Thursday, May 21, 2020

Did The Lockdown Save Lives? No it didn't.

For two to three months, Americans have suffered the loss of liberty, security, and prosperity in the name of virus control. The psychological impact has been beyond description. We thought we could count on basic rights and freedoms. Then over a few days in March, it all ended in ways hardly anyone could believe possible. 
The manner in which governments dealt with foundational principles of modernity has been shocking. They put half the country under house arrest and managed every movement in disregard for the Bill of Rights and all legal precedent, to say nothing of the Constitution. It felt like a coercive unraveling of civilization itself. It’s like we are all waking up from a bad dream only to look around and see the wreckage that proves it was all real.
So how can we deal with this terror that befell us? One way is to figure out some aspect in which our sacrifice has been worth it, maybe not on net given the consequences, but surely some good has come out of this. If my email and feeds are correct, this is how many people have been justifying this. The psychology here is rooted in the sunk-cost fallacy: when you commit resources to something, even when it is a proven error, you tend to find justifications by doubling down rather than just admitting the mistake. 
Thus have many people written me to say that whether you agree or disagree with the lockdown, we have to admit that it has saved millions of lives. I always write back and ask how they know that. They send me a link to a projection – those very projections that presume all kinds of things about cause and effect that we cannot know and which have proven wrong time and again throughout this crisis. 
So let’s just grant that it is possible that lockdowns can be credited with slowing the spread of the virus, and perhaps preserving hospital capacity (which turned out to be unnecessary). Still, the virus doesn’t then get bored and move by to Wuhan or to another planet. It still sticks around, so at best, these measures only “prolong the pain,” in the words of Knut Wittkowski.
So even if lockdowns slow the spread in the short run, it’s not clear that they have saved lives from the coronavirus, even if it results in more death overall from deferred surgeries and diagnostics, suicides, drug overdoses, and depression. 
The trouble here is that certain features of this experience stand out to contradict the idea that lockdowns are saving lives over the longer term. In New York, two thirds of hospitalized patients with COVID-19 were in fact sheltering in place during the lockdown, essentially living in forced isolation. The lockdown didn’t help them; it might have contributed to making matters worse. 
Meanwhile, despite the media hate poured out against Florida’s youthful spring break revelers, where hundreds of thousands declined to socially distance at the height of the virus risk, I’ve yet to find a credible report of fatalities beyond two that were probably unpreventable. This is because the risks to the younger population are negligible, as we’ve known for a long time now. 
In many countries, 30% to 60% of excess deaths trace to nursing homes. These environments are neither locked down nor open; the virus spread among the most vulnerable population after even just one exposure due to possible negligence and distraction by mass frenzy. In the midst of locking down the whole world, and our politicians were consumed with the desire to enforce stay-at-home orders and forced separation, the population that needed the most care was neglected. Even worse, in New York, California, and New Jersey, nursing homes were forced to take in COVID-19 patients. 
One way we might discern whether and to what extent lockdowns have had any effect on infection and death is to examine the empirical case. Writing in the Wall Street Journal, T.J Rogers examined all the existing studies:
Do quick shutdowns work to fight the spread of Covid-19? Joe Malchow, Yinon Weiss and I wanted to find out. We set out to quantify how many deaths were caused by delayed shutdown orders on a state-by-state basis.
o normalize for an unambiguous comparison of deaths between states at the midpoint of an epidemic, we counted deaths per million population for a fixed 21-day period, measured from when the death rate first hit 1 per million—e.g.,‒three deaths in Iowa or 19 in New York state. A state’s “days to shutdown” was the time after a state crossed the 1 per million threshold until it ordered businesses shut down.
We ran a simple one-variable correlation of deaths per million and days to shutdown, which ranged from minus-10 days (some states shut down before any sign of Covid-19) to 35 days for South Dakota, one of seven states with limited or no shutdown. The correlation coefficient was 5.5%—so low that the engineers I used to employ would have summarized it as “no correlation” and moved on to find the real cause of the problem. (The trendline sloped downward—states that delayed more tended to have lower death rates—but that’s also a meaningless result due to the low correlation coefficient.)
No conclusions can be drawn about the states that sheltered quickly, because their death rates ran the full gamut, from 20 per million in Oregon to 360 in New York. This wide variation means that other variables—like population density or subway use—were more important. Our correlation coefficient for per-capita death rates vs. the population density was 44%. That suggests New York City might have benefited from its shutdown—but blindly copying New York’s policies in places with low Covid-19 death rates, such as my native Wisconsin, doesn’t make sense.
Turning to the international front, consider the work of Isaac Ben-Israel, head of the Security Studies program in Tel Aviv University and the chairman of the National Council for Research and Development. His detailed study from around the world compares locked down countries with those that stayed open. The Times of Israel summarizes his findings as follows. 
A prominent Israeli mathematician, analyst and former general claims simple statistical analysis demonstrates that the spread of COVID-19 peaks after about 40 days and declines to almost zero after 70 days — no matter where it strikes, and no matter what measures governments impose to try to thwart it.
Even a casual look at the open societies of Sweden and Korea – despite going too far in interventions – demonstrate that they experienced lower rates of death than Europe and the U.K. Even the World Health Organization has praised Sweden’s response. 
And a very careful empirical study of counterfactuals in Sweden concluded:
On the basis of the available data, we find that a lockdown in Sweden would not have limited the number of infections or the number of COVID-19 deaths. Theory suggests that this may be the result of people maintaining a larger social distance even in the absence of a lockdown—there could be, in other words, voluntary social restraint. Krueger et al. (2020), in particular, show this in the context of a formal model and suggest that this may be the relevant case for Sweden
Finally, we have a decisive study from Bloomberg that carefully charts lockdowns and death, concluding:
There’s little correlation between the severity of a nation’s restrictions and whether it managed to curb excess fatalities — a measure that looks at the overall number of deaths compared with normal trends.
Cause and effect are notoriously difficult to discern in human affairs on a macroscale. Even if it connects somehow to intuition that locking down keeps the virus away, they do not deal with the reality that the virus is still there, even if temporarily contained (which itself is arguable). 
Quarantines, lockdowns, shelter-in-place orders and so on reflect a premodern bias and an unscientific impulse to run away and hide, a method used from the ancient world through selective quarantines in some cities in 1918. Then we got smart, developed a modern theory of viruses (well explained here), and eschewed them in every pandemic since World War II. Then, somehow, and mysteriously, one century flipped to the next and we got dumb again and here we are. 
Did the lockdown save lives? It’s possible but not yet proven, and the evidence so far points to a negative answer. No matter how much we try to spin this in our heads, no matter how much we want to believe that something good has come out of this catastrophe, we are all going to have someday to deal with the terrible but likely reality that it was all for naught. 
I conclude with the words of the great physician who is credited with smallpox eradication, Donald A. Henderson (1928-2016). 
The interest in quarantine reflects the views and conditions prevalent more than 50 years ago, when much less was known about the epidemiology of infectious diseases and when there was far less international and domestic travel in a less densely populated world. It is difficult to identify circumstances in the past half-century when large-scale quarantine has been effectively used in the control of any disease. The negative consequences of large-scale quarantine are so extreme (forced confinement of sick people with the well; complete restriction of movement of large populations; difficulty in getting critical supplies, medicines, and food to people inside the quarantine zone) that this mitigation measure should be eliminated from serious consideration.
HALL Class Action Case 

China's Baidu Considers Delisting From Nasdaq; Stock Tumbles, Drags Chinese Megacaps Lower

From Zero Hedge:

The US can't kick out Chinese companies from US stock exchanges if said Chinese companies delist first.
That is probably what went through the head of Chinese search giant Baidu - metaphorically speaking - one day after the Senate passed a bill on Wednesday that could stop some Chinese companies listing on U.S. exchanges unless they follow standards for U.S. audits and regulations in an escalation of a long-running dispute between Washington and Beijing about giving U.S. regulators access to Chinese audits.
In response, Reuters reports that Chinese search engine giant Baidu is considering delisting from the Nasdaq and moving to an exchange closer to home "to boost its valuation"  amid rising tension between the United States and China over investments, three sources said. It wasn't clear how moving away from the biggest pool of megatech bubbles in the world, the Nasdaq, to some other exchange would "boost its valuation" but whatever: clearly the political feud between Trump and Xi is now translating into soft capital controls, and explains why Baidu stock tumbled on the news, sliding briefly below $100 after dropping first yesterday on news of the Senate bill.
The news also dragged lower other Chinese megatechs such as Alibaba and the broader China internet sector.
As Reuters further reports Baidu - one of China’s first US listings - is reaching out to "trusted advisers" to see how it could best be done if it were to proceed, including looking at issues around funding and any regulatory reaction although the discussions are at an early stage and are subject to change, said the sources, who spoke on condition of anonymity because the matter is not public.
The company pointed to comments by co-founder and CEO Robin Li who told the state-controlled China Daily on Thursday that Baidu was paying close attention to the tighter U.S. scrutiny of Chinese companies listed in the country.
“For a good company, there are many choices of destinations for listing, not limited to the U.S.,” he told the newspaper.
The sources also said that Baidu believed it was undervalued on the Nasdaq exchange in New York; which probably answers our question from above, if not actually "how" it is undervalued. In other words, Baidu wants to be closer to the chronically insane momentum-chasing gamblers that make up the Chinese investing class. 
Baidu’s shares have fallen more than 60% since their peak in May 2018 while the Nasdaq Golden Dragon China Index, which tracks Chinese firms listed on the U.S. exchange, has lost less than 10% over the same period. Baidu’s market cap just below $30 billion is only 5% of the market value of Alibaba, which has shares listed in Hong Kong and American Depository Shares listed in New York.
In January, Reuters reported that Baidu, Ctrip and NetEase have all held preliminary talks with Hong Kong Exchanges and Clearing about a possible secondary listing to follow Alibaba in establishing an investor base closer to China.

Securities Class Action Recover Investment Losses

Wednesday, May 20, 2020

"Trust Is Being Undermined" - Harvard Medical School Prof Questions Fauci's "Shading" Vaccine Results

From Zero hedge:

At a moment in time when narrative-following "scientists" are lauded like unquestionably omniscient supreme beings enabling dumb-as-a-rock-partisan-politicians to play omnipotent overlords without fear of blowback, the world needs more people like William Haseltine.
The last two weeks have seen markets and politicians jump exuberantly at the hope of every press release from a biotech firm that proclaims one of their pet rabbits didn't die when they fed it their latest DNA-reshaping test material (oh that is except if anyone dares say anything positive about hydroxychloroquine but that is a topic for another discussion) as the fate of global citizenry rests on a vaccine (and definitely not herd immunity, don't even mention it).
Barstool Sports' Dave Portnoy said it right - when did we shift from "flatten the curve, flatten the curve, flatten the curve" to "we have to fund a cure or everyone's going to die."
And so, that is where we find ourselves... Every talking head proclaiming the same malarkey - we will re-open carefully, with PPE, and social distancing, and whetever else is mandated from on-high "until we find a vaccine in 12-18 months" at which point the world will be made whole again and Kumbaya...
All of which brings us back to the man of the day in our humble opinion.
Former Harvard Medical School professor and founder of the university's cancer and HIV/AIDS research departments, William Haseltine dared to speak out today about the high level of bullshit and damage that is being done to "trust" in "scientists" and even dared to break the one holy writ that shall go un-mentioned, throwing some shade a Dr.Fauci.
Reflecting on Moderna's press release this week (which was immediately followed by massive equity raises across numerous biotech firms and upgrades from the underwriters, surprise), Haseltine said:
"If a CFO had tried to get away with such an opaque and data-less statement it would have bee treated with derision and possibly an investigation."
The CNBC anchor desperately tried to guilt him into the official narrative of clinging to any hope as long as it lifts stocks - no matter its utter bullshittiness - but Haseltine destroyed her naive party line:
"we all know its an emergency, and in an emergency it's even more important to be clear on what you know and what you do not know."
Moderna did not follow the process:
"you don't know what happened, we don't know what happened, there is no data."
But, but, but... the CNBC anchorette blubbered, "are you questioning Dr. Fauci who also said that this was encouraging news?"
"Whether [Fauci] shaded what should should have been done, I think is an important question. He's obviously under enormous pressure for positive results but it was not the right thing to do if you can't see the data."
The full interview below is a must-watch by all who care about their freedom being controlled by a narrative directed by fearmongering elites in the name of "science" when the "science" is a) being ignored, b) being bastardized to meet a political need, c) being treated as if handed down on high from the man himself, or d) being manipulated explicitly.
Haseltine's interview is perfect lead into his opinion piece in todays' Washington Post:
Faith in medicine and science is based on trust. But today, in the rush to share scientific progress in combating covid-19, that trust is being undermined.
Private companies, governments and research institutes are holding news conferences to report potential breakthroughs that cannot be verified. The results are always favorable, but the full data on which the announcements are based are not immediately available for critical review. This is "publication by press release,” and it’s damaging trust in the fundamental methods of science and medicine at a time when we need it most.
The most recent example is Moderna’s claim Monday of favorable results in its vaccine trial, which it announced without revealing any of the underlying data. The announcement added billions of dollars to the value of the company, with its shares jumping almost 20 percent. Many analysts believe it contributed to a 900-point gain in the Dow Jones industrial average.
The Moderna announcement described a safety trial of its vaccine based on eight healthy participants. The claim was that in all eight people, the vaccine raised the levels of neutralizing antibodies equivalent to those found in convalescent serum of those who recovered from covid-19. What to make of that claim? Hard to say, because we have no sense of what those levels were. This is the equivalent of a chief executive of a public company announcing a favorable earnings report without supplying supporting financial data, which the Securities and Exchange Commission would never allow.
There is a legitimate question regarding what Moderna’s unsupported assertion means. The scientific and medical literature reports that some people who have recovered have little to no detectable neutralizing antibodies. There is even existing scientific literature that suggests it is possible neutralizing antibodies may not protect animals or humans from infection or reinfection by coronaviruses.
Such “publication by press release” seems to be a standard practice lately.
The National Institutes of Health announced last month that the drug remdesivir offered a clear benefit to covid-19 patients with moderate disease, shortening the length of their hospital stay by several days. But did it really? Twenty days after the announcement, the supporting data has still not been published. Without the data, no doctor treating a patient can be sure they are doing the right thing.
Another paper, published the same day, found that remdesivir had no measurable effect on patient survival or the amount of virus detectable in nasopharynx and lung secretions. What then should a practicing physician do? Follow the unsupported advice of a news announcement or a medical report published in a leading scientific journal? This is not an idle question: The NIH announcement triggered a global stampede for limited supplies of the drug.
The case is more nuanced for the vaccine developed by the Jenner Institute at Oxford University, though the mileposts remain the same: It started with a public pronouncement of favorable results from an early study, this time in monkeys, well before any data was publicly released. An NIH scientist working on a trial of the Oxford vaccine gave an interview to the New York Times, claiming the drug was a success.
But the data, released as a prepublication version more than two weeks after the story ran, didn’t quite live up to the early claim. All of the vaccinated monkeys became infected when introduced to the virus. Though there was some reduction in the amount of viral RNA detected in the lungs, there was no reduction in the nasal secretions in the vaccinated monkeys. So the positive result reported by the Oxford group turned out not to be protection from infection at all, something most would agree is what a successful vaccine would do. Instead, it lowered only the amount of virus recoverable from the vaccinated monkey’s lung.
To the Jenner Institute’s credit, it does warn visitors to its website that there have been many false reports about the progress of its vaccine trial. Still, having a scientist working on the trial paint preliminary results in such a positive manner without having yet released the full data is cause for concern.
We all understand the need to share scientific and medical data as rapidly as possible in this time of crisis. But a media announcement alone is not enough. There are ways to share the data quickly and transparently: posting manuscripts before review or acceptance on publicly available websites or working with journals to allow an early view. Publishing in this manner allows doctors and scientists to reach their own conclusion, based on the evidence available.
The media also bears responsibility. Asking experts to opine on unsubstantiated claims is not useful. Medicine and science are not matters of majority opinion; they are matters of fact supported by transparent data. This is the backbone of scientific progress and our only hope to end this pandemic. We can’t give up on our standards now.
*  *  *
So, by all means, trust in "science" but choose your "scientist" well...

Securities Class Action

JPM's Kolanovic Finds Coronavirus Lockdowns "May Have Caused More Deaths" Than Covid-19 Itself"

A certain subset of financial commentators who despise Trump and his policies yet are fervent adherents of Marko Kolanovic will have a real "cognitive dissonance" trying to rationalize and comment on the JPM quant's latest observations on the coronavirus pandemic, in which he finds that "data favors further reopening" in line with what the administration is currently promoting.
Writing that "while the epidemic and markets largely followed our forecasts, politics emerged as a new and significant risk. Despite the conditions for re-opening being mostly met across the US" Kolanovic observes that this is "not yet happening in the largest economic regions (e.g. CA, NY, etc.)" Instead, while "the virus risk is abating globally, political/geopolitical fallout is emerging as a new risk. For example, just today the US senate passed a bill to bar Chinese companies from being listed on US exchanges."
Mocking "flawed scientific papers [which] predicted several million virus deaths in the west", an outcome which clearly has not happened (with the authors of said papers claiming that this is a result of the measures taken in response to their original forecasts), Kolanovic writes that "in the absence of conclusive data, these lockdowns were justified initially. Nonetheless, many of these efforts were inefficient or late" meanwhile more "recent studies indicate that full lockdown policies in some European countries did not produce any change pandemic parameters (such as growth rates R0) and hence might not have yielded additional benefits vs. less restrictive social distancing measures" where the case study of Sweden is most prominent.
Kolanovic elaborates on this point as follows:
Figure 2 below show virus spread rates before and after lockdown for different countries around the world, and Figure 1 shows the spread for US states that have re-opened. In particular, regression shows that infection rates declined, not increased, after lockdowns ended (for US states we show most recent R0 vs R0 on the day of lockdown end, and for countries we show infection rates). For example, the data in Figure 2 shows a decrease in infection rates after countries eased national lockdowns with >99% statistical significance. Indeed, virtually everywhere, infection rates have declined after reopening even after allowing for an appropriate measurement lag. This means that the pandemic and COVID-19 likely have its own dynamics unrelated to often inconsistent lockdown measures that were being implemented.
Further slamming the continuation of full lockdowns, Kolanovic then writes that "the fact that re-opening did not change the course of pandemic is consistent with mentioned studies showing that initiation of full lockdowns did not alter the course of the pandemic either. These virus dynamics are perhaps driven by the elimination of the most effective spreaders, impact on the most vulnerable populations such as in nursing homes, common sense measures unrelated to full lockdowns (such as washing hands, etc.)and weather patterns in the northern hemisphere, etc."
To be sure, the lockdowns remained in place "while our knowledge of the virus and lack of effectiveness of total lockdowns evolved." However, at the same time, "millions of livelihoods were being destroyed by these lockdowns. Unlike rigorous testing of potential new drugs, lockdowns were administered with little consideration that they might not only cause economic  devastation but potentially more deaths than COVID-19 itself."
At this point it is probably worth noting that if Kolanovic had a YouTube channel, he would promptly be banned for the heretical idea that lockdowns not only did not help with the containment of the diseasebut lead to even greater suffering as a result of the "economic devastation" they encouraged - just ask the media's army of "fact checkers" who are dead certain that being stuck at home for months is in your best interest - while creating a cottage industry if "utilitarian" experts who would shriek, at every opportunity, that collapsing GDP is a necessary price to pay if it meant Trump losing the re-election saving even a single human life. We wonder what said experts will say now that their epidemiological quant idol has dared to point out what was obvious to many from the start.
So how can one continue to justify stringent lockdowns in light of the above observations, Kolanovic asks, and correctly points out that "this question has divided the country", listing some political implications of the lockdowns, including winners, losers, and the economic impact:
  • US Elections – Even before the worst of the pandemic hit the US, the response of the current administration to COVID-19 became a focal point of election campaigns (e.g. COVID-19 ads by then candidate Michael Bloomberg). Election logic and backtests would say, the worse the virus impacts the US, the lower the chances of an incumbent’s re-election given the economic pain, high unemployment and lack of health care during the pandemic. Indeed the initial response of the administration was to downplay the risk of the COVID-19 epidemic. However, since then, this simplistic thesis changed significantly. The administration shifted to forecasting a larger negative impact (setting the stage for them to ‘outperform’, and e.g. ‘hedging’ the Georgia reopening), shifting the pandemic blame to China and the WHO, and at the same time shifting the blame for economic pain to large blue states that are perceived to be slowing down the reopening of the economy. Indeed, allowed economic activity across the country is now largely following partisan lines.
This is correct, and is precisely what we said last week when we observed that "in recent days we have observed that this distinction has increasingly fallen along party lines, with democratic states refusing to reopen or happy to wait (and in the case of California warning it may be shut for another 3 months), while mostly Republican states already pursuing a partial or full reopening."
We concluded by noting that "there will be a very substantial speed limit on the economic recovery, especially as Democratic states do everything in their power to delay reopening for as long as possible."
Kolanovic then focuses on the economic interest of reopening vs continued shutdowns:
  • Economic interest – Clearly there are economic winners and losers of prolonged shutdowns and social distancing. Working remotely, software/cloud, online shopping and socializing, etc. all benefit large technology firms. It should not come as a surprise that large tech stocks are near all-time highs. This could create (perhaps wrong) perceptions of conflicts of interest when the leading technology firms are influencing policies related to reopening (such as reimagining education, health care, vaccines, contact tracking and tracing etc.).
This, too is correct, although we are puzzled by why Kolanovic hedges by saying that it is "perhaps wrong" that perceptions would be created that the tech megacaps are doing all in their power to prolong a "shutdown" status quo that benefits them while crushing small and medium businesses: those perceptions are 100% accurate, just take a look at the tremendous gains achieved by the FAAMGs in the past two months at the expense of all other corporations while millions of small and medium businesses, those who employ the vast majority of Americans, are now forced to subsist on monthly handouts from one of the the government numerous bailout programs.
Finally, and in a surprisingly political commentary for the JPM quant, he highlights the role of (big) government in the decision-making process:
Big vs. Small government – another political fault line exposed by COVID-19 is the role and scope of government in  everyday life, encompassing questions such as: should lockdowns be recommended or mandated, how much of individual freedoms should be limited, etc. Government employees have been less affected by lockdowns than e.g. small private businesses, etc. Moreover, these ideological fault lines exposed by COVID-19 are to an extent replicated and exported to other countries in the west.
Come on Marko, say it: almost as if liberals, socialists and other proponents of continued lockdowns have a vested interest in keeping the economy shut and the population locked down, while feeding stimulus scraps to the population, pursuing the socialist theory of helicopter money (MMT), all in the pursuit of that inevitable flare up of inflation that the global economy has been desperately seeking to spark for the past decade, yet failing. 
After reading this we wonder: is the libertarian, and far more provocative, Marko finally stirring in hopes of waking up from a 3-year hibernation?  At this rate, we may soon see a report by the JPM quant asking if - with certain vested interests across the west benefiting extensively from the outcome of the coronavirus shutdowns - the entire pandemic wasn't, in fact a plandemic?
Of course, Kolanovic couldn't leave it hanging at that very key question, and so in his conclusion he reverted to what he hedged may be the big risk to his optimistic outlook on the economy, namely that "political/geopolitical fallout is emerging as a new risk", and specifically the renewed escalation in US-China tensions as the obvious outlet from the coronacrisis, where both regimes are now accusing each other of starting and facilitating the global economic disaster, resulting in an unprecedented collapse in diplomatic relations:
On the other side of the political spectrum, demagogues and radicals across the world will be tempted to use COVID-19 to blame immigrants, people of different race, or use the pandemic as a pretext to intensify geopolitical tensions. Blaming the pandemic on an ethnic group or country can provide a convenient excuse for various failings at home, or may provide pretext to push a geopolitical or protectionist agenda. This is perhaps even more dangerous than using the pandemic to further domestic political outcomes.
Well, if Marko won't say it, we will, or rather we will let Deutsche Bank say it, because it hardly takes rocket surgery to extrapolate that the current cold war state between the US and China has just one obvious outcome.

Securities Class Action