Monday, 21 November 2022

FTX – Fools And Their Money.

 Baltic Dry Index. 1189 -39     Brent Crude 87.14

Spot Gold 1746         US 2 Year Yield 4.51 +0.08

Coronavirus Cases 02/04/20 World 1,000,000

Deaths 53,100

Coronavirus Cases 21/11/22 World 643,136,385

Deaths 6,626,124

Why did I take up stealing? To live better, to own things I couldn't afford, to acquire this good taste that you now enjoy and which I should be very reluctant to give up.

Ebenezer Squid, with apologies to Cary Grant. To Catch A Thief.

In the stock casinos, rising caution. How far will the FTX fraud spread?

How much damage has rising global interest rates already done to future corporate profits? How much higher will interest rates go?

Will the dress up stocks Santa Claus year-end rally, this year turn into a year-end Santa Claus bust, as everyone wants out ahead of the Great Biden Bust of 2023?

In China, is a new wave of Covid-19 already spiralling out of control?

In Europe, just how bad will the arriving winter be for a European economy already in recession? Continental Europe still seems to want to commit economic suicide over Ukraine.


European markets head for lower open as investors gauge economic outlook

UPDATED MON, NOV 21 2022 12:31 AM EST

European markets are heading for a lower open on Monday as investors continue to assess inflationary pressures and the possible trajectory of central bank interest rates.

European markets closed higher on Friday last week as investors continued to assess the trajectory of monetary policy after some tough statements from U.S. Federal Reserve officials.

Global markets have taken some heart from lower-than-expected consumer and wholesale inflation prints recently, prompting bets that the U.S. central bank would have to slow its aggressive interest rate hikes.

However, St. Louis Fed President James Bullard said last Thursday that “the policy rate is not yet in a zone that may be considered sufficiently restrictive” and suggested that the terminal federal funds rate could reach the 5% to 7% range, higher than the market is currently pricing.

Overnight, shares in the Asia-Pacific mostly fell on Monday amid growing Covid concerns in China as its central bank kept the benchmark lending rates, or loan prime rates, on hold.

Meanwhile, S&P 500 futures fell slightly Sunday evening ahead of another batch of retail earnings to kick off a shortened week in the U.S. ahead of the Thanksgiving holiday.

European markets open to close, stock moves, news and data (cnbc.com)

 

Asia shares, oil prices skid on China COVID outbreaks

SYDNEY, Nov 21 (Reuters) - Asian share markets and oil prices slipped on Monday as investors fretted about the economic fallout from fresh COVID-19 restrictions in China, with resulting risk aversion benefiting bonds and the dollar.

Beijing's most populous district urged residents to stay at home on Monday as the city's COVID case numbers rose, while at least one district in Guangzhou was locked down for five days. read more read more

The rash of outbreaks across the country has been a setback to hopes for an early easing in strict pandemic restrictions, one reason cited for a 10% slide in oil prices last week.

Chinese blue chips (.CSI300) fell 1.3% in early trade, dragging MSCI's broadest index of Asia-Pacific shares outside Japan (.MIAPJ0000PUS) down 1.4%. Japan's Nikkei (.N225) was flat and South Korea (.KS11) lost 1.2%.

S&P 500 futures were down 0.3%, while Nasdaq futures slipped 0.2%. EUROSTOXX 50 futures lost 0.4% and FTSE futures 0.2%.

The U.S. Thanksgiving holiday on Thursday combined with the distraction of the soccer World Cup could make for thin trading, while Black Friday sales will offer an insight into how consumers are faring and the outlook for retail stocks.

Minutes of the U.S. Federal Reserve's last meeting are due on Wednesday and could sound hawkish, judging by how officials have pushed back against market easing in recent days.

Atlanta Federal Reserve President Raphael Bostic on Saturday said he was ready to step down to a half-point hike in December but also underlined that rates would likely stay high for longer than markets expected. read more

Futures imply an 80% chance of a rise of 50 basis points to 4.25-4.5% and a peak for rates around 5.0-5.25%. They also have rate cuts priced in for late next year.

More

Asia shares, oil prices skid on China COVID outbreaks | Reuters

 

Europe rushes to fill up on Russian diesel before ban begins

LONDON, Nov 21 (Reuters) - European traders are rushing to fill tanks in the region with Russian diesel before an EU ban begins in February, as alternative sources remain limited.

The European Union will ban Russian oil product imports, on which it relies heavily for its diesel, by Feb. 5. That will follow a ban on Russian crude taking effect in December.

Russian diesel loadings destined for the Amsterdam-Rotterdam-Antwerp (ARA) storage region rose to 215,000 bpd from Nov. 1 to Nov. 12, up by 126% from October, Pamela Munger, senior market analyst at energy analytics firm Vortexa, said.

With few immediate cost-effective alternatives, diesel from Russia has made up 44% of Europe's total imports of the road fuel so far in November, compared with 39% in October, Refinitiv data shows.

Although Europe's reliance on the Russian fuel has fallen from more than 50% before Moscow's February invasion of Ukraine, Russia is still the continent's largest diesel supplier.

"The EU will have to secure around 500-600 kb/d of diesel to replace the Russian volumes, replacements will come from the US as well as east of Suez, primarily the Middle East and India," Eugene Lindell, refining and products market analyst at FGE, said.

The Russian gasoil heading into ARA tanks is likely to be used or sold quickly as a result of backwardation in Ice gasoil futures , where the current value is higher than it will be in later months, Lars van Wageningen, at Dutch consultancy Insights Global, said.

Part of the influx comes as ICE Futures Europe bans low-sulphur gasoil of Russian origin ahead of EU sanctions.

From Nov. 30, traders must prove to ICE that no Russian product has entered any tanks in the wider ARA region - including Flushing and Ghent - that will be used for January delivery through the ICE futures contract.

Russian gasoil can still arrive in ARA storage tanks in December, but it must be moved to other tanks from which no delivery can be made, according to ICE.

More

Europe rushes to fill up on Russian diesel before ban begins | Reuters

Finally, more on that FTX/Democrat Party, hedge fund scam FTX. Why was it ever funded at all? Cui bono?

Collapsed crypto exchange FTX owes top 50 creditors $3.1bn

November 20, 2022

Collapsed crypto exchange FTX has revealed it owes its 50 biggest creditors nearly $3.1bn, as it presses ahead with bankruptcy proceedings in the US.

The crypto bourse, formerly run by disgraced founder Sam Bankman-Fried, said it owes around $1.45bn to its top 10 creditors alone, in court filings published yesterday, seen by Reuters.

FTX filed for Chapter 11 bankruptcy two weeks ago and has left around one million customers and investors facing down billions of dollars of losses. 

John Ray III, who previously oversaw the bankruptcy proceedings of energy giant Enron, has been parachuted into oversee its winding-up and described it as the worst instance of corporate mismanagement he had seen. 

“Never in my career have I seen such a complete failure of corporate controls and such a complete absence of trustworthy financial information as occurred here,” he wrote in a filing with the Delaware bankruptcy court last week. 

Under Ray, the firm has launched a strategic review of its sprawling global assets and is preparing for the sale or reorganisation of some businesses, in a bid to “begin to maximise recoverable value for stakeholders.”

Ray said that some of the firms under FTX’s umbrella “have solvent balance sheets, responsible management and valuable franchises”.

The implosion of the firm has sent shockwaves through the cryptocurrency market and sparked fears of contagion across the industry. 

Crypto lender Genesis has been among the biggest firms caught up in the fallout and last week suspended withdrawals from its website. Bosses at Genesis are reportedly scrambling to raise a $1bn loan from investors, the Wall Street Journal reported.

Collapsed crypto exchange FTX owes top 50 creditors $3.1bn (msn.com)

 

How Caroline Ellison Found Herself at the Center of the FTX Crypto Collapse

As CEO of Alameda Research, Ms. Ellison took a leading role in helping Sam Bankman-Fried build the FTX empire

Nov. 20, 2022 5:30 am ET

----Prosecutors, regulators and even FTX’s new CEO are investigating what happened. Customers are losing hope they will ever see their money again. Lawsuits have followed, and many top employees have left. Ms. Ellison has been fired along with Gary Wang and Nishad Singh. They were also top deputies of Mr. Bankman-Fried’s.

Before the crash, Mr. Bankman-Fried hugged the spotlight, promoting crypto and lobbying for its interests in Washington, while Ms. Ellison remained in the engine room. Alameda, a trading firm owned almost entirely by Mr. Bankman-Fried, had one overarching purpose: Make money. Ms. Ellison was tasked with keeping it running.

In a handful of podcasts and other public appearances, Ms. Ellison was quick to summarize her rapid ascent as almost accidental. She joined Wall Street straight from graduating Stanford University in 2016, though the move was less a calling than an answer to the question she found herself asking in college: What are math majors supposed to do with their lives, anyway?

It was at her first job, at the quant-trading powerhouse Jane Street Capital, that she met another 20-something trader, Mr. Bankman-Fried. Like her, he had been raised by two professors. Like her, he spoke highly of a movement called “effective altruism,” or the idea of making big money to give away.

When Mr. Bankman-Fried left to start Alameda, Ms. Ellison soon followed in what she called “a blind leap into the unknown.” She was still barely out of college—but she was also one of the more experienced traders there, she said in an FTX podcast in 2020.

More

How Caroline Ellison Landed at the Center of the FTX Crypto Collapse - WSJ

‘There is no such thing as a free lunch.’ 4 lessons for crypto investors from the FTX collapse

After a difficult year for digital assets, many investors were blindsided by the recent collapse of cryptocurrency exchange FTX, as customers wait for answers about an estimated $1 billion to $2 billion of missing funds.

While the future of the company — and investigations into the vanishing assets — are in limbo as FTX enters bankruptcy protection, experts say there are key lessons for crypto investors.

“The FTX collapse provides harsh reminders that ‘there is no such thing as a free lunch’ when trying to make a quick buck in a still fairly new, unregulated financial industry,” said certified financial planner Jon Ulin, CEO of Ulin & Co. Wealth Management in Boca Raton, Florida.

You should invest “what you are willing to lose 100%, like in Vegas,” and “discretion and skepticism” should be exercised when weighing assets and related products pitched by “pro-athletes, celebrities and media personalities,” Ulin said.

Here are four other lessons for investors from FTX’s downfall.

More

4 lessons for cryptocurrency investors from the FTX collapse (cnbc.com)

 

Global Inflation/Stagflation/Recession Watch.

Given our Magic Money Tree central banksters and our spendthrift politicians, inflation now needs an entire section of its own.

Jeff Bezos, Elon Musk, and Ken Griffin are sounding the alarm on a US recession. Here are 12 dire economic warnings from elite commentators.

Sun, 20 November 2022 at 11:30 am·

Jeff Bezos, Elon Musk, and Ken Griffin have sounded the alarm on a looming US recession, joining a chorus of CEOs, investors, and academics predicting a prolonged economic downturn.

Carl Icahn, Jamie Dimon, and Charlie Munger are also bracing for the economy to shrink and unemployment to spike. These experts have flagged numerous growth headwinds, including the Federal Reserve hiking interest rates to cool red-hot inflation, and the Russia-Ukraine war and China's ongoing lockdowns disrupting global trade.

Here are 12 recent recession warnings, lightly edited for length and clarity:

1. Jeff Bezos, Amazon's founder and executive chairman:

"The economy does not look great right now. Things are slowing down, you're seeing layoffs in many, many sectors. The probabilities say if we're not in a recession right now, we're likely to be in one very soon. Take as much risk off the table as you can. Hope for the best, but prepare for the worst."

"The probabilities in this economy tell you to batten down the hatches."

2. 
Elon Musk, CEO of Tesla, SpaceX, and Twitter:

"There's going to be probably a year or two of serious recession."

"Frankly, the economic picture ahead is dire, especially for a company like ours that is so dependent on advertising in a challenging economic climate."

3. Ken Griffin, CEO of Citadel:

"For the Fed to truly conquer inflation here, we're going to put unemployment somewhere in the mid-4% range. I find it hard to believe we're not going to have a recession at that point in time, sometime in the middle to back half of 2023."

4. Charlie Munger, Warren Buffett's business partner and vice-chairman of Berkshire Hathaway:

"I think the Fed is willing to have a little recession in order not to have out-of-control inflation. That's what they're supposed to do. They're supposed to be the one guy at the party that doesn't hang around the punch bowl getting drunk."

5. Carl Icahn, chairman of Icahn Enterprises:

"Whenever you have higher interest rates that have moved as they have here, you have an inverted yield curve, Treasuries at close to a 5% yield — you are going to have a recession. And I think we do have a recession already. There's a lot of things that have to happen to turn this economy around, to get us out of a recession."

More

Jeff Bezos, Elon Musk, and Ken Griffin are sounding the alarm on a US recession. Here are 12 dire economic warnings from elite commentators. (yahoo.com)

 

Below, why a “green energy” economy may not be possible, and if it is, it won’t be quick and it will be very inflationary, setting off a new long-term commodity Supercycle. Probably the largest seen so far.

The “New Energy Economy”: An Exercise in Magical Thinking

https://media4.manhattan-institute.org/sites/default/files/R-0319-MM.pdf

Mines, Minerals, and "Green" Energy: A Reality Check

https://www.manhattan-institute.org/mines-minerals-and-green-energy-reality-check

"An Environmental Disaster": An EV Battery Metals Crunch Is On The Horizon As The Industry Races To Recycle

by Tyler Durden Monday, Aug 02, 2021 - 08:40 PM

https://www.zerohedge.com/markets/environmental-disaster-ev-battery-metals-crunch-horizon-industry-races-recycle

Covid-19 Corner

This section will continue until it becomes unneeded.

With Covid-19 starting to become only endemic, this section is close to coming to its end.  

More on that Great Covid-19 Vaccination scandal in the USA and elsewhere. We were only joking, no really, honestly, cross my heart.

FDA Says Telling People Not to Take Ivermectin for COVID-19 Was Just a Recommendation

By Zachary Stieber November 19, 2022 Updated: November 19, 2022

The U.S. Food and Drug Administration (FDA) telling people to “stop” taking ivermectin for COVID-19 was informal and just a recommendation, government lawyers argued during a recent hearing.

“The cited statements were not directives. They were not mandatory. They were recommendations. They said what parties should do. They said, for example, why you should not take ivermectin to treat COVID-19. They did not say you may not do it, you must not do it. They did not say it’s prohibited or it’s unlawful. They also did not say that doctors may not prescribe ivermectin,” Isaac Belfer, one of the lawyers, told the court during the Nov. 1 hearing in federal court in Texas.

“They use informal language, that is true,” he also said, adding that, “it’s conversational but not mandatory.”

The hearing was held in a case brought by three doctors who say the FDA illegally interfered with their ability to prescribe medicine to their patients when it issued statements on ivermectin, an anti-parasitic that has shown positive results in some trials against COVID-19.

Ivermectin is approved by the FDA but not for COVID-19. Drugs are commonly used for non-approved purposes in the United States; the practice is known as off-label treatment.

The FDA created a webpage in 2021 titled “Why You Should Not Use Ivermectin to Treat or Prevent COVID-19” and later posted a link to the page on Twitter while writing: “You are not a horse. You are not a cow. Seriously, y’all. Stop it.” A second post stated: “Hold your horses, y’all. Ivermectin may be trending, but it still isn’t authorized or approved to treat COVID-19.”

In a separate page, the FDA said: “Q: Should I take ivermectin to prevent or treat COVID-19? A: No.”

Those actions interfered with the doctors’ practice of medicine, violating the laws including the Federal Food, Drug, and Cosmetic Act, the lawsuit alleges.

It asked the court to rule the actions unlawful and bar the FDA from directing or opining as to whether ivermectin should be used to treat COVID-19.

Jared Kelson, an attorney representing the plaintiffs, told the court during the hearing that that informal claim “doesn’t explain the language they actually used: ‘Stop it. Stop it with the ivermectin.'”

The FDA’s actions “clearly convey that this is not an acceptable way to treat these patients,” he argued.

Plaintiffs in the case include Dr. Paul Marik, who began utilizing ivermectin in his COVID-19 treatment protocol in 2020 while he was chief of pulmonary and critical care medicine at Eastern Virginia Medical School and director of the intensive care unit at Sentara Norfolk General Hospital.

More

FDA Says Telling People Not to Take Ivermectin for COVID-19 Was Just a Recommendation (theepochtimes.com)

China announces 1st COVID-19 death in almost 6 months

November 20, 2022

BEIJING (AP) — China on Sunday announced its first new death from COVID-19 in nearly half a year as strict new measures are imposed in Beijing and across the country to ward against new outbreaks.

The death of the 87-year-old Beijing man was the first reported by the National Health Commission since May 26, bringing the total death toll to 5,227. The previous death was reported in Shanghai, which underwent a major springtime surge in cases.

China on Sunday announced 24,215 new cases detected over the previous 24 hours, the vast majority of them asymptomatic.

While China has an overall vaccination rate of more than 92% having received at least one dose, that number is considerably lower among the elderly — particularly those over age 80 — where it falls to just 65%. The commission did not give details on the vaccination status of the latest deceased.

That vulnerability is considered one reason why China has mostly kept its borders closed and is sticking with its rigid “zero-COVID” policy that seeks to wipe out infections through lockdowns, quarantines, case tracing and mass testing, despite the impact on normal life and the economy and rising public anger at the authorities.

More

China announces 1st COVID-19 death in almost 6 months | AP News

Several Beijing districts shut schools as China COVID cases rise

BEIJING, Nov 21 (Reuters) - Students in schools across several Beijing districts buckled down for online classes on Monday after officials called for residents in some of its hardest-hit areas to stay home, as COVID cases in China's capital and nationally ticked higher.

China is fighting numerous COVID-19 flare ups, from Zhengzhou in central Henan province to Chongqing in the southwest and for Sunday reported 26,824 new local cases, nearing the country's pandemic peak in April. It also recorded two deaths in Beijing, up from one on Saturday, which was China's first since late May.

Guangzhou, a southern city of nearly 19 million people that is battling the largest of China's recent outbreaks, ordered a five-day lockdown for its Baiyun district, its most populous. It also suspended dine-in services and shut night clubs and theatres in Tianhe, home to the city's main business district.

The latest wave is testing China's resolve to stick to adjustments it has made to its zero-COVID policy, which calls for cities to be more targeted in their clampdown measures and steer away from catch-all lockdowns and testing that have strangled the economy and frustrated residents.

More

Several Beijing districts shut schools as China COVID cases rise | Reuters

NY Times Coronavirus Vaccine Trackerhttps://www.nytimes.com/interactive/2020/science/coronavirus-vaccine-tracker.html

Regulatory Focus COVID-19 vaccine trackerhttps://www.raps.org/news-and-articles/news-articles/2020/3/covid-19-vaccine-tracker

Some other useful Covid links.

Johns Hopkins Coronavirus resource centre

https://coronavirus.jhu.edu/map.html

Centers for Disease Control Coronavirus

https://www.cdc.gov/coronavirus/2019-ncov/index.html

The Spectator Covid-19 data tracker (UK)

https://data.spectator.co.uk/city/national

Technology Update.

With events happening fast in the development of solar power and graphene, among other things, I’ve added this section. Updates as they get reported.

Researchers turn asphaltene into graphene for composites

NOVEMBER 18, 2022

Asphaltenes, a byproduct of crude oil production, are a waste material with potential. Rice University scientists are determined to find it by converting the carbon-rich resource into useful graphene.

Muhammad Rahman, an assistant research professor of materials science and nanoengineering, is employing Rice's unique flash Joule heating process to convert asphaltenes instantly into turbostratic (loosely aligned) graphene and mix it into composites for thermal, anti-corrosion and 3D-printing applications.

The process makes good use of material otherwise burned for reuse as fuel or discarded into tailing ponds and landfills. Using at least some of the world's reserve of more than 1 trillion barrels of asphaltene as a feedstock for graphene would be good for the environment as well.

"Asphaltene is a big headache for the oil industry, and I think there will be a lot of interest in this," said Rahman, who characterized the process as both a scalable and sustainable way to reduce carbon emissions from burning asphaltene.

Rahman is a lead corresponding author of the paper in Science Advances co-led by Rice chemist James Tour, whose lab developed flash Joule heating, materials scientist Pulickel Ajayan and Md Golam Kibria, an assistant professor of chemical and petroleum engineering at the University of Calgary, Canada.

Asphaltenes are 70% to 80% carbon already. The Rice lab combines it with about 20% of carbon black to add conductivity and flashes it with a jolt of electricity, turning it into graphene in less than a second. Other elements in the feedstock, including hydrogen, nitrogen, oxygen and sulfur, are vented away as gases.

More

Researchers turn asphaltene into graphene for composites (phys.org)

“I think we agree, the past is over.”

President George W. Bush.

 

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