fringe crank rather than a comrade who’s just moving a tad too quickly. Maybe arguing “democratic” socialism is the good kind doesn’t quite do it for the folks in Des Moines.

    What are voters in Texas supposed to make of every major presidential Democrat presidential candidate, including Joe Biden, giving their blessing to the authoritarian Green New Deal? Boy, fact-checkers had to work overtime to help Biden walk back those endorsements of fracking bans, of defunding the police, and of confiscating guns.

    We may well have a president in a few months who says there are “at least three” genders. Which probably seems sane on Twitter, but less so in Jacksonville, Fla. McCaskill has already apologized for her use of the word “transsexuals.” Unlike progressive urban dwellers, one suspects the vast majority of suburban Americans have zero clue what McCaskill is sorry about. They may even believe that letting genetic boys compete with their daughters in track and field is ridiculous. They probably wouldn’t be crazy about being accused of being transphobic for taking this rational position.

  • “Why Twitter Won’t Let People Share Sworn Court Documents Alleging Voter Fraud.” I think “because the fix is in and Twitter is part of it” is sufficient explanation… (Hat tip: Director Blue.)
  • Illinois Democrats are even more screwed than usual because voters just rejected a constitutional amendment to create a progressive income tax.

    One of the most surprising results of the 2020 election was the defeat, in Illinois, of a state constitutional amendment to permit a progressive income tax. The Graduated Income Tax Amendment would have eliminated the Illinois constitutional requirement that tax rates remain flat across incomes. Its defeat is likely the most important political event for the state since I moved here 18 years ago. The proposed change in the state constitution was an effort by the dominant Democratic Party to continue its model of high taxes and high spending to support the base of its political muscle—public-sector unions. The party retains control of the legislature and the governor’s office, but it is politically cornered. Legislatively, it faces a choice between a reform agenda that would undermine its political base or a substantial tax increase on every working citizen.

    The amendment went down to defeat for two overriding reasons—one analytical, the other more emotional. The first was that the proposed tax increase was not connected to any steps that would address the structural problems in Illinois finances. Illinois has the nation’s worst bond rating, largely because of its enormous unfunded pension liabilities. But Governor J. B. Pritzker, after taking office in 2019, has proposed no serious pension reforms. Nor has he pursued a deregulatory agenda that would lead to higher economic growth rates that might service these liabilities. And worse still, in connection with the referendum, he did not agree to use a substantial portion of the additional revenue flowing from the progressive tax rates to pay down these liabilities. Instead, much of the new revenue would have been spent on new programs or expanding old ones. His promise to use a mere $100 million of the new lucre to pay down pension liabilities was an insult to Illinois taxpayers who would see another $4 billion extracted from their pocketbooks.

    The other reason for the amendments’ failure had to do with more stories of corruption coming out of Springfield. When state representatives are being indicted for extortion, citizens instinctively recoil at handing them more money. Even more problematic for the amendment’s prospects, it became clear that Michael Madigan—speaker of the house, chairman of the state Democratic Party, and undisputed power broker for the last three decades—was under investigation for getting ComEd, the state’s major utility, to hire some of his supporters in return for favors.

    That investigation underscores the real scandal in Illinois: not merely the illegal trading in favors but the more damaging legal trading. Public-sector unions support the Democratic Party in return for the party giving them sweetheart deals with the state. Unfunded pension liabilities are the consequence because many politicians hope to retire or move on to the federal level before the full bill comes due.

    (Hat tip: Stephen Green at Instapundit.)

  • West Virginia’s Democratic senator Joe Manchin says he won’t pack courts or end the filibuster. Maybe he should switch parties before he gets primaried by the hard left…
  • The Failing Business Model of American Universities:

    Put yourself in the shoes of the average college graduate today. It took you longer than expected to complete your “four-year degree” and you are almost $30,000 in debt. You are desperately searching for a job in your field before your student loan payments run you into the ground, assuming your rent and car payments don’t get you there first. The generations before you had student loan debt too, but not nearly to the same degree of an ever-present threat. How did you end up here, and what do you do now with the worldwide COVID-19 pandemic?

    The business model adopted by our academic institutions is increasingly at odds with those seeking higher education and with the broader society as well. It is undesirable to have entire generations unable to participate in the economy, and as of June 2020, contribute a staggering $1.67 trillion to the national debt according to the National Reserve. This is more than auto loan debt and almost twice the amount of credit card debt in the US. It is crucial to understand the various factors that led to this predicament and to recognize where the system went wrong in order to find solutions.

    The most obvious cause of this massive amount of debt is the continually rising cost of higher education. The College Board noted that in-state public college tuition from 1984 to 2014 increased by 225 percent. In the same timeframe, data from the US Census Bureau shows that the median family income has only increased by 24 percent, both figures accounting for inflation.

    Snip.

    So where is all this money going? While much of it goes to the salaries of faculty and the building and maintaining of facilities, a questionable amount goes to administration, another aspect of universities that has rapidly grown in recent decades. According to a 2014 Delta Cost Project report, the number of faculty and staff per administrator declined by roughly 40 percent at most types of colleges and universities between 1990 and 2012, now averaging around 2.5 faculty per administrator. In 2012, the number of faculty at public research institutions was nearly equal to the number of administrators.

    “The interesting thing about the administrative bloat in higher education is, literally, nobody knows who all these people are or what they’re doing,” says Todd Zywicki, a law professor at George Mason University and the author of a paper entitled: ‘The Changing of the Guard: The Political Economy of Administrative Bloat in American Higher Education.’ Vague titles for administrative positions at institutions of higher education include Health Promotion Specialist, Student Success Manager, Senior Coordinator, and Student Accountability Manager. While some administration positions are surely useful and arguably necessary such as Director of Student Financial Aid, Director of Academic Advising, or those positions added in response to federal and state mandates, the salaries of administrative positions have rapidly increased.

  • “Azerbaijan Says It Shot Down Russian Helicopter ‘By Mistake.'” Oopsie!
  • Apple unveils its new in-house design M1 chips for its Macintosh line.
  • Is the city of Austin trying to secretly stick a homeless shelter in north Austin? They evidently want to convert the Fairfield Inn on 183. The reviews for that place seem to have improved, but once it was infamous for reports of bedbugs…
  • Round Rock ISD election results. Three of the four candidates I endorsed won.
  • Complete Travis County election results.
  • The Tucker Abides.
  • All the reasons Quibi failed. Including only being available as a smart phone app (not on computers or TV) and “paying $6 million for Reese Witherspoon to do a voice-over for an animal show that nobody watched.” Also: Another failure for Meg Whitman.
  • Dreamhaven Books attacked (again). Owner Greg Ketter and another employee were attacked and robbed in the Minneapolis science fiction bookstore. This is the second attack on the store this year, as someone broke into the store and tried (unsuccessfully) to burn it down during the Antifa/BlackLivesMatter riots.
  • Girlfriend Keeps Referring To Herself As ‘Wife-Elect‘ Despite No Official Word From Boyfriend.”
  • Fifty years ago: Thar she blows!