You know that “creating more public roads just creates more traffic” talking point trotted out by people who want to ban your car?
Yeah, not so much.
The first two thirds of the video covers other topics, like how economies of scale don’t necessarily drive down prices uniformly, and as you scale, you incur new costs that might make a product less profitable. (One example is China’s overbuilt high speed rail network.)
The last portion deals with the “roads create traffic” myth, directly delving into the study the anti-road types cite:
“What [building new highways[ doesn’t do is create entirely new demand.”
“New roadways, especially interstates, tend to be more direct, and can take a larger volume of traffic than alternative routes through urban areas.”
“The study itself has also been widely criticized for making assumptions that other economists were not able to replicate in follow-up studies.”
“Its methodology was also questionable. It measured interstate kilometers traveled. Building out more interstates might make people use those roads more, but that doesn’t mean that there are more cars overall, because a lot of that traffic would have been taken away from non-interstate roads, which were not measured in the study.”
“More roads won’t create more congestion unless they are designed very poorly, and reducing the supply of roads won’t ease congestion, either.”
The original study authors didn’t even suggest reducing roads; they were in favor of congestion charges.
Another lunatic leftwing California ecowarrior directive bites the dust.
A federal appeals court on Monday overturned a California city’s first-in-the-nation ban on natural gas hookups in new buildings, saying it violates federal law.
The three-judge panel from the Ninth Circuit Court of Appeal sided with a coalition of California restaurants, who argued that the City of Berkeley’s ordinance essentially bans gas appliances in violation of a 1975 directive that gives Congress control over restrictions on appliances. The unanimous ruling is a major blow to California Democrats’ green energy push, and could clear the way for legal challenges to similar bans around the country.
Democrats have increasingly moved to ban gas stoves while attempting to downplay their efforts. New York is poised to become the first state to ban gas stoves, and California is working towards a statewide ban of its own. The White House has denied that President Joe Biden supports banning gas stoves while the Energy Department works to restrict their sale. Blue state attorneys general and environmental groups lined up to support the ban in court, in a sign of the case’s national implications.
The California Restaurant Association claimed Berkeley’s ban violated the 1975 Energy Policy and Conservation Act , which gives the federal government final say over restrictions on energy appliances.
Judge Patrick Bumatay wrote that even though Berkeley lawmakers didn’t specifically ban the use of natural gas appliances, they reached the same result “circuitously” by changing their building code to ban gas piping—a policy that renders “the gas appliances useless,” he said.
This preemption would apply to state policies as well, he added.
“States and localities can’t skirt [federal preemption] by doing indirectly what Congress says they can’t do directly,” he wrote.
There’s simply no end to the things ordinary people enjoy that radical environmentalists are willing to ban. Fortunately, there’s still some semblance of the rule of law to at least temporarily keep them in check…
How severe? How about $105 billion drop in loans in just two weeks.
“This credit crunch greatly increases the chances that America is going to have a deflationary recession or depression at some point in 2023. And, in fact, we could already be in it.” Ya think?
“We’re going to see the unemployment rate start to spike in America in the second half of 2023, In fact, we’re already seeing a big increase in unemployment claims data from the Federal Reserve shows that continued unemployment claims has surged since September.”
“We’re seeing a big surge in mortgage defaults right now across America, particularly on what’s called FHA mortgages. FHA mortgages are these first-time home buyer loans that the US government sponsors and allows people to only put three to five percent down. Well, these loans now have a 12% default rate in the most recent month of February 2023.”
Debt-to-income ration is now higher than it was at the pre-subprime meltdown peak in 2008.
“The Biden Administration has been very aggressive in wanting to expand mortgage access to low-income borrowers who can’t afford these mortgages. And they do this under the guise of expanding the benefits of home ownership to everyone, but really what they’re doing is they’re saddling at-risk economic households with a lot of debt near the peak of a housing bubble.”
“When banks tighten the belt and businesses can no longer get loans, businesses have to shut down, or what businesses have to do is, they have to start liquidating their holdings and taking whatever cash they have and use it to pay expenses. This is actually a concern of mine.”
“This bank credit crunch which is occurring right now could cause even more bank runs in the future” as people pull money out of the bank to cover expenses.
Quantitative tightening is back on.
“Mortgage application demand is on par with what we saw basically in the worst of the last housing crash in 2008, 2009, 2010, and so, no, there is no recovery.”
“The regular home buyer is still out of the housing market and is not returning.”
“The money supply in America is contracting…every other time in history it contracted, which was four times, we had a depression, a panic and a banking crisis.”
Cheerful enough. But if you’re a car dealer, things are even worse:
Banks are cutting off backing loans and providing credit to dealerships.
Not just used car dealers, but even national brand, nameplate dealerships.
This all started back in 2020, when banks started lending way too much money on cars that simply aren’t worth it, to consumers that simply couldn’t afford these payments, and shouldn’t have got the car in the first place…Let’s fast forward to 2023. We’re seeing record high repossession rates, and we’re seeing record high portfolio sell-offs, where people are just liquidating their paper because they don’t want to take on the risk of all these really bad auto loans, because they owe too much money. People are not making payments and they see the value of cars going down.
The fewer banks dealers can pit each other against for loan terms, the higher the interest rate consumers have to pay.
Dealers (not the banks) are also the ones who get screwed if a customer misses their first through third car payment.
Texas car dealer: “He was floored because he sells a lot of trucks between $45- and $65,000 trucks. Four of his banks told him that they’re no longer lending over twenty five thousand dollars.” (Previously.)
“I promise you this: it’s only gonna get worse.”
But wait! It gets worse!
“Capital One is going to start pulling their floor plans from dealers.”
“Floor plans” are the lines of credit dealers use to purchase cars to populate their lots, even the big nameplate dealers.
“Dealers are overexposed right now. They have paid way too much for their inventory and now they are having a hard time selling it.”
“It is so much harder now than it has been in the last two years to get people approved for loans to be able to sell these vehicles.”
“[Banks] do not want to get stuck holding the bag on these cars.”
“Dealers have been stupid. They have overpaid and they have too much inventory right now.”
“Some of these dealers, if they’re having cars 60, 90 days and maybe they’re getting a little bit behind on their payments [the] floor plan company will actually go to these dealers lots and they will take these cars that have been sitting too long, they’ll take them to the auction.”
“If they didn’t have the cash, the liquidity, to begin with, then they have to start liquidating cars, and they have to liquidate them fast to be able to pay their flooring lines…if they lose these flooring lines, they might as well not be in business, they don’t have the cash to be able to buy more inventory to be able to sell it to make more money.”
Banks pulling their floor lines could potentially crash the whole car market.
Things are going to get worse for car dealers before it gets better, and six months from now might be a great time to buy a car, assuming you’re not too busy shooting starving looters trying to steal your canned goods…
The Biden Administration has shown a clear preference for rewarding far left political leanings than technical competence in its nominees for top posts (I’m looking at you, Pete Buttigieg). Texas Senator Ted Cruz took a strong stand against this trend by opposing the nomination of Phil Washington to head the FAA.
From an editorial by Cruz and North Carolina Senator (and pilot) Ted Budd:
Last week, the Federal Aviation Administration (FAA) held an emergency safety summit after a series of disturbing near collisions of planes at airports across the country. These close-call incidents, which could have been disastrous, followed the January malfunction of the FAA’s NOTAM safety system that led to the first nationwide grounding of aircraft since the Sept. 11th terrorist attacks.
These serious safety challenges at the FAA are stark reminders of why it’s so important for the head of the agency to have extensive aviation experience, especially in aviation safety. The FAA, on an average day, is responsible for ensuring safe air travel for more than 45,000 flights and nearly 3 million airline passengers. With the stakes so high, it’s irresponsible to entrust the role of protecting millions of Americans who fly with a person who needs on-the-job training. Yet, that’s exactly what we have with President Joe Biden’s nominee to serve as FAA administrator, Phil Washington.
Little of Washington’s career has touched aviation. After serving in the military, Washington worked as a transit executive in Denver and Los Angeles , dealing with train and bus systems. Less than two years ago, he became CEO of Denver International Airport, a job that primarily involves overseeing the airport’s shopping, dining, parking, and buildings — not aviation matters. Notably, in this role, he has neither significant involvement with the airport’s flight operations nor does he oversee air traffic controllers, pilots, and aircraft.
Washington’s recent hearing before the Senate Commerce Committee confirmed what’s abundantly clear from his resume: he lacks the extensive aviation experience needed to lead the FAA. At his hearing, he was unable to answer basic aviation questions we asked him, including safety questions about aircraft certification, pilot licensing, and airports.
It’s no mystery why.
Unlike other FAA administrators, he does not have decades of aviation experience. Washington has never flown a plane, never worked for an airline, and never worked for a company that manufactures or maintains aircraft. But what he does have are political connections. He donated to the Biden campaign, co-chaired its policy committee on infrastructure, and led the Biden administration’s transition team for the Department of Transportation. It’s unacceptable that Biden is playing politics with the flying public’s safety by treating the head of the FAA as a patronage job.
Washington’s lack of extensive aviation experience has caused widespread concern about his nomination. At his Senate hearing, multiple Democratic senators questioned his qualifications to lead the FAA. State and local aviation groups all over the country, including pilot groups, oppose his nomination. One of them, the Montana Pilots Association, has said that he is “singularly unqualified to serve as FAA Administrator.” Last week, a bicameral group of members of Congress who are pilots, including former military pilots, urged Biden to withdraw Washington’s nomination because he is “woefully unqualified to fill this role.”
Not only is Washington unqualified, but he’s also apparently under investigation. He is embroiled in an ongoing criminal public corruption probe that is being led by the Democratic attorney general of California. The probe concerns a politically-connected contracting scheme from Washington’s time leading the Los Angeles Metro. Washington has been named in not one but two search warrants in the probe, with the most recent having been issued just last September. It’s inexplicable that President Joe Biden has picked an FAA nominee who is materially involved in an ongoing criminal investigation.
The safety challenges and responsibilities of the FAA are far too important to have anyone other than a highly experienced aviation expert at the helm.
President Joe Biden’s pick to lead the Federal Aviation Administration withdrew his nomination on Saturday evening, following nine months in limbo and amid concerns from senators in both parties over his background and relative lack of aviation experience.
DOT Secretary Pete Buttigieg tweeted late Saturday that Phil Washington, the CEO of Denver International Airport, has decided to take himself out of the running.
“The FAA needs a confirmed Administrator, and Phil Washington’s transportation & military experience made him an excellent nominee,” Buttigieg tweeted. “The partisan attacks and procedural obstruction he has faced are undeserved, but I respect his decision to withdraw and am grateful for his service.”
If only Buttigieg would follow Phil Washington’s lead.
If you want to fight the Biden Administrations attempts to drag America to the far left, it helps if you have someone who know how to play the game.
The more I hear about the Silicon Valley Bank collapse mentioned in Friday’s LinkSwarm, the worse it sounds.
I saw a snippet of Gary Tan, CEO of startup fund Y Combinator, talking about how bad it is. I can’t find a video of the full interview online, but evidently it was excerpted on Bannon’s War Room podcast and there’s a transcript.
[Interviewer]: How many of these startups that have been through Y Combinator, for example, have their cash tied up at Silicon Valley Bank? And over this weekend, I’m gonna try to figure out how they’re gonna make payroll next week. Do they have to go to investors and say, can you front me some cash so that we can stay alive?
[Tan]: We have funded about 3,000 active startups right now. I would guess that this affects more than 1,000 startups. And about a third of those startups will not be able to make payroll in the next 30 days in the current configuration. As of this morning, RIPLING, which many startups use to manage payroll and benefits, transfers were not being processed by SVB for payroll.
And so that’s a really existential threat for companies broadly. These are founders who are texting me and calling me saying, do I need to furlough my workers next week? Because I do not have other bank accounts, you know, a Google or a Facebook or even companies farther along with a Treasury Department. They’re going to be able to weather this, but if SVB is your only bank, it’s actually an existential risk. You’re going to go out of business if you can’t pay payroll. And that starts Monday.
That transcript also has this sobering figure: “97% of the deposits at Silicon Valley Bank. 97% are not insured by FDIC because they’re in accounts over $250,000. These company accounts that would be $169 billion.”
So what was Silicon Valley Bank doing rather than properly managing their risk profile? Banks have Chief Risk Officers whose job is to make sure their risk exposure ratios don’t get out of whack. Well, guess what? SVB didn’t have one for some nine months. “SVB’s former head of risk, Laura Izurieta, who formerly performed a similar role for Capital One, left the bank in April 2022. She wasn’t replaced until January 2023 when the bank hired Kim Olson, formerly of Japanese bank Sumitomo Mitsui.”
But don’t worry: SVB had CRO for the bank in Europe, Africa and the Middle East who was entirely focused…on Social Justice and ESG.
Jay Ersapah, who acts as CRO for the bank in Europe, Africa and the Middle East and who describes herself as a ‘queer person of color from a working-class background’ – organized a host of LGBTQ initiatives including a month-long Pride campaign and implemented ‘safe space’ catch-ups for staff.
In a corporate video published just nine months ago, she said she ‘could not be prouder’ to work for SVB serving ‘underrepresented entrepreneurs.’
Professional network Outstanding listed Ersapah as a top 100 LGTBQ Future Leader.
‘Jay is a leading figure for the bank’s awareness activities including being a panelist at the SVB’s Global Pride townhall to share her experiences as a lesbian of color, moderating SVB’s EMEA Pride townhall and was instrumental in initiating the organization’s first ever global “safe space catch-up”, supporting employees in sharing their experiences of coming out,’ her bio on the Outstanding website states.
It adds that she is ‘allies’ with gay rights charity Stonewall and had authored numerous articles to promote LGBTQ awareness.
These included ‘Lesbian Visibility Day and Trans Awareness week.’
Separately she was also praised in a Facebook post by the group ‘Diversity Role Models,’ a charity which campaigns against homophobic, biphobic and transphobic bullying in UK schools.
Being in Silicon Valley, I’m betting that the entire company was whole hog backing DEI, ESG, Transwhatever and the entire rainbow of victimhood identity politics acronyms.
In a strong economy, you can get away with a bit of shareholder-value-destroying, virtue-signaling luxury goods as long as your core business is strong. But with rising interest rates, Biden Inflation, the Biden Recession and the gale winds of deglobalization, taking your eye off the ball to focus on anti-reality SJW garbage is a recipe for disaster.
And all the startups that relied on SVB for their banking are well and truly screwed.
Update: Uncle Sugar is evidently going to make all depositors whole at both SVB and newly insolvent Signature Bank. This relatively early intervention may indeed be the best move to prevent bank runs at other institutions, and may reflect a change in philosophy since 2008. (It’s a thorny subject.) But it does make me think that a lot of well-connected depositors were screaming in the ears of Washington to be made whole at the taxpayer’s expense. What do you think the odds are that the same consideration wouldn’t be given to, say, a Texas bank that specialized in underwriting oil and gas ventures?
Mutiny! Bank runs! Twitter files! It’s a ginormous LinkSwarm full of interesting (and alarming) links!
And I finally get a chance to talk more about the FTX scandal.
The Twitter files revelations continue to roll out. And Democrats aren’t happy that the workings of their thought police apparatus are being unmasked.
As one might expect, the Judiciary hearing on the “weaponization” of federal agencies, featuring Matt Taibbi and Michael Shellenberger as witnesses was full of fireworks, facts, and ad hominem friction.
Out of the gate, Ranking Member Democratic Del. Stacey E. Plaskett labeled the two “so-called journalists” as dangerous and a “threat” to former Twitter employees.
She claimed that Republicans brought “two of Elon Musk’s ‘public scribes'” in “to release cherry-picked out-of-context emails and screenshots designed to promote his chosen narrative – Elon Musk’s chosen narrative – that is now being parroted by the Republicans” for political gain.
“I’m not exaggerating when I say you have called two witnesses who pose a direct threat to people who oppose them,” Plaskett said after the video.
Chairman of the House Judiciary Committee, Republican Rep. Jim Jordan of Ohio, had a simple response to her accusations:
“It’s crazy what you were just saying.”
“You don’t want people to see what happened,” Jordan continued.
“The full video, transparency. You don’t want that, and you don’t want two journalists who have been named personally by the Biden administration, the FTC in a letter. They say they’re here to help and tell their story, and frankly, I think they’re brave individuals for being willing to come after being named in a letter from the Biden FTC.”
Taibbi was having none of it.
Matt Taibbi epic comeback:
"Ranking Member Plaskett, I'm not a 'so-called journalist'. I've won the National Magazine Award, the I.F. Stone Award for Independent Journalism, and I've written 10 books including 4 NYT Best Sellers." pic.twitter.com/crXlWjScEr
— Citizen Free Press (@CitizenFreePres) March 9, 2023
As Glenn Greenwald chimed in from Twitter: “To Democrats, “journalist” means: one who mindlessly and loyally endorses DNC talking points. ”
Unshaken, Matt Taibbi continued, when he was allowed to respond, laid out what he and Shellenberger had found in their research of The Twitter Files:
“The original promise of the Internet was that it might democratize the exchange of information globally. A free internet would overwhelm all attempts to control information flow, its very existence a threat to anti-democratic forms of government everywhere,” Taibbi said.
“What we found in the Files was a sweeping effort to reverse that promise, and use machine learning and other tools to turn the internet into an instrument of censorship and social control. Unfortunately, our own government appears to be playing a lead role.”
Taibbi pointedly added that “effectively, news media became an arm of a state-sponsored thought-policing system.”
“It’s not possible to instantly arrive at truth. It is however becoming technologically possible to instantly define and enforce a political consensus online, which I believe is what we’re looking at.”
Democrats only response to Taibbi and Shellenberger’s facts was to get personal…
Snip.
As we detailed earlier, journalists Matt Taibbi and Michael Shellenberger are testifying before the House Judiciary Committee’s Select Subcommittee on the Weaponization of the Federal Government today. Both journalists were involved in the ‘Twitter Files’ disclosures, in which we learned that the government was directly involved in censoring disfavorable speech.
“Our findings are shocking,” writes Shellenberger at his blog. “A highly-organized network of U.S. government agencies and government contractors has been creating blacklists and pressuring social media companies to censor Americans, often without them knowing it.”
Ahead of the appearance, Taibbi released his prepared remarks. He also dropped a new and related Twitter Files mega-thread on ‘THE CENSORSHIP-INDUSTRIAL COMPLEX’ which will be submitted to the Congressional record which, according to Taibbi, ‘contains some surprises.’
But Twitter was more like a partner to government. With other tech firms it held a regular “industry meeting” with FBI and DHS, and developed a formal system for receiving thousands of content reports from every corner of government: HHS, Treasury, NSA, even local police…
But equally concerning was how those driving The Narrative used NGOs that agreed with them as Arbiters of Truth.
We came to think of this grouping – state agencies like DHS, FBI, or the Global Engagement Center (GEC), along with “NGOs that aren’t academic” and an unexpectedly aggressive partner, commercial news media – as the Censorship-Industrial Complex.
Who’s in the Censorship-Industrial Complex? Twitter in 2020 helpfully compiled a list for a working group set up in 2020. The National Endowment for Democracy, the Atlantic Council’s DFRLab, and Hamilton 68’s creator, the Alliance for Securing Democracy, are key…
Twitter execs weren’t sure about Clemson’s Media Forensics Lab (“too chummy with HPSCI”), and weren’t keen on the Rand Corporation (“too close to USDOD”), but others were deemed just right.
NGOs ideally serve as a check on corporations and the government. Not long ago, most of these institutions viewed themselves that way. Now, intel officials, “researchers,” and executives at firms like Twitter are effectively one team – or Signal group, as it were:
The Woodstock of the Censorship-Industrial Complex came when the Aspen Institute – which receives millions a year from both the State Department and USAID – held a star-studded confab in Aspen in August 2021 to release its final report on “Information Disorder.”
The report was co-authored by Katie Couric and Chris Krebs, the founder of the DHS’s Cybersecurity and Infrastructure Security Agency (CISA). Yoel Roth of Twitter and Nathaniel Gleicher of Facebook were technical advisors. Prince Harry joined Couric as a Commissioner.
Why the fuck is Prince Harry on a committee deciding how free American citizens should be censored?
Their taxpayer-backed conclusions: the state should have total access to data to make searching speech easier, speech offenders should be put in a “holding area,” and government should probably restrict disinformation, “even if it means losing some freedom.”
Snip.
The same agencies (FBI, DHS/CISA, GEC) invite the same “experts” (Thomas Rid, Alex Stamos), funded by the same foundations (Newmark, Omidyar, Knight) trailed by the same reporters (Margaret Sullivan, Molly McKew, Brandy Zadrozny) seemingly to every conference, every panel.
The #TwitterFiles show the principals of this incestuous self-appointed truth squad moving from law enforcement/intelligence to the private sector and back, claiming a special right to do what they say is bad practice for everyone else: be fact-checked only by themselves. While Twitter sometimes pushed back on technical analyses from NGOs about who is and isn’t a “bot,” on subject matter questions like vaccines or elections they instantly defer to sites like Politifact, funded by the same names that fund the NGOs: Koch, Newmark, Knight.
#TwitterFiles repeatedly show media acting as proxy for NGOs, with Twitter bracing for bad headlines if they don’t nix accounts. Here, the Financial Times gives Twitter until end of day to provide a “steer” on whether RFK, Jr. and other vax offenders will be zapped.
Well, you say, so what? Why shouldn’t civil society organizations and reporters work together to boycott “misinformation”? Isn’t that not just an exercise of free speech, but a particularly enlightened form of it?
The difference is, these campaigns are taxpayer-funded. Though the state is supposed to stay out domestic propaganda, the Aspen Institute, Graphika, the Atlantic Council’s DFRLab, New America, and other “anti-disinformation” labs are receiving huge public awards.
Meant to cover this back in February, but FTX founder Sam Bankman-Fried, in additional to all those federal fraud charges, was charged with “12 new counts, including illegally making over 300 political contributions to the tune of tens of millions of dollars through straw donors and using corporate funds.” The overwhelming majority went to Democrats and left-leaning causes. “Bankman-Fried was the second largest individual donor during the 2022 US midterm elections, contributing $39 million to various Democrat causes.” Also: “FTX’s former CEO wanted to give at least $1 million to a pro-LGBTQ political action group, but couldn’t find anyone bisexual or gay at the company whom he trusted, the document said.”
Speaking of Bankman-Fried: “The previously sealed names of two people who co-signed Sam Bankman-Fried’s $250 million bail package have been publicly released. The guarantors were identified in the unredacted bonds as Andreas Paepcke, a Stanford research scientist, and Larry Kramer, former dean of Stanford law school…How the fuck did these Stanford faculty members get so rich as to guarantee that size of a bail?”
Speaking of crypto, Silvergate, a California bank that was a heavy player in the crypto space, is shutting down and liquidating after huge bank runs in the crypto-winter. Want to guess who was a big booster of Silvergate? Would you believe Sam Bankman-Fried?
When China began to require Western corporations to establish Chinese Communist Party (CCP) cells, businesses brushed off the move as benign. For example, when HSBC HBA 0.0% became the first international financial institution at which workers established a Chinese Communist Party cell in its investment banking venture in China in July, the bank stated that the CCP committee does not influence the direction of the firm and has no formal role in its day-to-day activities. But the CCP may have begun to flex its muscle in other ways. This week, the CCP cell inside the Beijing office of Big Four accounting firm EY demanded that party members wear CCP badges at work in the run-up to China’s annual parliamentary meetings.
Silicon Valley Bank, Santa Clara, California, was closed today by the California Department of Financial Protection and Innovation, which appointed the Federal Deposit Insurance Corporation (FDIC) as receiver. To protect insured depositors, the FDIC created the Deposit Insurance National Bank of Santa Clara (DINB). At the time of closing, the FDIC as receiver immediately transferred to the DINB all insured deposits of Silicon Valley Bank.
All insured depositors will have full access to their insured deposits no later than Monday morning, March 13, 2023. The FDIC will pay uninsured depositors an advance dividend within the next week. Uninsured depositors will receive a receivership certificate for the remaining amount of their uninsured funds. As the FDIC sells the assets of Silicon Valley Bank, future dividend payments may be made to uninsured depositors.
Silicon Valley Bank had 17 branches in California and Massachusetts. The main office and all branches of Silicon Valley Bank will reopen on Monday, March 13, 2023. The DINB will maintain Silicon Valley Bank’s normal business hours. Banking activities will resume no later than Monday, March 13, including on-line banking and other services. Silicon Valley Bank’s official checks will continue to clear. Under the Federal Deposit Insurance Act, the FDIC may create a DINB to ensure that customers have continued access to their insured funds.
As of December 31, 2022, Silicon Valley Bank had approximately $209.0 billion in total assets and about $175.4 billion in total deposits. At the time of closing, the amount of deposits in excess of the insurance limits was undetermined. The amount of uninsured deposits will be determined once the FDIC obtains additional information from the bank and customers.
SVB was a bank that primarily counted venture capital firms and technology startups as clients. It achieved financial stardom during the COVID-19 pandemic because major cash deposits from the booming firms increased its deposits from $60 billion in the first quarter of 2020 to over $200 billion in December 2022, the Wall Street Journal reported. Its securities portfolio rose from roughly $27 billion in 2020’s first quarter to approximately $127 billion at the end of 2021.
The fact that most of SVB’s assets were seemingly secure — they were mainly longer-term government bonds — led many investors to feel the bank was secure. Those feelings would be dashed in just two days. The bank suddenly announced Wednesday that it needed to raise over $2.2 billion, sending its stock plunging by more than 60% in a matter of days.
The government securities bought by SVB pay a fixed rate, so when market interest rates were raised, a gap began to grow between how much the securities were worth on the open market and what they were valued on the bank’s books. The unrealized losses in SVB’s securities portfolio in December had grown to more than $17 billion, a number expected to grow, as the securities could only be sold at a loss.
Crack the whip: unacceptable because of origins in slavery
Waiter or waitress: server should be used instead
Biological gender, biological sex, biological woman, biological female, biological man, or biological male
Illegal immigrant or illegal alien
Cake walk: “originated during slavery” and thus perpetuates “racist motifs”
In reference to illegal migration: onslaught, tidal wave, flood, inundation, surge, invasion, army, march, sneak and stealth
Anchor baby
Chain migration: this is a term used by “immigration hard-liners”
Peanut gallery: “the cheapest seats often occupied by Black people and people with low incomes”
Third-world countries: too “derogatory”
Oh, it does not end there. Politico reporters are also not allowed to say that a transgender person “identifies as” a certain gender, or describe the current situation at the border as a “crisis.” The guide also warned reporters to make sure not to portray migrants as a “negative, harmful influence.”
Want some more? “Pro-choice” is frowned upon in favor of “abortion rights supporter,” and (of course) “pro-life” is outlawed, with “anti-abortion” taking its place. “Late-term abortion” is also a no-no; reporters are told to use “abortion later in pregnancy.”
College student accused of stealing more than half a million dollars via credit card fraud working part-time at a mall jewelry store where most of the items are under $50. She marked up items, then returned them at the original price and somehow pocketed the difference. She made eight fake transactions totally more than $540,000. As though somehow the store wasn’t going to notice something funny going on.
I’m pro-life but this is stupid. “Texas Lawmaker Looks to Restrict Online Access to Materials Assisting or Facilitating Abortion.” You can’t ban access to information you don’t like, that’s prior restraint and illegal under the U.S. Constitution.
Speaking of violating rights, a judge was suspended for not allowing a defendant access to legal council. Again. The dumbass in question was Kenton County District Judge Ann Ruttle in Kentucky.
The most surprising component of Gov. Greg Abbott’s largely unsurprising slate of emergency items this session is a prohibition on COVID-19 restrictions and directives — not because of what the governor hasn’t done, but because of what he did.
During the pandemic’s height, Abbott, like many other GOP governors across the country, issued his own executive orders closing businesses, restricting the ingress and egress of persons, and mandating masks — the lattermost of which was announced only weeks after the office’s official position stated that “no jurisdiction can impose a civil or criminal penalty for failure to wear a face covering.”
A similar instance occurred in 2021 relating to vaccine mandate bans when Abbott’s spokesman stated that “private businesses don’t need government running their business.” A couple of months later, the governor expanded his vaccine mandate ban to include private companies along with governmental entities.
Abbott is now embroiled in a legal fight — to be featured at the Texas Supreme Court this week — with school districts who tried to preserve their own mask mandates well after the state ended its own.
The goalposts of pandemic policy across the country have moved constantly over the last three years, including in Texas — attributable in part to the giant uncertainty about the situation, especially early on. Mixed messages from officials were a common theme in the first few months.
“People didn’t know what we were dealing with with COVID, so there’s some grace that has to be extended,” state Rep. Matt Schaefer (R-Tyler), a frequent critic of the governor’s emergency response, said at The Texan’s 88th Session Kickoff in January. “I think there’s some grace that is extended to our leaders for getting through a chaotic period of time.”
Some grace is fine. After all, Flu Manchu was new and potentially deadly, and no one knew just how deadly at the start. It became evident very early on that Mao Tse Lung was not remotely as deadly as Ebola, yet Abbott still took six weeks of two weeks to bend the curve before he even started lifting the lockdown by a magnanimous 25% (remember the absurdity of tapped over restaurant tables you couldn’t sit at), markedly slower than many other Republican governors. Florida’s Ron DeSantis was notably faster at lifting all his markdown restrictions than Abbott was.
Finally, keep in mind that just renewed his own Flu Manchu disaster declaration February 13th. There’s never been a good explanation of how Flu Manchu lockdown restrictions were compatible with basic constitutional rights. So why has Abbott kept that disaster declaration going years after everyone else has moved on with their life?
The first target of Greg Abbott’s 2023 ire over “COVID-19 restrictions and directives” should be the Greg Abbott of 2020.
More lawsuits are pouring in against the Biden administration’s recent decision to redefine firearms with pistol braces as short-barrelled rifles (SBR) under the National Firearms Act (NFA), with Texas Attorney General Ken Paxton and Gun Owners of America (GOA) filing a joint lawsuit seeking to block the rule.
The lawsuit, State of Texas v. ATF, was filed in the Federal Southern District Court of Texas on Thursday, joining two other lawsuits filed in federal district courts in Texas. Those include a challenge filed by attorneys with the Wisconsin Institute for Law and Liberty in the Northern District, and a challenge filed in the Eastern District by the Texas Public Policy Foundation (TPPF).
GOA called their lawsuit “the most comprehensive” among those filed, writing, “Our complaint makes clear that the agency’s rule violates the Second Amendment ‘text, history and tradition’ standard set forth by the Supreme Court in its recent Bruen case.” GOA also said their case argues the rule violates several other constitutional provisions, including being an “invalid” exercise of taxing authority.
Paxton also released a statement on the lawsuit, saying he is hopeful they prevail in blocking the rule.
“This is yet another attempt by the Biden Administration to create a workaround to the U.S. Constitution and expand gun registration in America,” Paxton said in the release. “There is absolutely no legal basis for ATF’s haphazard decision to try to change the long-standing classification for stabilizing braces, force registration on Americans, and then throw them in jail for ten years if they don’t quickly comply. This rule is dangerous and unconstitutional, and I’m hopeful that this lawsuit will ensure that it is never allowed to take effect.”
Today, Gun Owners of America (GOA) and the Gun Owners Foundation (GOF) jointly filed a lawsuit challenging the Biden Pistol Brace Ban with Texas Attorney General Ken Paxton. The suit was filed in U.S. District Court for the Southern District of Texas.
This new rule, which took effect on January 31st of this year, will force Americans to register or destroy their approximately 40 million lawfully owned brace firearms within 120 days, or face possible felony charges.
Erich Pratt, GOA’s Senior Vice President, issued the following statement:
“Millions of Americans are facing a very tight deadline to destroy or register their lawfully owned property under this draconian new rule. We hope the court will hear the pleas of gun owners across the country who will be irrevocably harmed by this rule, and GOA stands ready to fight it at every turn.”
Sam Paredes, on behalf of the board for GOF, added:
“This rule will have some of the most wide-reaching impacts nationwide in the tyrannical history of gun control. We the People will not tolerate this abuse.”
Having a state Attorney General join your lawsuit tends to do wonders to establish standing to sue the federal government. Like bump stocks, ATF has decided to retroactively make an entire class of widely-owned firearms accessory illegal, along with turning millions of lawful gun owners into felons for continuing to possess the same accessories they had already lawfully purchased. The composition of the Supreme Court has changed since Gundy v. United States was decided, and the current court may be much more inclined to reign-in delegation of congressional powers to regulatory agencies.
One-Party Democratic California is so desperate for cash they want to tax people for leaving.
Desperate to stem the stampede of cash cows — affluent residents — out of their state, they are trying to pass an exit tax for households with assets of $50 million or more. Current residents would have to keep paying for years after they have decamped to less hostile states.
Heaven forbid that these legislators should instead come to terms with the reasons so many productive residents flee or what they could do to make their state a more attractive destination for people and businesses. They aren’t much concerned with that, merely with stopping the flight of all that revenue. If they cared about the livelihoods of the people leaving, they probably would have governed in a way that didn’t prompt people to head for the exits.
This is probably unconstitutional nine ways to Sunday. Wealth tax, Ex-Post Facto law, taxation without representation, etc. It’s also likely to be counterproductive, as rich people are not only likely to leave the state preemptively to avoid being subject to it, but are exactly the people that can hire top-notch lawyers to get it overturned.
Louis Rossmann, who recently fled New York City to Austin, has additional thoughts:
“They are showing and demonstrating here they have no confidence in their ability to govern better, or in their ability to actually give the customers of that state what they want, because they’re telling you ‘We’re not going to make things better. Rather, if you leave we are going to figure out a way to fine you.'”
“It demonstrates a sick ideology that’s both just authoritarian and disgusting in nature.”
“It’s not like [the tax rates in California and New York] just spiked up insanely over the past one or two years, they’ve been higher than the tax rate in Texas and Florida for as long as I’ve been alive, by a fairly large margin. This is not news. It’s something else in addition to that, and they don’t even appear to be interested in trying to figure out what that is.”
“Florida and Texas…have not had income tax for a very long time.”
“Maybe it would make sense to actually ask people what changed over the past two or three or five years that caused you to decide that you want to move your business and get the fuck out.”
“I could tell you from experience that losing half of your employees, putting all your stuff in a truck, carting it across the country. and spending months putting it all back together is insanely stressful, and not something that I’m going to do so I could save six or eight percent of my income tax.”
“Why are you then going to bake more taxes, and then have a fine for leaving that is then going to discourage anybody else that has the same concern from ever coming to your state thereby ensuring that the population of people that are productive and create value diminishes.”
“The idea of being taxed based on what you are worth at a particular time without actually cashing it out is insane to me.”
Long, correct discussion of why long-term capital gains are taxed at a lower rate snipped. (I doubt many of my readers don’t already understand, or disagree.) Ditto the discussion of how investment creates jobs.
“People deciding to defer their gratification, to decide ‘I will wait for the large payoff 10 to 20 years from now rather than make a decision that results in me getting more money right now,’ and I think that that it should be discussed more often because if it’s not, then we are going to end up with stuff like this.”
He discusses the slippery slope argument: The bill already states the tax will start at billionaires, but then in two years hit people with a net worth of $50 million or more. “Once it gets low enough like once this makes its way off to 10 million or a million, because again this is going to slip.”
And just wait until it hits the net worth not only of individuals, but of businesses.
Fallout from the House speaker’s race, Biden busted for mishandling classified files, more blue state teachers raping their students, Cadillac’s EV breaks into double digit sales, and the Imelda Marcos disco musical! It’s the Friday LinkSwarm!
Kevin McCarthy finally wins Speaker of the House race on 15th vote after offering concessions to the House Freedom Caucus.
How is McCarthy doing? Early signs are encouraging. “The House of Representatives passed a new rules package Monday that overhauls the way it functions by putting up more barriers to congressional spending and creating a more deliberate process for passing legislation, which were key demands of the more conservative members of the Republican Party.” (Hat tip: Sarah Hoyt at Instapundit.)
House Speaker Kevin McCarthy (R., Calif.) used Thursday morning’s press briefing to criticize the Department of Justice’s handling of the issue.
“They knew this happened to President Biden before the election, but they kept it secret from the American public,” McCarthy told a scrum of reporters on Capitol Hill.
Chicago Board of Education Inspector General Will Fletcher reported 470 sexual complaints against Chicago Public School employees from students in 2022.
“The report details students being abused, groped, groomed, assaulted and threatened by school officials.
“One investigation found a former Junior ROTC staff member had sex with a 16-year-old high school student for a year. When he learned there was an investigation, the staff member threatened to kill the girl and her family if she cooperated with investigators.”
The teachers’ union in Chicago, Randi Weingarten’s American Federation of Teachers, so praised by Joe Biden, has done nothing and said nothing about it so far as I can tell, and I did look, focusing instead on promoting critical race theory into the school system. Left unsaid is that the union ensures that firing any of these teachers involved in this activity is virtually impossible. Chicago’s public schools’s firing rate of bad teachers owing to their union membership, as of a few years ago, is 0.1%.
What’s vivid here amid all this widespread predatory behavior from the teaching classes, which like Harvey Weinstein, are prolific campaign donors to Democrats, is that the low outrage factor stands in sharp contrast to the sexual abuse scandals of the Catholic Church, which was ordered by courts to pay billions in reparations to the victims, has seen its leaders publicly apologize for the abuses, and has many programs now to prevent child abuse by perverts in authority. This activity was evil and inexcusable and rightly punished.
As for the more widescale abuse now seen in Chicago’s public schools, along with comparable scandals in the Los Angeles public school system, and other bad cases in New York and other blue cities, well, crickets. The perversion has gotten out of control in Chicago and the story barely makes the national news.
How Biden’s inflation is destroying family budgets:
The reality of the inflation report for American families – year-over-year real wages have been negative for 21 straight months. pic.twitter.com/1Bh4DNqZBF
A federal appeals court on Friday struck down the Trump-era ban on bump stocks, a firearm accessory that enables a semi-automatic gun to shoot at an increased rate of fire.
In a 13-3 decision, the 5th Circuit Court of Appeals in New Orleans held that the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), acting under “tremendous” public pressure, short-circuited the legislative process by approving a rule to define bump stocks as “machineguns,” which are illegal to possess. The court said ATF did not have the authority from Congress to do so.
This is what a real pro-natalist policy looks like: “Hungary addresses falling birthrates by exempting moms under 30 from income tax for life.” More:
Hungary has taken several measures in recent years to encourage its citizens to have more children, including three years of paid parental leave and state-funded daycare.
The country previously suspended income tax for moms with four or more children, but this new policy specifically encourages women to have children sooner, which in the long run means a higher likelihood of having more children overall.
Israel hit Syria again, and I heard just about nothing about it. Ukraine has really pushed Syria out of the headlines.
Speaking of Ukraine, Russia has largely captured the salt mining town of Soledar, though at a high cost in man. And good luck checking those hundreds of miles of salt tunnels for partisans…
“Tesla plans Houston-area expansion with large new industrial site in Brookshire…Little is known about Tesla’s plans, but the Fortune 500 company signed a lease late last year for about 1.03 million square feet at 111 Empire West, part of the 300-acre Empire West Business Park in Brookshire.” A bold move, considering how radically car sales have dived this year.
Other EVs update: “GM delivers record Cadillac Lyriq deliveries in Q4 – 12 per month.”
“David Byrne, Fatboy Slim Disco Musical ‘Here Lies Love’ Sets Broadway Debut. The musical, which has had a long journey to Broadway, centers on the life of Imelda Marcos, the former first lady of the Philippines.” They say the mirror ball shine bright on Broadway… (Hat tip: Dwight.)
