COVID deaths drop globally: https://www.usnews.com/news/health-news/articles/2023-03-20/covid-19-deaths-in-u-s-drop-to-near-pandemic-low .
Biden declassifies COVID origins information: https://www.usnews.com/news/top-news/articles/2023-03-20/biden-signs-bill-requiring-declassification-of-covid-origins-information . The world needs to get to the bottom of the pandemic’s origins as soon as possible. We need to prepare for the next pandemic. WSJ: More: https://www.wsj.com/articles/biden-signs-measure-on-declassifying-intelligence-on-covid-19-origins-dda03d58 .
WSJ: More on US maternal mortality: https://www.wsj.com/articles/women-maternal-mortality-death-rate-what-to-know-1720cfd8 . The Journal catches up on earlier reporting on this throughout the media.
WSJ: Gerber baby formula recall: https://www.wsj.com/articles/some-gerber-baby-formula-recalled-due-to-possible-contamination-41799ec4 .
European convertible bond market in turmoil after Credit Suisse deal: https://www.morningstar.com/news/marketwatch/20230320283/the-275-billion-bank-convertible-bond-market-thrown-into-turmoil-after-credit-suisses-securities-wiped-out . Why did shareholders retain some value while AT1 bondholders were wiped out? This reversal of standard practice delivered some ownership of UBS to the Saudis after their (previous bail-out) investment in Credit Suisse. That is the most logical reason for the deal, and bondholders rightfully think it stinks. WSJ: More: https://www.wsj.com/articles/credit-suisse-collapse-burns-saudi-investors-3f096a07 . Still more: https://www.wsj.com/articles/credit-suisse-bond-wipeout-threatens-250-billion-market-10be7d04 . If the Journal is correct that $17 billion of bonds (Credit Suisse) are going to zero in a $250 billion market, that means over 7% of the market just went to zero in one transaction. The remaining $233 billion will likely have their valuation reduced.
PIMCO lost $340 million on Credit Suisse bond write-off: https://money.usnews.com/investing/news/articles/2023-03-20/pimco-lost-340-million-with-credit-suisse-at1-bonds-write-off-source . It’s not like they had a $340 million asset before the write-off, but they could have reasonably expected the value was not zero. However, as critical as I have been of US banks that apparently did not understand interest rate risk, I am even more appalled that PIMCO, a bond specialist, did not understand the credit risk associated with placing assets with Credit Suisse.
WSJ: Credit Suisse: “Embracing Reality”: https://www.wsj.com/articles/credit-suisses-message-to-clients-no-need-to-take-action-right-now-a3b6fc93 . So Credit Suisse is about to open its 4 day Asian trade show, titled “Embracing Reality”. While this is the height of irony, it also represents serious unconsciousness. Why did Credit Suisse fail?: https://www.wsj.com/articles/credit-suisses-death-gives-birth-to-new-type-of-bank-crisis-39bee5b9 . One tires of the Journal’s sophomoric analysis. Credit Suisse has made poor decisions for decades. They’re sort of Europe’s Wells Fargo. At some point (like a banking crisis), you have to pay a price for your ongoing lack of ability. Meanwhile, UBS probably has made the “deal of a lifetime”: https://www.wsj.com/articles/whats-next-for-ubs-after-its-whirlwind-rescue-of-credit-suisse-f09b1445 . On the plus side for UBS, Switzerland now has only one megabank. They are truly “too big to fail”.
WSJ: Why Signature Bank failed: https://www.wsj.com/articles/signature-bank-raised-its-crypto-exposure-after-slowing-real-estate-lending-ce943203 . We can name the business strategy of reducing real estate lending to go into crypto: “Jumping Out of the Frying Pan and into the Fire”. Pension actuaries should consider apply for Chief Investment Officer jobs at banks. We couldn’t possibly do as poorly as many of the practices we are seeing now.
More US military aid to Ukraine: https://apnews.com/article/ukraine-aid-ammunition-riverine-boats-91b4aa084c7e00bd7c93ef8b857b1509 . With China’s potential supply involvement with Russia, the sooner we deal Ukraine a winning hand the better. WSJ: Meanwhile, the EU is delivering 1 million rounds of artillery shells: https://www.wsj.com/articles/eu-to-send-ukraine-a-million-artillery-shells-as-russia-gains-ground-5e25a064 . Latest news from the front: https://www.wsj.com/articles/russia-struggles-to-regain-offensive-on-battlefield-as-it-grapples-for-fresh-troops-e6e58a54 .
WSJ: How Ukraine survived the winter: https://www.wsj.com/articles/how-ukraine-survived-russias-mission-to-turn-off-the-lights-winter-is-over-and-were-still-here-8668c5f5 . However, Ukraine’s 2023 grain harvest may be reduced up to 15%: https://www.wsj.com/articles/ukraine-warns-of-further-fall-in-grain-harvest-87e06986 .
WSJ: The Russian-Chinese relationship: https://www.wsj.com/articles/putin-xi-russia-china-ukraine-5c588831 . This article reminds us that the Russian and Chinese populations have a long-standing distrust of each other. Meanwhile, Xi meets with Putin in Moscow: https://www.wsj.com/articles/chinas-xi-arrives-in-moscow-as-beijing-seeks-to-position-itself-as-a-peacemaker-8f11d364 .
Biden vetoes “woke” investment ban: https://www.nbcnews.com/politics/white-house/biden-issues-first-veto-congress-blocks-new-investment-rule-rcna72997 . This supposed legislation can’t survive Biden’s veto, as Congress knew from the start. As this is just an investment option, the bill makes no sense. WSJ: More: https://www.wsj.com/articles/biden-issues-first-veto-rejecting-attempt-to-block-esg-effort-63c2f969 .
White House goes on the offensive against House budget cut proposal: https://thehill.com/homenews/administration/3908381-white-house-calls-conservative-gop-groups-budget-proposal-a-five-alarm-fire/ . The article gives the White House too little credit, and the Freedom Caucus too much. Biden has pressed McCarthy for months to produce a budget proposal because the spending ideas the House GOP has advanced don’t fit together as a matter of logic. If everyone wants to protect Social Security, Medicare and the defense appropriations, severe cuts must occur to all other government services to balance the budget. So the obvious solution, which Biden has advocated for some time, is to raise taxes on the rich.
The coming Orange Julius indictment: https://news.yahoo.com/trump-is-expected-to-be-indicted-in-the-new-york-hush-money-probe-heres-everything-we-know-202328017.html . I would agree that (1) OJ will be indicted; (2) the DOJ expects to win; and (3) this case may not generate jail time. I also agree that other cases against OJ are stronger in terms of evidence, the applicable law, and likely penalties. As people have said for some time, the Georgia elections case appears to be a powerful case involving severe penalties. We will (finally) begin to see …
More on the OJ prosecutor: https://news.yahoo.com/alvin-bragg-the-progressive-prosecutor-who-could-take-down-donald-trump-211313485.html . The media should not be labeling Bragg as a progressive. This further politicizes a prosecution which should be viewed by the rule of law, not politics.
OJ lawyers seek to quash Atlanta grand jury report: https://www.yahoo.com/entertainment/trump-lawyers-seek-quash-atlanta-151947761.html . WSJ: More: https://www.wsj.com/articles/trump-asks-court-to-scrap-georgia-probe-into-election-interference-de53ac5a . While the jury foreperson’s behavior was disappointing, she released no details of importance and did not violate the judge’s instructions. So OJ’s lawyers are just trying to derail what appears to be an almost open-and-shut case of election interference.
WSJ: 4 more Oath Keepers convicted in January 6 insurrection: https://www.wsj.com/articles/four-oath-keepers-associates-convicted-in-jan-6-conspiracy-case-45908eb3 .
UN climate change report: Change our ways or die: https://apnews.com/article/un-climate-change-report-ipcc-guterres-science-30d8451c0f3fb7b8a857e3ed4fd01172 . Sadly, this is not an overstatement. However, the fact that the problem requires aggressive action does not constitute a reason for ignoring the destruction of the planet’s ecosystem.