Barry Ritholtz, Author Of “Bailout Nation”, Gets A Bailout

Barry Ritholtz, Author Of “Bailout Nation”, Gets A Bailout

Tyler Durden

Tue, 05/26/2020 – 21:25

Authored by Mike Shedlock via MishTalk,

Barry Ritholtz, Author of Bailout Nation, just got a bailout.

Please note the $1.3 billion Ritholtz Wealth Firm Takes Out a PPP Loan.

Count Ritholtz Wealth Management among the $1bn-plus RIAs which have taken out government-backed coronavirus relief loans.

Reformed Broker Under Pressure

The RIA’s chief executive, Josh Brown had this to say in a Reformed Broker blog post.

We qualified for the SBA-backed payroll protection loan after submitting our information and attestations. Two and a half months worth of employee payroll. I’m never comfortable taking on debt, but I’m even less comfortable about the idea of having to let people go. I would never be able to look myself in the mirror again if I had made that promise and didn’t back it up with action.

Thank you, Chase Bank! Thank you, SBA! It’s the news I needed and it came at the right time. Many of our peers of a similar size and employee headcount throughout the industry were able to make use of the program too. Being able to assure the firm that we’re keeping everyone and honoring all of our financial commitments meant everything in the moment.

Thank You Chase Bank!

Heaven forbid that an RIA would have to lose money over anything at all or layoff any employees.

It would be un-American for such travesties of justice to occur.

Fortunately, Ritzholz Wealth can use that money and under small business loan rules does not even have to pay it back. 

Tears to My Eyes

I nearly cried when I read this part.

This post is dedicated to the 13,000 registered investment advisory firms in America and their 835,000 employees. Our industry serves 43 million clients nationwide and we are proud to be a part of it. Thanks to all of our colleagues who’ve shared their stories with us as we’ve shared ours. 

God’s Work

No one can possibly be more deserving of a taxpayer bailout than RIA.

They do God’s Work

Bailout Nation – The Book

I happen to have a copy of the book Bailout Nation at hand.

From the jacket of Bailout Nation.

Ritzholz leaves no stone unturned as he breaks down how the Federal Reserve’s interest-rate targeting policies as well as a condition known as moral hazard – the belief that you won’t bear the full consequences of your actions.

The United States has abandoned its capitalist roots and become a Bailout Nation.

Once again, thank you Chase Bank for allowing RIAs to continue with their God’s work.

Total Chaos: Chicago Sees Deadliest Memorial Day Weekend In Years Despite Stay-At-Home Orders

Total Chaos: Chicago Sees Deadliest Memorial Day Weekend In Years Despite Stay-At-Home Orders

Tyler Durden

Tue, 05/26/2020 – 21:05

Shockingly, or perhaps not so-, Chicago just witnessed its deadliest Memorial Day weekend since 2015 despite a coronavirus stay-at-home order. As one crime analyst observed, “They (gangs) are not particularly deterred by the risks of being out there,” as cited in ABC. “Of all the things they are likely to be worried about COVID is way down the list.”

The long warm weather weekend (crimes tend to spike over hot weather holiday weekends) saw a total of 49 people shot from Friday afternoon through Monday evening. Ten among these were killed. 

Included were shootings that even occurred midday and at frequented intersections, including a 15-year old boy shot and left in critical condition after getting into an argument with the driver of an SUV on Saturday morning. In another instance, a teenage girl was grazed in the leg as shots range out nearby.

File image via NBC Chicago

Typically Chicago police hit the streets Memorial Day weekend with an extra 1,000 officers in addition to their regular patrol numbers. This after last weekend included 38 total shootings, including six people killed in gun violence throughout the city.

“The violence throughout the city on Memorial Day weekend was nothing short of alarming,” new Chicago police Superintendent David Brown said Tuesday.

It’s part of a broader national rise in violent crime observed, surprisingly enough, across three major US cities since the start of the year – and despite pandemic-induced local and state-wide lockdowns:

According to Chicago police crime statistics posted online, between Jan. 1 and May 24, the nation’s third-largest city had 200 homicides, compared with 176 during the same period last year. The number of shootings climbed from 679 to 826. However, the number of criminal sexual assaults, burglaries and thefts all fell by double digits.

The statistics largely mirror what police in Los Angeles and New York have reported. In both cities, the number of homicides has increased so far this year while the number of sexual assaults has fallen.

TOTAL CHAOS: Despite Shutdown, Chicago Sees 40 Shootings, 10 Murders, Deadliest Memorial Day in Years

— Sean Hannity (@seanhannity) May 26, 2020

Ahead of what’s expected to be a major rise in violent crime in the coming warm months, consistent with historical trends, Chicago city agencies announced the establishment of a “Summer Operations Center” to stem the rising murder rate, according to city press releases.

And generally, when more Americans finally do come of lockdown no doubt ready with a ‘live hard/party hard’ mentality, as some places are already seeing, there’s likely to be a major spike in violent crime. 

Neil Howe: Expect Creative Destruction In This Fourth Turning

Neil Howe: Expect Creative Destruction In This Fourth Turning

Tyler Durden

Tue, 05/26/2020 – 20:45

Authored by Adam Taggart via,m

Neil Howe, demographer and co-authour of the book The Fourth Turning, returns to the podcast this week. In our prior interviews with him, we’ve explored his study of generational cycles (“turnings”) in America which reveal predictable social trends that recur throughout history and invariably result in transformational crisis (a “fourth turning”).

Fourth turnings are characterized by a growing demand for social order, yet supply of it remains weak. The emergence of the surveillance state, a perpetual war machine, increased intervention in failing markets by the central planners, greater government control of critical systems like health care and the Internet — all of these are classic fourth turning signs of the desperation authorities exert as they lose control.

History shows time and time again that such overreach ends in rejection of the current order, usually via violent revolution.

Now that we’re roughly halfway through the current Fourth Turning and things have really started to unravel here in 2020, we’ve asked Neil back on the program to update us on what to expect next:

During times of peace and prosperity, inequality over time always increases. It always increases. There are only four things which reduced inequality through history: total war, total revolution, famines, and plagues.

You have this weird situation in America now the where interest rates are practically 0% and almost no one is doing any investing. How do you explain such high returns on existing capital with 0% interest rates, and yet no one’s using those low interest rates? Because new creators of business can’t get the same high returns as the incumbents. That’s the reason.

So we have a bifurcated market and I think that this is what has to be broken down. The fourth turning is to some extent an act of creative destruction. It destroys as much as it creates. We saw that in the 1930s. We saw that in the 1940s which, by the way, was a period of huge shift from inequality to equality in America.

But I do think there’s a broader point about inequality and this is point about creative destruction. There has to be some destruction in there. You have to destroy the privileges. You have to destroy the sinecures — and that’s never pleasant. But it’s part of the process.

I’ve often told people — if they expect to see Social Security reformed, global warming solved, and god knows what else you’re talking about on a peaceful sunny day — that big reforms come about during dark and stormy nights. And I’m talking about BIG reforms…reforms that actually commit society to huge new sacrifices.

To hear which developments are most likely to happen next during this current Fourth Turning, click the play button below to listen to Chris’ interview with Neil Howe (57m:25s)

Watch: Venezuela Sends Large Fighter Jet Escort For Tankers As Iran’s Flag Flies Over Caracas

Watch: Venezuela Sends Large Fighter Jet Escort For Tankers As Iran’s Flag Flies Over Caracas

Tyler Durden

Tue, 05/26/2020 – 20:25

To pretty much everyone’s surprise it appears the five Iranian gasoline tankers will be able to offload their fuel to Venezuela without incident, despite US threats to thwart what Washington sees as illicit sanctions-busting. It remains that the return trip could be a different story, however. 

Dramatic video emerged early this week showing the first couple of tankers’ arrivals within Venezuelan coastal waters, accompanied by what appeared a large Venezuelan military escort, as Maduro officials promised. 

First tanker to successfully arrive, the Fortune, docked by Monday, while all are now reported in Caribbean waters, with the second vessel soon to reportedly to dock as well, already safely within Venezuela’s Exclusive Economic Zone.

Venezuelan military Sukhoi 30MK2 and F-16 aircrafts escort Iran’s second tanker on its journey to a Venezuelan port.

— Camila (@camilateleSUR) May 26, 2020

According to multiple widely circulating videos, Maduro’s military deployed multiple warships to escort the tankers along with what appears at least a half-dozen Russian-produced fighter jets and F-16s. No doubt the Pentagon and Trump administration has monitored the images closely. 

There were growing fears of a ‘tanker war’ Caribbean-style given that last month Trump reportedly ordered a US naval build-up in the region against alleged Maduro government narcotrafficking. 

Though with plenty of oil, Venezuela has struggled to obtain gasoline for domestic consumption given its network of broken and derelict refineries, which its ally Iran has responded to by delivering 1.53 million barrels of gasoline and refining components.

Venezuelan officials declared the fuel delivery as a “landmark in struggle for sovereignty” while unusually an Iranian flag appeared over downtown Caracas:

Iranian flag flying in central Caracas today 😬#Venezuela #Iran

— CNW (@ConflictsW) May 25, 2020

Given that Maduro made good on his promise to send significant armed forces to provide security for the tankers, it’s likely the White House saw too many ‘unknowns’ if the US Navy were to attempt an intercept of the fuel

But as one international report underscored days ago, “There are still chances for the US to make trouble for Iran’s tanker fleet. More ships will arrive in the coming days and then they have to go back to Iran.”

“We’re Ready for Whatever, Whenever,’ Says Maduro as Venezuela Vows Navy Escort to Protect Iranian Oil Tankers from US Threats

— Common Dreams (@commondreams) May 21, 2020

Caracas is attempting to flex its military muscle as a warning to Washington and its allies, while perhaps also viewing this as a ‘test run’ for future Iranian fuel shipments.

“We’re ready for whatever, whenever,” Nicolas Maduro declared last week when he and his generals rolled out plans for a major military operation to ensure the tankers arrive safely.

The shipment of #Iran‘s oil tankers to #Venezuela is part of the scientific and industrial cooperation between the two nations, a solidarity action seeking to supply fuels to the Venezuelan internal market.

— teleSUR English (@telesurenglish) May 24, 2020

Should the whole operation go down without conflict or interference, it will indeed set a precedent – meaning there will be more Iranian tankers and supplies to come in the next months. 

“Historic Opportunity”: Israel Reveals Date Of Planned West Bank Annexation

“Historic Opportunity”: Israel Reveals Date Of Planned West Bank Annexation

Tyler Durden

Tue, 05/26/2020 – 20:05


The head of the Governmental Coalition in Israel, Mickey Zohar, revealed that the measures to legislate the process of imposing Israeli sovereignty on all Jewish residential communities in the West Bank will begin in early July.

The Likud MP said in a radio interview on Tuesday, that the government will approve the draft law on this, and then it will be submitted to the Knesset for approval, expecting that these measures will continue for only a few weeks.

Israeli checkpoint near Jerusalem, via The Jerusalem Post.

Representative Zohar announced that the concerned authorities are currently working on mapping in order to reach understandings with the American administration about the areas that Israel will impose their sovereignty over in the West Bank.

In response to a question about whether the White House would insist on the establishment of a Palestinian state in exchange for the annexation, the head of the government coalition said: “He opposes this demand, expressing his conviction that Israel will not give up the annexation in any case.”

He stressed that the government would also not agree to freezing construction work in isolated residential compounds in the occupied West Bank, but was ready to freeze construction in places not close to those that would be imposed on Israeli sovereignty.

Netanyahu: “we don’t intend to change” July deadline for annexation of West Bank territory.

“We have historic opportunity, which hasn’t existed since 1948, to apply sovereignty…in Judea & Samaria”

“It is a big opportunity & we will not let it pass by”

— Ben White (@benabyad) May 26, 2020

Haaretz presents Monday remarks of PM Netanyahu as follows:

Israel will not miss a “historic opportunity” to extend its sovereignty to parts of the West Bank, Prime Minister Benjamin Netanyahu said on Monday, calling the move one of his new government’s top tasks.

Netanyahu has pledged to put Jewish settlements and the Jordan Valley in the West Bank under Israeli sovereignty. He has set July 1 as a starting date for cabinet discussions on the issue, which has also raised alarm within the European Union

The Palestinian leadership has already rejected this planned annexation, as the President of the Palestinian Authority, Mahmoud Abbas, withdrew from all agreements with the U.S. and Israel over this contingency.

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