Individual Economists

The Graveyard Of Destructive Ideas

Zero Hedge -

The Graveyard Of Destructive Ideas

Authored by Victor Davis Hanson,

How do destructive ideas and bouts of collective madness so quickly become policy, law, and the status quo?

After all, most have little public support—and are not Western nations supposedly rationally governed?

There is usually a multi-step process on the road to these self-destructive fits of society-wide insanity.

The suicidal impulse so often begins with left-leaning researchers in elite universities (i.e., the tenured in search of a novel, grant-getting theory). They begin insisting that a new existential threat requires immediate government intervention, novel legislation, ample funding, and public awareness of the impending danger.

So out of nowhere, the public is warned that the scorching planet will be inundated by rising seas in a mere decade. Or that millions of transgender youth are our next civil rights frontier, given that they suffer in silence without political advocacy, new laws, programs, and the chance for “life-saving,” powerful hormonal treatments and radical sex-reassignment surgeries. Indeed, the travel time from an outlandish idea by the faculty lounge to liberal status quo is a mere few years.

Next, the media, hand-in-glove with academia, springs into action to persuade the skeptical public to “follow the science” and “trust the experts.” It castigates any doubters as cranks or “conspiracy theorists” who spread “disinformation” and “misinformation”; or as racists, nativists, sexists, homophobes, and transphobes who must be silenced.

Hollywood and sports celebrities often piggyback on the frenzy, hijacking awards ceremonies and pre-game national anthems to out-virtue-signal each other, warning the public that they must adapt and change—or else!

Almost overnight—to take just one example—going to an isolated beach without a mask during the COVID pandemic, showing skepticism about the efficacy or safety of experimental mRNA COVID vaccines, or daring to believe that the Wuhan gain-of-function virology lab (in part aided and abetted by grants and support from Dr. Fauci’s National Institute of Allergies and Infectious Diseases and the National Institutes of Health) was the source of a manufactured COVID pathogen became heresies. And the perpetrators, as always, had to be punished either legally or through social ostracism and cancel culture.

Third, liberal foundations begin funding more “research” to “prove” that partisan “experts” should not be ignored. They also fund activist groups that hit the street to gin up popular support, which often results in the required tumult and occasional violence. They embrace the theory that any disruption will so bother the public that it will support almost anything if it just makes the bedlam go away.

New victims and their oppressors are created ex nihilo.

Yesterday’s radical new policy becomes today’s wishy-washy cop-out, as tomorrow’s once-unthinkable radical idea becomes commonplace and institutionalized. So it was that a few years ago, the public was told of a new and huge victimized group in the shadows, suffering from “gender dysphoria”—an age-old malady known to the ancients and, according to modern researchers before the millennium, affecting about one in 10,000–30,000 people.

No matter—almost overnight, transgenderism joined the gay and lesbian community to become the new LGB—T oppressed. Drag shows, once confined to enclaves in San Francisco or New York, were suddenly mainstreamed into military bases, children’s libraries, and cruise ships. Thirty percent of students on some campuses polled said that they might consider “transitioning.”

Abruptly, professors and students began reading emails appearing from their finger-in-the-wind administrators with strange new runes under their titles and names, identifying their “preferred pronouns”—sometimes the standard “she/her/hers” or “he/him/his,” and sometimes the unfathomable, such as “Ze/hir/hirs” or the plural “they/them.”

Groupthink and mob mentality prevail. Soon, not listing pronouns on correspondence indicts someone as a counterrevolutionary, a transphobe, or, worst of all, a Trump sympathizer.

Fourth, fence-sitting liberal and socialist officials and candidates equate the well-funded activism, the performance-art street demonstrations, and the media fixations on victims and victimizers with growing grassroots support for yet another cause.

This is well illustrated by how initially liberal officials—stunned that 70 percent of the public wanted secure borders, no more illegal immigration, and deportation of the 10 million Biden-era illegal aliens—kept quiet about Trump’s crackdown on illegal immigration.

However, after massive and violent demonstrations in major blue cities—with the deaths of two protestors who confronted ICE officers and tried to impede their efforts to detain illegal aliens—biased media blared out that officers were manhandling “mere bystanders.” ICE is now routinely likened by Democratic politicians to the Nazi Gestapo, well beyond the usual boilerplate smears as “pigs” and “fascists.”

The public buys into the fable that ICE agents were not arresting some 4,000 criminal illegal aliens in Minnesota while elected officials were siccing protestors on them, but were instead “murdering” innocent unarmed bystanders, who were harmlessly protesting ICE’s “goon” tactics.

Fifth, once the delusion—whether it is of a doomed sizzling planet, a utopian open border, the systemic oppression of a huge transgendered victimized class, or the habitual and flagrant shooting of innocent unarmed black males by predatory racist police—is institutionalized, then the government and institutions, public and private, ignore public opinion. And they begin passing laws and protocols once deemed unthinkable.

The once-meritocratic SAT, originally aimed at nullifying the old-boy admissions network at the Ivy League, becomes “racist” and is dropped. “Defund the Police” becomes the elite white activist mantra.

Soon, the politicians’ talking points become gospel, as formerly crackpot “critical legal theory” and “critical race theory” are used to “prove” that police hunt down minorities rather than the criminals among them.

Productive, safe nuclear clean-energy plants are shut down. Billions of dollars are invested—and lost—by government mandates aimed at phasing out internal combustion engines and subsidizing unpopular electric vehicles. Government-built high-speed rail boondoggles waste billions before laying a foot of track.

Schools and public offices must suddenly install “gender neutral” bathrooms. What follows is the surreal sight of biological men competing in women’s sports and undressing with teen girls in locker rooms—acts that just a few years prior would have landed someone in jail.

However, there sometimes occurs a sixth stage, which we might call the “Emperor Has No Clothes” wake-up call, that occasionally stops the lemmings in their mad dash over the cliff.

Gradually, the public wonders why it pays twice as much for electricity as it did a mere few years earlier. Supposedly doomed polar bears appear to be thriving in the Arctic. John Kerry is routinely spotted on a carbon-spewing private jet to get to climate change conferences abroad. California’s “permanent” drought strangely ignores near-record wet years and snowfall. Too little rain proves global warming; too much is proof of “climate chaos.”

Barack Obama, the Cassandra of rising seas, nonetheless prefers to buy and live in multimillion-dollar mansions on the Hawaii beach and Martha’s Vineyard seaside.

A few brave reporters cite China building two coal plants a month, even as it brags about the Paris Climate Accords and urges the West to embrace “clean energy.”

The public begins to wonder why, after mass shootings, authorities mysteriously conceal the transgender status of the shooter or suppress the perpetrator’s incriminating target list and diary.

Quietly, university studies start citing the cardiac, pulmonary, and hematological side effects of the mRNA vaccines.

Some universities, without much fanfare, begin to reintroduce the SAT after remedial math courses have had to expand to accommodate nearly half the entering class.

Economists at last come out of the shadows to cite data that shows the massive COVID lockdowns were a catastrophic blunder that permanently stunted the education of millions of youths and birthed an epidemic of psycho-social maladies that disrupted entire communities.

Accusations grow that the architects of Black Lives Matter embezzled millions of dollars in donations and spent freely on upscale homes for themselves. Data drips out that police shoot no more unarmed black suspects than white, when compared to the relative rates of arrests by race. The Somali community—the supposed DEI face of the new Minnesota Democratic majority—is found to be at the heart of a $9 billion fraud epidemic. And so it is revealed as most ungracious, treating its hosts’ magnanimity as naivete to be exploited rather than as generosity to be appreciated.

On the border, the old mantra that the crime rate of illegal aliens is well below that of citizens is revealed as politically tainted. Estimates emerge that 500,000 criminals or more swarmed the border, as the body count of U.S. citizens murdered and assaulted by illegal aliens grows daily.

In sum, just five years ago, when Joe Biden and his masters took control of the government, the orthodoxy was that we were to restructure the entire economy along failed European lines in order to save the planet.

There were no longer to be the two age-old sexes, but a dozen or more in 2021 America.

“Men” could become pregnant (but only if they were born as biological women).

Tampons were politically correct in male bathrooms.

Preferred pronouns dotted memos.

A swarm of 10,000 illegal aliens a day proved America was compassionate and caring while creating a “new Democratic majority,” given that “demography is destiny.”

Blue-city prosecutors released thousands of criminals either without formally charging them or after merely fining them for lesser crimes.

Racial obsessions destroyed merit-based hiring of everyone from air traffic controllers to pilots to professors to museum docents.

And then abruptly in 2025, these destructive manias began shriveling up and were destined for the graveyard of forgotten collective lunacies.

Tyler Durden Thu, 02/26/2026 - 17:40

Iran Rushes To Load Oil Onto Ships In Anticipation Of US Strikes

Zero Hedge -

Iran Rushes To Load Oil Onto Ships In Anticipation Of US Strikes

Via Middle East Eye

Iran is loading almost three times the amount of oil it normally does onto tankers in the Persian Gulf in a sign it is anticipating a US attack that could prevent its oil from hitting the market

Iranian oil exports from Kharg Island reached nearly 20.1 million barrels between 15 and 20 February, Bloomberg reported on Wednesday, citing Kpler data. That is the equivalent of more than three million barrels per day (bpd) and almost three times the amount loaded over the same dates in January, Bloomberg said. For comparison, Iran’s previous three-month average of loadings was 1.54 million bpd.

Oil facilities on Kharg Island in the Persian Gulf about 1,250 km south of Tehran, NurPhoto

Kharg Island is home to a massive terminal from which 90 percent of the Islamic Republic’s oil is exported. Iran raced to get its oil out of the country and onto ships for export abroad in June 2025, just before the US joined Israel’s attack on the country.

Kharg Island would also be more vulnerable to attack than the shadow fleet of tankers Iran uses to transport its oil. But Iran is not the only oil producer in the Middle East ramping up exports.

Reuters reported on Wednesday that Saudi Arabia is increasing its oil production and exports as part of a contingency plan - should a US attack on Iran disrupt supplies.

Saudi Arabia also made a similar decision in June 2025, lifting oil exports by around 0.5 million bpd and shipping crude to overseas storage units around the time of the US strikes on Iran’s nuclear facilities, Reuters reported. 

In a sign that more crude is hitting the seas, the costs of chartering Very Large Crude Carriers or VLCCs have more than tripled since the start of the year to over $170,000 per day, Reuters reported, citing data provided by financial market data group, LSEG.

Shipping rates are determined by supply and demand. The supply of VLCCs available to rent is largely fixed because they are massive vessels that take years to make. Prices rise when more VLCCs are booked.

F-22 fighter jets sent to Israel

Brent crude, the international benchmark, has risen in the past month amid rising tensions. It was trading up .38 percent on Wednesday at $70.84 per barrel.

US President Donald Trump has been toying with a strike on Iran since January, when the Iranian government oversaw a brutal crackdown on protesters. The demonstrations have died down, but Trump has continued to threaten Iran with an attack.

He has ordered the largest build-up of US military assets in the Middle East since the 2003 invasion of Iraq. There are two aircraft carriers in the region along with dozens of F-35, F-16 and F-15 fighter jets.

The New York Times reported on Wednesday that the US also deployed a group of F-22 Raptor jets to Israel this week. The F-22 is a stealthy fifth-generation fighter jet used for dogfighting and ground strikes. Experts say the deployment of a group of F-22s to a foreign country in peacetime is virtually unheard of, given their limited numbers and advanced features.

Tyler Durden Thu, 02/26/2026 - 17:00

Dorsey's Block Fires Nearly Half Of The Company In 'Massive' AI Bet, Sending Shares Soaring

Zero Hedge -

Dorsey's Block Fires Nearly Half Of The Company In 'Massive' AI Bet, Sending Shares Soaring

One week after WIRED reported that things were pretty dismal over at Jack Dorsey's payment processing company Block (formerly Square), the company announced that they are cutting 4,000 employees - nearly half of their headcount - in order to invest 'heavily' in artificial intelligence tools to run more efficiently, including its own called Goose, Bloomberg reports. 

The news sent shares up over 30% in after hours trade.

"We are taking bold and decisive action here, but we’re doing it from a position of strength," CFO Amrita Ahuja told Bloomberg, adding "We’re doing it in a way that we believe positions us to move even faster for our customers."

The reduction in force, which was announced in a shareholder letter on Thursday, comes after rolling job eliminations that have often been tied to annual performance reviews. 

...

In the shareholder letter, the company highlighted strong financial performance over 2025 including that gross profit growth more than doubled from the first quarter to the fourth quarter. Dorsey, the company’s co-founder, touted how the company has reignited growth of users of its peer-to-peer payments app Cash App, scaled its lending products and accelerated Square gross payment volume. Block reported gross profit of $10.36 billion in 2025, up 17% year-over-year. -Bloomberg

"Intelligence tools have changed what it means to build and run a company," wrote Dorsey, adding that "we’re already seeing it internally. A significantly smaller team, using the tools we’re building, can do more and do it better."

As noted, according to a report last week in WIREDthings are bad over at Block...

"Morale is probably the worst I’ve felt in four years," reads one employee complaint submitted to Dorsey in a recent all-hands meeting (AI workers will notably not be submitting complaints anytime soon). "The overarching culture at Block is crumbling."

"We don't yet know if our livelihoods will be affected, and this makes it incredibly hard to make major life choices without knowing if we still have a job next week," another employee said in a complaint. 

Is this the first domino in the AI-driven layoff dystopia that we have been feamongered about, bringing fictional predictions into factual problems, as companies look upon Block's big gains and stroke their Dorsey-like beards at just how many of the proletariate can be replaced by an agent or two?

Tyler Durden Thu, 02/26/2026 - 16:40

The Great Reversal: Trump's Real Progress In Tackling Legal Immigration

Zero Hedge -

The Great Reversal: Trump's Real Progress In Tackling Legal Immigration

Via White Papers Policy Institute,

Sixty-plus years of unchecked mass immigration have eroded the fabric of American society to the point where Americans are beginning to wonder if the country can survive. The focus of the media, left and right, when it comes to immigration, has been on the Minneapolis riots over the arrest and detention of illegal aliens.

What goes unnoticed however, is the seismic shift in immigration policy, particularly legal immigration policy, that arrived with the latest Trump administration.

The fantastic truth is that the floodgates that allow more than 1-1.2 million legal immigrants in the United States every year since 1990 are closing. The tide is in fact going out—net emigration of immigrants is becoming the new reality. Under President Trump’s renewed mandate, legal immigration has plummeted. Millions are already departing voluntarily, and millions more who would have come to America have been deterred from doing so. Moreover, projections from within Trump’s administration signal an even sharper decline in legal immigration for 2026 and beyond.

What the executive branch has managed to do, with little help from Congressional leadership, is affect a necessary reset of the legal immigration system that will finally bring an end to the decades of mass immigration that Americans have consistently voted against. While there must be legislation passed by the (as of now) GOP controlled Congress to ensure these immigration changes are enshrined into law, we should take a moment to recognize and celebrate the accomplishments of this administration.

The Sharp Drop in Legal Arrivals

In fiscal year 2025, U.S. Citizenship and Immigration Services (USCIS) processed 2.7 million immigration cases in its third quarter. This marked a 16% plunge from the same point 2024. In other words, fewer people are applying for visas, and the government has taken measures to increase processing times. USCIS and DHS are also simply not approving as many visas. According to a great report by the Niskanen Center, approvals cratered by 21%, while work authorization applications halved in October 2025 compared to the previous year. Consulates issued 20% fewer immigrant visas and 16% fewer nonimmigrant visas in May 2025 compared to 2024, with family-based categories hit hardest. For example, there were 6,128 fewer FX1, FX2, and FX3 visas for immediate relatives requesting to relocate to the United States. International student numbers dropped by 17,457 overall, and overseas visitors fell by over 828,000 in the first 11 months of 2025. This isn’t happenstance. It’s the fruit of aggressive enforcement and bureaucratic action that makes potential immigrants think very seriously about their move to America. Potential fraudsters understand they won’t make the cut under more serious scrutiny.

Most importantly, overall net international migration turned negative (net emigration?) in 2025 for the first time in half a century. According to a January 2026 report by Brookings, anywhere between 10,000 and 295,000 more people left the United States than entered the country in fiscal year 2025.

Source

This is a major turnaround from a period when net migration (including legal immigration, 1-1.2 million annually, and illegal immigration together) into the United States has run into the multiple millions since the 1990s. Green cards issued abroad dipped to 560,000-575,000—down more than 100,000 from 670,000 in 2024. Refugee admissions plummeted to 7,600-12,000 from 105,000. And virtually all new refugees are Afrikaners and other White South Africans fleeing the persecution of their post-apartheid ‘rainbow’ government.

The immigrant population shrank from 53.3 million in January 2025 to 51.9 million by June. This is a 2.6% drop, the first decline since the 1960s.

Overall population growth slowed to 0.5%, adding just 1.8 million to the overall American population which sits somewhere between 345 and 355 million. Every state except two experienced reduced growth rates. These declines stem from the administration’s unyielding stance: travel bans, public charge restrictions, and/or visa restrictions on 93 countries, suspension of refugee programs, and restrictions on family sponsorships. This is on top of the new fees, paperwork, and bureaucratic barriers the administration has been steadily putting into place to reduce legal immigration.

Miller’s Projections

The administration appears to be far from done, and the change in public charge rules looks promising in terms of slashing legal immigration even further. Stephen Miller, currently Deputy White House Chief of Staff, expects that the new rules coming into force in 2026 will cut legal immigration by 33% to 50% over four years, denying 1.5 to 2.4 million green cards. Based on FY2023’s 1.17 million legal immigrants, this means 4.7 million over a term without restrictions. We can expect only half that number under the new regime. The new policies are already affecting immigrant’s immediate relatives, who constitute 48% of legal inflows and are already facing more denials under the expanded public charge criteria. The new rules for 2026 and beyond stand to prevent a further 941,000 to 1.65 million family-based immigrants.

We do, of course, wish that Congress and the administration would restrict immigration even further. The H-1B program needs to be abolished, the Optional Practical Training Program needs to be scrapped, and Chip Roy’s PAUSE Act to institute an immigration moratorium is the single most important piece of legislation sitting in Congress right now. Still, we are grateful for the progress in slowing or reversing our replacement.

For 2026, net migration is projected to land somewhere between -925,000 to +185,000 and given the increasing restrictions, it will likely remain on the lower rather than the higher end of that prediction by the Brookings Institution. Green cards could fall to 490,000-575,000, temporary visas to 1.65-1.99 million, refugees are expected to remain stable at roughly 7,500 and overwhelmingly from South Africa. It is important to note, though, that the projections vary and the Congressional Budget Office (CBO) forecasts net immigration at 410,000 in 2025 and 570,000 in 2026. Though this is a major downward revision from earlier projections due to administrative crackdowns.

As a result of all these fantastic immigration changes by the administration, it is expected that by 2028-2035 the workforce could shrink by 6.8-15.7 million. Progressives and market fundamentalist conservatives would like you to panic about this, but the reality is that there are more than 7 million prime age working males (ages 25-54) currently out of the job market in the United States. Putting these men back to work is far more important than continuing to import immigrants at a large scale who undercut the American job market. These 7 million young men are not included in the further 10.4% of Americans aged 16-24 who are unemployed (and are looking for work) and the 6.1% of recent tech grads who report unemployment. Millions more Americans are “underemployed” and working in part-time or poverty level wage jobs. According to Bloomberg. more than 8% of American workers could now be classified as “underemployed.” Further reporting by The Hill shows that underemployment rates for recent STEM grads now averages 20%. America does not need more immigrants. It needs to fewer so that our own young people can be directed by a healthier market into more productive, well-paying employment.

A Word on Illegals

In 2025, nearly 3 million illegal aliens left according to figures provided by DHS. The department claims that it has facilitated the deportation of 675,000 illegals while 2.2 million more have opted for self-deportation. While there is some disagreement about these numbers, few institutions disagree that interior enforcement, and therefore illegal departures, have risen rapidly. Brookings pegs illegal immigrant outflows at 520,000-720,000, with 210,000-405,000 more voluntary self-deportations than in a normal fiscal year. This is unsurprising seeing as ICE arrests quadrupled, detention doubled to 70,000 daily, and the government continues to build more facilities and hire more agents.

Public charge rules also amplify these departures. The proposed rescission of 2022 regulations expands scrutiny to all benefits, chilling enrollment. At 10-30% disenrollment rates, 1.3 million to 4 million immigrants (both legal and illegal) could forego Medicaid/CHIP benefits. DHS estimates 460,000 disenrollments, but reporting by the KFF shows even broad disenrollment in welfare programs by non-citizens. 11% of immigrant adults avoided programs since January 2025. This “chilling effect” spurs departures, as immigrants weigh benefits against status risks. Past rules caused 18% drops in child participation. Now, with CMS sharing data to ICE, the exodus intensifies.

Toward a Moratorium

Yet projections warn of incomplete victory. Without a full moratorium as proposed by Texas representative Chip Roy and an entirely new immigration system, which we believe should resemble the 1924 Immigration Act proposed here, residual inflows could rebound. If the Congressional GOP does not get its act together and legislate more restrictions into law, a future Democratic president could undue all the Trump administration’s executive actions with executive actions of his or her own. Millions upon millions more legal and illegal immigrants would come pouring into the United States and replacement migration would begin again.

Views expressed in this article are opinions of the author and do not necessarily reflect the views of ZeroHedge.

Tyler Durden Thu, 02/26/2026 - 16:20

RWM Coming to San Francisco April 14-16

The Big Picture -

 

I am very excited to announce that RWM is coming to San Francisco, California, on April 14th.

Our relationship with the City by the Bay goes back to the early days when Josh, Kris, Michael and I would spend a few days here meeting clients. The tech center of the world is filled with amazing people, companies, and stories. We always had a great time in SF and looked forward to our trips.

But it’s been too long since we were here. I am very jazzed to be coming back to meet wth current and prospective clients, potential advisor hires, and others.

I will be doing several Master’s in Business Live on April 16 at the Bloomberg Pier 3 HQ/Auditorium. We have an outstanding lineup of guests; I’ll share more info as we get closer to the date.

Looking forward to seeing you in Fog City.

~~~

Seats are limited — reach out to us at RWM or Bloomberg for tickets.

For those people interested in learning about how RWM works with clients, or information about the event, reach out to us at Info AT RitholtzWealth.com.

 

The post RWM Coming to San Francisco April 14-16 appeared first on The Big Picture.

Tech Bosses To Meet At White House, Pledge Their Data Centers Won't Boost Electricity Bills

Zero Hedge -

Tech Bosses To Meet At White House, Pledge Their Data Centers Won't Boost Electricity Bills

Authored by Jacki Thrapp via The Epoch Times (emphasis ours),

Leaders in big tech are expected to meet with President Donald Trump at the White House next week to pledge that their data centers will not increase the energy bills of Americans living near the facilities.

The logos of Google, Apple, Facebook, Amazon and Microsoft displayed on a mobile phone and a laptop screen. Justin Tallis/AFP via Getty Images

“Major tech companies will join President Trump at the White House next week to formally sign the Rate Payer Protection Pledge that he announced during his historic State of the Union address,” a White House official told The Epoch Times on Feb. 25.

The March 4 event will include representatives from Amazon, Google, Meta, Microsoft, xAI, Oracle and OpenAI.

The initiative will require massive companies to build, bring, or buy their own power supply for new artificial intelligence data centers in order to avoid causing Americans’ electricity bills to skyrocket.

President Trump is committed to ensuring American AI dominance while simultaneously lowering costs for working families,” the White House official added on Wednesday.

Trump first revealed the plans during his wide-ranging and record-breaking State of the Union address at the Capitol on Feb. 24.

“We’re telling the major tech companies that they have the obligation to provide for their own power needs,” Trump said on Tuesday night. “They can build their own power plants as part of their factory, so that no one’s prices will go up and, in many cases, prices of electricity will go down for the community, and very substantially down.”

In July 2025, Trump issued an executive order aimed at streamlining data center projects in America.

“These plans include artificial intelligence (AI) data centers and infrastructure that powers them, including high‑voltage transmission lines and other equipment,” the executive order said. “It will be a priority of my administration to facilitate the rapid and efficient buildout of this infrastructure by easing federal regulatory burdens.”

Any data center project must have more than “100 megawatts (MW) of new load dedicated to AI inference, training, simulation, or synthetic data generation,” the order stated.

Surging electricity bills caused by data center development was one of the key issues in the November gubernatorial elections in New Jersey and Virginia.

Customers in New Jersey paid an average of 19 percent more for energy in 2025 compared with 2024.

Virginia customers who already experienced 30 percent hikes from 2020 to 2023 will likely see rate increases up to 21 percent by 2027.

Big tech is planning a series of data center projects, including a 400 megawatt natural gas plant by Meta in New Albany, Ohio, while Energy Northwest and Amazon plan to build a Cascade Advanced Energy Facility near Richland, Washington.

Tyler Durden Thu, 02/26/2026 - 15:45

Automakers Push Toward "Eyes-Off" Driving Despite Mounting Doubts

Zero Hedge -

Automakers Push Toward "Eyes-Off" Driving Despite Mounting Doubts

Global automakers are zeroing in on a controversial waypoint in the autonomy race: “eyes-off” driving, known in the industry as Level 3, according to a new report by Reuters.

The idea is simple but provocative — motorists could look away to send a message or work on a laptop until the vehicle signals them to retake control.

After years spent refining hands-on driver aids that manage steering and speed, companies see Level 3 as a potential bridge between today’s supervised systems and tomorrow’s fully driverless cars. It could also help justify the billions already sunk into automation. “We can start saving them time immediately, and do it in a very affordable way,” said Doug Field of Ford Motor, which aims to roll out eyes-off capability on lower-cost EVs in 2028.

Yet enthusiasm is far from universal. Some executives question whether temporarily shifting responsibility between human and machine is workable — or safe. Others doubt buyers will pay enough to cover development costs that consultants at McKinsey & Company estimate at up to $1.5 billion for highway-capable Level 3 systems.

Reuters reports that a decade after bold predictions that autonomous cars would be everywhere, most vehicles — including “Full Self-Driving” from Tesla — remain Level 2, requiring constant attention. Besides Ford, General Motors and Honda Motor have outlined Level 3 ambitions.

But pullbacks are mounting. Mercedes-Benz, the only brand to launch Level 3 in the U.S., paused the program amid limited demand tied to speed and geographic restrictions. Stellantis has shelved its effort. Former Waymo CEO John Krafcik said attempts so far suggest “the juice isn’t worth the squeeze.”

Legal exposure adds another layer of risk. Analysts say eyes-off capability increases the likelihood that manufacturers — not drivers — would bear responsibility in a crash, an issue scholars warn could stall deployment without clearer regulation.

Meanwhile, competition from China is intensifying. Automakers such as BYD and Leapmotor bundle advanced driver-assistance features into sticker prices, raising the prospect of a pricing clash if Western consumers resist subscription fees. As one industry strategist put it, “This is a war of global business models.”

Tyler Durden Thu, 02/26/2026 - 15:25

US Treasury To Allow Resale Of Venezuelan Oil To Cuba to Ease Island's Fuel Crunch

Zero Hedge -

US Treasury To Allow Resale Of Venezuelan Oil To Cuba to Ease Island's Fuel Crunch

Authored by Kimberly Hayek via The Epoch Times (emphasis ours),

The U.S. Treasury Department on Wednesday announced a new licensing policy to streamline the resale of Venezuelan oil to Cuba, with the goal of supporting the island’s private sector and bolstering humanitarian efforts amid ongoing fuel crises.

The refinery El Palito in Puerto Cabello, Carabobo state, Venezuela, on Jan. 22, 2026. Ronaldo Schemidt/AFP via Getty Images

The Office of Foreign Asset Control (OFAC) will extend the new licensing policy to specific applications seeking authorization for the resale of Venezuelan oil for use in Cuba.

The move was done “in accordance with the United States’ support and solidarity for the Cuban people,” reads the new policy.

The policy does not cover entities or persons connected to the Cuban military, intelligence services, or other government institutions, including entities on the U.S. State Department’s Cuba Restricted List.

The Treasury’s Cuban Assets Control Regulations generally already authorize U.S. persons to export oil from the United States to Cuba, or to reexport U.S.-origin oil from a third country to Cuba, where that export or reexport has been authorized by the Commerce Department.

The United States has in recent months placed increased pressure on Cuba’s energy procurement network, especially in the wake of former Venezuelan President Nicolás Maduro’s capture in January. Oil shipments to Cuba plummeted, worsening shortages that have disrupted everyday life.

Canadian officials earlier this month advised citizens to prepare for unpredictable conditions in Cuba due to fuel scarcity. U.S. federal advisories warned against nonessential travel, with oil shortages a key issue.

In January, President Donald Trump imposed tariffs via executive order on any nation selling oil to Cuba.

“I find that the policies, practices, and actions of the Government of Cuba constitute an unusual and extraordinary threat, which has its source in whole or substantial part outside the United States, to the national security and foreign policy of the United States,” the executive order reads.

The United States recently eased certain sanctions, permitting established American firms to trade Venezuelan crude under strict conditions, but it prohibits deals with adversaries such as Russia, Iran, North Korea, Cuba, and China.

In an unrelated press briefing on Wednesday, Secretary of State Marco Rubio echoed Trump’s push for reform in Cuba.

“The reason why things are as bad as they are is because they have an economic model that doesn’t work, doesn’t exist anywhere in the world,” Rubio said. “It is not functional. And the only way Cuba is going to have a better future is if it has a different economic model.”

Tyler Durden Thu, 02/26/2026 - 15:05

"You're Not Alone": Reporters Comfort Those Triggered And Traumatized By Scenes Of Patriotism

Zero Hedge -

"You're Not Alone": Reporters Comfort Those Triggered And Traumatized By Scenes Of Patriotism

Authored by Jonathan Turley,

This week, most Americans found a moment of rare unity in our pride over the performance of our athletes in the Winter Olympics.

After years of rage politics, there was a brief respite as we joined in cheering our team in representing the United States in Milan and Cortina.

Well, most of us. Some in the media found the entire demonstration of patriotism to be intolerable and triggering.

What is striking is how this aversion to our flag and country was so openly expressed in major media.

This week, the nightmare continued for some on the left who were traumatized by seeing the American flag and open displays of patriotism.

Jack Hughes, one of the heroes of the gold medal hockey game, returned to New Jersey to play and was met with cheers of “USA, USA” and a sea of American flags. Hughes immediately called his Olympic teammate Tage Thompson of the visiting Buffalo Sabres to the ice to join him. The two skated arm in arm as the crowd celebrated them and our country.

It was another unifying moment for the country. The fans joined arm in arm to relish this moment for the nation.

These scenes are clearly having a different impact on some on the left.

The HuffPost even published an article with therapeutic advice for liberals triggered by seeing so many American flags. The liberal publication ran an article titled “There’s a Name for the Discomfort You’re Feeling Watching the Olympics Right Now.” It then published it a second time before the gold-medal hockey game with Canada — presumably to prepare its readers for the nightmare of the United States actually winning.

The subheading read, “If waving the American flag or chanting ‘USA!’ turns you off right now, you’re not alone.”

Senior writer Monica Torres began the article with this line: “While President Donald Trump’s deportation agenda separates families, and federal agents detain 5-year-olds and kill unarmed civilians, American athletes are winning medals on behalf of the nation at the Olympics right now.”

Torres goes on to interview three therapists for this “story” about how the celebration of the United States team has forced many liberals into therapy over their trauma and “the cognitive dissonance of rooting for U.S. sports.”

Los Angeles-based licensed clinical social worker Aimee Monterrosa explained that the “atrocities” of the United States can trigger feelings of guilt, despair, shame, anger” in seeing the country celebrate these sports victories.

Expert Lauren Appio echoed how “waving the American flag or chanting, ‘USA!’ [can make] us feel grossed out or ashamed.”

Over at Vox, Senior correspondent (and former Atlantic writer) Alex Abad-Santos wrote an article on the winners and losers of the Olympics. The column perfectly summed up the pathological opposition of some to this country’s symbols and celebrations.

Abad-Santos declared the men’s hockey team one of the biggest “losers” of the games. He blamed that team for alienating citizens by their patriotic statements: “The conversation surrounding the win quickly shifted into how the team celebrated and who it celebrated with.” He expressed outrage over the team accepting the celebratory call from the President of the United States.

In the meantime, the “winner,” according to Abad-Santos, was . . . wait for it . . .  Eileen Gu, the American who reportedly took millions from the repressive Chinese regime to ski for China.

Gu used the games to criticize the United States while saying nothing of how China arrests anyone who speaks out against that country.

Abad-Santos gushes:

“Gu symbolizes the reality that athletes don’t need the US’s backing or support to be commercially successful. That makes some Americans like Vance uneasy. She also embodies the very American idea of relentlessly pursuing success and maximizing it, no matter what it takes. Gu represents the American dream and the startling concept that America isn’t necessary for it.”

The last line is particularly telling. Abad-Santos is celebrating the idea that you can live the American dream without America.

Others joined in lionizing Gu. Charlotte Harpur, writing for The New York Times’ (NYT) The Athletic, virtually declared her a new deity: “You would be forgiven if you thought Gu was a quasi-human robot expertly created by artificial intelligence, so eloquent are her responses to the media.”

The next day, the Times then slammed Men’s Hockey Team in an article titled “The U.S. men’s Olympic hockey team won gold — and then lost the room.” The Athletic‘s Jerry Brewer acknowledged that speaking with the U.S. president after such a win is “an obligatory celebration.” However, he declared that these are not “normal times”:  “This isn’t a neutral climate. This isn’t a neutral president. And in a nation this polarized, the proximity carries weight whether the players are being intentional or merely naive.”

These columns on sites like HuffPost and Vox stripped away the pretense of past pieces and laid bare the antagonism for the United States by some on the left. The open celebration of the country was too much for many rage addicts today.

Fortunately, these writers are largely writing for each other. The public long ago left these sites. They now write for a minority of Americans who are triggered by the appearance of American flags or traumatized by expressions of patriotism.

What these writers find repulsive is rousing for the rest of us. Watching Hughes and Thompson skate together last night was everything that is great about this country, as those Jersey fans went wild. Hughes said that he was struggling not to get emotional at that moment. He was not alone.

Jonathan Turley is a law professor and the author of the New York Times bestselling “Rage and the Republic: The Unfinished Story of the American Revolution.”

Tyler Durden Thu, 02/26/2026 - 14:25

"Squatty Potty" Millionaire Charged With Possession Of Child Porn Hoard

Zero Hedge -

"Squatty Potty" Millionaire Charged With Possession Of Child Porn Hoard

Robert Edwards, the inventor of the "Squatty Potty" and a contestant on the show "Shark Tank", has been charged with the possession of a digital hoard of child pornography materials including videos and images. 

Edwards, 50, was arrested for allegedly buying and receiving countless images of child sexual abuse between March 2021 and November 2025, the U.S. Attorney’s Office in the District of Utah announced Monday.  The entrepreneur was indicted by a federal grand jury Feb. 10 and arrested Feb. 12 in Washington County, Utah.

In March 2021, an undercover FBI agent joined a group chat used to trade child abuse materials. In the group chat, there was a meeting room where members viewed a collection of the horrific content being streamed, federal authorities detailed.  Participants, including a user later identified as Edwards, were visible in the meeting, according to the DOJ. 

In May 2025, FBI agents also learned that Edwards may have purchased additional illicit materials through his PayPal account, which was flagged for four suspicious transactions.  In November, law enforcement executed a search warrant on Edwards and his home and confiscated multiple devices that “contained videos and images of child sexual abuse material,” some of which was downloaded only two weeks prior, officials alleged.

Edwards reportedly lives with his male partner and "co-parents" four children.  There is no information on their status, and he refers to them as his "step children".  

Robert Edwards is best known for his appearance on Shark Tank with his mother, in which he pitched his idea for a foot rest designed to help people with bowel movements.  

Interestingly, one member of the Shark Tank board was noted as saying there was "something" about Edwards that she did not trust because of his odd and shifty behavior.  Her observation might have been more prescient than she realized. 

Squatty Potty is also known for cutting ties with Kathy Griffin as a spokesperson after she released her infamous promotional pictures in which she is seen holding a fake severed head that looks like Donald Trump.  The decision was a company move and not a unilateral firing by Edwards, though he noted that Griffin "crossed the line".

Edwards ultimately sold Squatty Potty in 2021 and walked away a multi-millionaire.

Edwards is also know for his advocacy work with an NGO called "Equality Utah", the largest LGBT youth advocacy group in the state.  He received an "Excellence In Advocacy" award from them in 2017 and would go on to serve on their board.  It should be noted that high profile pedophiles are often found working within NGOs that deal with children's issues; LGBT children's groups are particularly targeted. 

After the news of Edwards' arrest and the nature of the charges, Squatty Potty's viral "unicorn poop" commercial takes on even more suspicious undertones.

  

In 2019, he was a keynote speaker at the Utah LGBTQ+ Chamber of Commerce's annual "Gay-La" event (a membership drive and networking gala supporting the state's LGBT business community) and participated in their LGBTQ+ Economic Summit, sharing his business story in an LGBT-focused context.

In a 2020 interview with St. George News following the Supreme Court's Bostock v. Clayton County decision (protecting gay and transgender workers from discrimination), Edwards publicly supported equal protection under the law for LGBTQ individuals.  

His recent arrest is likely to bring into question his previous advocacy work and his true motives.    

Tyler Durden Thu, 02/26/2026 - 14:05

Hillary Clinton Says She Knew Nothing About Jeffrey Epstein's Crimes

Zero Hedge -

Hillary Clinton Says She Knew Nothing About Jeffrey Epstein's Crimes

Hillary Clinton told members of Congress on Feb. 26 that she does not have knowledge about crimes carried out by the late sex offender Jeffrey Epstein and Ghislaine Maxwell.

Former Secretary of State Hillary Clinton in Munich, Germany, on Feb. 14, 2026. Johannes Simon/Getty Images

I had no idea about their criminal activities. I do not recall ever encountering Mr. Epstein. I never flew on his plane or visited his island, homes, or offices,” the former first lady and secretary of state said in her opening statement to the House Oversight Committee.

As Zachary Stieber reported for The Epoch TimesClinton said she was horrified to learn about the crimes and was disappointed that Epstein only received 13 months in prison in 2008 after pleading guilty to soliciting a minor for prostitution.

Clinton’s husband, former President Bill Clinton, was also slated to testify to the panel in its investigation into Epstein. The Clintons agreed to testify after the House of Representatives was prepared to hold them in contempt for originally declining to answer questions on the matter.

[ZH: of course, some might say she's a COMPLETE LIAR (that no reasonable prosecutor who likes breathing would prosecute)...]

Epstein died by suicide in federal prison in 2019 while awaiting trial on sex trafficking charges. Maxwell was sentenced to 20 years in prison in 2022 for conspiring with Epstein to sexually abuse young girls.

Bill Clinton flew on Epstein’s plane in 2002 and 2003, according to flight logs and photographs. Court documents stated he went to Epstein’s island, where authorities say Epstein repeatedly abused minors.

Maxwell told Deputy Attorney General Todd Blanche in 2025 that she was friends with Bill Clinton and that the former president never went to the island.

He never, absolutely never went. And I can be sure of that because there’s no way he would have gone. I don’t believe there’s any way that he would’ve gone to the island had I not been there,” she said. “Because I don’t believe he had an independent friendship, if you will, with Epstein.”

Epstein also went to the White House multiple times while Clinton was president. Maxwell also attended the wedding of the Clintons’ only daughter in 2010.

Former President Bill Clinton and former Secretary of State Hillary Clinton arrive for former President Donald Trump's inauguration as the next president of the United States in the Rotunda of the United States Capitol in Washington on Jan. 20, 2025. Shawn Thew/Reuters

Bill Clinton’s spokesperson told New York Magazine in 2002, “Jeffrey is both a highly successful financier and a committed philanthropist with a keen sense of global markets and an in-depth knowledge of twenty-first-century science.”

A spokesperson for Bill Clinton said after Epstein was arrested by federal authorities that the former president “knows nothing about the terrible crimes Jeffrey Epstein pleaded guilty to in Florida some years ago, or those with which he has been recently charged in New York.”

The spokesperson said that the trips on Epstein’s plane included stops for Clinton Foundation work and that Bill Clinton briefly visited Epstein’s home in New York and met with Epstein in a Clinton office in the city.

He’s not spoken to Epstein in well over a decade and has never been to Little St. James Island, Epstein’s ranch in New Mexico, or his residence in Florida,” the spokesperson added.

A letter from lawmakers to the Clintons said they wanted to question them, given their family’s past relationships with Epstein and Maxwell. Lawmakers also told Hillary Clinton, “Given your past service as Secretary of State, the Committee believes that you may have knowledge of efforts by the federal government to combat international sex trafficking operations of the type run by Mr. Epstein.”

“The American people have a lot of questions,” Rep. James Comer (R-Ky.), chairman of the House Oversight Committee, told reporters in Washington as lawmakers prepared to question the Clintons. “To my knowledge, the Clintons haven’t answered very many, if any, questions about their knowledge or involvement with Epstein and Maxwell.”

Comer said that no one is accusing the Clintons at this time of wrongdoing but that the committee is trying to find answers regarding Epstein, including how he accumulated so much wealth and whether he worked for the government.

Tyler Durden Thu, 02/26/2026 - 13:45

Average 7Y Auction Stops On The Screws Amid Stock Rout

Zero Hedge -

Average 7Y Auction Stops On The Screws Amid Stock Rout

After yesterday's mediocre 5Y auction, we had just one coupon sale left: 7Y paper at 1pm today. And with today's wholesale post-Nvidia, risk-off move it was expected to be an easy sale, which is more or less what it was.

The Treasury sold $44 billion in 1 Year notes at a high yield of 3.790%, down sharply from 4.018% last month, and the lowest since November. The auction also priced on the screws with the When Issued, which was also at 3.790%. It followed 5 auctions in the past 6 months which tailed so relatively speaking, an improvement. 

The bid to cover was 2.498, up from 2.454 and also over the recent average of 2.461.

The internals were a bit weaker, with Indirects awarded 63.6%, down from 66.9% in January but above the recent average of 62.6%. And with Directs taking down 26.91%, which was right in line with the six-auction average, Dealers were left with 10.4%, a small drop from last month's 10.9%. 

Overall, this was a solid, if hardly, stellar auction, with average foreign demand and mediocre metrics, which in itself is rather surprising since the money from the equity selling has to be going somewhere and bonds should be seeing more demand, if only in theory. 

Tyler Durden Thu, 02/26/2026 - 13:28

Travel Stocks In Focus After Cartel Chaos Erupts In Mexico

Zero Hedge -

Travel Stocks In Focus After Cartel Chaos Erupts In Mexico

The U.S. State Department has lifted its "shelter in place" alerts for Americans after Mexican special forces, aided by U.S. intelligence, killed a top drug cartel boss, sparking cartel-related chaos across at least one key tourism town in the third-world country just south of the U.S. southern border.

On Sunday, Mexican Army Special Forces carried out a decapitation strike against the Jalisco New Generation Cartel (CJNG), killing Nemesio "El Mencho" Oseguera Cervantes. The operation triggered dangerous cartel-related uprisings shortly after that, which extended into Monday and Tuesday, with 250 blockades recorded, many of them in Jalisco state.

Footage from Puerto Vallarta, the popular tourist town in Jalisco, was on the front cover of many major U.S. newspapers and sent a chill through the American travel industry that funnels tourists into the region. What Americans saw was cartel gunmen torching vehicles and buildings in an immediate response to the death of El Mencho, reinforcing what everyone has known all along: Mexico is a third-world hellhole.

Assessing the impact on the US travel industry is Goldman analyst Lizzie Dove, who found the biggest effect has been on airlines, not cruises or hotels.

For airlines, most U.S. carriers have limited exposure to Mexico. For most, less than 3% of their flights in early 2026 are tied to the country. But if travelers stay cautious, some may shift their plans to safer destinations, including Florida, the Caribbean, and other parts of Latin America.

Focusing on the airline impact, here's an excerpt from Dove's note:

Bottom line: There were significant cancellations in select airports following the events in Mexico over the weekend; however, these cancellations were in-line with or lower than cancellations at airports impacted by Winter Storm Hernando. Separate from the cancellations over the last couple days, the larger question in our view is if there will be a lasting impact on demand. We take no view on the length of the unrest in Mexico. While not directly comparable, we note that other recent geopolitical events have had a short-lived impact, if any, on demand for travel. As such, while there could be an impact from recent events, we could see the dissipation of demand headwinds fairly quickly if the situation is resolved (Volaris, one of the largest airlines in Mexico, resumed normal operations Monday 2/23). In the short-term, Sun Country has the highest exposure to Mexico, with ~10% of 1Q 2026 capacity scheduled to fly to various airports in Mexico. We note that February and March in particular represent seasonally high demand months for North to South travel to warm weather destinations as various regions of the US have spring breaks over this period. It is possible that some trips planned for Mexico could instead be re-booked to a domestic warm weather destination or elsewhere in Latin America/the Caribbean if there are lingering concerns around Mexico over the next couple months.

Cancellations were elevated on Sunday 2/22 and Monday 2/23, but largely driven by Winter Storm Hernando. On Sunday 2/22 and Monday 2/23, the industry saw an elevated level of cancellations, some of which were related to the ongoing unrest in Mexico, but with the majority driven by Winter Storm Hernando (see Exhibit 1 and Exhibit 2). For example, JetBlue had significantly higher cancellations than its peers on 2/22, with 44% of flights canceled vs. its competitors canceling less than 10% of flights, but JetBlue has <2% of capacity deployed to Mexico in 1Q 2026. Cancellations at select airports in Mexico were material, even from a global perspective, with Puerto Vallarta and Guadalajara among the top 20 airports with the highest cancellation rates across the world on Sunday 2/22 and Puerto Vallarata in the top 20 again on Monday 2/23 (see Exhibit 3 and Exhibit 4).

Recent geopolitical events showed short-lived impact to demand. While not directly comparable, if we look to two recent events we see potential for limited lasting impact to air travel demand. For example, while likely complicated by the broader post-pandemic recovery, following the events in Russia/Ukraine in February 2022, global air travel continued to recover (see Exhibit 5) and Delta had not seen any impact for travel to broader Europe as of April 2022. Following the events on October 7, 2023 in the Middle East, there was similarly a limited lasting impact to air travel (Exhibit 6; year-over-year global industry air traffic growth continued to improve following October 2023, and while there was a step-down in Middle Eastern air traffic growth in November and December 2023, January 2024 saw a marked step-up in traffic growth. We acknowledge each event may be different, and look for evidence of whether any potential demand headwind will similarly dissipate fairly quickly.

Mexico exposure is <3% of 1Q 2026 capacity for most US Airlines, except Sun Country. Looking across the US Airlines with greater than 0.1% domestic market share, Sun Country (Not Rated), Alaska (Buy), Frontier (Not Covered), and American (Sell) have the most scheduled capacity exposure to Mexico directly (see Exhibit 7). We do not currently expect a broader impact across Latin America and Caribbean demand, and believe some Mexico trips could be re-booked to other Latin American/Caribbean destinations if there are lingering consumer concerns around Mexico travel over the next couple months. Of the US Airlines with greater than 0.1% market share, JetBlue (Sell), Sun Country (Not Rated), and Spirit (Not Covered) have the most 1Q 2026 capacity scheduled to Latin America (see Exhibit 8). If there is demand to re-book Mexico vacations, domestic warm weather destinations could benefit.

Dove's view on the impact of hotels appears limited for now, but if travel warnings last, demand could weaken over time. Only a small share of the rooms at major hotel companies are in the affected Mexican states. Hyatt has the highest exposure, while Choice has very little. Hyatt could also soften the blow by moving travelers to its other all-inclusive resorts outside of Mexico.

As for cruises, she said the impact is also minor so far. Only a few Puerto Vallarta port stops have been canceled. Cruise lines do have some Mexico exposure, but many itineraries include multiple destinations, which helps reduce the risk if one Mexican port becomes problematic.

Related: 

The full travel-impact note is available to Professional Subscribers on our new Marketdesk.ai portal.

Tyler Durden Thu, 02/26/2026 - 13:20

EPA To Reform $5 Billion 'Clean School Bus' Program

Zero Hedge -

EPA To Reform $5 Billion 'Clean School Bus' Program

Authored by Naveen Athrappully via The Epoch Times (emphasis ours),

The Environmental Protection Agency (EPA) is revamping the Biden administration’s Clean School Bus (CSB) program, which focused on installing electric buses at U.S. schools, the agency said in a statement released on Feb. 19. The overhauled program will focus on providing school districts with “increased choice and affordable options” for school buses.

School buses bring in players from the Burbank Bulldogs and the Pasadena Bulldogs before their game at the Rose Bowl in Pasadena, Calif., on March 19, 2021. Harry How/Getty Images

In 2021, the Infrastructure Investment and Jobs Act directed the EPA to create the CSB program and provide $5 billion over fiscal years 2022–2026 to replace existing school buses with zero-emission school buses. The Biden administration distributed about $2.7 billion in these funds, 90 percent of which was to fund electric school buses. The rest went toward propane-fueled vehicles.

“There are multiple well-documented examples of one particular bus manufacturer failing to deliver buses altogether despite preemptively receiving tens of millions of tax dollars from the CSB program,” the EPA said.

To fix these issues, the Trump EPA will seek public input on the availability, cost, and performance of alternative school bus fuels and technologies. This feedback will help reform the program to bring consumer choice back to schools and deliver results for American families, while still fulfilling congressional intent.”

The EPA cited the case of Lion Electric, a Canadian electric vehicle company that was granted $159 million to build 435 battery-powered buses between October 2022 and May 2024.

However, Lion Electric filed for bankruptcy in December 2024. In August 2025, EPA Administrator Lee Zeldin said the company still hadn’t delivered school buses to 55 districts, worth approximately $95 million.

The Epoch Times reached out to Lion Electric for comment but did not receive a response by publication time.

In its latest statement, the EPA said it had issued a request for information that seeks feedback from school officials, fleet operators, energy producers, and manufacturers on a wide range of fuel options that can be used by school buses, including biofuel, hydrogen, liquefied natural gas, and compressed natural gas.

In 2023, almost 450,000 school buses were operating in the United States, the Department of Energy said, citing data from the World Resources Institute. As of July 2025, more than 5,100 electric school buses were serving roughly 265,000 students, the Electric School Bus Initiative said in a post published in July 2025.

Biden’s CSB Program

In a February 2023 EPA report submitted to Congress, the Biden administration highlighted the environmental requirement for the CSB program.

Most school buses emit nitrogen oxides and particulate matter in diesel exhaust, which contribute to poor air quality and negatively affect people’s health, especially children, who have a faster breathing rate than adults and whose lungs are not yet fully formed, the report said.

The agency’s CSB program funds the replacement of existing school buses with zero-emission and clean school buses, which will “ensure cleaner air for students, bus drivers, school staff working near bus loading areas, and the communities through which the buses drive each day,” according to the report.

Last year, a group of 17 Democrats in the U.S. Senate, along with Sen. Bernie Sanders (I-Vt.), sent a letter to Zeldin regarding the EPA’s decision to freeze CSB program funds, according to a Feb. 28, 2025, statement from the office of Sen. Ron Wyden (D-Ore.).

The lawmakers said that CSB funding would support the electric bus manufacturing boom in the United States and create good-paying jobs.

They said that CSB provided health and cost-saving benefits, and they urged the EPA to distribute funding for CSB program recipients with signed agreements, according to the statement.

In its latest statement, the EPA accused the previous administration of intentionally limiting the availability of these fuel options so it could push for electric buses.

“By providing more options to school districts, EPA will ensure they can purchase the right types of school buses for their specific needs,” the agency said.

The data collected from the request for information will be used to revamp the CSB program for the 2026 grant funding round that prioritizes child safety and reliable buses, according to the EPA. The agency said that updating the program is expected to bring auto jobs back into the United States and unleash domestic energy production.

“The Clean School Bus program has been a disaster of poor management and wasteful spending of taxpayer dollars,” Zeldin said.

“At the Trump EPA, we have zero tolerance for reckless spending. Today, EPA takes the next step to set the program straight.

Americans can rest assured that moving forward, the program will be safe, effective, and use reliable forms of American energy.

According to the EPA, revamping the CSB program strengthens oversight and compliance actions in a way that aligns with President Donald Trump’s executive orders.

On Jan. 20, 2025, Trump signed the “Unleashing American Energy” executive order, which sought the removal of incentives for electric vehicles and promoted market choice for consumers.

In November 2024, the EPA’s Office of Inspector General released a report saying the agency didn’t have adequate oversight to record CSB program rebates for fiscal years 2023 and 2024.

“We found that the EPA failed to implement internal controls to make sure funding was properly allocated for the 2022 Clean School Bus Rebates Program,“ the report said. ”The Agency recorded the full amount paid to the Clean School Bus rebate recipients as an expense, instead of an advance, prior to the recipient expending the funds.”

Tyler Durden Thu, 02/26/2026 - 13:00

After WaPo Axed 30% Of Staff, We Now Learn They Lost $100 Million Last Year - Again

Zero Hedge -

After WaPo Axed 30% Of Staff, We Now Learn They Lost $100 Million Last Year - Again

The The Washington Post lost more than $100 million last year, WSJ reports, citing people familiar with the matter - which explains why Jeff Bezos axed 30% of the newspaper's workforce three weeks ago, including CEO and publisher Will Lewis

The 2025 loss matches 2024 - when it also lost $100 million, which followed a $77 million loss in 2023, the people said. So, nearly $300 million in losses in three years. 

The Post, long associated with its reporting on the Watergate scandal and publication of the Pentagon Papers, has struggled to adapt to a media landscape defined by declining web traffic, shifting reader habits and intense competition for digital advertising. Like many legacy publishers, it has sought to build a sustainable subscription business while navigating the dominance of large technology platforms in distributing news.

In a staff meeting Wednesday, acting Chief Executive and Publisher Jeff D’Onofrio and Executive Editor Matt Murray outlined what they described as years of overspending and falling productivity. The presentation marked their first major address to employees since the layoffs.

According to people who attended, D’Onofrio said expenses exceeded revenue between 2022 and 2025, reflecting a hiring surge in earlier years that added hundreds of staff members. He did not detail the full extent of the losses during the meeting.

The number of news stories published has declined by 42% since 2020, D’Onofrio said, even as newsroom costs in 2025 were 16% higher than in 2020. The figures highlight the strain of maintaining a large reporting staff amid slowing audience growth.

Murray, who previously served as editor in chief of The Wall Street Journal and took the top editorial role at the Post in June 2024, acknowledged what he called “the painfulness of the moment.” He signaled a shift in editorial priorities, urging staff to be more selective.

We don’t want or need to do every story or jump on everything that happens,” Murray said, according to attendees. “We’re not a paper of record; there’s no such thing anymore in today’s world.”

Matt Murray at an earlier meeting with Washington Post staff. Robert Miller/Washington Post/Getty Images

Still, he emphasized ambition. “We want to be distinctive, urgent, must-read with every chance we have,” he said.

D’Onofrio assumed his current role earlier this month following the departure of publisher and chief executive Will Lewis. He told staff he is developing a broader strategic plan to stabilize the organization.

Bear with me, because that will take some time and obvious care, but I’m keen to get going on it,” he said. “And we are going to go after it, and we’re going to go after it hard, because we owe it to this place to do that.”

Three weeks ago in a staff call, Murray told employees that the company had been losing too much money for too long, and had not been meeting readers' needs. As a result, all sections will be affected in some way, and what rises from the ashes would be a publication more focused on national news and politics, business, and health, and less on other things.

"If anything, today is about positioning ourselves to become more essential to people’s lives in what is becoming a more crowded, competitive and complicated media landscape," Murray said. "And after some years when, candidly, The Post has had struggles."

Murray also said that search traffic has plummeted nearly in half over the last three years, partly due to the rise of generative AI - and that the Post's "daily story output has substantially fallen in the last five years."

The Atlantic, of course, painted WaPo's mass firings as a 'murder' - as opposed to a suicide. 

Tyler Durden Thu, 02/26/2026 - 12:40

Even Banks Now Bow To A Golden Master

Zero Hedge -

Even Banks Now Bow To A Golden Master

Authored by Matthew Piepenburg via VonGreyerz.gold,

Although I never expected to say this, if you are still wondering about gold’s future price direction, just ask the big banks…

Getting Real

Emerging from a 2025 in which gold saw 53 all-time-highs and an annual move of 55%, some wondered if this was just another blow-off asset akin to any other, from dot.com stocks to crypto manias.

Such a misunderstanding of gold’s fundamental profile as a strategic monetary metal gained a bit more momentum on Silver Friday, when the CME engineered yet another temporary and entirely artificial price dip/manipulation to bail out the big banks caught in the mother of all silver short-squeezes.

This was not an end to the rise of precious metals, but a capitulation by the COMEX short-sellers (i.e. bullion banks) to get out their surging way.

Of course, when it comes to the legalized fraud in the COMEX or an openly rigged banking system, my thoughts, pen and voice have been consistently and transparently unkind.

Ever since insiders like Larry Summers helped to repeal Glass Steagall and effectively turn commercial banks into levered portfolio managers using depositor funds, the fractional reserve banking system became anything but a trusted counter-party for so-called “wealth management” in general or gold ownership in particular.

In other words, when it came to understanding gold, banks were the last place to find an honest broker or candid price projection.

The great irony behind all the recent bank squeezes and Comex mechanizations, however, is that they signaled an otherwise carefully hidden truth, namely: The big banks already knew that gold’s price moves had only just begun.

The Big Banks: From Gold Deniers to Gold Buyers

For decades, of course, bankers intentionally downplayed gold for obvious and self-serving reasons.

First, gold’s price direction was a direct threat to the “King Dollar” narrative which every banker from the BIS and the Fed to JP Morgan relied upon to compliantly ensure their employment.

Secondly, pushing gold, or even bank gold storage, was not nearly as profitable as pushing the far riskier yet consensus-safe template of topping private equity bubbles and cancerously sick private credit pools.

But as we enter 2026, the greater irony is that even the big banks can no longer hide what sophisticated gold investors have always known, namely: Rock now beats paper.

A Gold New World

In world in which fiat currencies are quantifiably and objectively melting like an ice cube under the heat of over $354T in global private and public debt, as well as $38T of embarrassing U.S. sovereign debt, the jig is up on the declining purchasing power of the paper currencies by which wealth is falsely (and dangerously) measured.

Gold, alas, is not a “rising trend,” it’s the de-facto new Tier-1, primary reserve asset and FX reserve currency in a changing world openly losing trust in paper currencies and sovereign IOUs.

In this changing world, the banks have been forced to change as well.

In 2025, for example, even Morgan Stanley, once fined for illegal price manipulation in precious metals, was suddenly yet correctly recommending a 20% allocation to gold over the “return-free-risk” of USTs.

The Latest from the Big Boys

Even more telling, however, are the still media-ignored messages percolating out of Goldman Sachs and JP Morgan.

Goldman, for example, just made its 2026 year-end forecast for gold at $5400. Key to note, is that Goldman was careful to call this a “forecast” rather than “target.” This is because they wanted to avoid appearing too bullish.

But Goldman deliberately added the words “with significant upside risk” to their forecast, which translates to they actually expect a much higher year-end price move.

JP Morgan spoke far more directly/bullishly, announcing a $6300 gold price as their “base case” for year end, and went on to confess an upside as high as $8500.

Folks, seeing such gold price confessions from two pillars of a banking system historically terrified of rising gold is beyond telling; it’s in fact revolutionary in its implications.

To see banks suddenly joining the gold narrative is not only a confession of the dollar’s declining global role, it’s a signal of a global financial system in open flux.

In other words, even the big banks can no longer ignore the signals we have been revealing for years.

Seeing What We’ve Always Known

This is especially true of the open breakdown in the COMEX exchange, a devolution we’ve been tracking well ahead of their public learning curve.

With precious metals pouring out of the COMEX to a world openly thirsty for physical gold and silver, the exchange simply lacks enough of the physical metals to lever prices effectively downwards.

Take the COMEX silver inventories, which have fallen to 82M ounces. That’s a 75% decline from 2020.

Equally beyond denial for the commercial banks like Goldman and JP Morgan, is the dramatic stacking of physical gold by the world’s central banks, another bank-ignored fact we’ve been tracking for years.

Winds of Dramatic Change – From Dollar Debasement to Gold Stacking

Of course, the primary winds behind these changes had been obvious long before the TBTF banks finally admitted as much to themselves (or their clients).

The most obvious wind has been the hitherto ignored yet openly obvious matter of currency debasement.

When the M2 money supply skyrocketed 40% from $15T to 21T during the Covid hysteria, followed by another surge thereafter to $22T, was it really any surprise to see such an over-supplied dollar so debased (and hence your wealth so constructively stolen) by 2026?

Debasement, though bad for wealth preservation, sure is good for broke governments. Interest payments for Uncle Sam’s bar tab have grown by greater than 3X in the last five years, making it DC’s 2nd largest federal expenditure.

With U.S. debt at historically unprecedented as well as unpayable highs, such debt can be made worthless by making money more worthless—a win for Uncle Sam but open robbery for Joe Sixpack.

Gold, of course, has been quietly keeping score of this rigged game.

Relative to the M2 money supply, it is still grossly undervalued. The M2/gold ratio stands today at 4.5, not even close to the 2.5 level of the 1980’s, which means gold has a long way higher to go in price.

Further QE measures, which have already begun in 2026, will only add more dilution to the USD and more tailwinds to gold. In periods of excessive money printing, gold surges.

In the 1970’s, for example, gold rose 2300% (from $35 to $850). After the 2008 crisis, it moved upwards by 170% ($700-$1900), and during the Covid nightmare, shot up 40% (as the Fed’s balance sheet added $4.6T of mouse-clicked dollars) and would have traveled much further but for the then-current BTC hysteria, which distracted many…

More Winds…

Another wind of change, of course, has been the central bank gold stacking alluded to above. Ever since the watershed turning point in Q1 of 2022 when the US decided to weaponize the world’s neutral reserve currency, distrust in USDs and faith in gold has risen irrevocably higher.

Since that seminal event, and as we warned from day 1, central bank gold purchasing has risen by 5X, from 17 tons/month in 2022 to over 107 tons/month today.

Goldman Sachs estimates that for every 100 tons of gold purchases, gold’s price climbs by 2%.

Given that global central banks from Poland, China and Turkey to India and Russia will conservatively reach at least 750 tons annually, gold’s future price “forecasts” are not hard to measure.

Of course, such central bank buying doesn’t even include the retail sector, which is the last to catch on, ironically due to the fact that their bankers have been telling them for decades that gold was too volatile, despite the fact that it has outperformed the S&P in total return for a quarter of a century…

Despite record inflows to ETF gold in 2025, the average global allocation to gold is still less than 1%, and only just beginning to pick up towards prior median levels of 2%, or even prior highs of greater than 6%.

This growing retail trend (and awareness surge) will only add to gold’s longer-term and secular price momentum.

Bowing to a New Master

Based on these now obvious winds of change, gold’s direction is becoming far less of a debate or the contrarian trade of old.

Instead, the winds and signals in the gold market are calling paper money’s bluff. Gold is now emerging, as it always has throughout history, as a core allocation and superior store of value than paper promises or paper dollars.

As Gresham’s law reminds from as far back as the 1500’s, once investors are made to feel the difference between “good money” (gold and silver) and “bad money” (debased paper currencies) they eventually replace the later with the former.

What we have been tracking for years among the actions (rather than words) of the central bankers confirms this now undeniable pattern.

And what we are finally witnessing among the commercial banks today is that not even these former servants of paper products can deny the new direction of monetary metals.

Tyler Durden Thu, 02/26/2026 - 12:20

At the Money: Diversifying with Managed Futures ETFs

The Big Picture -

 

 

At The Money: Diversifying with Managed Futures ETFs (February 25, 2026)

Lots of asset classes promise uncorrelated returns, but few deliver diversification. One that does is managed futures. Sure, they are expensive and spikey, but when all correlations go to 1 – meaning everything is trading in lockstep, as we saw during the GFC and Covid – they seem to be the rare diversifier that works.

Full transcript below.

~~~

About this week’s guest:

Andrew Beer is a hedge fund veteran and founder of Dynamic Beta Investments, a firm focused on hedge-fund replication strategies delivered through low-cost, liquid vehicles like ETFs and mutual funds. His ETF, DBi Managed Futures Strategy (DBMF) attempts to replicate pricier managed futures portfolios

For more info, see:

Firm website

Masters in Business

LinkedIn

Twitter

~~~

 

Find all of the previous At the Money episodes here, and in the MiB feed on Apple PodcastsYouTubeSpotify, and Bloomberg. And find the entire musical playlist of all the songs I have used on At the Money on Spotify

 

 

 

Transcript


Barry Ritholtz:
As we learned in 2022, sometimes all supposedly uncorrelated asset classes moved together. Stocks went down, bonds went down, tips went down, commodities went down, Bitcoin went down. Very few things, buck the trend. One version of that is a variety of alternative investments that are designed to not correlate to one during periods of stress. Let’s talk to Andrew Beer. He’s a hedge fund veteran and founder of Dynamic Beta Investments, or DBI that focus on hedge fund replication strategies delivered through low cost liquid vehicles like ETFs and mutual funds, liquid alts, managed futures, a variety of strategies that are specifically designed to not trade like stocks and bonds. So, so Andrew, let, let’s start with the basic question. Stocks and bonds seems to have become a whole lot more correlated in recent years. How should that change how we think about correlation in the need for diversifiers?

Andrew Beer: Sure. Well, it, it, it is, it is the question of the 2020s from a wealth management perspective. So I used to call bonds the superman of diversifiers in the two thousands and, and 2000 tens in that they had terrific risk adjusted returns. If you, they almost never went down. The maximum draw down was 4%, and they tended to go up or do better when, but when, when equities were doing less. Well, the, the problem this decade is that, and this is, people have shown this over a long period of time since that was unusual. In fact, if you go back over long periods of time, particularly when inflation gets above about 2%, stocks and bonds tend to move together. So astonishingly bonds have earned less than cash over the past 10 years. And now, and the correlations have been creep creeping up. That tears up the basic playbook of a 60 40 model portfolio because, and so, so what, what people are doing is thinking about what can we put into a portfolio?

And really, really the goal is to diversify equity risk because remember, I mean, Warren Buffett had that great quote and they said, if you didn’t have Berkshire Hathaway, what would you do with your money? And he said, I put 95% into the S and P have 105% in cash. That’s great if you’re him and you can weather a 40% or 50% drawdown and, and breathe a whatever and, and, you know, carry it for the next, for the rebound. But most investors don’t have that kind of risk tolerance, and they need things that are gonna help to protect them during, during difficult market environments.

Barry Ritholtz: So how do we avoid these specific diversification failures that we see in typical portfolios? How do each of your funds map to a different hole in, in that diversification process?

Andrew Beer: So, on on, on our side, you know what we’ve tended to look at our strategies that, that are durable and have worked for long periods of time, and then try to find out ways to make them work in mutual funds or ETFs or in, in Europe, we do it in uses funds, but I’ve also been an enormous critic of the, this, this broad industry that is built up around what are called liquid alternative products. Now remember, I come from a legitimate hedge fund background, and when I’ve, but I’ve been writing about this category of supposed diversifiers for 15 years, and it’s a catastrophe that these strategies on average have correlations of often around 0.8 to equities, and they’ve delivered two to 3% per annum over a period of time when 15 years, when equities have gone up by 14 or 15% a year. That I think is the, is, is, is is the most critical issue, is that 95% of things that people will pitch you are, are, are supposed to work, just don’t and don’t add value. And so we have tried to address that and say, no, there actually are things that work. But you’ve gotta take a somewhat different approach in terms of how you think about it.

Barry Ritholtz: So when, whenever I speak to either portfolio managers or anybody else who’s, who’s working on an allocation, they wanna know about draw, draw downs and volatility and sharp ratios, what do these various diversifiers do to kind of wonky metrics like those, the—

Andrew Beer: Strategy that we’ve, we’ve described having the most diversification bang for the buck is a strategy called manage futures. And it’s, it’s the core of what we do. And we, we came at it again, we came at it from your side of the table as we were looking for something that would help our portfolios. And then there’s a second part of it. How do we make it work? Well, because there’s this great book that was written was called, Where Are the Customer’s Yachts? Talk about how Wall Street took all this money. The, the, the asset management industry tries desperately to take as much money as they can from any kind of product. And the more complicated they make it, the easier it is for ’em to charge exorbitant fees. But what, what, what the strategy is very, very unusual and has no correlation to stocks and bonds over a long period of time and, and tends to do best in the most difficult market environments. But it’s not a high sharp ratio strategy. There are certain hedge funds that have sharp ratios of two, which if, you know, if you under, it’s almost magical from an investment perspective, this is not that. But what was compelling about it is I can make it work and do better than the actual hedge funds, but in liquid accessible vehicles like ETFs.

Barry Ritholtz: Huh. So when I think of things like managed futures or derivative based long short leverage strategies, my first thought is what’s the risk that this is gonna blow up? I don’t tend to think of this as di certain ways. These are expressed as diversifiers. How, how do you reconcile that? How do you do things differently than some of these other blowup risk funds? We’ve, we’ve seen, and every year we read about one of ’em, you know, blowing up.

Andrew Beer: Many features is a strategy’s interesting. And the blowup risk is very, very low for the following reasons. So blowups usually happen because you’ve borrowed money and somebody wants it back at the wrong time and you have something you can’t sell to fulfill it. Right? That’s Lehman Brothers, that’s Bear Stearns. That’s, that’s, you know, that’s, that’s the long legacy of true blowups or, or, or it’s, it’s fraud and mispricing of assets. There was a mutual fund called Infinity Q that kind of just made up its numbers. The what managed futures funds. And, and again, it’s a terrible term managed futures, but futures contracts are some of the deepest, most liquid contracts that you can possibly trade. And so when things, these guys will go through periods where they have drawdowns, but they don’t hold onto the positions with a white knuckle grip and, and they, they scale out of positions.

Like even everyone was long gold and silver last week, they will have cut gold and silver. And so if gold and silver go down another 50% from here, they will have reduced their risk. So when you look at the overall strategy over a 25 year period of time, the maximum drawdown is only 16%. And whereas inequities, you’ve had a 40% and a 50% and several 20% plus drawdowns over that period of time, bonds have also had a 16% drawdown. So it’s, there’s a perception that it’s very, very risky with high blow up risk. That is in simply because as you say, it sounds like, and it is a leveraged long short der base black box,

Barry Ritholtz: But they’re called managed for a reason. Right? Yeah. So, so let’s talk about the tendency for some of these, especially on the private side, these various strategies to kind of quietly drift back towards equity beta over time. Like sometimes we see someone’s identified a particular strategy that is both non-correlated, diversified and, and generating real alpha, but tends not to have persistency. How do you avoid this kind of problem? What, what someone else has called fake diversification?

Andrew Beer: Well, I, I think the, the, the structure of the traditional asset management business from a return source perspective is deeply, deeply flawed. That again, you are talking about an industry that has destroyed value for decades net of the fees that they’ve charged because low cost index products have done better, right? The product development and sales across the industry is equally flawed. And that product in, in the hedge fund industry, when a credible hedge fund launches a product, they think there’s a great investment opportunity and they’re gonna bring in their, their capital clients and they’re gonna, and they’re gonna try to capitalize on that opportunity. In the traditional asset management space, it’s designed by the equivalent of the car salesman on the, on the showroom floor who thinks he can sell it to you. And all he cares about is getting that commission up front. So it, it’s, there’s a structural reason why hundreds and hundreds of products have been offered, which, which, which have failed any measure of diversification and also funds.

Ben Johnson at Morningstar has a great expression called the spaghetti cannon, and he said, these guys will launch six funds and they will come in and one of the six will be doing well, and that’s all they’ll talk to you about, right? So it, it’s, it’s, so the odds are really stacked against the average. And, you know, unless you’re somebody like me who digs in and wants to see every fund that’s out there and tear it apart, it’s, it’s, it’s extremely difficult to see through this marketing haze and fuzz. So, back to the point about things that were look great until they look horrible, I think that is a, that is a marketing success, but an investment catastrophe.

Barry Ritholtz: So, so let’s talk a little bit about the spaghetti canon. You’ve built a variety of replication strategies. How do you avoid simply layering on new sources of hidden risk under the banner of diversification? Just throwing stuff up against the wall to see what sticks isn’t a good strategy other than, hey, we know what we can market. How, how do you find diversification but not add risk?

Andrew Beer: So, so, so in our case, we’ve only, we only have two strategies because the other eight or 10 that we’ve looked at don’t work. If you, if I come in and describe to you what we built and why we built it, and now again, ours is a, is a relatively unusual business in that we’re basically saying in two hedge fund strategies, we like what hedge funds do, but we can beat them by copying them cheaply and we can do it in a liquid fashion that’s, that’s called hedge fund replication. We know, we figure out their big trades, we figure out where, where, where their conviction is. But instead of paying them a lot of money to implement the trades, often in very complicated ways, we can synthesize it and do it, do it efficiently. I’ve only launched strategies where I’ve been 80% confident I could beat hedge funds at their own game in that.

Barry Ritholtz: So, so let’s talk about some of those strategies, because when you, I think when a lot of people hear the I name hedge fund replication, they think, oh, hedge funds are buying a lot of Nvidia. So Andrew’s buying a lot of Nvidia. We’re not talking about imitating their positions, we’re talking about applying their strategies aside from managed futures, tell us about the other strategies, get that, get layered into DBI’s exchange traded funds.

Andrew Beer: So, so there’s, there’s only the one other strategy. So we, we replicate the managed future space and we synthesize their portfolios into a simple portfolio. And, and it turns out it’s just much more efficient. It does better over time. We also replicate what I would call the broad hedge fund industry, which will include the kind of funds you read about equity, long, short, relative value, event driven. But in that, we’re not trying to figure out who owns Nvidia. And we’ve looked at that, it doesn’t, it’s not a terribly useful exercise. Goldman actually has a, has a business doing that. Rather, what we’re trying to pick up on, are there big themes? So are they migrating their equity exposure from US equities to non-US equities? Is it going from developed markets to emerging markets? Is it, do they have hedges in place on the view that, you know, inflation may or may not come back.

So our whole business is based upon the idea that, that if you can identify the big trades, the most important trades, that’s really what’s gonna be the big driver of performance. And, and everybody’s read about the subprime crisis and what happened there. Just like, what don’t people say about the subprime crisis? Oh, that guy got it right, but shorted the wrong bonds. No, you shorted any bonds, you did well, right? If you were a hedge fund that moved into tech stocks over the past 15 years, you’ve done well, it hasn’t mattered which tech stocks you own that. And by the way, this only works in very limited circumstances. So back to your first point is the thing you don’t wanna do is you don’t want to do stupid things, which is to launch products because you hope they’re gonna work, or if they happen to work, your investors won’t figure it out until they’ve given you a lot of money. That’s not how we roll.

Barry Ritholtz: Huh. Really, really interesting. I’ve read a line of yours that I really like. Diversification is a protection against bad luck. Unpack what that means specifically in context of things like economic shocks or policy mistakes. We’re, we’re in an era of tariffs and trading by tweets as well as inflation surprises.

Andrew Beer: So, so the standard playbook from an asset allocation perspective is today to diversify and assume, just take it, it as a given that there won’t be any really catastrophic things that happen. You know, one of the great advantages that hedge funds as an asset class that drew me to the asset class as is, is, is they’re not, they’re not tied to a benchmark. They’re not tied to decisions that they made year before it. This is people with very, very smart, talented people with their own money who are trying to find ways to make money in good and bad environments. You know? And so, so bad luck is the return of inflation. You know, it’s something that affects your portfolio across the board that wasn’t part of your playbook. And the thing I find incredible about last year was that nothing broke, right? I mean, we have, we have, the system is being tested at every level.

Yeah, right? There are derelicts who are lighting matches and throwing them on the carpets and, and, and the drapes have not caught fire. Right? That we had an attack on the, you know, we had the deep seek scare, we had liberation day, we had frontal assault on, on the independence of the Fed. We’ve had various geopolitical skirmishes, you’ve had pockets of bond market tantrums around the world. And yet if you had gone to bed on December 31st, 2024 and woken up a year later, you think, great. Everything worked. So, so I, I think the world is changing, right? And I think what you’re seeing, what you’re seeing in gold and silver, it’s not normal, right? These, you don’t get these major asset classes melting up 80% in a year, going up another 20%, dropping 10%, you know, silver dropping 30% in a day. The, the, the, you know, I hear from international investors that, that their fear of something policy wide happening in the US is causing them to look at international markets in a way, even though the business environment in the US is still the best in the world, the companies are still the best in the world, but it’s not prudent anymore to be massively overweight the US.

So I think, I think we’re gonna be in for years of big change, and I think that that’s gonna be really challenging for the standard playbook of, of, of, you know, let’s just stick to our guns with our current positions and, and, and hope things work. It worked wonderfully in a year, like last year. I think we’re gonna go through some tough periods though.

Barry Ritholtz: Hmm. Interesting. So, so last question. ETFs tend to be used by advisors and, and other portfolio constructors who often have to explain what’s going on to their clients. And a big challenge is, a big struggle is dealing with client behavior. I think of selling diversifiers, like house insurance. You, you don’t complain if your house doesn’t burn down, but when I see things like managed futures and other diversifiers, I just know how clients think after a few years without a disaster, someone’s gonna say, Hey, these don’t work, I wanna sell this. How do you actually work with advisors? So the clients who thought they wanted a diversifier don’t get impatient when the house hasn’t burnt down.

Andrew Beer: So for, for one is, is is in our strategies, but reducing fees and making it more efficient, you do better during the other, during, during all those periods you’re talking about, right? So our largest ETF was up 14% last year. No, we weren’t up as much as the S and P of a hundred, but we’re pretty close. And that’s a year where nothing terrible happened other than, you know, we had a lot of, a lot of scary shocks. But, but I think, and, and, and I’ve, I’ve, I’ve loved the past six years of really getting to know people in the wealth management space, in that I think the way people often pitch these things to clients is wrong. That I think they, they go in, I think a lot of allocators, they fall in love with these funds. They go in and they want to tell people, I found, you know, Lionel Messi, I found LeBron James, I found this person because look, look at how they’ve done over the past five years.

They’re unbelievable. And I think that is a terrible way to introduce these products to a, a, a a, an end client. ’Cause then they’re focused on it all the time and they want to know why they’re not scoring every game. And, and rather what we have tried to do is basically say, look, we know this strategy is useful, but we’re the boring way of getting exposure to it. We’re just like that in no one, no one. And people generally don’t panic because GD is down 5% in a day. It’s just part of your asset allocation. And so I think the, the advisor world needs a will, will be more successful when they frame these allocations not on a standalone basis based upon star power. And it’s okay to pay them 200 basis points a year because they’re never gonna be wrong. We know they’re gonna be wrong and we know things aren’t gonna work. So if you frame it in terms of this is just simply incrementally that fills a gap in terms of how we manage your money. And it’s priced at a very, very attractive price point. No one’s getting rich while we’re waiting for this to happen. And five years from now, seven years from now, 10 years from now, just like when we started to put you into high yield bonds or non-US equities or these other asset classes that made your portfolio more robust, this is just one incremental addition to it.

Barry Ritholtz: So, so to wrap up, for investors looking to diversify, to, to avoid the tendency for all asset classes to move in lockstep, they should consider low cost ETFs that try and replicate what big expensive hedge funds do. But in a liquid inexpensive version, DBI has not only managed futures, but liquid alts that try and do this, they’ve put together a really impressive track record over the past five years. Just keep in mind that you don’t wanna back up the truck and own 20, 30% of it. It’s supposed to be an insurance product. Andrew suggests 3%. I, I don’t disagree with that. I’m Barry Ritholtz. You’ve been listening to Bloomberg’s At the Money.

 

~~~

Find our entire music playlist for At the Money on Spotify.

 

 

 

The post At the Money: Diversifying with Managed Futures ETFs appeared first on The Big Picture.

'Nude Photos, Video Tapes & Sex-Slave Manuals': Epstein Rushed Evidence Into Secret Storage Unit Before Raid

Zero Hedge -

'Nude Photos, Video Tapes & Sex-Slave Manuals': Epstein Rushed Evidence Into Secret Storage Unit Before Raid

Jeffrey Epstein paid private detectives to remove items from his Palm Beach property and store them in a secret storage locker shortly before he was raided by police in 2005. The storage unit contained three computers, 29 address books, a three-page list of Florida masseuses.

The stash also included nude photographs believed to be of Epstein's victims, VHS tapes, DVDs 'eroticising teenagers' and porno magsThe Telegraph reports.

An 8mm video cassette tape was also locked away in the storage unit, apparently containing footage of someone in the shower and a woman in lingerie, as well as a 2005 calendar, greeting cards, letters and laboratory results.

The investigators also hid sex toys, body massagers, lingerie, cash, a concealed weapon permit, and a Harvard ID card. The inventory was emailed to Epstein and his lawyers in August 2009, a month after he was released from jail for soliciting a minor for prostitution. 

Also interesting, some of the computer material 'appeared to be missing,' including 'equipment that would have linked to surveillance cameras.'

That fuelled speculation that Epstein might have been recording explicit covert material without people’s knowledge, either for his own sexual gratification or for blackmail purposes.

And what do we have here? A guy who was installing recording equipment on Epstein's island in 2014, and was named as a $1 million beneficiary in Epstein's trust

According to the report, the FBI did have copies of the two computer drives.

The Palm Beach storage unit was just one of at least six such lockers across the United States that Epstein used to store files, computers and other items from his multiple properties - but search warrants reviewed by The Telegraph "suggest that US authorities never raided these lockers, raising the possibility that they contained unseen evidence relating to Epstein and his associates."

US authorities have long suspected that Epstein was tipped off before the October 2005 raid at his Palm Beach mansion, with former Palm Beach police chief Michael Reiter commenting that "the place had been cleaned up."

Meanwhile, French Police have released previously unseen pictures from Epstein's Paris apartment, including one featuring a massage table and pictures of naked women hanging on the wall.

Pictures released by police show Epstein’s Paris home

Many victims have long alleged that Epstein secretly recorded encounters inside his homes, possibly for blackmail.

Yet an internal FBI memo released in a later document tranche stated that investigators found no evidence supporting the theory that Epstein maintained video recordings of abuse involving other powerful figures.

We are aware of the theories circulated in the media and online that Epstein video recorded the abuse of his victims, including by other men, but we have found no evidence to support that theory,” the memo said.

The agency added that if such material had existed, it would have been used in criminal prosecutions.

Copies of two hard drives from the Palm Beach locker were eventually recovered at Epstein’s New York residence following his 2019 arrest, but the original computers are believed to have never been found. An FBI forensic analyst later testified that the drives contained photos of Epstein and Ghislaine Maxwell and a job advertisement written by “GMax” seeking a massage therapist - but no explicit recordings of abuse.

Meanwhile, emails show Epstein repeatedly ordered staff and associates to wipe computers and shred tapes in the years leading up to his death.

In a 2014 email, associates discussed destroying computer equipment housed in a server room at his Manhattan mansion. That same year, according to previously reported emails, Epstein allegedly directed staff to install hidden cameras inside Kleenex boxes - with one message noting, “The Russians may come in handy.”

Tyler Durden Thu, 02/26/2026 - 11:55

Biden-Appointed Judge Rules Illegal Immigrants Can Dispute Third Country Deportations

Zero Hedge -

Biden-Appointed Judge Rules Illegal Immigrants Can Dispute Third Country Deportations

Authored by Stacy Robinson via The Epoch Times,

A federal judge ruled on Feb. 25 that the government cannot deport illegal immigrants to so-called third countries without giving them “meaningful notice” and an opportunity to dispute their removal.

In Wednesday’s ruling, Massachusetts District Judge Brian Murphy (nominated by President Biden on March 21, 2024) declared unlawful two policy memos, one by Immigration and Customs Enforcement (ICE) and another by the Department of Homeland Security (DHS). Those memos said that if the U.S. had received credible diplomatic assurances from a third country that deportees would not face persecution or torture, they could be sent there without any extra procedures.

“[DHS] has adopted a policy whereby it may take people and drop them off in parts unknown ... and, ‘as long as the Department doesn’t already know that there’s someone standing there waiting to shoot ... that’s fine,’” he wrote.

“It is not fine, nor is it legal.”

Murphy ruled that federal regulations required that illegal immigrants be deported to either their home country, or another country as designated by an immigration judge.

They also have the right to “raise a country-specific claim” against being deported to a third country, he wrote.

The case started last March, when four plaintiffs filed a class-action suit after the government tried to deport them to countries other than their home nation, without notice or opportunity to object to their destination.

In April, the judge expanded the class of plaintiffs to include anyone with a final removal order to a third country after Feb. 18, 2025.

Murphy blocked those removals on April 18, but on May 21 he found the government had violated his order by removing six individuals to South Sudan in Africa. He ordered the government to provide them with lawyers and hearings on whether they were afraid to live in that country.

In the meantime, the federal government appealed to the Supreme Court, which stayed Murphy’s order in June.

In its stay application, the government said the lower court proceedings were “usurping the Executive’s authority over immigration policy,” and “ wreaking havoc on the third country removal process.” It characterized some of the deportees as “criminal aliens who had been in the country for years or decades after receiving final orders of removal, despite having committed horrific crimes,” including sexual assault and murder.

The same day the Supreme Court stayed his April ruling, Murphy issued an order saying his May directive was still in effect, since the government had not included it in their petition. The justices had to issue a follow-up clarification saying it had intended to invalidate both of the judge’s rulings.

In a brief, unsigned order, the majority said Murphy was attempting to use his May directive—granting the deportees lawyers and hearings—to enforce the ruling from April, which he could not do.

Justice Elena Kagan, in a short opinion, noted that she didn’t want to halt Murphy’s decision from last April.

“But a majority of this Court saw things differently, and I do not see how a district court can compel compliance with an order that this Court has stayed.”

Murphy has suspended his own Feb. 25 ruling for 15 days, giving the government time to ask an appeals court to halt it for a longer period. He wrote that he didn’t think the government’s legal argument was strong, but noted that the Supreme Court had stayed his previous, temporary block on the DHS policy.

“Ultimately, this Court could be missing something in the final analysis,” he wrote.

Tyler Durden Thu, 02/26/2026 - 11:40

Pages