West Coast Cities Are Letting Drug Addicts Kill Themselves

At the Washington Examiner, "Liberals in the biggest cities on the West Coast have made it easier for drug addicts to die from overdoses based on the fallacy that letting drug addicts destroy their own lives is some form of compassion."

Joe Concha, Come On Man!

At Amazon, Joe Concha, Come On, Man! The Truth About Joe Biden's Terrible, Horrible, No-Good, Very Bad Presidency.

Policies Pushing Electric Vehicles Show Why Few People Want One

From Bjorn Lomborg, at the Wall Street Journal, "They wouldn’t need huge subsidies to sell if they really were a good choice, and consumers know that":

We constantly hear that electric cars are the future—cleaner, cheaper and better. But if they’re so good, why does California need to ban gasoline-powered cars? Why does the world spend $30 billion a year subsidizing electric ones?

In reality, electric cars are only sometimes and somewhat better than the alternatives, they’re often much costlier, and they aren’t necessarily all that much cleaner. Over its lifetime, an electric car does emit less CO2 than a gasoline car, but the difference can range considerably depending on how the electricity is generated. Making batteries for electric cars also requires a massive amount of energy, mostly from burning coal in China. Add it all up and the International Energy Agency estimates that an electric car emits a little less than half as much CO2 as a gasoline-powered one.

The climate effect of our electric-car efforts in the 2020s will be trivial. If every country achieved its stated ambitious electric-vehicle targets by 2030, the world would save 231 million tons of CO2 emissions. Plugging these savings into the standard United Nations Climate Panel model, that comes to a reduction of 0.0002 degree Fahrenheit by the end of the century.

Electric cars’ impact on air pollution isn’t as straightforward as you might think. The vehicles themselves pollute only slightly less than a gasoline car because their massive batteries and consequent weight leads to more particulate pollution from greater wear on brakes, tires and roads. On top of that, the additional electricity they require can throw up large amounts of air pollution depending on how it’s generated. One recent study found that electric cars put out more of the most dangerous particulate air pollution than gasoline-powered cars in 70% of U.S. states. An American Economic Association study found that rather than lowering air pollution, on average each additional electric car in the U.S. causes additional air-pollution damage worth $1,100 over its lifetime.

The minerals required for those batteries also present an ethical problem, as many are mined in areas with dismal human-rights records. Most cobalt, for instance, is dug out in Congo, where child labor is not uncommon, specifically in mining. There are security risks too, given that mineral processing is concentrated in China.

Increased demand for already-prized minerals is likely to drive up the price of electric cars significantly. The International Energy Agency projects that if electric cars became as prevalent as they would have to be for the world to reach net zero by 2050, the annual total demand for lithium for automobile batteries alone that year would be almost 28 times as much as current annual global lithium production. The material prices for batteries this year are more than three times what they were in 2021, and electricity isn’t getting cheaper either.

Even if rising costs weren’t an issue, electric cars wouldn’t be much of a bargain. Proponents argue that though they’re more expensive to purchase, electric cars are cheaper to drive. But a new report from a U.S. Energy Department laboratory found that even in 2025 the agency’s default electric car’s total lifetime cost will be 9% higher than a gasoline car’s, and the study relied on the very generous assumption that electric cars are driven as much as regular ones. In reality, electric cars are driven less than half as much, which means they’re much costlier per mile....

Electric vehicles will take over the market only if innovation makes them actually better and cheaper than gasoline-powered cars. Politicians are spending hundreds of billions of dollars and keeping consumers from the cars they want for virtually no climate benefit.

Terrifying: Biden Is Nominating Soviet-Trained Radicals Now

 From Stephen Green, at Pajamas:

President Joe Biden wants to put an actual Communist — self-proclaimed “radical” Cornell University law school professor Saule Omarova — in charge of the nation’s banking system.

Omarova graduated from the Soviet Union’s Moscow State University in 1989 on the Lenin Personal Academic Scholarship, according to the Wall Street Journal. As recently as 2019, she was still praising the USSR’s economic system as in some ways superior to our own. “Say what you will about old USSR, there was no gender pay gap there. Market doesn’t always ‘know best.'”

As a matter of fact, I will say what I will about the old USSR.

Teachers there were paid the same as doctors — because medicine was considered “women’s work” and both were paid crap numbers of worthless rubles. Sexism and central mismanagement, all in one murderously totalitarian package.

There’s a reason the USSR is defunct and the U.S. isn’t — at least until Omarova gets her way.

Omarova’s goal is the eventual elimination of private banking and the establishment of the Federal Reserve as the nation’s only bank...

Green's referencing this piece at WSJ, "Comptroller of the Economy":

President Biden checked off another progressive identity box last week by nominating Saule Omarova as Comptroller of the Currency. Some Trump appointees were ridiculed for having supported the elimination of their agencies. Ms. Omarova wants to eliminate the banks she’s being appointed to regulate.

The Cornell University law school professor’s radical ideas might make even Bernie Sanders blush. She graduated from Moscow State University in 1989 on the Lenin Personal Academic Scholarship. Thirty years later, she still believes the Soviet economic system was superior, and that U.S. banking should be remade in the Gosbank’s image.

“Until I came to the US, I couldn’t imagine that things like gender pay gap still existed in today’s world. Say what you will about old USSR, there was no gender pay gap there. Market doesn’t always ‘know best,’” she tweeted in 2019. After Twitter users criticized her ignorance, she added a caveat: “I never claimed women and men were treated absolutely equally in every facet of Soviet life. But people’s salaries were set (by the state) in a gender-blind manner. And all women got very generous maternity benefits. Both things are still a pipe dream in our society!”

Sure, there was a Gulag, and no private property, but maternity benefits!

Ms. Omarova thinks asset prices, pay scales, capital and credit should be dictated by the federal government. In two papers, she has advocated expanding the Federal Reserve’s mandate to include the price levels of “systemically important financial assets” as well as worker wages. As they like to say at the modern university, from each according to her ability to each according to her needs.

In a recent paper “The People’s Ledger,” she proposed that the Federal Reserve take over consumer bank deposits, “effectively ‘end banking,’ as we know it,” and become “the ultimate public platform for generating, modulating, and allocating financial resources in a modern economy.” She’d also like the U.S. to create a central bank digital currency—as Venezuela and China are doing—to “redesign our financial system & turn Fed’s balance sheet into a true ‘People’s Ledger,’” she tweeted this summer. What could possibly go wrong?

Ms. Omarova believes capital and credit should be directed by an unaccountable bureaucracy and intelligentsia...

Genunie Communists in a Democrat presidential administration? Who woulda thunk it? 

 

Stocks Close Sharply Lower as Bond Yields Hover Near Three-Month High

I hope my retirement accounts aren't taking a hit, yikes!

At WSJ, "Tech shares pull S&P 500, Nasdaq down more than 2%, while bond yields rally on inflation concerns":

U.S. stocks tumbled Tuesday, logging their sharpest pullback since May, as rising bond yields deepened a rout in shares of technology companies.

For much of the past decade, many investors had piled into shares of fast-growing technology companies, wagering they would deliver relatively robust profit growth even in a sluggish economic environment. This week, that trade hit a roadblock.

With the economy out of the worst of the pandemic-fueled crisis, the Federal Reserve signaled last week that it could start to reverse its pandemic stimulus programs as soon as November and raise interest rates sometime next year. That appears to have prompted an unwind of some of the market’s most enduring trades—pushing Treasury yields to their highest level in months and sending investors out of popular technology stocks.

Investors agree the economic outlook has improved significantly since 2020. But many wonder how well the market will be able to stand on its own once the Fed begins to taper its monthly asset purchases—especially since they credit much of the market’s rebound from its pandemic low to extraordinary levels of monetary and fiscal support from Washington. Some investors have also expressed concerns about the economic outlook. Inflation has made a surprising comeback this year, something some worry will start to cut into companies’ profit margins. The fast-spreading Delta variant of Covid-19 has also complicated economists’ efforts to forecast the global economy’s growth outlook.

“People are realizing, or at least remembering, that central banks are going to have to start raising rates,” said Altaf Kassam, head of investment strategy for State Street Global Advisors in Europe. “The patient has become used to being given all these drugs, but soon those drugs are going to have to be reduced.”

The S&P 500 fell 90.48 points, or 2%, to 4352.63, marking its second straight day of losses and worst one-day percentage decline since May. The tech-heavy Nasdaq Composite Index slid 423.29 points, or 2.8%, to 14546.68, while the Dow Jones Industrial Average shed 569.38 points, or 1.6%, to 34299.99.

All three major indexes are on course to end the month lower.

Tuesday’s market selloff was broad, pulling all but one of the S&P 500’s sectors down for the day.

Traders yanked money out of the technology sector. Shares of companies like Facebook, Google parent Alphabet and Microsoft, each of which had vastly outperformed the broader market this year, fell more than 3.5% apiece.

Meanwhile, selling pressure accelerated in the government bond market. The yield on the benchmark 10-year Treasury note rose for a sixth consecutive day Tuesday, climbing from 1.482% Monday to 1.534%, its highest level since late June. Bond yields rise as prices fall.

Shares of energy companies avoided the broader selloff...

 

Tomi Lahren Slams California Governor Gavin Newsom

At Fox News, "Tomi Lahren slams Gov. Newsom's 'abominable' remark about unvaccinated Californians: Newsom criticized for 'felon-coddling policies,' criminal aliens on the streets."

Carol Roth, The War on Small Business

Carol Roth, The War on Small Business: How the Government Used the Pandemic to Crush the Backbone of America.

Follow "Big Hair" Carol on Twitter.

Professor Danielle Allen on 'A More Resilient Union' (VIDEO)

I assigned Ms. Allen's piece in my introduction to American government classes just last week, and it's interesting to see her now interviewed with Judy Woodruff at the PBS News Hour.

Ms Allen's article is here, "A More Resilient Union: How Federalism Can Protect Democracy From Pandemics."

The main thing that struck me about the piece is that she doesn't rag on former President Trump, except to argue that he failed to educate the public on the full nature of the virus, not to mention his failure to better delineate the respective roles of the federal government vis-a-vis the states. 

What I did appreciate is her discussion on the American public's widespread ignorance on how the U.S. governmental system operates. That was a key theme I wanted students to discuss, and she make a pretty shocking case to abolish school football programs, even though she apparently loves football: 

If the country’s constitutional democracy is to have a healthy future, Americans should finish this crisis intending not only to invest in health infrastructure but also to revive civics education. Schools need more time for history, civics, and social studies. What should go to make room? Sports, for one thing. Compared with other countries, the United States invests a disproportionate amount of time and money in sports. Americans appear to prefer football to democracy. It’s time to cut back—and I say this as someone whose first professional ambition in life was to be a running back. The United States has made such sacrifices before. World War II saw the suspension of football and soccer seasons the world over. Sporting events may be the last things Americans get back as they reopen their economy. They should use the extra time to double down on civics education.

This crisis has laid bare just how fragile and unsteady the United States’ constitutional democracy is. Now, the country must get its house in order and prioritize its farthest-reaching hopes and aspirations. Americans had all the tools needed to respond to this crisis, except for the very thing that would have given them reason to use them: a common purpose. Let the search for one begin.

Most students weren't thrilled with the idea, but some thought it not a bad notion. As a professor, I just like Ms. Allen's focus on improving civic education, especially for young people, which, as a professor of political science, and I can attest first hand, is dismal.

Watch:

 

Texans Face Skyrocketing Energy Bills

As readers have noted, I've not been defending Texas state officials, neither Governor Abbott nor Senator Cruz.

That said, perhaps the governor and senator can redeem themselves by vacating the high energy bills Texas residents are facing due to the failed power grid, which, once more, was no fault of their own.

At NYT, "His Lights Stayed on During Texas’ Storm. Now He Owes $16,752":

After a public outcry from people like Scott Willoughby, whose exorbitant electric bill is soon due, Gov. Greg Abbott said lawmakers should ensure Texans “do not get stuck with skyrocketing energy bills” caused by the storm.

SAN ANTONIO — As millions of Texans shivered in dark, cold homes over the past week while a winter storm devastated the state’s power grid and froze natural gas production, those who could still summon lights with the flick of a switch felt lucky.

Now, many of them are paying a severe price for it.

“My savings is gone,” said Scott Willoughby, a 63-year-old Army veteran who lives on Social Security payments in a Dallas suburb. He said he had nearly emptied his savings account so that he would be able to pay the $16,752 electric bill charged to his credit card — 70 times what he usually pays for all of his utilities combined. “There’s nothing I can do about it, but it’s broken me.”

Mr. Willoughby is among scores of Texans who have reported skyrocketing electric bills as the price of keeping lights on and refrigerators humming shot upward. For customers whose electricity prices are not fixed and are instead tied to the fluctuating wholesale price, the spikes have been astronomical.

The outcry elicited angry calls for action from lawmakers from both parties and prompted Gov. Greg Abbott, a Republican, to hold an emergency meeting with legislators on Saturday to discuss the enormous bills.

“We have a responsibility to protect Texans from spikes in their energy bills that are a result of the severe winter weather and power outages,” Mr. Abbott, who has been reeling after the state’s infrastructure failure, said in a statement after the meeting. He added that Democrats and Republicans would work together to make sure people “do not get stuck with skyrocketing energy bills.”

The electric bills are coming due at the end of a week in which Texans have faced a combination of crises caused by the frigid weather, beginning on Monday, when power grid failures and surging demand led to millions being left without electricity.

Natural gas producers were not prepared for the freeze either, and many people’s homes were cut off from heat. Now, millions of people are discovering that they have no safe water because of burst pipes, frozen wells or water treatment plants that have been knocked offline. Power has returned in recent days for all but about 60,000 Texans as the storm moved east, where it has also caused power outages in Mississippi, Louisiana, West Virginia and Ohio.

The steep electric bills in Texas are in part a result of the state’s uniquely unregulated energy market, which allows customers to pick their electricity providers among about 220 retailers in an entirely market-driven system...

No state, especially nominally "Republican" states like Texas, should be in need of MORE federal regulation of their energy markets, but I'll be damned if I said that Texas should benefit from some kind of exceptions. I mean, the screwballs in Austin (and Houston, Sen. Cruz's residence) messed up, and bad. Frankly, Alexandria Ocasio-Cortez is doing a better job helping Texans than any of the elected officials in the Lone Star State, which must be embarrassing, frankly.

More at the link, FWIW.

In Frigid Texas, Desperate Families Take Risks to Stay Warm

Very, very dangerous risks, as it turns out.

At WSJ, "Parents resort to gas stoves or build fires inside their homes during power outages, with no relief in sight":  

AUSTIN, Texas—The children played in front of four lighted gas burners in East Austin on Tuesday night as their family tried to warm up during days of subfreezing temperatures, no power, and no relief on the horizon.

One-year-old Alex Johnson Jr. toddled, his brother Gabriel Brewster, 3, played with a toy, and their cousin Desiah Fisher, 6, hugged them close, as eight other family members huddled around the light of a single candle. Charlene Brewster, the mother of the boys and a 4-month-old daughter, said she knows how dangerous it is to try to heat an apartment with a gas stove. She had no option but to try it for a little while, she said.

“I know carbon monoxide poisoning, but what else can we do?” said Ms. Brewster, a city of Austin crossing guard. “Is anyone going to help us? I have a baby in here.”

t was a level of desperation many others in Texas had reached, days into a power grid shutdown during one of the coldest weeks in a generation. Like others across the state, Ms. Brewster’s family lost electricity—and, with it, heat—late Sunday night, before a snowstorm closed most of the city and temperatures plunged to single digits. As of midday Wednesday, officials had no estimate of when power might return.

The Electric Reliability Council of Texas, which manages the power grid in the state, ordered blackouts to prevent damage to the electricity system after frozen power plants and a shortfall of natural gas required to run the plants limited power production.

In the public-housing complex where Ms. Brewster lives, help seemed far away. Those who risked driving were likely to meet blocked roadways or iced-over hills that many drivers couldn’t traverse. Those who called the city’s help line for transportation to an emergency warming shelter met only busy phone lines, they said. Many said they had no water or had run out of food. Most businesses had been closed all week.

Daylan Cook, 18, said he had built a fire inside a ceramic pot in his apartment living room, aided by hand sanitizer and gasoline. LaShay Thomas, 34, said she had developed a migraine headache from fumes and had begged neighbors to turn gas burners off, despite the vicious cold.

City officials urged residents not to resort to dangerous measures for heat. The Austin Fire Department reported responding to fires at several houses that likely began in fireplaces and to several toxic-exposure calls from residents using charcoal in their homes. The local emergency medical services department said it had responded to 63 carbon monoxide exposure calls in 2 1/2 days. In Houston, the local public health authority said the city was seeing record numbers of carbon monoxide poisonings, including at least two deaths.

Sharice Owens and Tosha Henderson, who are sisters, said they had tried to build a fire in Ms. Henderson’s home, but it quickly got too smoky for Ms. Owens’s three young children. They huddled instead under blankets in Ms. Owens’s apartment, where the kids, ages 4, 5, and 13, begged for warmth and food that the family had no way to cook.

“There’s only so much heat you can generate,” Ms. Henderson said. “It was 10 degrees. There’s only so many covers you can use. We were told there were supposed to be power rotations.”

This seems, how do you say? Criminal? 

I mean, Texas is a G.O.P. state, and the leadership there can't keep the lights on (or homes warm). 

And this related story is practically killing me, "Texas mayor resigns after telling residents without power ‘only the strong will survive’."

I get it: Buckle up, pull yourselves up by the bootstraps, blah, blah. I think the mayor might need a lesson in conservative principles: Government is supposed to be there when all else fails, as the protector of citizens who, through no fault of their own, are left literally powerless, hungry, and in some cases dead. 

Again, if this ain't criminality, I don't know what is. Save the "rugged individualism" for the days when the state government hasn't f*cked over the population so horribly.

America the Sick

I disagree with this guy's take, or mostly, his ideological stance and one-sided blame on Trump, blah, blah...

But he makes a good point here, at Der Spiegel, "A Land in Decay: Where Did America Go Wrong?":

America knows it is sick. It is showing all the symptoms. There are doubts about the legitimacy of elections, and confidence in political institutions has crumbled. The media have abandoned or lost their role as impartial observers. The country's predominantly white police force continues to deploy misguided violence against a disillusioned and outraged Black population. There are armed militias on the streets and it's become almost impossible to voice an opinion without getting overwhelmed by hateful comments on social media. To top it all off is a president who refuses to concede defeat, a society that has been battered by a pandemic that can only be contained by way of solidarity...

There's still more at that top link, FWIW.

Jay Richards, William Briggs, and Douglas Axe, The Price of Panic

At Amazon, Jay Richards, William Briggs, and Douglas Axe, The Price of Panic: How the Tyranny of Experts Turned a Pandemic into a Catastrophe. 

Anti-Lockdown Protests in Britain

At London's Daily Mail, "At least 22 are arrested after anti-lockdown protesters chanting 'freedom' clash with police as hundreds march against Covid restrictions through streets of Bournemouth, Liverpool, Basildon and Hyde Park":

Tommy Robinson News, Nov 21
Towns and cities across the country now rising up against the Coronavirus lockdown measures, this was basildon today. pic.twitter.com/JPHQLpoKMU

— TROLL HUNTER AKA Katie Hopkins.✊🏼🤫😉 (@BrettEverest) November 21, 2020

In Basildon, Essex, footage today captured police clash with protesters amid a 'large unauthorised gathering' in the town centre. 

The protest, which breached the Government's Covid-19 measures, led to several arrests after 'attempts to engage with those attending were unsuccessful', Essex Police said. 

Officers have put a dispersal order in place within the boundaries of Great Oaks and Southernhay, with the force adding: 'We know this is a challenging time but we all have a responsibility to follow the regulations and keep each other safe.'

The Day Coronavirus Nearly Broke the Financial Markets

At WSJ, "The March 16 stock crash was part of a broader liquidity crisis that threatened the viability of America’s companies and municipalities":

On March 16, coronavirus brought the financial system to the brink. Few realized how close it came to going over the edge entirely. https://t.co/kGg568pU1D

— The Wall Street Journal (@WSJ) May 20, 2020

An urgent call reached Ronald O’Hanley, State Street Corp.’s chief executive, as he sat in his office in downtown Boston. It was 8 a.m. on Monday, March 16.

A senior deputy told him corporate treasurers and pension managers, panicked by the growing economic damage from the Covid-19 pandemic, were pulling billions of dollars from certain money-market funds. This was forcing the funds to try to sell some of the bonds they held.

But there were almost no buyers. Everybody was suddenly desperate for cash.

He and the deputy, asset-management executive Cyrus Taraporevala, had spoken the night before, wrestling with how investors would respond to an emergency interest-rate cut from the Federal Reserve.

Now, they had their answer. In his 34 years in finance, Mr. O’Hanley had weathered plenty of meltdowns, but never one like this.

“The market is fearing the worst,” Mr. O’Hanley told him.

March 16 was the day a microscopic virus brought the financial system to the brink. Few realized how close it came to going over the edge entirely.

The Dow Jones Industrial Average plunged nearly 13% that day, the second-biggest one-day fall in history. Stock-market volatility spiked to a record high. Investors struggled to unload even safe bonds, like Treasurys. Companies and government officials were losing access to the lending markets on which they rely to make payroll and build schools.

Prime money-market funds that are owned by big institutional investors and buy a lot of short-term corporate debt—normally safe and boring—had outflows of $60 billion in the week ending that Wednesday, financial-data firm Refinitiv said, among the worst ever. Some $56 billion in client money fled bond funds.

Interest rates on short-term corporate debt surged, peaking on March 25 at 2.43 percentage points above the federal-funds rate—the highest it has been since October 2008, according to the Federal Reserve Bank of St. Louis.

The financial system has endured numerous credit crunches and market crashes, and memories of the 1987 and 2008 crises set a high bar for market dysfunction. But longtime investors and those who make a living on Wall Street say mid-March of this year was far more severe in a short period. Moreover, the stresses to the financial system were broader than many had seen.

“The 2008 financial crisis was a car crash in slow motion,” said Adam Lollos, head of short-term credit at Citigroup Inc. “This was like, ‘Boom!’ ”

A barrage of government programs has since pulled the system back from collapse. This account of what happened on one of the worst days the financial markets have ever seen, from many of the executives, money managers and Wall Street veterans who lived it, shows why the rescue effort was so urgent.

The Federal Reserve set the stage for the downturn on Sunday, March 15. Most investors were expecting the central bank to announce its latest response to the crisis the following Wednesday. Instead, it announced at 5 p.m. that evening that it was slashing interest rates and planning to buy $700 billion in bonds to help unclog the markets.

Rather than take comfort in the Fed’s actions, many companies, governments, bankers and investors viewed the decision as reason to prepare for the worst possible outcome from the coronavirus pandemic.

A downdraft in bonds was now a rout.

Mr. O’Hanley was in a good position to see the crisis unfold. His bank provides vital, if unheralded, administrative and bookkeeping services for most of the world’s biggest investors, and runs its own trillion-dollar money manager.

Companies and pension managers have long relied on money-market funds that invest in short-term corporate and municipal-debt holdings considered safe and liquid enough to be classified as “cash equivalents.” They function almost like checking accounts—helping firms manage payroll, pay office leases and move cash around to finance their daily operations.

But that Monday, investors no longer believed certain money funds were cash-like at all. As they pulled their money out, managers struggled to sell bonds to meet redemptions.

In theory, there should have been some give in the system. U.S. regulators had rewritten the rules on money funds in the wake of the 2008 financial crisis, replacing their fixed, $1 price with a floating one that moved with the value of their holdings. The changes headed off the panic that could ensue when a fund’s price “breaks the buck,” as one prominent fund had in 2008.

But the rules couldn’t stop a panicked assault like this one. Rumors circulated that some of State Street’s rivals would be forced to prop up their funds. Within days, both Goldman Sachs Group Inc. and Bank of New York Mellon Corp. stepped in to buy assets from their money funds. Both firms declined to comment.

This was bad news for not only those funds and their investors, but also for the thousands of companies and communities dependent on short-term loan markets to pay their employees. “If junk bonds back up, people can rationalize that away,” Mr. O’Hanley said. “There’s very little ability to rationalize trouble in cash.”

A debt-investing unit of Prudential Financial Inc., one of the largest insurance companies in the world, was also struggling with normally safe securities.

When traders at PGIM Fixed Income tried that Monday to sell a batch of short-term bonds issued by highly rated companies, they found few takers. And banks were reluctant to step in as intermediaries.

“The broker-dealer community was frozen,” said Michael Collins, a senior fixed-income manager at PGIM. “It was as bad as at any point during the great financial crisis.”

Across the country in Southern California, the head of the debt-trading desk at investment firm Capital Group Cos., Vikram Rao, tried to make sense of the dysfunction.

Mr. Rao, who was working remotely that Monday, walked down the 20 steps to his home office at 4:30 a.m. to discover the debt markets were already in disarray. He started calling the senior Wall Street executives he knew at many of the big banks.

Executives told him that Sunday’s emergency Fed rate cut had swung a swath of interest-rate swap contracts in banks’ favor. Companies had locked in superlow interest rates on future debt sales over the past year. But when rates fell even further, the companies suddenly owed additional collateral.

On that Monday, banks had to account for all that new collateral as assets on their books.

So when Mr. Rao called senior executives for an explanation on why they wouldn’t trade, they had the same refrain: There was no room to buy bonds and other assets and still remain in compliance with tougher guidelines imposed by regulators after the previous financial crisis. In other words, capital rules intended to make the financial system safer were, at least in this instance, draining liquidity from the markets.

One senior bank executive leveled with him: “We can’t bid on anything that adds to the balance sheet right now.”

At the same time, the surge in stock-market volatility, along with falling prices on mortgage bonds, had forced margin calls on many investment funds. The additional collateral they owed banks was also booked as assets, adding billions more.

The slump in mortgage bonds was so vast it crushed a group of investors that had borrowed from banks to juice their returns: real-estate investment funds.

The Fed’s bond-buying program, unveiled that Sunday, had earmarked some $200 billion for mortgage-bond purchases. But by Monday bond managers discovered the Fed purchases, while well-intentioned, weren’t nearly enough.

“On that first day, the Fed got completely run over by the market,” said Dan Ivascyn, who manages one of the world’s biggest bond funds and serves as investment chief at Pacific Investment Management Co. “That’s where REITs and other leveraged-mortgage products started getting into serious trouble.”

That Tuesday, UBS Group AG closed two exchange-traded notes tied to mortgage real-estate investment trusts. By Friday, a mortgage trust run by hedge-fund firm Angelo Gordon & Co. had warned its lenders it wouldn’t be able to meet its obligations on future margin calls...

Still more.

Democrats Go Off the Rails

On so-called climate change. I watched some of Wednesday's "Climate Town Hall" on CNN. Kamala Harris is just one mean, nasty bitch and I can't understand why anyone votes for her. Elizabeth Warren just looks like she'll pander to any wacky idea the radical progressive left puts out there. "Insane" is the word that comes to mind. I had to turn it off by the time Joe Biden came on. I switched over to watch "World War II in Color" on Netflix, which is the best documentary on the war I've ever watched.

In any case, at Legal Insurrection, "CNN’s 7-Hour ‘Climate Change’ Town Hall was a man-made disaster for Democrat presidential candidates."

Ok, so NO nuclear, NO coal & NO oil & gas. Electric’s ok, but all power plants that run on coal or natural gas (most of them) will be shut down too. Planes, I guess, will run on Pixie dust & you’ll put a windmill on the hood of your car. This is not serious; it’s empty politics. https://t.co/xaQiiD2QE6

— Ted Cruz (@tedcruz) September 6, 2019

Leftist Millenarianism and the Green New Deal

This is a great piece, a scary piece.

From David Adler, at Quillette, "Straight to Hell: Millenarianism and the Green New Deal":

“The Green New Deal is a reminder that many Americans are desperate for salvation and that religion is no longer slaking this thirst.” https://t.co/uGxCP2aPXH

— Quillette (@Quillette) May 23, 2019

With the Green New Deal, secular apocalyptic ideas have entered the mainstream of American politics. Millenarian thinking has always been present in the US, but it was avowedly religious. Today, those warning of the imminent Apocalypse are not just cranks in sandwich boards on street corners; they are seated in Congress. The radical millenarian ideas that flourished in the Middle Ages or unstable European societies in the early twentieth century can now be found at the heart of the Democratic party.

Read the whole thing --- it's very well done.

'This is Communism'

It is.

See David Horowitz on Twitter:

This is communism. I suspect Eleanor had something to do with this. The American idea of rights is limits to government power, freedom for the individual. https://t.co/NGbWg2t6zT

— David Horowitz (@horowitz39) January 12, 2019

Rashida Tlaib, New Muslim Democrat in Congress, Vows to 'Impeach the Motherf—er!' (VIDEO)

Video at CBS News 4 Boston, "Rep. Rashida Tlaib Not Apologizing After Call Trump an Expletive."

And from Vodka Pundit, at Instapundit, "GREAT MOMENTS IN TOTAL LACK OF SELF-AWARENESS: New Muslim Congresswoman Vows to ‘Impeach the Motherf**ker!’."

Senior Dems, now the majority leadership in Congress, were not pleased. There goes the impeachment messaging, oops!

At Politico, "Dems livid after Tlaib vows to ‘impeach the motherf—er’: Party leaders fear such explosive talk only gives ammunition to the GOP":

From @politico: 'Dems livid after Tlaib vows to ‘impeach the motherf—er.'' Even the guy who filed articles of impeachment on Day 1 is mad at her. But didn't she just say, perhaps in more colorful language, what some of them have said privately? https://t.co/3Znshs0Igi pic.twitter.com/AdRi2D9aNx

— Byron York (@ByronYork) January 4, 2019

This is a bit lame. Can’t be unapologetic about the comments then run away from the press when asked about them https://t.co/YP3udse950

— Sam Stein (@samstein) January 4, 2019

House Democrats are furious that an incoming freshman’s expletive-riddled statement about impeaching Donald Trump has suddenly upended their carefully crafted rhetoric on their plans to take on the president.

Speaker Nancy Pelosi and other top Democrats have long argued that impeachment is a last resort that would come at the end of exhaustive oversight and investigations. But on the second day of the new Congress, the news was jammed with talk of Rep. Rashida Tlaib of Michigan, who told a crowd of progressive activists Thursday night that “we’re gonna impeach the motherf---er.”

Rank-and-file Democrats, immediately fearful of the damage the comment could cause, unloaded on their new colleague Friday morning. Republicans, they argued, would hold it up as proof that Democrats are playing politics rather than pursuing genuine oversight of the president — even if the GOP never showed interest in investigating Trump scandals while it was in power.

“Mueller hasn’t even produced his report yet!” said Rep. Ron Kind (D-Wis.), referring to special counsel Robert Mueller’s Russia probe. “People should cool their jets a little bit, let the prosecutors do their job and finish the investigation.”

“Inappropriate,” added Rep. Jim Costa (D-Calif.). “As elected officials I think we should be expected to set a high bar… It’s not helpful.”

Even Rep. Brad Sherman (D-Calif.), who introduced an impeachment resolution earlier this week, was shocked. His eyes bulged in disbelief when a reporter read him Tlaib’s comments and he was speechless for several seconds.

After he regained his composure, Sherman said that kind of language is detrimental to the cause: “That’s not language I would use … I think the office of the presidency should be treated with respect.”

Party elders also sought to calm talk of impeachment without criticizing Tlaib directly. Rep. Elijah Cummings (D-Md.), the new chairman of the House Oversight and Reform Committee, called Talib’s comments “inappropriate” and said, “We need to be patient.”

“You can’t accomplish very much of anything unless you have civility and show respect for your colleagues,” Cummings said. “Those kind of comments do not take us in the right direction.”

Pelosi said while she didn’t agree with the language, she also didn’t think anyone “should make a big deal” about the expletive, noting the president is also known for having a foul mouth sometimes.

“I'm not in the censorship business. I don't like that language, I wouldn't use that language, but I wouldn't establish language standards for my colleagues,” Pelosi said during an MSNBC town hall Friday morning.

She added that impeachment is “very divisive“ and shouldn’t be taken “without the facts.”

Meanwhile, Republicans were already seizing on the comment to accuse Democrats of showing their true goal — removing Trump from office...

Amid Shutdown, Toilets Overflow at Joshua Tree National Monument

The Los Angeles Times had a piece the other day touting the free admission to Joshua Tree, and now, not so much.

See, "Amid government shutdown, Joshua Tree campgrounds will close as toilets near capacity":

At Joshua Tree, the fun is over. Blame the federal government shutdown - and feces. https://t.co/9NPAbn9RQr

— Los Angeles Times (@latimes) December 31, 2018

The fun is over at Joshua Tree National Park. Blame feces.

Campgrounds at the park will close at noon Wednesday, park officials said, citing health and safety concerns over the park’s vault toilets, which are near capacity.

Park visitor centers, flush toilets, water-filling stations and dump stations are all closed because of the federal government’s partial shutdown. Vault toilets — the waterless bathrooms in which visitors can relieve themselves into a sealed container that is buried underground — had remained open. But with no workers to pump out the waste, those are being closed now as well.

But the park left the main gates open and let cars stream in for free, as there are no government employees to charge the typical $30-a-car entrance fee.

Some rangers remained to patrol the 1,235-square-mile park, a popular winter destination for hikers and rock climbers.

Park officials said Monday in a news release that human waste in public areas, off-road driving and other infractions are becoming a problem as the government shutdown drags on.

The park’s restrooms and visitor centers have been closed and trash collection suspended since the partial shutdown began Dec. 22, but the park itself remains open.

At Joshua Tree, the Indian Cove and Black Rock campgrounds will be open for day use only, from sunrise to sunset. Rattlesnake Canyon will be closed to reduce the number of search and rescue events for rangers already spread thin, park officials said.

Some local volunteers have been doing their part to clean up the park and restock toilets.

“I want to extend a sincere thanks to local businesses, volunteer groups and tribal members who have done their best to assist in picking up litter and helping maintain campgrounds,” park Supt. David Smith said in a statement. “This is no reflection on their efforts and the park is very fortunate to have a community that exhibits the kind of care and concern witnessed over the last week.”

The lack of restrooms has been an issue at other national parks as well.

Yosemite National Park visitors using the side of the road as a toilet have prompted the park to close two campgrounds and a popular redwood grove for public safety reasons.

The park’s restrooms and visitor centers have been closed and trash collection suspended since the shutdown began, but the park itself remains open...

More.

Justice Department Wants Refund from Georgia Sheriff Who Bought Dodge Muscle Car

This Georgia sheriff's department bought a Hellcat with asset forfeiture funds, heh.

At Instapundit, "YOUR TAX DOLLARS AT WORK — AND PLAY: Justice Department Wants Refund from Sheriff Who Bought a Dodge Charger Hellcat."

Hey, "That's My Dodge," lol.