Category: Points of Information

Very brief descriptions, with appropriate links, of current or recent news items.

Bankruptcy for Neiman Marcus because of government-imposed shutdown

3:05 pm

The beatings will continue until morale improves: Neiman Marcus to file for bankruptcy, furlough 14,000, due to government-imposed shutdown because of the Wuhan panic.

Neiman Marcus Group, one of the largest retailers in the United States, is reportedly ready to file bankruptcy amid the COVD-19 pandemic after defaulting millions in bond payments last week and furloughing 14,000 employees.

Neiman Marcus would become the first major US department store to crumble amidst the economic set backs from the coronavirus outbreak. Reuters reported the company had few options after the coronavirus spurred lockdowns that shuttered non-essential businesses, including all 43 of their stores. This includes Last Call stores and its two New York City Bergdorf Goodman department stores.

And yes, I know it was already struggling, as are many brick-and-mortar department stores because of the shift to online shopping. The government over-reaction to the Wuhan virus however has done a great job of pushing the company over the edge, killing it.

As with any failure like this, the consequences will ripple outward far beyond the loss of this one company. The lost jobs will mean people will not have money to spend, so other businesses will suffer. The downward spiral will only get worse.

Want to know what it was like to live in failing socialist societies like the Soviet Union and Venezuela? You are now getting the chance. In our case the government has apparently bypassed the direct takeover of industry and the economy where it would over a few years run the society into bankruptcy. Instead, it decided to destroy everything by edict, all in one blow.

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Unprecedented wave of evictions coming due to Wuhan panic

2:35 pm

The beatings will continue until morale improves: Based on court filings, authorities in Oklahoma expect an unprecedented number of rental evictions in the coming months due to the government-imposed business shut downs and resulting unemployment.

Attorneys and academics told The Oklahoman a moratorium on eviction hearings, once ended, will be followed by a wave of evictions creating a homeless population not seen since the Great Depression.

…The state’s unemployment rate hit record levels within weeks of the outbreak, with first-time claims on unemployment insurance up by nearly 800%. Nearly 100,000 Oklahomans, more than the entire population of Edmond, filed initial claims in the past two weeks. “I don’t see how these people are going to be able to pay their bills,” [said Richard Klinge, director of the Pro Bono Eviction Assistance Program at Oklahoma City University]. “It’s a tsunami coming on the horizon as people can’t pay their rent.”

A national survey by Eviction Lab at Princeton University ranked Tulsa and Oklahoma City as cities with the 11th and 20th highest eviction rates based on 2016 data. The Pro Bono Eviction Assistance Program under Klinge has helped 650 families — more than 1,300 men, women and children — facing eviction and other landlord issues since the organization was started in 2018. That is only a fraction of total evictions the state could see this year alone.

“Before COVID-19 struck, based on filings to date in Oklahoma County, 14,000 cases would be set for Oklahoma County in 2020,” Klinge said. “That means more than 30,000 men, women and children will be facing eviction from their homes.

I remain amazed how little interest there is in the overall economic disaster that is going to bankrupt thousands of businesses and push millions out of their homes. In the end, this collapse of the economic is going to hurt (and kill) far more people that anything so far suggested possible by the Wuhan virus.

Instead, our state-run press, hawking propaganda for the government and its employees, seems only interested in reporting the possibility that government agencies might have to shrink and cut pay.

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More economic disasters due to government imposed shut downs

10:05 pm

The beatings will continue until morale improves: Below are some stories I found today describing the on-going the collapse of the economy due to the nationwide lock downs imposed by state and local governments because of their panic over the Wuhan flu.

Note how the first two stories are about the sufferings of state employees, whether in government or academia. Note too how these stories only mention as an aside the collapse of the real economy. Who cares if millions of private businesses are going under? What’s really important is that we won’t be able to grab their profits and the government will have to shrink! Horrors!

Only the last two stories are about the real crash, with only the last, buried among many other stories on RealClearPolitics, telling the true tale:

The Commerce Department said on Thursday business applications dropped 21.4% in the week ending April 11, compared with the same period last year.

…The slump in business applications comes as states and local governments have issued “stay-at-home” or “shelter-in-place” orders affecting more than 90% of Americans to control the spread of COVID-19, the potentially lethal respiratory illness caused by the virus, and abruptly halting economic activity.

At least 22 million people have filed for unemployment benefits in the last four weeks. Retail sales suffered a record drop in March and output at factories declined by the most since 1946. Homebuilding crumbled in March at a speed not seen in 36 years. Economists believe the economy contracted at its steepest pace since World War Two in the first quarter. [emphasis mine]

A 21% drop in new businesses tells us that the economy will not recover from this madness very quickly. Money is drying up, the banks are under a strain, and the economy is shrinking like a burst balloon.

The middle paragraph in the quote above is intended to justify this crash and government abuse of power by the use of the word “lethal,” thus playing up danger of the Wuhan flu, even though the evidence still shows it to be, like the flu, only a threat to the old and the sick. Like the flu, most everyone else simply fights it off with no long term consequences.

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Wuhan panic wipes out NY restaurant business

3:54 pm

The beatings will continue until morale improves: Because of the government shut down caused by the panic over the Wuhan virus, the entire New York city restaurant business, one of that city’s most important industries, is now facing closure and bankruptcy, with many stores boarding up their windows and going out of business.

Most restaurants are completely shuttered. Many that tried takeout and delivery ended their operations for fear of their employees and customers’ safety. Those that are still trying to make it work are unsustainably earning a fraction of what they normally would make. Federal Small Business Administration loans have yet to hit most bank accounts, and the programs have already run out of money. Even California, which is far ahead of New York in containing the virus, will reduce capacity in restaurants when the shutdown finally lifts, a move that many restaurateurs say will likely hurt businesses as they attempt to recover from the crisis.

The first sign of longer term decline is here: the boarded up storefront. Common during the lead-up to hurricanes to prevent flying debris from smashing up windows, plywood is otherwise used to minimize the risks of burglaries and looting. Will it get that bad? No owner that we reached out to would openly acknowledge it. But as the crisis drags on indefinitely, restaurants are starting to close permanently and unemployment continues to skyrocket. Some restaurateurs are taking a preventative tact in case the economic impact takes an even deeper turn.

The article talks about government help, but there isn’t enough money in the universe capable of covering these losses if the government shut downs continue much longer.

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Study suggests COVID-19 death rate is far less than presently reported, comparable to flu

3:47 pm

The uncertainty of science: A California large-scale study of COVID-19 anti-bodies in the general population has found that the infection rate for the Wuhan virus could be 50 to 85 times higher than present counts, which would mean that the death rate is actually quite low, comparable to the flu.

The results of the study are preliminary and not peer-reviewed, but the general takeaways would seem to strongly contribute to the notion that there have been a large number of COVID-19 cases that went undetected.

Due to questions over the antibody tests’ efficacy, researchers adjusted for test performance characteristics by using the test manufacturer’s data and a sample of controls tested at Stanford University. Again, the results are preliminary and the study has not been peer-reviewed, but researchers found a raw, unadjusted antibody prevalence of 1.5 percent, which was scaled up to 2.5-4.2 percent when adjusting for population and test performance characteristics.

Researchers estimate that if 2.5 to 4.2 percent of the county has already been infected, the true number of total cases in early April — both active and recovered — ranges between 48,000 and 81,000. The county had reported just under 1,000 cases at the time the study was conducted, which would mean cases are being underreported by a factor of 50 to 85. “Our findings suggest that there is somewhere between 50- and 80-fold more infections in our county than what’s known by the number of cases than are reported by our department of public health,” Dr. Eran Bendavid, the Stanford professor who led the study, told ABC News.

If the study’s numbers are accurate, the true mortality and hospitalization rates of COVID-19 are both substantially lower than current estimates, and due to lag between infection and death, researchers project a true mortality rate between .12 and .20. [emphasis mine]

The researchers also note that, based on this study, not enough people have yet been infected to achieve herd immunity, a conclusion totally reasonable considering the effort being made to prevent infection.

Regardless, if true this illustrates again that this virus does not merit the mass hysteria it is causing. Because it, like the flu, mostly kills older and sicker people, not young healthy individuals, the overall mortality will almost certainly not be much different than past years. While it is tragic that this disease, plus the flu, is making survival harder and less likely for older individuals (such as myself by the way), it is unconscionable for us to bankrupt the whole society and abandon the rule of law for this reason.

Sadly, that is apparently what we are doing.

As the researchers note, these results are preliminary, and could turn out to be false. That they coincide with other research in South Korea and on the Diamond Princess cruise ship however gives them some weight.

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Wuhan panic destroys flower business worldwide

1:31 pm

The beatings will continue until morale improves: The worldwide panic over the Wuhan flu has in one month practically destroyed the $8.5 billion flower/bouquet industry.

Much of the crash has been caused by customers themselves cancelling weddings and events, but that process has been accelerated and promoted by the decision of governors to put their states under house arrest.

Within a few days, all of [flower seller Laura] Clare’s clients planning April weddings were scrambling to pick dates in the fall. She had to tell brides that some flowers, such as cherry blossoms, might not be available then. Soon, as the number of Covid-19 cases in New Jersey passed 1,000, the governor ordered all but essential businesses to close. Florists didn’t make the cut.

With her supply wilting, Clare started giving bouquets away, delivering some to older parishioners at a local church. She furloughed her five full-time employees and canceled her flower orders, which usually total at least $5,000 a week. She’s applying for a Small Business Administration loan that would let her put her workers back on the payroll. “I’ve been through 9/11,” Clare says. “I’ve been through Hurricane Irene, Hurricane Sandy. I’ve never seen anything like this before.”

As with all the closures, the cancellations send disaster in waves throughout the economy. Event venues are now shuttered, their employees facing unemployment. Caterers have no work. Photographers, bakers, clothing designers, everyone involved in this industry is now facing bankruptcy and a crash that they will not recover from for months to years, if ever.

When it comes to something like the Wuhan virus, rational people do a cost-benefit analysis and apply some common sense. It makes no sense to destroy the entire worldwide economy because of a disease that is not going to be much worse than a typical flu season, especially because like the flu COVID-19 focuses most of its worst attacks against the older very sick population. The bulk of the population fights it off with no problem, and goes on living.

Now however we have decided to not allow that, even if the disease does them no harm. They must starve instead.

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Economic index experienced biggest crash ever due to Wuhan panic

1:16 pm

The beatings will continue until morale improves: The index of leading economic indicators experienced the biggest crash in March in its sixty year history, all due to the shutdowns imposed by the government in panic over the Wuhan flu.

The Conference Board said its index of leading economic indicators (LEI) tumbled 6.7% last month, the largest decrease in the series’ 60-year history. Data for February was revised down to show the index falling 0.2% instead of gaining 0.1% as previously reported. Economists polled by Reuters had forecast the index dropping 7.0% in March.

“The sharp drop in the LEI reflects the sudden halting in business activity as a result of the global pandemic and suggests the U.S. economy will be facing a very deep contraction,” said Ataman Ozyildirim, senior director of economic research at The Conference Board in Washington.

I continue to find it strange that these stories about the crashing economy are being reported in very few places. This is real news, effecting millions, unlike COVID-19.

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Strange terrain in the Martian lowlands

12:42 pm

Strange terrain in northern lowlands
Click for full image.

Cool image time! The science team for the high resolution camera on Mars Reconnaissance Orbiter (MRO) yesterday released a new captioned image, entitled “Disrupted Sediments in Acidalia Planitia”, noting that the photo

…shows a pitted, blocky surface, but also more unusually, it has contorted, irregular features.

Although there are impact craters in this area, some of the features … are too irregular to be relic impact craters or river channels. One possibility is that sedimentary layers have been warped from below to create these patterns. The freezing and thawing of subsurface ice is a mechanism that could have caused this.

The image to the right, rotated, cropped, and reduced to post here, shows the lower quarter of the full image. While in some areas it does appear as if changes below the surface caused the surface to warp and collapse, as suggested by the caption, in other places it looks more like the top layers themselves sublimated away without disturbing what was below them.

Note for example the pits near the bottom of the photograph. They clearly show sedimentary layers on their cliff walls, including the tiny circular mesa in the middle of the rightmost pit.

If these pits were collapsing from below, their cliffs would be more disturbed, because it would have been those lower layers that sublimated first. Instead, it appears that the top layer disappeared first, followed by each lower layer, one by one.

This region of strange terrain is located in the middle of the northern lowland plains. The overview map below gives some context, with the small white box showing this photo’s location.
» Read more

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First manned Dragon flight scheduled for May 27th

10:30 am

Capitalism in space: NASA today officially announced May 27, 2020 as the scheduled launch date for the first manned Dragon flight to ISS, the first time American astronauts will fly from American soil on an American rocket in an American spacecraft since the shuttle was retired almost a decade ago.

The launch is set for 4:32 pm (Eastern), and I am sure will be live streams by both NASA and SpaceX.

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SpaceX reuses sections of damaged Starship prototype for next version

9:07 am

Capitalism in space: In building its fourth Starship prototype for testing, SpaceX has decided to reuse large sections of the previous Starship prototype, badly damaged during a pressure test several weeks ago.

On April 15th, eight days after Starship SN3’s [the damaged third prototype] remaining aft section was cut in half, the rearmost half – known as the skirt – was spotted stacked beneath a brand new engine section built for SN4. While confirming that a significant part of SN3 will be reused on SN4, it also indicates that only a less critical SN3 remnant was fit to join SpaceX’s next prototype.

Though they are not reusing the engines from that third prototype, I have full confidence they will, as they were part of the same bottom section of that prototype that was damaged during the test. This statement is incorrect. I had mistakenly assumed that because SpaceX had said it planned actual test hops eventually with this third prototype that three engines were already in place. They were not.

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Space radiation may increase risk of cancer

8:59 am

Using mice and models, scientists have concluded that humans who spend long periods in space, exposed to its radiation, will have a 3% higher risk for cancer.

A team led by researchers at Colorado State University and Frederick National Laboratory for Cancer Research, which is part of the National Institutes for Health, used a novel approach to test assumptions in a model used by NASA to predict these health risks. Based on the NASA model, the team found that astronauts will have more than a three percent risk of dying of cancer from the radiation exposures they will receive on a Mars mission. That level of risk exceeds what is considered acceptable. [emphasis mine]

And how did they come to this conclusion?

…For the study, Weil and first author Dr. Elijah Edmondson, a veterinary pathologist and researcher based at the Frederick National Laboratory for Cancer Research in Maryland, used a unique stock of genetically diverse mice, mimicking a human population. Mice were divided into three groups with the first group receiving no radiation exposure and the other two receiving varying levels of exposure.

Edmondson, who conducted the research while completing a veterinary residency in pathology at CSU, said that for this type of research project, genetic variability is crucial. “Humans are very genetically diverse,” he explained. “You want to model that when it’s appropriate and feasible to do so.”

Weil said although the research team saw different tumor types, similar to humans, but the heavy ions did not cause any unique types of cancer. They also saw differences by sex. In humans, women are more susceptible to radiation-induced cancers than men; one of the main reasons is that women live longer, allowing sufficient time for cancer to develop. In assessing the cancer risk between male and female mice in the study, scientists said the findings parallel human data.

Edmondson said the study validates the NASA model to measure cancer risks for humans from space radiation.

In a sense, this study is junk. First, it discovers the obvious (radiation increases your chances of getting cancer). Second, it is too model-dependent, so assigning any precise percentage to that increase in humans is absurd, especially when based on a sample comprised of mice.

Third, and most important, it completely forgets the reality that life is risk, exploration is dangerous, and to do great things you need to take greater chances. That NASA concludes these questionable numbers are unacceptable means that NASA will never send humans anywhere beyond Earth orbit. Ever.

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