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sidneybelleroche

Elections 2021: Key ballot measures US voters are deciding on - CNNPolitics - 0 views

  • Voters will decide Tuesday on key ballot measures related to issues including policing, election reform and some proposals authored in response to Covid-19 restrictions.
  • Voters will decide Tuesday on key ballot measures related to issues including policing, election reform and some proposals authored in response to Covid-19 restrictions.
  • there are 24 statewide ballot measures for consideration in six states
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  • Voters in some major cities, in addition to choosing their next mayor, will also have the opportunity to weigh in on an important issue that has been heavily debated in their communities.
  • Proposition 6 would codify the right for long-term care residents to designate an essential caregiver for in-person visitation.
  • Texas -- Proposition 3 Read MoreWritten in response to Covid-19 restrictions, Texans will consider a constitutional amendment that would prohibit the state or a political subdivision, such as an elected official, from "prohibiting or limiting religious services of religious organizations."
  • Like Proposition 3, Proposition 6 was also influenced by the Covid-19 restrictions enforced during the height of the pandemic.
  • Texas -- Proposition 3 Read MoreWritten in response to Covid-19 restrictions, Texans will consider a constitutional amendment that would prohibit the state or a political subdivision, such as an elected official, from "prohibiting or limiting religious services of religious organizations." Enter your email or view the Vault By CNN webpage to own a piece of CNN History with blockchain technology.close dialogExplore Vault by CNN . Presidential elections, space discoveries, CNN exclusives and more.Explore NowGet UpdatesBe the first to know about upcoming releases from our Vault, with updates delivered right to your inbox.Please enter aboveSign Me UpBy subscribing, you agree to our privacy policy.Success!See you in your inbox.close dialog/* effects for .bx-campaign-1426699 *//* custom css .bx-campaign-1426699 *//* custom css from creative 60682 *//* V Text Alignment Fix */ .bx-custom.bx-campaign-1426699 .bx-row-input + .bx-row-submit { vertical-align: top;}/* custom css from creative 60872 *//************************************ CREATIVE STRUCTURE Do not remove or edit unless non applicable to creative set.************************************//* rendered styles .bx-campaign-1426699 */.bxc.bx-campaign-1426699.bx-active-step-1 .bx-creative:before {min-height: 185px;}.bxc.bx-campaign-1426699.bx-active-step-1 .bx-creative {bo
  • Cleveland -- Issue 24 Ballot initiative Issue 24 would establish a new civilian commission, called the Community Police Commission, whose members will have final authority over the police department's policy and procedures, hiring and training, and disciplinary action.
  • Question 2 would replace Minneapolis Police Department with a new "Department of Public Safety" overseen by the mayor and city council.
  • Proposal 7, also known as Local Law J, asks city residents whether to expand a civilian police review board's authority to conduct investigations and "to exercise oversight, review, and resolution of community complaints alleging abuse of police authority."
  • Austin, Texas -- Proposition A Voters in Austin, Texas are being asked whether to bulk up the city's police department with Proposition A, as its supporters argue that the city is in the midst of a "crime wave" and a shortage of police officers.Proposition A would require that the Austin police department employs at least two police officers for every 1,000 residents.
  • Detroit -- Proposal R A "yes" vote on Proposal R would be in favor of the Detroit City Council establishing a task force that would recommend housing and economic programs that "address historical discrimination against the Black community in Detroit."
  • New Jersey -- Question No. 1 Question No. 1 asks New Jersey voters whether to allow betting on college sports. Currently, sports betting on college events in the state and on college events in which New Jersey teams participate is prohibited.
  • Richmond, Virginia -- Local ReferendumResidents of Virginia's capital city will decide whether to approve the construction of a new casino and 250-room luxury hotel in south Richmond along the I-95 highway.
  • New York -- Ballot Proposal 1New Yorkers are being reminded to flip over their ballots to answer five statewide ballot proposals.
  • New York -- Ballot Proposal 3New York currently requires that its residents register to vote at least 10 days before an election. Ballot Proposal 3 would remove that requirement, clearing the way for state lawmakers to enact new laws that would allow a resident to register to vote in less than 10 days -- such as same-day voter registration.
  • New York -- Ballot Proposal 4As it stands now, New York voters may vote by absentee ballot if they are unable to appear at their polling place due to illness or physical disability or expect to be absent from their county of residence, or New York City if they're residents, on Election Day.Ballot Proposal 4 asks whether to eliminate the requirement that a voter provide a reason if they wish to vote by absentee ballot.
  • Philadelphia -- Question #1: Asks whether to amend the city charter so it urges the Pennsylvania legislature and governor to legalize cannabis for recreational use in the state.
lilyrashkind

6 Scandals That Rocked the Winter Olympics - HISTORY - 0 views

  • The Winter Olympics have been marked by controversy and scandal since the first Games in 1924. From cheating by East German lugers to the sordid Tonya Harding figure skating fiasco, here are six events that made headlines:
  • At the Games in Chamonix, France, Norwegians contended the 500-meter speedskating final had been mistimed in favor of American Charles Jewtraw, a heavy underdog who won the gold.
  • Jewtraw's win, by 1/5 of a second, stunned him. too. In a 1983 interview with Sports Illustrated, Jewtraw said he had never competed in the 500 prior to the gold-medal race and hadn't even trained for the Games.
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  • Schranz’s supporters contended the mystery man had been a French policeman or soldier who had purposely interfered with the run to ensure Killy’s victory. The French hinted Schranz had made up the story."I was descending and I saw a dark shadow ahead of me," Schranz said at a news conference. "I wanted to avoid it, and I stopped. It was apparently a ski policeman."
  • The women's luge competition at the Grenoble Games was all but a lock for East Germany. Defending champ and gold-medal favorite Ortrun Enderlein stood in first; teammates Anna-Maria Müller and Angela Knösel were second and fourth. 
  • “A jury member acted immediately,” International Luge Federation president Bert Isatitsch said, according to UPI. "He went to the starting line and put his hands on the runners. They were warm."Isatitsch said East German officials used "foul language" when notified of the disqualification. “One waved his arms around, shouting and screaming," he told UPI. 
  • A month before the 1994 Winter Games, a man wielding a metal baton attacked gold- medal favorite Kerrigan during a practice at the U.S. Nationals, paving the way for Harding to win the event and to qualify for the Olympics. Soon afterward, however, it was discovered that Harding’s ex-husband, Jeff Gillooly, had planned the attack. With Kerrigan recovered—and Harding allowed to compete despite her not-yet-confirmed connection to the crime—the women’s figure skating competition became the hottest event at the Olympics. TV ratings soared.
  • Ice dancing got a dose of spy games in Nagano, Japan, when a Canadian judge secretly taped a conversation with another judge about picking winners before the competition.After her complaints to officials had been brushed aside, Jean Senft recorded Ukrainian judge Yuri Balkov discussing skater placements as proof of her accusations. During the call, Balkov said he would vote for Canadians if Senft voted for a Ukrainian pair."The athletes are not competing on a fair playing field," Senft later told CBC News. "This isn't sport. Somebody had to get proof."
  • were made. (Ice dancing was not removed from Olympic competition.) "If [cheating] happens at the world championships in some small town, nobody notices," Pound said, according to The New York Times. "But in the Olympics, hundreds of millions of people are watching."
  • The Russian team of Elena Berezhnaya and Anton Sikharulidze edged Canadians Jamie Sale and David Pelletier for the gold medal. But Marie-Reine Le Gougne, a French judge, came forward, saying she was pressured by the French ice sports federation to put the Russians first. “I knew very well who would vote in favor of the Russians and who would vote in favor of the Canadians," she told Reuters. "I was almost certain that I was the one who would award the Olympic title. What I feared would happen really did.”
  • Le Gougne was suspended from judging for three years and banned from the 2006 Winter Games. The scandal led to sweeping judging reforms in the sport. 
brickol

Stimulus checks: Senate deal includes individual payments -- but don't expect the money... - 0 views

  • Washington (CNN)Lawmakers struck a $2 trillion stimulus deal early Wednesday that includes sending checks directly to individuals amid the coronavirus crisis -- but it will likely take until at least May before the money goes out.Under the plan as it was being negotiated, single Americans would receive $1,200, married couples would get $2,400, and parents would see $500 for each child under age 17.However, the payments would start to phase out for individuals with adjusted gross incomes of more than $75,000, and those making more than $99,000 would not qualify at all. The thresholds are doubled for couples.About 90% of Americans would be eligible to receive full or partial payments, according to estimates by the Tax Policy Center. Lawmakers set aside $250 billion for the so-called recovery rebates.
  • There are provisions in the bill to include those who don't earn enough to file returns, but some people may be missed, said Howard Gleckman, a senior fellow at the center.Under the legislation being negotiated, lower- and middle-income Americans would receive just over two-thirds of the benefits, Gleckman said. An earlier version of the bill would have given lower-income households less or no assistance.
  • The Internal Revenue Service has sent out economic stimulus checks before, and although those plans were slightly different, they can offer some insight into how long the process might take."Certainly from what we've seen in the past, it's taken a pretty significant amount of time to get checks out after a policy is put in place," said Erica York, an economist at the Tax Foundation.In 2001, it took six weeks for the IRS to start sending out rebate checks authorized by President George W. Bush's tax cut. Then in 2008, amid the Great Recession, it took three months for the checks to start going out after the law was signed by Bush. In that case, Americans were required to file their tax return first, in order to get the check. Once they filed their return, it took between eight and 12 weeks to see the money.
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  • It's likely that Americans would receive the stimulus payments faster this time around because more of them file electronically and provide the IRS with their bank information, Gleckman said. Some 88% of individual returns were filed electronically in 2018, compared to 58% in 2008.But there are other factors that may slow the process. Even absent the coronavirus challenges, the agency is working with a smaller budget and less staff than it had in 2010. Now, because of the coronavirus, the agency has shut down its in-person taxpayer assistance centers located across the country at a time when people are sure to have questions about the emergency checks and other changes. Treasury announced last week that it is pushing back the tax return deadline to July 15. Additionally, Congress created a new tax credit designed to refund businesses that are offering their employees coronavirus-related paid leave.
  • First, the IRS will have to calculate each person's payment amount. Then, it will need the correct direct deposit information or mailing addresses. To get the money to people who don't usually file tax returns, it might have to request that information from the Social Security Administration or Veterans Affairs. In 2008, those people were required to file a return anyway in order to get their rebate.Meanwhile, the IRS will inevitably be fielding calls from Americans concerned about when their check will arrive and whether they took all the necessary steps to receive the money.
  • Later in 2008, after the economic stimulus checks were sent out, Olson testified before Congress, telling lawmakers that they should fund a new unit within the agency that would be dedicated to facilitating new and emergency initiatives. She argued that it would free up other employees to focus on improving the existing systems and executing the day-to-day work of the agency -- but that never happened.
katherineharron

Opinion: The danger of a giant Covid belly flop - CNN - 0 views

  • As more and more vaccinations are administered in the US, the Covid-19 story, which once was nothing more than a tale of enormous tragedy, now has a new plotline: how best to return to normal.
  • transmission of a virus depends on a non-immune person bumping into an actively infected person. With more and more vaccination, the likelihood that a non-immune person will come in contact with an infected person is progressively reduced until -- poof -- the risk of catching the infection is almost gone (though never zero).
  • The issue in 1918, when the first article describing herd immunity was published, was the threat of epidemic miscarriage due to a bacterium among pregnant cows in Kansas.
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  • Consider a calculation to determine the threshold for herd immunity: Vc=(1− 1/R0)/E. "Vc" is the proportion of people who must be vaccinated to protect the rest of the herd, "R0," pronounced R-naught, is an estimate of the number of secondary cases from the original infected person and "E" represents effectiveness of a given vaccine against transmission. And this, which resembles a brutal SAT math section entry, is the dumbed-down version.
  • This is not a fund-raiser with a fixed universal goal we all are striving to reach. The above equation evaluates the nation as a homogenized entity, but people live in communities
  • In other words, susceptible cows should be culled to lessen the risk of new infections
  • Though, of course, the fix -- culling -- is not an option for human disease, the benefit of an immune herd is self evident.
  • Fast forward to the 21st century world of vaccines. Pandemics and health care are decidedly more complex, which has led all to wonder: what is the magic number of people we need to vaccinate so we can all forget these disastrous last 14 months?close dialogOur free Provoke/Persuade newsletter compiles the week’s most thought-provoking pieces and delivers them straight to your inbox. Please enter aboveSign me upBy subscribing you agree to ourprivacy policy.Thanks for Subscribing!Continue ReadingBy subscribing you agree to ourprivacy policy.close dialog/* effects for .bx-campaign-1295603 *//* custom css .bx-campaign-1295603 *//* custom css from creative 52220 */.bxc.bx-custom.bx-campaign-1295603 .bx-row-image-logo img { height: 42px;}@media screen and (max-width:736px) { .bxc.bx-custom.bx-campaign-1295603 .bx-row-image-logo img { height: 35px;}}/*Validation border*/.bxc.bx-custom.bx-campaign-1295603 .bx-row-validation .bx-input { border-color: #B50000; /*Specify border color*/ border-width: 1px; box-shadow: none; background-color: transparent; color: #B50000; /*Specify text color*/}/* rendered styles .bx-campaign-1295603 */.bxc.bx-campaign-1295603.bx-active-step-1 .bx-creative:before {min-height: 220px;}.bxc.bx-campaign-1295603.bx-active-step-1 .bx-creative {border-color: #c1c1c1;border-style: solid;background-size: contain;background-color: white;border-width: 1px 0;border-radius: 0;}@media all and (max-width: 736px) {.bxc.bx-campaign-1295603.bx-active-step-1 .bx-creative:before {min-height: 200px;}}.bxc.bx-campaign-1295603.bx-active-step-1 .bx-creative> *:first-child {width: 780px;vertical-align: middle;padding: 10px;}@media all and (max-width: 736px) {.bxc.bx-campaign-1295603.bx-active-step-1 .bx-creative> *:first-child {width: 340px;padding: 20px;}}.bxc.bx-campaign-1295603.bx-active-step-1 .bx-close {stroke: rgb(193, 193, 193);stroke-width: 2px;width: 24px;height: 24px;}@media all and (max-width: 736px) {.bxc.bx-campaign-1295603.bx-active-step-1 .bx-close {width: 30px;height: 30px;padding: 0 0 10px 10px;}}.bxc.bx-campaign-1295603 .bx-group-1295603-y4M7jyO {width: 660px;text-align: left;}@media all and (max-width: 736px) {.bxc.bx-campaign-1295603 .bx-group-1295603-y4M7jyO {text-align: center;width: 315px;}}.bxc.bx-campaign-1295603 .bx-element-1295603-tVcUlRZ {padding: 0;width: auto;}.bxc.bx-campaign-1295603 .bx-element-1295603-tVcUlRZ> *:first-child {background-color: transparent;background-size: contain;}.bxc.bx-campaign-1295603 .bx-group-1295603-BpRQ7DR {width: 660px;text-align: left;padding: 25px 0 15px;}@media all and (max-width: 736px) {.bxc.bx-campaign-1295603 .bx-group-1295603-BpRQ7DR {width: 310px;padding: 15px 0 15px;text-align: center;}}.bxc.bx-campaign-1295603 .bx-element-1295603-oUX5Jvf {width: 100%;}@media all and (max-width: 736px) {.bxc.bx-campaign-1295603 .bx-element-1295603-oUX5Jvf {width: auto;}}.bxc.bx-campaign-1295603 .bx-element-1295603-oUX5Jvf> *:first-child {font-family: CNN Business,CNN,Helvetica Neue,Helvetica,Arial,Utkal,sans-serif;font-weight: 400;font-size: 24px;line-height: 1.1em;}@media all and (max-width: 736px) {.bxc.bx-campaign-1295603 .bx-element-1295603-oUX5Jvf> *:first-child {font-size: 16px;padding: 6px 0 0;line-height: 1.2;}}.bxc.bx-campaign-1295603 .bx-group-1295603-PZ8dLrW {width: 660px;padding: 0;min-width: 550px;text-align: left;}@media all and (max-width: 736px) {.bxc.bx-campaign-1295603 .bx-group-1295603-PZ8dLrW {min-width: auto;width: 310px;padding: 0;}}@media all and (min-wi
  • Lessening the threat of fetal loss therefore was straightforward: farmers should "retain" immune cattle -- those who had already had a spontaneous abortion -- and not waste "material, time, and energy ... on animals of doubtful value." Rather, they advised to butcher the non-immune cows and concentrate on the immune, "profitable" ones.
  • A famous mumps outbreak in adolescent boys from the Orthodox Jewish community is thought to have been exacerbated by the school practice of promoting close, sustained (15 hours a day) contact with a study partner ("chavrusa") including "animated" face-to-face discussion resulting in transmission despite the fact that most had been vaccinated years before.
  • Stated more simply, the herd likely is protected at a very different percent of vaccinated people in an Orthodox Jewish community in San Diego where people live near the school and walk to most activities compared to a gated community in a Minneapolis suburb where many prefer to keep to themselves.
  • We have received a master class in viral variants in recent months, witnessing day by day the alarming uptick in new cases as the B.1.1.7. variant has been introduced to new communities. But a single R-naught cannot fit all variants of Covid-19; a community with higher rates of B.1.1.7. and, therefore, a higher R-naught will require, among other things, a higher level of vaccination to designate the herd as sufficiently immune.
  • There is not one magic number to signal to the entire country that we have finally made it;
  • This is extremely important to keep in mind in the weeks and months ahead as we continue to vaccinate and wait and vaccinate and wait, chasing a number that is fundamentally misleading.
  • The heterogeneity of human behavior, geography and the virus itself explains the vagueness of the pronouncements of Dr. Anthony Fauci, the chief medical adviser to President Joe Biden, and other experts as they seek to evade specifying just how many more people need vaccination before we officially can claim victory.
  • As we have seen in the US during the 15-month arc of the pandemic, trust in science and scientists has been the key to progress. Masks work. Vaccines work. Certain medications work.
johnsonel7

India and Pakistan Are Edging Closer to War in 2020 - 0 views

  • Turmoil is never far away in South Asia, between disputed borders, acute resource shortages, and threats ranging from extremist violence to earthquakes. But in 2019, two crises stood out: an intensifying war in Afghanistan and deep tensions between India and Pakistan. And as serious as both were in 2019, expect them to get even worse in the coming year.
  • Afghanistan has already seen several grim milestones in the last 12 months that attested to the ferocity of the Taliban insurgency. Casualty figures for Afghan security forces and civilians set new records. It was also the deadliest year for U.S. forces since 2014.
  • Meanwhile, 2019 was a dangerously tense year for India and Pakistan—two rivals that are both neighbors and nuclear states. In February, a young Kashmiri man in the town of Pulwama staged a suicide bombing that killed more than three dozen Indian security forces—the deadliest such attack in Kashmir in three decades.
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  • Bilateral relations remained fraught over the last few months of the year. Islamabad issued constant broadsides against New Delhi for its continued security lockdown in Kashmir. By year’s end, an internet blackout was still in effect. Then, in December, India’s parliament passed a controversial new citizenship law that affords fast-track paths to Indian citizenship for religious minorities—but not Muslims—fleeing persecution in Afghanistan, Bangladesh, and Pakistan.
  • This means Afghanistan is unlikely to have a new government in place for at least another few months, and even longer if the final results are different from the initial ones and require a second vote. Due to winter weather in Afghanistan, a runoff likely wouldn’t occur until the spring. Without a new government in place, it beggars belief that Afghanistan could launch a process to establish an intra-Afghan dialogue, much less negotiate an end to the war.
  • The two nuclear-armed nations will enter 2020 just one big trigger event away from war. The trigger could be another mass-casualty attack on Indian security forces in Kashmir traced back to a Pakistan-based group, or—acting on the threats issued repeatedly by New Delhi in 2019—an Indian preemptive operation to seize territory in Pakistan-administered Kashmir. 
lilyrashkind

The US Funded Universal Childcare During World War II-Then Stopped - HISTORY - 0 views

  • When the United States started recruiting women for World War II factory jobs, there was a reluctance to call stay-at-home mothers with young children into the workforce. That changed when the government realized it needed more wartime laborers in its factories. To allow more women to work, the government began subsidizing childcare for the first (and only) time in the nation’s history.
  • Before World War II, organized “day care” didn’t really exist in the United States. The children of middle- and upper-class families might go to private nursery schools for a few hours a day, says Sonya Michel, a professor emerita of history, women’s studies and American studies at the University of Maryland-College Park and author of Children’s Interests/Mothers’ Rights: The Shaping of America’s Child Care Policy. (In German communities, five- and six-year-olds went to half-day Kindergartens.)
  • Defense Housing and Community Facilities and Services Act, known as the Lanham Act, which gave the Federal Works Agency the authority to fund the construction of houses, schools and other infrastructure for laborers in the growing defense industry. It was not specifically meant to fund childcare, but in late 1942, the government used it to fund temporary day care centers for the children of mothers working wartime jobs.
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  • They also provided up to three meals a day for children, with some offering prepared meals for mothers to take with them when they picked up their kids.
  • “The ones that we often hear about were the ‘model’ day nurseries that were set up at airplane factories [on the West coast],” says Michel. “Those were ones where the federal funding came very quickly, and some of the leading voices in the early childhood education movement…became quickly involved in setting [them] up,” she says. 
  • This was during the Cold War, a time when anti-childcare activists pointed to the fact that the Soviet Union funded childcare as an argument for why the United States shouldn’t. President Richard Nixon vetoed the bill, arguing that it would “commit the vast moral authority of the National Government to the side of communal approaches to child rearing over against the family-centered approach.”
  • When the World War II childcare centers first opened, many women were reluctant to hand their children over to them. According to Chris M. Herbst, a professor of public affairs at Arizona State University who has written about these programs in the Journal of Labor Economics, a lot of these women ended up having positive experiences.
  • As the war ended in August 1945, the Federal Works Agency announced it would stop funding childcare as soon as possible. Parents responded by sending the agency 1,155 letters, 318 wires, 794 postcards and petitions with 3,647 signatures urging the government to keep them open. In response, the U.S. government provided additional funding for childcare through February 1946. After that, it was over.
  • For these centers, organizers enlisted architects to build attractive buildings that would cater to the needs of childcare, specifically. “There was a lot of publicity about those, but those were unusual. Most of the childcare centers were kind of makeshift. They were set up in [places like] church basements.”
  • U.S. history that the country came close to instituting universal childcare.
Javier E

Jack Bogle: The Undisputed Champion of the Long Run - WSJ - 0 views

  • Jack Bogle is ready to declare victory. Four decades ago, a mutual-fund industry graybeard warned him that he would “destroy the industry.” Mr. Bogle’s plan was to create a new mutual-fund company owned not by the founding entrepreneur and his partners but by the shareholders of the funds themselves. This would keep overhead low for investors, as would a second part of his plan: an index fund that would mimic the performance of the overall stock market rather than pay genius managers to guess which stocks might go up or down.
  • Not even Warren Buffett has minted more millionaires than Jack Bogle has—and he did so not by helping them get lucky, but by teaching them how to earn the market’s long-run, average return without paying big fees to Wall Street.
  • “When the climate really gets bad, I’m not some statue out there. But when I get knots in my stomach, I say to myself, ‘Reread your books,’ ” he says. Mr. Bogle has written numerous advice books on investing, including 2007’s “The Little Book of Common Sense Investing,” which remains a perennial Amazon best seller—and all of them emphasize not trying to outguess the markets.
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  • Mr. Bogle has some hard news for investors. The basic appeal of index funds—their ability to deliver the market return without shifting an arm and leg to Wall Street’s army of helpers—will only become more important given the decade of depressed returns he sees ahead.
  • Don’t imagine a revisitation of the ’80s or ’90s, when stocks returned 18% a year and investors, after the industry’s rake-off, imagined they “had the greatest manager in the world” because they got 14%. Those planning on a comfy retirement or putting a kid through college will have to save more, work to keep costs low, and—above all—stick to the plan.
  • The mutual-fund industry is slowly liquidating itself—except for Vanguard. Mr. Bogle happily supplies the numbers: During the 12 months that ended May 31, “the fund industry took in $87 billion . . . of which $224 billion came into Vanguard.” In other words, “in the aggregate, our competitors experienced capital outflows of $137 billion.”
  • That said, Mr. Bogle finds today’s stock scene puzzling. Shares are highly priced in historical terms; earnings and economic growth he expects to disappoint for at least the next decade (he sees no point in trying to forecast further). And yet he advises investors to stay invested and weather the storm: “If we’re going to have lower returns, well, the worst thing you can do is reach for more yield. You just have to save more.”
  • He also knows the heartache of having just about everything he has saved tied up in volatile, sometimes irrational markets, especially now. “We’re in a difficult place,” he says. “We live in an extremely risky world—probably more risky than I can recall.”
  • Then why invest at all? Maybe it would be better to sell and stick the cash in a bank or a mattress. “I know of no better way to guarantee you’ll have nothing at the end of the trail,” he responds. “So we know we have to invest. And there’s no better way to invest than a diversified list of stocks and bonds at very low cost.”
  • Mr. Bogle’s own portfolio consists of 50% stocks and 50% bonds, the latter tilted toward short- and medium-term. Keep an eagle eye on costs, he says, in a world where pre-cost returns may be as low as 3% or 4%. Inattentive investors can expect to lose as much as 70% of their profits to “hidden” fund management costs in addition to the “expense ratios” touted in mutual-fund prospectuses. (These hidden costs include things like sales load, transaction costs, idle cash and inefficient taxes.)
  • Mr. Bogle relies on a forecasting model he published 25 years ago, which tells him that investors over the next decade, thanks largely to a reversion to the mean in valuations, will be lucky to clear 2% annually after costs. Yuck.
  • Investing, he says, always is “an act of trust—in the ability of civilization and the U.S. to continue to flourish; in the ability of corporations to continue, through efficiency and entrepreneurship and innovation, to provide substantial returns.” But nothing, not even American greatness, is guaranteed, he adds
  • what he calls the financial buccaneer type, an entrepreneur more interested in milking what’s left of the active-management-fee gravy train than in providing low-cost competition for Vanguard—which means Vanguard’s best days as guardian of America’s nest egg may still lie ahead.
  • the growth of indexing is obviously unwelcome writing on the wall for Wall Street professionals and Vanguard’s profit-making competitors like Fidelity, which have never been able to give heart and soul to low-churn indexing because indexing doesn’t generate large fees for executives and shareholders of management companies.
Javier E

David Stockman: Mitt Romney and the Bain Drain - Newsweek and The Daily Beast - 1 views

  • Is Romney really a job creator? Ronald Reagan’s budget director, David Stockman, takes a scalpel to the claims.
  • Bain Capital is a product of the Great Deformation. It has garnered fabulous winnings through leveraged speculation in financial markets that have been perverted and deformed by decades of money printing and Wall Street coddling by the Fed. So Bain’s billions of profits were not rewards for capitalist creation; they were mainly windfalls collected from gambling in markets that were rigged to rise.
  • Mitt Romney claims that his essential qualification to be president is grounded in his 15 years as head of Bain Capital, from 1984 through early 1999. According to the campaign’s narrative, it was then that he became immersed in the toils of business enterprise, learning along the way the true secrets of how to grow the economy and create jobs. The fact that Bain’s returns reputedly averaged more than 50 percent annually during this period is purportedly proof of the case
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  • Except Mitt Romney was not a businessman; he was a master financial speculator who bought, sold, flipped, and stripped businesses. He did not build enterprises the old-fashioned way—out of inspiration, perspiration, and a long slog in the free market fostering a new product, service, or process of production. Instead, he spent his 15 years raising debt in prodigious amounts on Wall Street so that Bain could purchase the pots and pans and castoffs of corporate America, leverage them to the hilt, gussy them up as reborn “roll-ups,” and then deliver them back to Wall Street for resale—the faster the better.
  • That is the modus operandi of the leveraged-buyout business, and in an honest free-market economy, there wouldn’t be much scope for it because it creates little of economic value. But we have a rigged system—a regime of crony capitalism—where the tax code heavily favors debt and capital gains, and the central bank purposefully enables rampant speculation by propping up the price of financial assets and battering down the cost of leveraged finance.
  • So the vast outpouring of LBOs in recent decades has been the consequence of bad policy, not the product of capitalist enterprise. I know this from 17 years of experience doing leveraged buyouts at one of the pioneering private-equity houses, Blackstone, and then my own firm. I know the pitfalls of private equity. The whole business was about maximizing debt, extracting cash, cutting head counts, skimping on capital spending, outsourcing production, and dressing up the deal for the earliest, highest-profit exit possible. Occasionally, we did invest in genuine growth companies, but without cheap debt and deep tax subsidies, most deals would not make economic sense.
  • In truth, LBOs are capitalism’s natural undertakers—vulture investors who feed on failing businesses. Due to bad policy, however, they have now become monsters of the financial midway that strip-mine cash from healthy businesses and recycle it mostly to the top 1 percent.
  • Accordingly, Bain’s returns on the overwhelming bulk of the deals—67 out of 77—were actually lower than what a passive S&P 500 indexer would have earned even without the risk of leverage or paying all the private-equity fees. Investor profits amounted to a prosaic 0.7X the original investment on these deals and, based on its average five-year holding period, the annual return would have computed to about 12 percent—well below the 17 percent average return on the S&P in this period.
  • having a trader’s facility for knowing when to hold ’em and when to fold ’em has virtually nothing to do with rectifying the massive fiscal hemorrhage and debt-burdened private economy that are the real issues before the American electorate
  • Indeed, the next president’s overriding task is restoring national solvency—an undertaking that will involve immense societywide pain, sacrifice, and denial and that will therefore require “fairness” as a defining principle. And that’s why heralding Romney’s record at Bain is so completely perverse. The record is actually all about the utter unfairness of windfall riches obtained under our anti-free market regime of bubble finance.
  • When Romney opened the doors to Bain Capital in 1984, the S&P 500 stood at 160. By the time he answered the call to duty in Salt Lake City in early 1999, it had gone parabolic and reached 1270. This meant that had a modern Rip Van Winkle bought the S&P 500 index and held it through the 15 years in question, the annual return (with dividends) would have been a spectacular 17 percent. Bain did considerably better, of course, but the reason wasn’t business acumen.
  • The secret was leverage, luck, inside baseball, and the peculiar asymmetrical dynamics of the leveraged gambling carried on by private-equity shops. LBO funds are invested as equity at the bottom of a company’s capital structure, which means that the lenders who provide 80 to 90 percent of the capital have no recourse to the private-equity sponsor if deals go bust. Accordingly, LBO funds can lose 1X (one times) their money on failed deals, but make 10X or even 50X on the occasional “home run.” During a period of rising markets, expanding valuation multiples, and abundant credit, the opportunity to “average up” the home runs with the 1X losses is considerable; it can generate a spectacular portfolio outcome.
  • The Wall Street Journal examined 77 significant deals completed during that period based on fundraising documents from Bain, and the results are a perfect illustration of bull-market asymmetry. Overall, Bain generated an impressive $2.5 billion in investor gains on $1.1 billion in investments. But 10 of Bain’s deals accounted for 75 percent of the investor profits.
  • The credentials that Romney proffers as evidence of his business acumen, in fact, mainly show that he hung around the basket during the greatest bull market in recorded history.
  • By contrast, the 10 home runs generated profits of $1.8 billion on investments of only $250 million, yielding a spectacular return of 7X investment. Yet it is this handful of home runs that both make the Romney investment legend and also seal the indictment: they show that Bain Capital was a vehicle for leveraged speculation that was gifted immeasurably by the Greenspan bubble. It was a fortunate place where leverage got lucky, not a higher form of capitalist endeavor or training school for presidential aspirants.
  • The startling fact is that four of the 10 Bain Capital home runs ended up in bankruptcy, and for an obvious reason: Bain got its money out at the top of the Greenspan boom in the late 1990s and then these companies hit the wall during the 2000-02 downturn, weighed down by the massive load of debt Bain had bequeathed them. In fact, nearly $600 million, or one third of the profits earned by the home-run companies, had been extracted from the hide of these four eventual debt zombies.
  • The bankruptcy forced the closure of about 250—or 40 percent—of the company’s stores and the loss of about 5,000 jobs. Yet the moral of the Stage Stores saga is not simply that in this instance Bain Capital was a jobs destroyer, not a jobs creator. The larger point is that it is actually a tale of Wall Street speculators toying with Main Street properties in defiance of sound finance—an anti-Schumpeterian project that used state-subsidized debt to milk cash from stores that would not have otherwise survived on the free market.
  • Ironically, the businesses and jobs that Staples eliminated were the office-supply counterparts of the cracker-box stores selling shoes, shirts, and dresses that Bain kept on artificial life-support at Stage Stores Inc. At length, Wal-Mart eliminated these jobs and replaced them with back-of–the-store automation and front-end part-timers, as did Staples, which now has 40,000 part-time employees out of its approximate 90,000 total head count. The pointless exercise of counting jobs won and lost owing to these epochal shifts on the free market is obviously irrelevant to the job of being president, but the fact that Bain made $15 million from the winner and $175 million from the loser is evidence that it did not make a fortune all on its own. It had considerable help from the Easy Button at the Fed.
  • The lesson is that LBOs are just another legal (and risky) way for speculators to make money, but they are dangerous because when they fail, they leave needless economic disruption and job losses in their wake. That’s why LBOs would be rare in an honest free market—it’s only cheap debt, interest deductions, and ludicrously low capital-gains taxes that artifically fuel them.
  • The larger point is that Romney’s personal experience in the nation’s financial casinos is no mark against his character or competence. I’ve made money and lost it and know what it is like to be judged. But that experience doesn’t translate into answers on the great public issues before the nation, either. The Romney campaign’s feckless narrative that private equity generates real economic efficiency and societal wealth is dead wrong.
  • The Bain Capital investments here reviewed accounted for $1.4 billion or 60 percent of the fund’s profits over 15 years, by my calculations. Four of them ended in bankruptcy; one was an inside job and fast flip; one was essentially a massive M&A brokerage fee; and the seventh and largest gain—the Italian Job—amounted to a veritable freak of financial nature.
  • In short, this is a record about a dangerous form of leveraged gambling that has been enabled by the failed central banking and taxing policies of the state. That it should be offered as evidence that Mitt Romney is a deeply experienced capitalist entrepreneur and job creator is surely a testament to the financial deformations of our times.
Javier E

The Irrational Consumer: Why Economics Is Dead Wrong About How We Make Choices - Derek ... - 0 views

  • Atlantic.displayRandomElement('#header li.business .sponsored-dropdown-item'); Derek Thompson - Derek Thompson is a senior editor at The Atlantic, where he oversees business coverage for the website. More Derek has also written for Slate, BusinessWeek, and the Daily Beast. He has appeared as a guest on radio and television networks, including NPR, the BBC, CNBC, and MSNBC. All Posts RSS feed Share Share on facebook Share on linkedin Share on twitter « Previous Thompson Email Print Close function plusOneCallback () { $(document).trigger('share'); } $(document).ready(function() { var iframeUrl = "\/ad\/thanks-iframe\/TheAtlanticOnline\/channel_business;src=blog;by=derek-thompson;title=the-irrational-consumer-why-economics-is-dead-wrong-about-how-we-make-choices;pos=sharing;sz=640x480,336x280,300x250"; var toolsClicked = false; $('#toolsTop').click(function() { toolsClicked = 'top'; }); $('#toolsBottom').click(function() { toolsClicked = 'bottom'; }); $('#thanksForSharing a.hide').click(function() { $('#thanksForSharing').hide(); }); var onShareClickHandler = function() { var top = parseInt($(this).css('top').replace(/px/, ''), 10); toolsClicked = (top > 600) ? 'bottom' : 'top'; }; var onIframeReady = function(iframe) { var win = iframe.contentWindow; // Don't show the box if there's no ad in it if (win.$('.ad').children().length == 1) { return; } var visibleAds = win.$('.ad').filter(function() { return !($(this).css('display') == 'none'); }); if (visibleAds.length == 0) { // Ad is hidden, so don't show return; } if (win.$('.ad').hasClass('adNotLoaded')) { // Ad failed to load so don't show return; } $('#thanksForSharing').css('display', 'block'); var top; if(toolsClicked == 'bottom' && $('#toolsBottom').length) { top = $('#toolsBottom')[0].offsetTop + $('#toolsBottom').height() - 310; } else { top = $('#toolsTop')[0].offsetTop + $('#toolsTop').height() + 10; } $('#thanksForSharing').css('left', (-$('#toolsTop').offset().left + 60) + 'px'); $('#thanksForSharing').css('top', top + 'px'); }; var onShare = function() { // Close "Share successful!" AddThis plugin popup if (window._atw && window._atw.clb && $('#at15s:visible').length) { _atw.clb(); } if (iframeUrl == null) { return; } $('#thanksForSharingIframe').attr('src', "\/ad\/thanks-iframe\/TheAtlanticOnline\/channel_business;src=blog;by=derek-thompson;title=the-irrational-consumer-why-economics-is-dead-wrong-about-how-we-make-choices;pos=sharing;sz=640x480,336x280,300x250"); $('#thanksForSharingIframe').load(function() { var iframe = this; var win = iframe.contentWindow; if (win.loaded) { onIframeReady(iframe); } else { win.$(iframe.contentDocument).ready(function() { onIframeReady(iframe); }) } }); }; if (window.addthis) { addthis.addEventListener('addthis.ready', function() { $('.articleTools .share').mouseover(function() { $('#at15s').unbind('click', onShareClickHandler); $('#at15s').bind('click', onShareClickHandler); }); }); addthis.addEventListener('addthis.menu.share', function(evt) { onShare(); }); } // This 'share' event is used for testing, so one can call // $(document).trigger('share') to get the thank you for // sharing box to appear. $(document).bind('share', function(event) { onShare(); }); if (!window.FB || (window.FB && !window.FB._apiKey)) { // Hook into the fbAsyncInit function and register our listener there var oldFbAsyncInit = (window.fbAsyncInit) ? window.fbAsyncInit : (function() { }); window.fbAsyncInit = function() { oldFbAsyncInit(); FB.Event.subscribe('edge.create', function(response) { // to hide the facebook comments box $('#facebookLike span.fb_edge_comment_widget').hide(); onShare(); }); }; } else if (window.FB) { FB.Event.subscribe('edge.create', function(response) { // to hide the facebook comments box $('#facebookLike span.fb_edge_comment_widget').hide(); onShare(); }); } }); The Irrational Consumer: Why Economics Is Dead Wrong About How We Make Choices By Derek Thompson he
  • First, making a choice is physically exhausting, literally, so that somebody forced to make a number of decisions in a row is likely to get lazy and dumb.
  • Second, having too many choices can make us less likely to come to a conclusion. In a famous study of the so-called "paradox of choice", psychologists Mark Lepper and Sheena Iyengar found that customers presented with six jam varieties were more likely to buy one than customers offered a choice of 24.
  • ...7 more annotations...
  • neurologists are finding that many of the biases behavioral economists perceive in decision-making start in our brains. "Brain studies indicate that organisms seem to be on a hedonic treadmill, quickly habituating to homeostasis," McFadden writes. In other words, perhaps our preference for the status quo isn't just figuratively our heads, but also literally sculpted by the hand of evolution inside of our brains.
  • The third check against the theory of the rational consumer is the fact that we're social animals. We let our friends and family and tribes do our thinking for us
  • Many of our mistakes stem from a central "availability bias." Our brains are computers, and we like to access recently opened files, even though many decisions require a deep body of information that might require some searching. Cheap example: We remember the first, last, and peak moments of certain experiences.
  • The popular psychological theory of "hyperbolic discounting" says people don't properly evaluate rewards over time. The theory seeks to explain why many groups -- nappers, procrastinators, Congress -- take rewards now and pain later, over and over again. But neurology suggests that it hardly makes sense to speak of "the brain," in the singular, because it's two very different parts of the brain that process choices for now and later. The choice to delay gratification is mostly processed in the frontal system. But studies show that the choice to do something immediately gratifying is processed in a different system, the limbic system, which is more viscerally connected to our behavior, our "reward pathways," and our feelings of pain and pleasure.
  • the final message is that neither the physiology of pleasure nor the methods we use to make choices are as simple or as single-minded as the classical economists thought. A lot of behavior is consistent with pursuit of self-interest, but in novel or ambiguous decision-making environments there is a good chance that our habits will fail us and inconsistencies in the way we process information will undo us.
  • Our brains seem to operate like committees, assigning some tasks to the limbic system, others to the frontal system. The "switchboard" does not seem to achieve complete, consistent communication between different parts of the brain. Pleasure and pain are experienced in the limbic system, but not on one fixed "utility" or "self-interest" scale. Pleasure and pain have distinct neural pathways, and these pathways adapt quickly to homeostasis, with sensation coming from changes rather than levels
  • Social networks are sources of information, on what products are available, what their features are, and how your friends like them. If the information is accurate, this should help you make better choices. On the other hand, it also makes it easier for you to follow the crowd rather than engaging in the due diligence of collecting and evaluating your own information and playing it against your own preferences
julia rhodes

Dictators in the Age of Instagram : The New Yorker - 0 views

  • “So, you want to be a dictator?”
  • Too bad you’re living in this century. “It is tougher to lead an authoritarian regime in the face of democratic ideals, free speech and globalized media.
  • Snyderwine puts forth complex mathematical formulas that show a dictator how to stay in power with cost-benefit analyses of revolutions that take into account factors like bribes and the number of active revolutionaries killed.
  • ...7 more annotations...
  • “The Dictator’s Practical Internet Guide to Power Retention,” is a compilation of tips, gleaned from the experiences of leaders in China, Singapore, Russia, Iran, Pakistan, and other countries, that illustrate just how brutal the modern, connected world can be for a tyrant.
  • Recep Tayyip Erdoğan, recently said that “this thing called social media is a curse on societies.”
  • n Syria, President Bashar al-Assad has proved canny online. Blackouts have shut down the Internet at various moments in the past two years
  • The state news agency blamed one blackout, in May, on “a malfunctioning fibre-optic cable,” but it was not lost on many that it was timed near a vote on a U.N. resolution on Syria.
  • Does it matter if this is a kind of misinformation? What does a social-media company do when a user known to be attacking civilians is blasting out feel-good content?
  • But she explained that, generally speaking, if a user created content that promoted violence, Instagram would remove it and possibly disable the user. Schumer stressed the importance of the context of the image in making those calls—a caption might make an image threatening, for instance—but also said that “context” is generally limited to content on the site.
  • And yet, even within that complex framework, what does it mean to follow a man strongly suggested to be a war criminal, to have a virtual shrine to a dictators’ glory that can fit in our pockets?
katherineharron

90% of people are biased against women. That's the challenge we face - CNN - 0 views

  • Almost 90% of the world's men, and women, are biased in some way against women, according to the Gender Social Norms Index. Half of men and women feel that men make better political leaders. More than 56% feel that men have more right to a job and/or make better business executives. Read Moreclose dialogGet the strongest, smartest opinion takes of the weekSign up for CNN Opinion’s Provoke/Persuade weekly newsletter.Please enter aboveProvoke/Persuade MeBy subscribing you agree to ourprivacy policy. Thanks For SubscribingContinue Readingclose dialog/* effects for .bx-campaign-1118904 *//* rendered styles .bx-campaign-1118904 */.bxc.bx-campaign-1118904.bx-active-step-1 .bx-creative> *:first-child {width: 780px;padding: 38px 40px 30px 40px;}@media all and (max-width: 736px) {.bxc.bx-campaign-1118904.bx-active-step-1 .bx-creative> *:first-child {width: 400px;padding: 20px;}}@media all and (min-width: 737px) and (max-width: 1024px) {.bxc.bx-campaign-1118904.bx-active-step-1 .bx-creative> *:first-child {width: 737px;}}.bxc.bx-campaign-1118904.bx-active-step-1 .bx-creative:before {min-height: 285px;}.bxc.bx-campaign-1118904.bx-active-step-1 .bx-creative {background-color: #1a1a1a;border-style: none;}@media all and (max-width: 736px) {.bxc.bx-campaign-1118904.bx-active-step-1 .bx-creative:before {min-height: 170px;}}.bxc.bx-campaign-1118904.bx-active-step-1 .bx-close {width: 20px;stroke: rgb(169, 169, 169);}.bxc.bx-campaign-1118904 .bx-group-1118904-f4RmyBG {width: 100%;padding: 0px;text-align: left;}@media all and (max-width: 736px) {.bxc.bx-campaign-1118904 .bx-group-1118904-f4RmyBG {width: 90%;padding: 0px;text-align: center;}}.bxc.bx-campaign-1118904 .bx-element-1118904-AvMDwAa {width: 80px;text-align: left;}@media all and (max-width: 736px) {.bxc.bx-campaign-1118904 .bx-element-1118904-AvMDwAa {text-align: center;}}.bxc.bx-campaign-1118904 .bx-element-1118904-AvMDwAa> *:first-child {position: absolute;left: 30;top: 20px;width: 80px;}@media all and (max-width: 736px) {.bxc.bx-campaign-1118904 .bx-element-1118904-AvMDwAa> *:first-child {position: relative;left: 0;top: -10px;width: 80px;}}.bxc.bx-campaign-1118904 .bx-element-1118904-wb2hGrX {width: 100%;padding: 20px 0 20px;}@media all and (max-width: 736px) {.bxc.bx-campaign-1118904 .bx-element-1118904-wb2hGrX {padding: 0 0 15px;}}.bxc.bx-campaign-1118904 .bx-element-1118904-wb2hGrX> *:first-child {font-size: 28px;font-family: CNN,Helvetica Neue,Verdana,Helvetica,Arial,Utkal,sans-serif;font-weight: 400;color: white;}@media all and (max-width: 736px) {.bxc.bx-campaign-1118904 .bx-element-1118904-wb2hGrX> *:first-child {font-size: 25px;}}@media all and (min-width: 737px) and (max-width: 1024px) {.bxc.bx-campaign-1118904 .bx-element-1118904-wb2hGrX> *:first-child {font-size: 30px;}}.bxc.bx-campaign-1118904 .bx-element-1118904-HZChuZO {padding: 0px 0px 20px;}@media all and (max-width: 736px) {.bxc.bx-campaign-1118904 .bx-element-1118904-HZChuZO {width: auto;padding: 0px 0px 10px;}}.bxc.bx-campaign-1118904 .bx-element-1118904-HZChuZO> *:first-child {font-size: 17px;font-family: CNN,Helvetica Neue,Verdana,Helvetica,Arial,Utkal,sans-serif;font-weight: 400;color: white;letter-spacing: 0.01em;}@media all and (max-width: 736px) {.bxc.bx-campaign-1118904 .bx-element-1118904-HZChuZO> *:first-child {font-size: 13px;padding: 0px 20px ;}}.bxc.bx-campaign-1118904 .bx-group-1118904-AjvDVXy {width: 100%;padding: 0px;}@media all and (max-width: 736px) {.bxc.bx-campaign-1118904 .bx-group-1118904-AjvDVXy {width: 300px;}}.bxc.bx-campaign-1118904 .bx-element-1118904-KUTn3wM .bx-el {padding: 15px;font-size: 12px;font-family: CNN,Helvetica Neue,Verdana,Helvetica,Arial,Utkal,sans-serif;font-weight: 400;border-style: solid;border-color: rgb(220, 220, 220);}@media all and (max-width: 736px) {.bxc.bx-campaign-1118904 .bx-element-1118904-KUTn3wM .bx-el {font-size: 12px;padding: 12px;}}.bxc.bx-campaign-1118904 .bx-element-1118904-
  • Around the world, women are equally likely to vote, but only 10% out of 193 heads of government are female, according to the Pew Research Center. Women are overrepresented in low-wage employment, but represent only 21% of employers and 12% of billionaires. They are about equally represented in jobs at S&P Fortune 500 companies, but represent only 5.8% of the total CEOs, the index found.
  • People's reactions to a woman's pregnancy at work is a good example of how much bias still exists. In the United States, as recently as 2011, some employers still fired employees on the spot who had become pregnant, according to a report by the Center for WorkLife Law at the University of California's Hastings College of the Law. (That's illegal.) More subtly, women announcing a pregnancy may be taken off the partner track or denied raises and bonuses. (Also illegal.) A pregnancy can easily reset the course of a woman's career. Pregnancy discrimination is widespread and difficult to police.
andrespardo

First Thing: The climate can't take a return to 'business as usual' | US news | The Gua... - 0 views

  • The climate can't take a return to 'business as usual'
  • Mayors from 33 leading global cities have published a ‘statement of principles’ for a climate-friendly post-Covid world. Plus, why 2020 feels a lot like 1945
  • Can the world really return to “business as usual” after the coronavirus lockdowns – and even if it can, does that mean it should? Mayors representing 33 cities that are home to more than 750 million people have signed a “statement of principles”, published on Thursday, which commits their communities to a more climate-friendly and less unequal future.
  • ...5 more annotations...
  • The New York mayor, Bill de Blasio, a member of the newly formed C40 economic taskforce of city leaders from across the US, Europe and Africa, said it was crucial to map out a low-carbon, sustainable recovery from the crisis:
  • Half-measures that maintain the status quo won’t move the needle or protect us from the next crisis. We need a new deal for these times – a massive transformation that rebuilds lives, promotes equality and prevents the next economic, health or climate crisis.
  • deaths are the price for reopening the economy
  • At least one person is impatient for a return to business as usual, and that’s Donald Trump, who has again suggested that a growing coronavirus death toll is simply the price that must be paid for reopening the economy. “We have to be warriors,” he told Fox News. “We can’t keep our country closed down for years.” As infections continue to mount around the US, public health experts said the president’s desire to end the lockdown prematurely represented a “death sentence” for many Americans.
  • Nevertheless, Trump seems to have reversed his plan to disband the White House coronavirus taskforce, saying the group would remain in place indefinitely, but with a switch in focus and some changes in personnel.
kaylynfreeman

Meghan and Harry interview: Prince William says royals are 'very much not a racist fami... - 0 views

  • London (CNN)Prince William has denied the royal family is racist in his first public remarks since his brother Prince Harry, and his wife Meghan, made explosive claims in a TV interview.
  • Harry and Meghan, the Duke and Duchess of Sussex, made a series of damning accusations against the royal family in an interview with Oprah Winfrey, which aired in the UK on Monday night.
  • In the interview, Meghan said that the skin tone of the couple's child, Archie, was discussed as a potential issue before he was born. The couple would not reveal who had made the remarks, but said it wasn't Queen Elizabeth II or her husband, Philip, the Duke of Edinburgh. close dialogDo you want the news summarized each morning?We've got you.Please enter aboveSign me upBy subscribing you agree to ourprivacy policy.Success!See you in your inbox.close dialog/* effects for .bx-campaign-1271788 *//* custom css .bx-campaign-1271788 *//* custom css from creative 53617 */.bx-custom.bx-campaign-1271788 .bx-row-input.bx-row-validation .bx-vtext { font-size: 11px; color: #ee2924;}@keyframes bx-anim-1271788-spin { 100% { transform: rotate(360deg); }}/* rendered styles .bx-campaign-1271788 */.bxc.bx-campaign-1271788.bx-active-step-1 .bx-creative:before {min-height: 185px;}.bxc.bx-campaign-1271788.bx-active-step-1 .bx-creative {border-color: #c1c1c1;border-style: solid;background-size: contain;background-color: white;border-width: 1px 0;border-radius: 0;}.bxc.bx-campaign-1271788.bx-active-step-1 .bx-creative> *:first-child {width: 780px;padding: 10px;vertical-align: middle;}@media all and (max-width: 736px) {.bxc.bx-campaign-1271788.bx-active-step-1 .bx-creative> *:first-child {width: 340px;padding: 15px;}}.bxc.bx-campaign-1271788.bx-active-step-1 .bx-close {stroke: rgb(193, 193, 193);stroke-width: 2px;width: 24px;height: 24px;}@media all and (max-width: 736px) {.bxc.bx-campaign-1271788.bx-active-step-1 .bx-close {width: 30px;height: 30px;padding: 0 0 10px 10px;}}.bxc.bx-campaign-1271788 .bx-group-1271788-PGhroUO {width: 135px;text-align: left;}@media all and (max-width: 736px) {.bxc.bx-campaign-1271788 .bx-group-1271788-PGhroUO {text-align: center;display: none;}}.bxc.bx-campaign-1271788 .bx-element-1271788-LHjAYNs {width: 100%;}@media all and (max-width: 736px) {.bxc.bx-campaign-1271788 .bx-element-1271788-LHjAYNs {width: 45px;}}.bxc.bx-campaign-1271788 .bx-group-1271788-eWRqNk4 {width: 505px;padding: 2px 0 0 25px;text-align: left;}@media all and (max-width: 736px) {.bxc.bx-campaign-1271788 .bx-group-1271788-eWRqNk4 {width: 100%;padding: 5px 0 0;text-align: left;}}.bxc.bx-campaign-1271788 .bx-element-1271788-Sk3p2Hs {width: 100%;}@media all and (max-width: 736px) {.bxc.bx-campaign-1271788 .bx-element-1271788-Sk3p2Hs {width: 100%;}}.bxc.bx-campaign-1271788 .bx-element-1271788-Sk3p2Hs> *:first-child {font-family: CNN,Helvetica Neue,Helvetica,Arial,Utkal,sans-serif;font-weight: 400;font-size: 21px;color: #282828;line-height: 1em;letter-spacing: -.015em;}@media all and (max-width: 736px) {.bxc.bx-campaign-1271788 .bx-element-1271788-Sk3p2Hs> *:first-child {font-size: 22px;min-width: auto;padding: 0;line-height: 1.1m;}}.bxc.bx-campaign-1271788 .bx-element-1271788-Gs3ScAY {width: 100%;}@media all and (max-width: 736px) {.bxc.bx-campaign-1271788 .bx-element-1271788-Gs3ScAY {width: 100%;}}@media all and (min-width: 1025px) {.bxc.bx-campaign-1271788 .bx-element-1271788-Gs3ScAY {width: 500px;}}.bxc.bx-campaign-1271788 .bx-element-1271788-Gs3ScAY> *:first-child {font-family: CNN,Helvetica Neue,Helvetica,Arial,Utkal,sans-serif;font-weight: 400;font-size: 21px;padding: 6px 0 0;color: #ee2924;line-height: 1.1em;letter-spacing: -.015em;}@media all and (max-width: 736px) {.bxc.bx-campaign-1271788 .bx-element-1271788-Gs3ScAY> *:first-child {font-size: 18px;padding: 8px 0 0;}}.bxc.bx-campaign-1271788 .bx-group-1271788-kw4VbV5 {width: 640px;padding: 10px 0 0;min-width: 550px;}@media all and (max-width: 736px) {.bxc.bx-campaign-1271788 .bx-group-1271788-kw4VbV5 {min-width: auto;width: 100%;padding: 10px 0 0;}}@media all and (min-width: 737px) and (max-wi
carolinehayter

House Democrats are still pursuing Trump's tax returns but Biden administration may not... - 0 views

  • After notching recent wins in their long hunt for material to help bring legal accountability to former President Donald Trump, congressional Democrats fear the Biden administration won't be helpful when it comes to obtaining the documents they covet the most: Trump's tax returns.
  • But four months into President Joe Biden's term, liberal advocates and some lawmakers are growing impatient that the Justice Department hasn't done more to expose the Trump administration's alleged misdeeds -- and in some cases has even tried to help shield them.
  • In late April, federal agents executed search warrants on Trump's personal attorney Rudy Giuliani. Democrats have also received some documents related to Trump's Washington hotel lease that the Trump administration had kept hidden. And on Friday, House Democrats will finally get the chance to interview former White House counsel Don McGahn about Trump's efforts to obstruct justice.
  • ...13 more annotations...
  • It's "a return to business as usual for DOJ -- and not DOJ swinging as frantically to an anti-Trump agenda as it did to the pro-Trump one that I and many other observers abhorred,"
  • "I appreciate the independence. I don't always agree with the positions," said Eisen, who would like to see more released by the Justice Department. "They're going to act with that same independence in defense of what they perceive to be in the long-term interests of the executive branch."
  • The Biden administration now has control over three high-profile documents that are still central to Democrats' court fights related to Trump: Trump's tax returns, held by the IRS; grand jury material underpinning the Russia investigation; and the key internal memo to former Attorney General William Barr justifying the decision not to charge Trump with obstruction in former special counsel Robert Mueller's investigation.
  • Trump's taxes have been the white whale of Democratic investigators for years,
  • Trump's tax returns are no longer completely under lock and key, either. The Manhattan district attorney obtained them earlier this year through a lawsuit of his own.
  • Last week, Garland's Justice Department partly sided with Barr. The department partially appealed a judge's order to release a 2019 memo written for Barr about how to handle Mueller's findings on Trump and obstruction of justice. The Justice Department tried to offer some transparency: A federal judge had slammed the department for considering the optics of the Mueller report's rollout, and the department made that section public.
  • But the department is now fighting to keep redacted six-and-a-half pages of legal analysis on whether a criminal case against the then-President was merited, even if he could not be charged under Justice Department policy.
  • Congressional Democrats urged Garland not to appeal the judge's decision.
  • "There is this institutional rivalry between executive and legislative branches that overlays or perhaps underlays the misbehavior that the judge found within the department,"
  • The Justice Department's stance shouldn't be a surprise, given that Biden came into office with a team that was vowing to move on from the Trump-era controversies.
  • The House committees that investigated Trump, however, have vowed to keep pursuing their cases that are tied up in court.
  • The Supreme Court was set to hear an appeal from the administration as it sought to keep grand jury documents cited in the Mueller report under seal, after the House won access in court. That hearing has been postponed.
  • The House's push for financial documents and Trump's tax returns has another obstacle beyond the Biden administration: Trump himself. The former President's involvement in the cases, now as a private citizen who has several teams of lawyers protecting his interests, may be one reason for the stalemates.
mattrenz16

Opinion: Naomi Osaka's courageous choice - CNN - 0 views

  • Twenty-three-year-old tennis player and four-time Grand Slam singles champion Naomi Osaka stunned the tennis community this week by dropping out of the in-progress French Open, one of the year's major tournaments, announcing on social media that she will "take some time away from the court."
  • That is why forcing her to choose between her mental health and a few media sound bites was entirely unnecessary. We don't need to hear from her to appreciate her skill on the court. We do not need to drive her out of her career in order to punish her for failing to perform.
  • Her decision was surprising, but not entirely out of the blue. Earlier, Osaka had announced that she would be opting out of the tournament's "mandatory" media interviews, citing mental health concerns, including a history of depression.
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  • But Open organizers didn't stop there, issuing a news release threatening to expel her from the tournament if she kept it up.
  • And so, she quit. Read More
  • In attempting to force her hand, they essentially forced her out. Enter email to sign up for the CNN Opinion newsletter. "close dialog"Get CNN Opinion's newsletter for the latest thoughts and analysis on today's news.Please enter aboveSign me upBy subscribing you agree to ourprivacy policy.Thanks for Subscribing!Continue ReadingBy subscribing you agree to ourprivacy policy."close dialog"/* effects for .bx-campaign-1376914 *//* custom css .bx-campaign-1376914 *//* custom css from creative 52220 */.bxc.bx-custom.bx-campaign-1376914 .bx-row-image-logo img { height: 42px;}@media screen and (max-width:736px) { .bxc.bx-custom.bx-campaign-1376914 .bx-row-image-logo img { height: 35px;}}/*Validation border*/.bxc.bx-custom.bx-campaign-1376914 .bx-row-validation .bx-input { border-color: #B50000; /*Specify border color*/ border-width: 1px; box-shadow: none; background-color: transparent; color: #B50000; /*Specify text color*/}/* rendered styles .bx-campaign-1376914 */.bxc.bx-campaign-1376914.bx-active-step-1 .bx-creative:before {min-height: 220px;}.bxc.bx-campaign-1376914.bx-active-step-1 .bx-creative {border-color: #c1c1c1;border-style: solid;background-size: contain;background-color: white;border-width: 1px 0;border-radius: 0;}@media all and (max-width: 736px) {.bxc.bx-campaign-1376914.bx-active-step-1 .bx-creative:before {min-height: 200px;}}.bxc.bx-campaign-1376914.bx-active-step-1 .bx-creative> *:first-child {width: 780px;vertical-align: middle;padding: 10px;}@media all and (max-width: 736px) {.bxc.bx-campaign-1376914.bx-active-step-1 .bx-creative> *:first-child {width: 340px;padding: 20px;}}.bxc.bx-campaign-1376914.bx-active-step-1 .bx-close {stroke: rgb(193, 193, 193);stroke-width: 2px;width: 24px;height: 24px;}@media all and (max-width: 736px) {.bxc.bx-campaign-1376914.bx-active-step-1 .bx-close {width: 30px;height: 30px;padding: 0 0 10px 10px;}}.bxc.bx-campaign-1376914 .bx-group-1376914-y4M7jyO {width: 660px;text-align: left;}@media all and (max-width: 736px) {.bxc.bx-campaign-1376914 .bx-group-1376914-y4M7jyO {text-align: center;width: 315px;}}.bxc.bx-campaign-1376914 .bx-element-1376914-tVcUlRZ {padding: 0;width: auto;}.bxc.bx-campaign-1376914 .bx-element-1376914-tVcUlRZ> *:first-child {background-color: transparent;background-size: contain;}.bxc.bx-campaign-1376914 .bx-group-1376914-BpRQ7DR {width: 660px;text-align: left;padding: 25px 0 15px;}@media all and (max-width: 736px) {.bxc.bx-campaign-1376914 .bx-group-1376914-BpRQ7DR {width: 310px;padding: 15px 0 15px;text-align: center;}}.bxc.bx-campaign-1376914 .bx-element-1376914-oUX5Jvf {width: 100%;}@media all and (max-width: 736px) {.bxc.bx-campaign-1376914 .bx-element-1376914-oUX5Jvf {width: auto;}}.bxc.bx-campaign-1376914 .bx-element-1376914-oUX5Jvf> *:first-child {font-family: CNN Business,CNN,Helvetica Neue,Helvetica,Arial,Utkal,sans-serif;font-weight: 400;font-size: 24px;line-height: 1.1em;}@media all and (max-width: 736px) {.bxc.bx-campaign-1376914 .bx-element-1376914-oUX5Jvf> *:first-child {font-size: 16px;padding: 6px 0 0;line-height: 1.2;}}.bxc.bx-campaign-1376914 .bx-group-1376914-PZ8dLrW {width: 660px;padding: 0;min-width: 550px;text-align: left;}@media all and (max-width: 736px) {.bxc.bx-campa
  • Osaka first came into the spotlight at the 2018 US Open when her historic win against Serena Williams received boos from a crowd convinced that Williams was unfairly targeted by the umpire. What should have been an extraordinarily joyous occasion, her first major victory and the event that catapulted her into public recognition, was instead one that made her cry, both immediately following the match and when she went to collect her trophy. ESPN declared that "Naomi Osaka was denied her magic moment."
  • Simply put, it's because the world has unrealistic expectations of celebrities and athletes. We believe the public nature of their fame entitles us access to their private lives. In several recent interviews, such as one with podcaster Dax Shepard, Prince Harry has talked openly of his own mental health struggles and of the pressures he and his wife, Meghan Markle, have felt as objects of media fascination, pressures so severe that Markle thought of suicide.
  • Many of her fellow athletes agreed with her decision. Steph Curry tweeted, "you shouldn't ever have to make a decision like this -- but so damn impressive taking the high road when the powers that be don't protect their own. major respect @naomiosaka." Martina Navratilova tweeted her support of Osaka, noting that "as athletes we are taught to take care of our body, and perhaps the mental & emotional aspect gets short shrift. This is about more than doing or not doing a press conference." Serena Williams offered her support, too.
  • Some tennis players, of course -- including Rafael Nadal and Sofia Kenin -- have come out to say that speaking to reporters is part of the job. But just because something has been part of the job needn't mean it should be, or that it should be for everyone. Osaka didn't just decide she didn't feel like giving interviews. She was forced to make a choice, and she chose herself. That takes courage, courage that is a shame she had to muster at all. Because in the end, the tennis world has lost a great, at least for now -- a point that deserves much more attention.
aidenborst

Opinion: Michael Flynn is playing with fire - CNN - 0 views

  • It's hard to get a grip on what's happened to one-time war hero, retired lieutenant general Michael Flynn.
  • Flynn, a former national security adviser to President Donald Trump, shockingly appeared to support a military coup in the United States during a Sunday keynote address to a Dallas conference organized by supporters of QAnon conspiracy theories.
  • An audience member at the Dallas event asked Flynn: "I want to know why what happened in Minamar (sic) can't happen here?" The audience raucously cheered this question. Flynn replied, "No reason. I mean, it should happen here. No reason. That's right." Again, the audience cheered heartily. Enter email to sign up for the CNN Opinion newsletter. "close dialog"Healing a divided country starts with listening. Sign up for refreshing takes from every perspective. Please enter aboveSign me upBy subscribing you agree to ourprivacy policy.Thanks for Subscribing!Continue ReadingBy subscribing you agree to ourprivacy policy."close dialog"/* effects for .bx-campaign-1376913 *//* custom css .bx-campaign-1376913 *//* custom css from creative 52220 */.bxc.bx-custom.bx-campaign-1376913 .bx-row-image-logo img { height: 42px;}@media screen and (max-width:736px) { .bxc.bx-custom.bx-campaign-1376913 .bx-row-image-logo img { height: 35px;}}/*Validation border*/.bxc.bx-custom.bx-campaign-1376913 .bx-row-validation .bx-input { border-color: #B50000; /*Specify border color*/ border-width: 1px; box-shadow: none; background-color: transparent; color: #B50000; /*Specify text color*/}/* rendered styles .bx-campaign-1376913 */.bxc.bx-campaign-1376913.bx-active-step-1 .bx-creative:before {min-height: 220px;}.bxc.bx-campaign-1376913.bx-active-step-1 .bx-creative {border-color: #c1c1c1;border-style: solid;background-size: contain;background-color: white;border-width: 1px 0;border-radius: 0;}@media all and (max-width: 736px) {.bxc.bx-campaign-1376913.bx-active-step-1 .bx-creative:before {min-height: 200px;}}.bxc.bx-campaign-1376913.bx-active-step-1 .bx-creative> *:first-child {width: 780px;vertical-align: middle;padding: 10px;}@media all and (max-width: 736px) {.bxc.bx-campaign-1376913.bx-active-step-1 .bx-creative> *:first-child {width: 340px;padding: 20px;}}.bxc.bx-campaign-1376913.bx-active-step-1 .bx-close {stroke: rgb(193, 193, 193);stroke-width: 2px;width: 24px;height: 24px;}@media all and (max-width: 736px) {.bxc.bx-campaign-1376913.bx-active-step-1 .bx-close {width: 30px;height: 30px;padding: 0 0 10px 10px;}}.bxc.bx-campaign-1376913 .bx-group-1376913-y4M7jyO {width: 660px;text-align: left;}@media all and (max-width: 736px) {.bxc.bx-campaign-1376913 .bx-group-1376913-y4M7jyO {text-align: center;width: 315px;}}.bxc.bx-campaign-1376913 .bx-element-1376913-tVcUlRZ {padding: 0;width: au
  • ...6 more annotations...
  • On Monday, Flynn seemed to be trying to dial back, saying on social media that he doesn't support a military coup. Yet Flynn's comments in Dallas Sunday were made on video, which can be seen here by anyone who wants to judge Flynn's response for themselves.
  • Flynn's recent musings about coups, martial law and overturning legitimate presidential elections are all a very long way from the period after 9/11, when he served in the elite Joint Special Operations Command as a highly regarded intelligence officer in Afghanistan and Iraq.
  • Flynn was so well thought of that he was eventually promoted to lieutenant general and to run the Defense Intelligence Agency (DIA), but Flynn's overseers in the Obama administration thought he was an ineffective manager of DIA, a large agency with 17,000 employees, and in 2014 he was pushed out of his post.
  • After Trump won the presidency in 2016, he appointed Flynn his national security adviser, a post in which he served for the record briefest amount of time; only 24 days.
  • Flynn was fired for lying to Vice President Mike Pence about the content of conversations he had had with the Russian ambassador to the United States during the presidential transition. Flynn later pleaded guilty to lying to the FBI about the same issue.
  • Trump pardoned Flynn, but the eradication of his conviction doesn't seem to have impacted Flynn's continuing lack of good judgment: Calling for the overturning of a legitimate presidential election; floating the imposition of martial law and appearing to approve of a coup in the United States.
aidenborst

Dogecoin surges after Coinbase Pro lets some users trade it - CNN - 0 views

  • Dogecoin is going to the moon again.
  • The canine-themed digital currency soared more than 25% Wednesday to about 40 cents. Investors cheered the news that crypto giant Coinbase (COIN) was planning to let users of its Coinbase Pro service buy and sell dogecoin.
  • By Wednesday night, Dogecoin had reached 42 cents, according to Coinbase.
  • ...3 more annotations...
  • "One of the most common requests we receive from customers is to be able to trade more assets on our platform," Coinbase said in a blog post Tuesday.
  • "We will make a separate announcement if and when this support is added," the company said.
  • But Musk is cheering the dogecoin comeback. Following the Coinbase announcement, Musk resurfaced a tweet of his from last July that showed a gigantic cloud with a dog's face on it and the text "dogecoin standard" that was approaching a landscape labeled "global financial system."Enter your email to receive CNN's nightcap newsletter. "close dialog"We read all day so you don’t have to.Get our nightly newsletter for all the top business stories you need to know.Please enter aboveSign me upBy subscribing you agree to ourprivacy policy.Success! Thanks for signing up for the CNN Business Nightcap newsletter."close dialog"/* effects for .bx-campaign-1334631 *//* custom css .bx-campaign-1334631 *//* custom css from creative 52221 */@keyframes bx-anim-1334631-spin { 100% { transform: rotate(360deg); }}/* rendered styles .bx-campaign-1334631 */.bxc.bx-campaign-1334631.bx-active-step-1 .bx-creative:before {min-height: 240px;}.bxc.bx-campaign-1334631.bx-active-step-1 .bx-creative {border-color: #00c59e;border-style: none;background-size: contain;background-color: #00c59e;}.bxc.bx-campaign-1334631.bx-active-step-1 .bx-creative> *:first-child {width: 780px;padding: 18px;vertical-align: middle;}@media all and (max-width: 736px) {.bxc.bx-campaign-1334631.bx-active-step-1 .bx-creative> *:first-child {width: 340px;padding: 18px 5px;}}.bxc.bx-campaign-1334631.bx-active-step-1 .bx-close {stroke: rgb(0, 0, 0);stroke-width: 1.5px;}@media all and (max-width: 736px) {.bxc.bx-campaign-1334631.bx-active-step-1 .bx-close {width: 30px;height: 30px;padding: 0 0 10px 10px;}}.bxc.bx-campaign-1334631 .bx-group-1334631-3EEWyi6 {width: 310px;text-align: left;}@media all and (max-width: 736px) {.bxc.bx-campaign-1334631 .bx-group-1334631-3EEWyi6 {text-align: center;}}.bxc.bx-campaign-1334631 .bx-element-1334631-GCtdzI1 {width: 290px;}@media all and (max-width: 736px) {.bxc.bx-campaign-1334631 .bx-element-1334631-GCtdzI1 {width: 230px;}}.bxc.bx-campaign-1334631 .bx-element-1334631-GCtdzI1> *:first-child {alt: CNN business Nightcap;}.bxc.bx-campaign-1334631 .bx-group-1334631-ZEoAbMC {width: 380px;padding: 15px 0 0 10px;text-align: left;}@media all and (max-width: 736px) {.bxc.bx-campaign-1334631 .bx-group-1334631-ZEoAbMC {width: 300px;padding: 18px 0 0;text-align: center;}}.bxc.bx-campaign-1334631 .bx-element-1334631-3bKsKxs {width: 100%;}@media all and (max-width: 736px) {.bxc.bx-campaign-1334631 .bx-element-1334631-3bKsKxs {width: 100%;}}@media all and (min-width: 1025px) {.bxc.bx-campaign-1334631 .bx-element-1334631-3bKsKxs {width: 500px;}}.bxc.bx-campaign-1334631 .bx-element-1334631-3bKsKxs> *:first-child {font-family: CNN,Helvetica Neue,Helvetica,Arial,Utkal,sans-serif;font-weight: 700;font-size: 20px;}@media all and (max-width: 736px) {.bxc.bx-campaign-1334631 .bx-element-1334631-3bKsKxs> *:first-child {font-size: 15px;min-width: auto;}}.bxc.bx-campaign-1334631 .bx-element-1334631-PQSiIV9 {width: 100%;}@media all and (max-width: 736px) {.bxc.bx-campaign-1334631 .bx-element-1334631-PQSiIV9 {width: 100%;}}@media all and (min-width: 1025px) {.bxc.bx-campaign-1334631 .bx-element-1334631-PQSiIV9 {width: 500px;}}.bxc.bx-campaign-1334631 .bx-element-1334631-PQSiIV9> *:first-child {font-family: CNN,Helvetica Neue,Helvetica,Arial,Utkal,sans-serif;font-weight: 400;font-size: 16px;padding: 8px 0 0;}@media all and (max-width: 736px) {.bxc.bx-campaign-1334631 .bx-element-1334631-PQSiIV9> *:first-child {font-size: 14px;padding: 6px 0 0;}}.bxc.bx-campaign-1334631 .bx-group-1334631-UY4jwxF {width: 695px;paddi
Javier E

How Index Funds May Hurt the Economy - The Atlantic - 0 views

  • Thanks to their ultralow fees and stellar long-term performance, these investment vehicles have soaked up more and more money since being developed by Vanguard’s Jack Bogle in the 1970s
  • as of 2016, investors worldwide were pulling more than $300 billion a year out of actively managed funds and pushing more than $500 billion a year into index funds. Some $11 trillion is now invested in index funds, up from $2 trillion a decade ago. And as of 2019, more money is invested in passive funds than in active funds in the United States.
  • Indexing has also gone small, very small. Although many financial institutions offer index funds to their clients, the Big Three control 80 or 90 percent of the market. The Harvard Law professor John Coates has argued that in the near future, just 12 management professionals—meaning a dozen people, not a dozen management committees or firms, mind you—will likely have “practical power over the majority of U.S. public companies.”
  • ...29 more annotations...
  • Indexing has gone big, very big. For nine in 10 companies on the S&P 500, their largest single shareholder is one of the Big Three. For many, the big indexers control 20 percent or more of their shares. Index funds now control 20 to 30 percent of the American equities market, if not more.
  • The problem is that the public markets have been cornered by a group of investment managers small enough to fit at a lunch counter, dedicated to quiescence and inertia.
  • Passively managed investment options do not just outperform actively managed ones in terms of both better returns and lower fees. They eat their lunch.
  • Let’s imagine that a decade ago you invested $100 in an index fund charging a 0.04 percent fee and $100 in a traditional mutual fund charging a 1.5 percent fee. Let’s also imagine that the index fund tracked the S&P 500, and that the mutual fund ended up returning what the S&P 500 returned. Your passively invested $100 would have turned into $356.66 in 10 years. Your traditionally invested $100 would have turned into $313.37.
  • Actively managed investment options could make up for their higher fees with higher returns. And some do, some of the time. Yet scores of industry and academic studies stretching over decades show that trying to beat the market tends to result in lower returns than just buying the market. Only a quarter of actively managed mutual funds exceeded the returns of their passively managed cousins in the decade leading up to 2019,
  • What might be good for retail investors might not be good for the financial markets, public companies, or the American economy writ large, and the passive revolution’s scope has raised all sorts of hand-wringing and red-flagging. Analysts at Bernstein have called passive investing “worse than Marxism.” The investor Michael Burry, of The Big Short fame, has called it a “bubble,” and a co-head of Goldman Sachs’s investment-management division has warned about froth too. Shortly before his death in 2019, Bogle himself warned that index funds’ dominance might not “serve the national interest.”
  • One primary concern comes from the analysts at Bernstein: “A supposedly capitalist economy where the only investment is passive is worse than either a centrally planned economy or an economy with active, market-led capital management.”
  • Active managers direct investment dollars to companies on the basis of those companies’ research-and-development prospects, human capital, regulatory outlook, and so on. They take new information and price it into a company’s stock when buying and selling shares.
  • Passive investors, by contrast, ignore annual reports and market rumors. They do nothing with trading-floor gossip. They make no attempt to research what to invest in and what to skip. Whether holding international or domestic assets, holding stocks or bonds, or using a mutual-fund structure or an ETF structure, they just mirror the market. Big U.S.-stock index funds buy big U.S. stocks just because they’re big U.S. stocks.
  • At least in a Soviet-type centrally planned economy, apparatchiks would be making some attempt to allocate resources efficiently.
  • Passive management is merely a giant phenomenon, not an all-encompassing one. Hundreds of actively managed mutual funds are still out there, as are legions of day traders, hedge funds, and private offices buying and selling and buying and selling. Stock prices still move around, sometimes dramatically, on the basis of new data and new ideas.
  • Still, passive investing may well be degrading the informational content of the markets, messing up price signals and making business decisions harder as a result.
  • When one of these commodities ends up on an index, the firms that use that commodity in their business see a 6 percent increase in costs and a 40 percent decrease in operating profits, relative to firms without exposure to the commodity, the academics found
  • Their theory is that ETF trading shifts prices in subtle ways, making it harder for businesses to know when to buy their gold and copper. Corporate executives “are being influenced by what happens in the futures market, and what happens in the futures market is being influenced by ETF trading,”
  • More broadly, the Bernstein analysts, among others, worry that index-linked investing is increasing correlation, whereby the prices of stocks, bonds, and other assets move up or down or sideways together.
  • the price fluctuations of a newly indexed stock “magically and quickly” change. A firm’s shares begin to move “more closely with its 499 new neighbors and less closely with the rest of the market. It is as if it has joined a new school of fish.”
  • A far bigger concern is that the rise of the indexers might be making American firms less competitive, through “common ownership,” in which the mega-asset managers control large stakes in multiple competitors in the same industry. The passive firms control big chunks of the airlines American, Delta, JetBlue, Southwest, and United, for instance
  • The rise of common ownership might be perverting corporate behavior in weird ways, academics argue. Think about the incentives like this: Let’s imagine that you are a major shareholder in a public widget company. We’d expect you to desire—insist, even—that the company fight for market share and profits. But now imagine that you are a major shareholder in all the important widget companies. You would no longer really care which one succeeded, particularly not if one company doing better meant another company doing worse. You’d just care about the widget sector’s corporate profits, which would go up if the widget companies quit competing with one another and started raising prices to pad their bottom line.
  • one major paper showed that common ownership of airline stocks had the effect of raising ticket prices by 3 to 7 percent.
  • A separate study showed that consumers are paying higher prices for prescription medicines because generic-drug makers have less incentive to compete with the companies making name-brand drugs.
  • Yet another study showed that common ownership is leading retail banks to charge higher prices.
  • Across firms, executive compensation seems to be more closely linked to a company’s performance when its shareholders are not invested in the company’s rivals, the study found. In other words, firms stop paying managers for performance when owned by the same people who own their rivals.
  • The market clout of the indexers raises other questions too. The actual owners of the stocks—not the index-fund managers but the people putting money into index funds—have little say over the companies they own. Vanguard, Fidelity, and State Street, not Mom and Dad, vote in shareholder elections
  • In fact, the Big Three cast roughly 25 percent of the votes in S&P 500 companies.
  • In an interview with The Wall Street Journal, the chief executive officer of State Street said he thought it was “almost inevitable, when you see this kind of concentration, that it probably will make sense to do something about it.”
  • But figuring out what the appropriate restrictions are depends on determining just what the problem with the indexers is—are they distorting price signals, raising the cost of consumer goods, posing financial systemic risk, or do they just have the market cornered? Then, what to do about it? Common ownership is not a problem the government is used to handling.
  • , thanks to the passive revolution, a broad variety and huge number of firms might have less incentive to compete. The effect on the real economy might look a lot like that of rising corporate concentration. And the two phenomena might be catalyzing one another, as index investing increases the number of mergers and makes them more lucrative.
  • In recent decades, the whole economy has gone on autopilot. Index-fund investment is hyperconcentrated. So is online retail. So are pharmaceuticals. So is broadband. Name an industry, and it is likely dominated by a handful of giant players. That has led to all sorts of deleterious downstream effects: suppressing workers’ wages, raising consumer prices, stifling innovation, stoking inequality, and suffocating business creation
  • The problem is not just the indexers. It is the public markets they reflect, where more chaos, more speculation, more risk, more innovation, and more competition are desperately needed.
katherineharron

Appeals court skeptical of Trump's effort to block subpoena for his tax returns - CNNPo... - 0 views

  • A federal appeals court expressed skepticism Wednesday that President Donald Trump can block a subpoena from New York state prosecutors for his tax returns, in a case that all sides agree is likely headed toward the Supreme Court for an election-year showdown.
  • The back-and-forth was an allusion to Trump's comment during the 2016 campaign that he "could stand in the middle of Fifth Avenue and shoot somebody and I wouldn't lose voters."
  • "The premise is that this is a distraction. It distracts the President from carrying out his duties," federal Judge Denny Chin said. "Where is the distraction if the subpoena is served on accountants? The President doesn't have to do anything to comply with the subpoenas?
  • ...6 more annotations...
  • The case is expected to make its way to the Supreme Court. Both sides struck a deal Monday to fast-track any Supreme Court petitions after the appeals panel weighs in, potentially teeing up a dramatic showdown in Washington before the 2020 election.
  • His critics have alleged that his tax returns could expose massive debts to foreign interests or that is he not as wealthy as he claims to be. A Forbes estimate from September said Trump is worth $3.1 billion, though Cohen has testified that Trump inflated his earnings in the past.
  • The case can be traced back to the hush-money payments to adult film actress Stormy Daniels and another woman who alleged extramarital affairs with Trump, which he denies. State prosecutors want to know if the Trump Organization, based in New York, filed false business records to cover up the payments.
  • Trump's team had asked the lower-court judge to block Vance from enforcing the subpoena, and to stop Mazars from sending over the tax records, until Trump leaves office. His lawyers argued that a criminal investigation of the sitting president is "unconstitutional." In a surprising move, the Justice Department got involved and also requested a temporary freeze on the subpoenas.
  • "You could invent scenarios where you could imagine it would be necessary or at least perhaps a good idea for a sitting president to be subject to a criminal charge, even by a state while, in office," Dunne said. "If he for example did pull out a hand gun and shoot someone on Fifth Avenue, well, what would be the impact of that? Would local police be disabled from restraining such a person? Or from processing such a person? Would we have to wait for an impeachment proceeding to be initiated?"
  • A federal appeals court expressed skepticism Wednesday that President Donald Trump can block a subpoena from New York state prosecutors for his tax returns, in a case that all sides agree is likely headed toward the Supreme Court for an election-year showdown.
katherineharron

Why Biden's secretary of state pick tells us a lot about his priorities as president - ... - 0 views

  • Joe Biden is poised to name Antony Blinken as his secretary of state on Tuesday,
  • There's no set order to these things, of course, but it is absolutely purposeful and therefore noteworthy that Biden is not only leading his Cabinet announcements with the nation's top diplomat but also that he is doing it so early in his transition.
  • "You're going to see the first of the President-elect's cabinet appointments on Tuesday of this week. Meeting the pace -- beating, in fact, the pace that was set by the Obama/Biden transition, beating the pace set by the Trump transition."
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  • Fixing America's standing in the world -- after four years of President Trump fighting our traditional allies and making nice with our longtime enemies -- is absolutely urgent. There's no time to waste.
  • The primacy of the secretary of state pick is meant to send that message not just to the federal bureaucracy, but, more importantly, to the world community.
  • The last four years are an aberration. It is not who we will be.Read More .duval-3{width:100%;position: relative; border: 1px solid #979797; border-left: none; border-right: none;padding: 20px 0; box-sizing: border-box; -webkit-box-sizing: border-box; -moz-box-sizing: border-box; margin: 0 0 20px 0; max-width: 660px;} .duval-3 a{color: #1a1a1a; text-decoration: none;font-size: 0;} .duval-3 a:hover { color: #d9d9d9; text-decoration: underline; -moz-text-decoration-color: #d9d9d9; text-decoration-color: #d9d9d9; } .duval-3>a>*{vertical-align: top; display: inline-block;} .duval-3>a>div{display: inline-block; font-size:1.0666667rem;width: 80%; padding-top: 0px; padding-left: 2%;} .duval-3>a>img{width: 18%; height: auto;} @media screen and (max-width:640px){ .duval-3>a>*{display:block; margin: auto;} .duval-3>a>div{width: 100%;} .duval-3>a>img{width: 50%;} }
  • He, like Klain, has deep roots with Biden. He served as staff director at the Senate Foreign Relations Committee when Biden chaired it.
  • And like Klain, he is a longtime Democratic policy hand. Blinken served in the Clinton administration as special assistant to the president and chief foreign policy speechwriter for the president. close dialogSign up for CNN's CNN's Chris Cillizza cuts through the political spin and tells you what you need to know. Please enter above Sign Me UpNo ThanksBy subscribing, you agree to ourprivacy policy.You're on the list for CNN'sCNN's Chris Cillizza cuts through the political spin and tells you what you need to know. close dialog/* effects for .bx-campaign-1219472 *//* custom css .bx-campaign-1219472 *//* custom css from creative 47804 */@-ms-keyframes bx-anim-1219472-spin { from { -ms-transform: rotate(0deg); } to { -ms-transform: rotate(360deg); } } @-moz-keyframes bx-anim-1219472-spin { from { -moz-transform: rotate(0deg); } to { -moz-transform: rotate(360deg); } } @-webkit-keyframes bx-anim-1219472-spin { from { -webkit-transform: rotate(0deg); } to { -webkit-transform: rotate(360deg); } } @keyframes bx-anim-1219472-spin { from { transform: rotate(0deg); } to { transform: rotate(360deg); } }/* rendered styles .bx-campaign-1219472 */.bxc.bx-campaign-1219472.bx-active-step-1 .bx-creative> *:first-child {width: 780px;padding: 15px;}@media all and (max-width: 736px) {.bxc.bx-campaign-1219472.bx-active-step-1 .bx-creative> *:first-child {width: 400px;}}@media all and (min-width: 737px) and (max-width: 1024px) {.bxc.bx-campaign-1219472.bx-active-step-1 .bx-creative> *:first-child {width: 737px;}}.bxc.bx-campaign-1219472.bx-active-step-1 .bx-creative:before {min-height: 230px;}.bxc.bx-campaign-1219472.bx-active-step-1 .bx-creative {background-color: #fefefe;border-style: solid;border-color: rgb(213, 213, 213);border-width: 1px 0;}@media all and (max-width: 736px) {.bxc.bx-campaign-1219472.bx-active-step-1 .bx-creative:before {min-height: 200px;}}.bxc.bx-campaign-1219472.bx-active-step-1 .bx-close {width: 20px;stroke: rgb(169, 169, 169);}.bxc.bx-campaign-1219472 .bx-group-1219472-tBtYNNU {width: 100%;padding: 0px;}@media all and (max-width: 736px) {.bxc.bx-campaign-1219472 .bx-group-1219472-tBtYNNU {padding: 0px;text-align: center;}}.bxc.bx-campaign-1219472 .bx-element-1219472-vnxQeDA> *:first-child {font-weight: 700;font-size: 18px;}@media all and (max-width: 736px) {.bxc.bx-campaign-1219472 .bx-element-1219472-vnxQeDA> *:first-child {font-size: 14px;}}.bxc.bx-campaign-1219472 .bx-group-1219472-zNZm3ba {width: auto;height: 100px;}.bxc.bx-campaign-1219472 .bx-element-1219472-bWybe9u {width: 254px;}@media all and (max-width: 736px) {.bxc.bx-campaign-1219472 .bx-element-1219472-bWybe9u {width: 200px;}}.bxc.bx-campaign-1219472 .bx-element-1219472-bWybe9u> *:first-child {height: 100px;}@media all and (max-width: 736px) {.bxc.bx-campaign-1219472 .bx-group-1219472-9wCndcV {width: 300px;}}.bxc.bx-campaign-1219472 .bx-element-1219472-XG1hSFu {padding: 0px 0px 20px;}@media all and (max-width: 736px) {.bxc.bx-campaign-1219472 .bx-element-1219472-XG1hSFu {width: auto;padding: 0 0 15px;}}.bxc.bx-campaign-1219472 .bx-element-1219472-XG1hSFu> *:first-child {font-size: 14px;font-family: CNN,Helvetica Neue,Verdana,Helvetica,Arial,Utkal,sans-serif;font-weight: 400;color: #262626;letter-spacing: 0.01em
  • Blinken is a striking contrast to Trump's first secretary of state, former Exxon boss Rex Tillerson, who Trump touted as the crown jewel of his Cabinet but who proved ineffective at building relationships within the State Department or with the President.
  • The Blinken pick -- and Biden's decision to name him first among his Cabinet choices -- is best understood, then, as the President-elect doing everything he can to make clear that he will be the exact opposite of the man who preceded him in office.
  • If Trump ran and governed as the anti-Barack Obama, then Biden is signaling that he will govern as the anti-Trump. And the wheel turns.
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