XBB spread increases WHO concern: https://www.marketwatch.com/story/who-says-another-omicron-subvariant-which-may-be-more-resistant-to-antibodies-spread-to-26-countries-in-latest-week-11666278671 . The arms race between the COVID virus and vaccines continues. The vaccine targeting of the spike protein has so far not stopped extensive mutation in that protein. The question becomes whether researchers can target a more stable area of the coronavirus surface.
Pfizer vaccine price hike: https://www.usnews.com/news/top-news/articles/2022-10-20/pfizer-expects-to-price-covid-vaccine-at-110-130-per-dose . WSJ: More: https://www.wsj.com/articles/pfizer-targets-covid-vaccine-price-of-at-least-110-a-dose-11666306202 . If we continue to look at vaccinations every several months for the evolving virus, this could get damn expensive. I wonder how this interacts with recent suggestions that repeat vaccinations could be rolled back to the most vulnerable groups (for example, persons over 50). UPDATE: Here’s a similar concern, that the price hikes come from falling demand: https://money.usnews.com/investing/news/articles/2022-10-20/analysis-falling-demand-for-covid-boosters-puts-price-hikes-on-the-table .
Curing irregular heartbeat with snortable drug: https://bgr.com/science/revolutionary-new-snortable-drug-fixes-irregular-heartbeats-in-30-minutes/ . Because this drug can be self-administered, it could be a gamechanger in treating this condition.
Indonesia sees spike in children’s deaths from contaminated medicines: https://apnews.com/article/health-indonesia-injuries-covid-e9f012218e44cb3e091d1f8fe99ec76d . The obvious question is whether these medicines were exported from India, given the similar tragedy in The Gambia.
Weekly jobless claims drift lower to 214,000: https://apnews.com/article/health-indonesia-injuries-covid-e9f012218e44cb3e091d1f8fe99ec76d . Nothing here that would get the Fed to back off rate hikes. WSJ: More: https://www.wsj.com/articles/jobless-claims-fell-last-week-in-still-tight-labor-market-11666271090 .
The role of borrowing in current global financial conditions: https://www.msn.com/en-us/money/markets/truss-implosion-shows-big-change-in-financial-climate/ar-AA13cI8g?cvid=b17773c832904c32b2a9e7d917f55bb4 . This is a complex topic, but here are a couple of points that may help. The comment that there is $23.7 trillion outstanding in US Treasury bonds right now, $7 trillion more than at the end of 2019, means that in less than 34 months the supply of Treasuries has increased 42% ($23.7/$16.7).
As interest rates have risen from near-zero to 4%, holders of long-term bonds have been financially crushed because of the massive depreciation in value of those bonds. With the Fed certain to raise rates further, who wants to own a long-term bond? That is the bond liquidity crisis in a nutshell.
US housing market continues its retreat: https://www.cnn.com/2022/10/20/homes/existing-home-sales-september . More: https://markets.businessinsider.com/news/stocks/home-prices-housing-market-crash-fed-rate-hikes-jeremy-siegel-2022-10 . My sense is 15% is about right. However, Siegel seems to be ignoring the role of cash buyers, which now include Wall Street funds seeking rentals. These home price declines do not necessarily mean that rents will decline. WSJ: More: https://www.wsj.com/articles/u-s-home-sales-dropped-for-eighth-straight-month-in-september-11666274881 .
WSJ: College enrollment continues decline: https://www.wsj.com/articles/college-enrollment-declines-again-though-online-schools-hbcus-see-increases-11666223613 . What exactly is the life plan of those not going on to college? It seems unlikely the “influencer” will be a growing occupation.
Liz Truss out as UK Prime Minister: https://news.yahoo.com/liz-truss-resigns-prime-minister-123645021.html . WSJ: More: https://www.wsj.com/articles/liz-truss-resigns-as-u-k-prime-minister-11666269489 . We think of newly elected leaders as having a honeymoon period. At 45 days, the shortest tenure as Prime Minister in UK history, this was more of a one-night stand. The new 6 week process to choose a prime minister was obviously an embarrassing failure for the Conservative Party.
Since a quick process is now called for, you would think Rishi Sunak, Truss’ chief rival for the job, would have an inside track. However, he just lost the job to Liz Truss 6 weeks ago. Jeremy Hunt, who just stabilized the financial mess Truss created, is another possibility. And now Boris Johnson has reared his ugly … rear. We will see. WSJ: More: https://www.wsj.com/articles/rishi-sunak-former-u-k-treasury-chief-leads-race-to-succeed-liz-truss-as-prime-minister-11666293221 .
Meanwhile, Truss will receive an annual allowance of 115,000 pounds for the rest of her life: https://www.yahoo.com/news/just-44-days-office-liz-133646445.html . Here’s another pension liability problem for the Brits …
Slavery on the ballot this year in 5 US states: https://apnews.com/article/2022-midterms-13th-amendment-slavery-4a0341cf82fa33942bda6a5d17ac4348 . As weird as this seems, 20 state constitutions still have language permitting slavery as punishment for a crime. So 5 states are trying to fix this horrific oversight, including my home state of Oregon. Yes, this is shocking. However, Oregon was the last state to join the Union before the Civil War. Our original constitution avoided this issue by just barring all blacks from the state. For more on slavery, see this recent discussion of the US Senate.
Iranians on the ground in Crimea helping Russia fire kamikaze drones on Ukraine: https://www.yahoo.com/now/iranian-drone-trainers-crimea-help-202956416.html . Let’s just say Iran has made a very dangerous choice here. WSJ: More: https://www.wsj.com/articles/u-s-europe-struggle-to-keep-irans-drones-from-russian-military-11666263602 . Still more: https://www.wsj.com/articles/iran-is-training-russian-drone-pilots-in-crimea-to-aid-moscows-war-effort-u-s-says-11666296911 .
WSJ: US CentCom goes into Shark Tank mode to get new ideas: https://www.wsj.com/articles/military-innovation-shark-tank-central-command-11666220839 . Sigh. So workers have the best insight into improving process problems. The Japanese figured this out 60 years ago. And they did it with the help of American W. Edwards Deming: https://en.wikipedia.org/wiki/W._Edwards_Deming .