#savetheplanet

Trust CNN to put Greta on a panel of coronavirus experts

Close down our universities immediately. Climate activist Greta Thunberg proves that a 17yo truant can be an expert on pandemics too. Who needs a tertiary education? At least the only thing we learnt is that CNN has even less credibility.

New warning from CDC?

How the common man and woman will want to see how tough celebs are doing it from their massive lounge rooms again. NOT.

APRA priorities are frightening

We wrote a while back that the Australian Prudential Regulatory Authority (APRA) had taken its finger OFF the pulse when assessing the risks facing our financial institutions. That was before COVID19. We think our banks are heavily leveraged and have little equity to offset a collapse in the property bubble.

Despite being faced with the prospect of a property meltdown thanks to an employment destroying pandemic, APRA thinks hiring a “Head of Climate Risk” is the way forward.

Why does APRA bother pursuing a field it has no expertise in much less look to create new green tape to extend its oversight?

It is not alone. The Australian Securities & Investments Commission (ASIC) is now seeking more oversight on corporates reporting on climate change.

ASIC’s own study found that fewer and fewer companies were reporting on climate change over the past decade. Shouldn’t we take that as corporates having a better pulse on the impact that climate change will have on their industries than a bunch of bureaucrats wanting to legislate an ideology?

With the COVID19 driven seismic economic shifts to come, it is frightening to see our government departments pursuing irrelevant regulation that companies are even less concerned about.

APRA should be focused on ensuring the coming property market implosion doesn’t cripple our banks. Instead of using the time to fine tune a wide variety of scenarios and stress tests to combat the troubling future, it is only proving it should have power taken away not granted.

False advertising or medicinal chocolate?

Japanese confectioner Ezaki Glico has made a chocolate to assist with one’s sleep.

Now that millions of overworked salarymen and office ladies can no longer catch a nap on the subway, ‘GABA for Sleep‘ claims it can restore mental balance.

It seems like just a fancy marketing term for comfort food. Or is it? The science actually says,

GABA-enriched chocolate contains 28 milligrams of γ-aminobutyric acid (GABA) in 10 grams of chocolate.

GABA is a neurotransmitter naturally in the human brain and plays a key role in reducing stress. It also has a tranquilizing effect that assists with sleeplessness and depression. A study has shown that 100 grams of cacao contain 52 mg of GABA.

Ahhh but there is a disclaimer! The scientists from Ezaki Glico revealed that the stress-reducing effect of GABA in chocolate may not always occur because there is less GABA in the product.

We are confident that beta testing will continue in any event.

When the people you least expect praise Trump on COVID19 response

The View, hosted by Joy Behar is about as liberal as a show can get. The members of the panel are all suffering chronic Trump Derangement Syndrome.

Instead of wishing that Americans are safe, she tried to pillory California Governor Grant Newsom over his positive remarks about Trump, making out as though he was kissing the ring to get help. He replied,

Let me just acknowledge the frame of your question. We’re involved in over 68 lawsuits with the Trump administration, and so there’s no question we have had our differences of opinion on many issues but I just want to remind you that you and many others that maybe are not aware of this. We have been at this since late January. California got a head start in many respects where no one was really paying much attention. We started working with the administration directly to get these repatriated flights from mainland China into the state of California. Many states turned their back on those flights and those repatriation missions. California embraced them. We also had that “Grand Princess,” that large cruise ship where we worked very collaboratively with the federal government developed strong relationships of trust with emergency planning and how we can bring those passengers back into our diverse communities and all across the rest of the country.

As a consequence of that, our relationship began earlier than most, and so from that perspective, all I can say is from my perspective, the relationship has been strong and I’m not doing it to kiss the ring. I’m not doing it in a way, you know — I’m just being forthright with the president. He returns calls. He reaches out. He’s been proactive. We got that “Mercy” ship down here in Los Angeles. That was directly because he sent it down here. 2,000 medical units came to the state of California, these fms, these field medical stations, and that’s been very, very helpful and to the extent we’re going to need more, and I’ll let you know in a few weeks if that relationship continues.

What were we saying about media narratives that are so removed from the truth?

Why haven’t the media picked up on this Executive Order?

When Barack Obama became president in 2009, he eliminated the White House Health and Security Office, which worked on international health issues such as pandemics. However, after grappling with the 2014 & 2015 Ebola outbreaks he eventually set up the White House National Security Council Directorate for Global Health Security and Biodefense team in the final year of his 2nd term.

If we truly believed the media narrative, the spread of the COVID19 outbreak was a direct consequence of the Trump administration disbanding Obama’s 430 person team.

The truth is that during the summer of 2018, Trump’s NSC merged three directorates to make preparation for bioterrorism threats or pandemics seamless. The name was disbanded. Not the function.

Journalists had no qualms shaping the story as yet another Obama legacy torched based on ego alone. Trump Derangement Syndrome rules absolutely.

Which begs the question why there was no widespread reporting or recall of Trump’s Executive Order from September 2019? His demand prioritizes coordination and response to pandemics and the establishment of a National Influenza Vaccine Task Force.

Point 1(e) states clearly,

The seasonal influenza vaccine market rewards manufacturers that deliver vaccines in time for the influenza season, without consideration of the speed or scale of these manufacturers’ production processes.  This approach is insufficient to meet the response needs in the event of a pandemic, which can emerge rapidly and with little warning.  Because the market does not sufficiently reward speed, and because a pandemic has the potential to overwhelm or compromise essential government functions, including defense and homeland security, the Government must take action to promote faster and more scalable manufacturing platforms.

Section 2 goes further,

Policy.  It is the policy of the United States to modernize the domestic influenza vaccine enterprise to be highly responsive, flexible, scalable, and more effective at preventing the spread of influenza viruses.  This is a public health and national security priority, as influenza has the potential to significantly harm the United States and our interests, including through large-scale illness and death, disruption to military operations, and damage to the economy.  This order directs actions to reduce the United States’ reliance on egg-based influenza vaccine production; to expand domestic capacity of alternative methods that allow more agile and rapid responses to emerging influenza viruses; to advance the development of new, broadly protective vaccine candidates that provide more effective and longer lasting immunities; and to support the promotion of increased influenza vaccine immunization across recommended populations.

In short, before coronavirus was even on the radar Trump had already enacted a policy to better prepare industry to be able to supply an actual “response”. Furthermore the team wasn’t disbanded. It was merged on efficiency grounds.

As Mark Twain said,

“If you don’t read the newspaper you’re uninformed. If you read the newspaper you’re misinformed.”

Let shareholders burn

We buy shares because we expect to gain a return. We all know there are risks attached. As we wrote yesterday on Boeing, it has embarked on reckless buybacks which have compromised the balance sheet. The company has drawn down all of its $13.8bn in credit lines from banks overnight. It is panic stations. It was completely avoidable.

How ironic that companies which are among those that splurged $4.5 trillion on share buybacks just to chase short term management incentives will be the first lining up for taxpayer support to save them from negligent governance.

We say shareholders should suffer the downside of that investment choice. They had the power to remove officers from the companies they entrusted management to. If a company goes belly up, let other players in the market pick up the spoils for fire sale prices.

The Wolf Street correctly noted,

The Trump administration is putting together a rumored $850-billion stimulus package that will include taxpayer funded bailouts of Corporate America, according to leaks cited widely by the media. Trump in the press conference today singled out $50 billion in bailout funds for US airlines alone. A bailout of this type is designed to bail out shareholders and unsecured creditors. That’s all it is. The alternative would be a US chapter 11 bankruptcy procedure which would allow the company to operate, while it is being handed to the creditors, with shareholders getting wiped out.”

All this Trump package will do is encourage the same bad behaviour. We think this is nothing more than trebling down on the problems that hit us in 2008. But hey, it’s an election year!! Reckless.

As usual, the SEC has been asleep at the wheel. Same as in the lead up to 2008. This is what happens when regulators hire clueless lawyers who don’t have a clue about how markets operate. Therefore they miss crucial events.

As for shareholders – you earned it.

The only upside to this market volatility is that no one has talked about climate change for weeks! Probably because when people are about to lose their livelihoods, all of a sudden virtue signaling is worthless. That goes for diversity and inclusion too. Every cloud has a silver lining.