Investors in Somerset Capital Management told they could make ‘super normal returns’ Coronavirus – latest updatesSee all our coronavirus coverageGovernment minister Jacob Rees-Mogg’s investment firm has been criticised for exploiting the coronavirus crisis after telling clients it provided a chance to make “super normal returns”.Somerset Capital Management (SCM), which manages investments in emerging markets, told clients that the dive in stock market valuations around the world since the pandemic took hold had made “excellent entry points for investors”.Market dislocations of this magnitude happen rarely, perhaps once or twice in a generation, and have historically provided excellent entry points for investorsNo fan of Rees-Mogg, and of course super-profits must be properly taxed, but this is a bit silly. SCM wants to invest in … [Read More...]
All 4 coincident indicators of recession improved in May vs. April
All 4 coincident indicators of recession improved in May vs. April With this morning’s release of personal income and spending, we now have all 4 coincident indicators for May that the NBER uses to determine whether the economy is in a recession or recovery/expansion. And all 4 improved from their “most horrible” readings in April. […] [Read More...]
Going Too Far
Going Too Far Unfortunately, it was going to happen, and we who support the movement need to call out those instances where it goes too far. I am talking about the justified Black Lives Matter (BLM) movement, mostly characterized by widespread peaceful protests even in small rural towns that never see such things, and with […] [Read More...]
Bitcoin Is the Technology of Dissent That Secures Individual Liberties
The U.K. hearing of WikiLeaks founder Julian Assange’s U.S. extradition on the week of February 24, 2020, presented a test of Western liberal democracy. The indictment of Assange under the Espionage Act for publishing classified documents which exposed U.S. war crimes in Iraq and Afghanistan is recognized by free speech groups as an unprecedented attack on the First Amendment. With the government’s criminalization of journalism, we are seeing a deepening crisis of legitimacy that had begun to unravel a decade ago. Bitcoin emerged during the 2008 financial meltdown as a response to bank bailouts and a cycle of austerity. Over its 10 years of existence, the technology has steadily maintained its fundamentals of censorship resistance and permissionless usage. Now, more than ever, Bitcoin shows these defining features as … [Read More...]
“The Boss” Tells Trump . . .
Springsteen: “I had another show prepared for broadcast this week on this strange and eventful summer, but with 100,000+ Americans dying over the last few months and the empty, shamed response from our leaders, I’ve been simply pissed off. Those lives deserved better than just being inconvenient statistics for our President’s re-election efforts. It’s a […] [Read More...]
Zero Interest, Limitless Repo and QE4: The Federal Reserve’s Market Operations Explained
“Gradually and then suddenly.”–Ernest Hemingway “Your ATMs are safe, your cash is safe. There’s enough cash in the financial system and there is an infinite amount of cash in the Federal Reserve.”–Neel Kashkari, President of the Central Bank of Minneapolis The Federal Reserve’s market activity is reaching a fever pitch. In response to a market bloodletting that seems to precipitate new record losses every day, the Federal Reserve has responded to a somewhat unprecedented crisis with its most thorough market interventions since 2008. Liquidity is drying up in the financial system, the economy is shutting down as COVID-19 arrests the global populace and the Fed’s only response at this point has been to pump cash into the system by buying up assets directly from banks and … [Read More...]
Medicaid Eligibility Is Based On Current Monthly Income
Just in case, you missed it, Medicaid Eligibility Is Based On Current Monthly Income. Still do not understand? Let me try a different way to explain it, Medicaid Eligibility Is Based On Current Monthly Income. There, I have said it three times – once in the title and twice in the beginning text of this post. And yet […] [Read More...]
Naming Forts
It appears possible that the US military will cease to honor traitors and will change the names of bases named after Confederate generals. This raises the question of what new names to give them. This is one of the topics on which I have the very least expertise, so I will make my suggestions. 1) […] [Read More...]
Why Trump Is in Trouble
Why Trump Is in Trouble Trump is staggering. He’s plunging in the polls, and his behavior has become erratic and unhinged. I don’t mean he’s being crude, infantile and wrapped in a world of fantasy—he’s always like that. Rather, I see him as suddenly incoherent, fumbling with threats and catchphrases as if he were locked […] [Read More...]