News for June 5 — Genetic Testing for Babies

Genetic testing for babies: https://www.aol.com/babys-genes-sequenced-birth-study-164339076.html . Currently, babies receive a heel-stick blood test which screens for up to 60 diseases. However, this does not include over 700 treatable conditions, which can be identified by genetic sequencing. This study found that for 159 babies receiving genetic sequencing, 17 (10.7%) had treatable conditions identified. The study cost was over $1,000 for each sequencing, but this cost would come down if the procedure was widely used.

Additionally, the testing identified 3 mothers with treatable genetic conditions, so that actually 20 (11.2%) of these tests produced actionable results. I would think a larger test sample is warranted to see if these percentages hold. Also, as we learn more about the genetic causes of disease, having these results “on the shelf” could help identify individuals susceptible to newly uncovered genetic diseases.

WSJ: Cancer treatment becomes less invasive: https://www.wsj.com/articles/for-some-cancers-less-treatment-is-a-better-bet-ed94d8ef . Fine-tuning to reduce invasiveness of surgery and toxicity of chemotherapy is an obvious, low-risk area to improve patient outcomes.

Treatment improvement for lung cancer patients: https://www.aol.com/news/astrazenecas-tagrisso-slashes-death-risk-151224789.html . This is also good news for AstraZeneca.

PFAs found in a broad range of seafood: https://www.seafoodsource.com/news/food-safety-health/us-fda-discovers-pfas-in-cod-shrimp-tilapia-salmon-samples . Meanwhile, in the face of the long-term lack of federal action against PFAS (why?), states are stepping in: https://www.saferstates.com/toxic-chemicals/pfas/ .

Suboxone litigation settles: https://www.reuters.com/legal/indivior-reaches-deal-resolve-states-monopoly-claim-over-opioid-addiction-drug-2023-06-02/ .

WSJ: Wall Street FINALLY backs off assumption of significant Fed rate cuts this year: https://www.wsj.com/articles/wall-street-backs-off-bets-on-fed-rate-cuts-6f1d32b5 . As readers know, I have found this aspect of the bond market irrational for months. The Fed has been abundantly clear for over a year that it will stay focused on driving inflation down toward 2%, and will endure a recession to get there. That means rates will stay high into 2024. The significant inversion in the bond market continues. This is strongly predictive of a recession.

The next big US credit threat: https://www.politico.com/news/2023/06/05/mortage-interest-rates-property-values-00094969 . The threat has additional prongs the article does not mention. We know that many banks are underwater on their long-term bond holdings, having poorly managed the (well-known) risk of rising interest rates in March 2022. And many of those banks are regional and smaller banks, the same group called out in this article.

Second, other commercial real estate is in trouble beyond office space. Shopping malls have also fallen on hard times, and there have been significant defaults and bankruptcies of companies in that space. And third, many insurers hold both substantial long-term bonds and large real estate holdings. The article’s suggestion of converting office space to residential apartments is already underway, and should likely expand.

WSJ: Blackstone sells San Antonio JW Marriott: https://www.wsj.com/articles/blackstone-agrees-to-sell-san-antonio-resort-hotel-for-800-million-e7c316f . Combined with other transactions, Blackstone is obviously raising cash and reducing debt. Others should take careful notes.

WSJ: SEC sues Binance: https://www.wsj.com/articles/sec-sues-crypto-exchange-binance-over-u-s-rule-violations-6918ed0f . Another large shoe has dropped on the crypto currency industry. More: https://money.usnews.com/investing/news/articles/2023-06-05/crypto-shares-tumble-after-u-s-sec-charges-binance-with-securities-law-violations . In essence, the SEC has gone to war with this industry. Prices dropped as investors realize that the SEC has the power to crush these companies and currencies if it so chooses, and apparently it so chooses. Still more: https://slate.com/technology/2023/06/binance-sec-crackdown-ftx-cz-sbf.html .

Ukrainians advance around Bakhmut: https://news.yahoo.com/more-alarming-every-hour-russians-161023172.html . As readers know, I agree that Ukraine’s ultimate objective should be cutting off the land bridge to Crimea. However, the renewed intense fighting around Bakhmut is surprising as this town has limited military value. Did Wagner withdraw from this area precisely to show the Russian army could not hold it? Or is Ukraine simply trying to pin down the significant Russian troops in the area before launching against the land bridge? Due to the length of the land bridge, it is difficult to reinforce and defend.   WSJ: More: https://www.wsj.com/articles/russia-says-ukraine-has-launched-attacks-on-front-lines-d49cd983 .

Major Ukrainian dam destroyed: https://www.nbcnews.com/news/world/kakhovka-dam-ukraine-russia-destroyed-rcna87852 . The security of this dam has been a major issue since Russia’s initial invasion. The water release will flood many communities downriver.

WSJ: We think the Ukraine war is being fought in 1918: https://www.wsj.com/articles/ukraines-next-target-russian-trenches-9aaaab75 . Sorry, this article is almost completely BS. The US and Western Europe have made massive efforts to turn Ukraine’s army into a modern fighting force – trench warfare is for everybody else now. General Hodges’ comments are the most perceptive – Ukraine will mass forces in two or three areas to achieve a deep breakthrough, and then cut off these defensive trench positions from the rear. Think France’s Maginot Line, which the blitzkrieg just completely evaded by going through Belgium.

However, air power remains an issue, which is why we’ve allowed our European allies to give Ukraine F-16’s. I do wonder what anti-aircraft weaponry Russia has brought into Crimea and Ukraine.

WSJ: Wagner claims Russian military fired on them: https://www.wsj.com/articles/russian-infighting-escalates-as-wagner-claims-army-fired-on-its-troops-2f2ebf9d . We have never seen a public relations campaign like this during wartime.

DOJ charging decision on OJ nears: https://apnews.com/article/trump-justice-department-classified-documents-maralago-455e06ae11fecd5fc6aa565bee6b3878 . As the article notes, obstruction of justice is on the table here. The DOJ rarely walks away from a case based on these meetings. Here, where obstruction of justice is on the table, we expect an indictment.

Chris Sununu bows out of 2024 presidential race: https://www.wsj.com/articles/chris-sununu-says-he-wont-enter-2024-gop-presidential-race-990415be . Sununu still represents the best GOP possibility to win the presidential election. But he sees no way to the GOP nomination, sad but true. The large field is helping OJ by failing to attack him head-on. The field will undoubtedly contract rapidly by the fourth primary, which will make OJ look stronger. Meanwhile, Ron DeMentis is rapidly fading to also-ran status in the polls, and it’s not even summer of 2023 …

Another DeMentis migrant stunt: https://apnews.com/article/migrants-dropped-off-california-texas-florida-2ea4ea9cc6e976e97358c64bcae164f4 . According to the articles, the migrants had already been processed in Texas and were misled into traveling to California. These activities appear to be criminal. Note that the Sheriff’s Office already recommended charges on the Martha Vineyards stunt.

WSJ: More questions on what it means to be human: https://www.wsj.com/articles/human-cave-discovery-south-africa-homo-naledi-95db7f43 . Science has assumed humans evolved through larger brains. However, finding human behavior in an ancestor with a brain 1/3 the size of ours seriously challenges that theory.

“Mystery” DC-area plane crash: https://apnews.com/article/washington-virginia-maryland-loud-boom-crash-military-jet-biden-joint-base-andrews-d618f42933fbc595cc5836dede94524c . This incident is quite reminiscent of the plane crash which killed Payne Stewart in 1999. The obvious answer there was that the plane suddenly depressurized, knocking everyone on board unconscious. The plane then crashed when it ran out of fuel. Others are thinking the same thing: https://www.dailymail.co.uk/news/article-12159269/Virginia-plane-crash-echoes-1999-death-golfer-Payne-Stewart.html . UPDATE: F-16 pilot saw Cessna pilot slumped over wheel: https://www.wric.com/news/u-s-world/it-will-take-days-to-collect-debris-from-plane-that-flew-over-washington-crashed-in-rural-virginia/ .  (WRIC is the ABC affiliate in Richmond.)

Apple’s VR headset arrives: https://www.cnbc.com/2023/06/05/apple-wwdc-2023-live-updates.html . This link gives you Apple’s introductory video in 1 minute, 15 seconds. I remain skeptical that large numbers of people will move away from actual human contact into VR headsets. This seems not only socially devolutionary but dangerous as interpersonal skills recede. Apple mentions the price last — $3,499 at introduction. This may not be as big a loser as the Metaverse has been for Zuckerberg, but still a loser. WSJ: An expert’s user experience: https://www.wsj.com/articles/apple-vision-pro-i-tried-the-new-mixed-reality-headset-f49a8811 .

WSJ: Actors authorize strike: https://www.wsj.com/articles/apple-vision-pro-i-tried-the-new-mixed-reality-headset-f49a8811 . This action is in solidarity with the writers’ strike.

WSJ: Today’s cartoon: https://www.wsj.com/articles/pepper-and-salt-c8656ad2 . This is the first cartoon from the Journal (or anywhere) I’ve ever included. The cartoonist points out an important downside of the digital age, at least in the long-gone traditional household.