It's not a foregone conclusion that the Biden administration will soon have to grapple with multiple market bubbles bursting, Politico reports, but there are potential culprits all across the board.
One of the more worrisome bubbles, per Politico, comes in the form of special-purpose acquisition companies, also known as SPACs or "blank check companies." They exist with the goal of acquiring private companies, generally intriguing startups, and taking them public without having to go through the normal initial public offering process. Larry Kudlow and Wilbur Ross, both former Trump administration officials, are setting up their own SPACs, as is former NBA superstar Shaquille O'Neal.
Joseph Brusuelas, the chief economist at at the consulting firm RSM US, said the SPAC bubble, along with cyber assets and gold, feels particularly high-risk. "I mean Shaq has a SPAC," he told Politico. "What could go wrong?"
Politico also lists the "huge surges" in cryptocurrencies as something that has market watchers concerned. Bitcoin is probably the most famous example in this category, and it's up 420 percent over the last year, but other cryptocurrencies like Dogecoin, which Politico notes was "created as a joke based on an internet meme," are also skyrocketing. And the real estate market could be vulnerable, too; data from Realtor.com showed median home listings are up 14.5 percent over the last year, marking the 28th straight week of double-digit price gains.
A recent survey of institutional investors carried about by the investment management firm Natixis seems to back up those fears, since 41 percent expect a market correction in real estate prices, and 39 percent are anticipating corrections for cryptocurrencies. Read more at Politico. Tim O'Donnell
In 2015 and 2016, former President Donald Trump's Republican primary rivals and other GOP officials tried to dodge his withering personal insults "while hoping that external events and news media coverage would ultimately lead to his downfall," Maggie Haberman recalls at The New York Times. That strategy obviously failed. But many Republican leaders are once more hoping, mostly in private, that time or some heaven-sent deus ex machina makes Trump fade into retirement, despite his clear intention to retain control over the GOP.
Some Republicans "are privately hopeful that the criminal investigation into Mr. Trump's business by the New York district attorney, Cyrus Vance Jr., will result in charges that hobble him from running again or even being a major figure within the party," Haberman reports, adding that Trump is said to be "agitated about the investigation." Others say they believe he is losing relevance his own, now that he is out of office and kicked off Twitter.
David Kochel, a Republican strategist and Jeb Bush supporter in 2016 campaign, is not among them. "We've seen this movie before — a bunch of GOP leaders all looking at each other, waiting to see who's going to try and down Trump," he said, adding that Trump and Fox News are making sure the Jan. 6 Capitol insurrection is "being stuffed down the memory hole" for conservatives.
"It is Groundhog Day," another GOP Trump critic, Tim Miller, told Haberman. It seemed "like a rational choice in 2015," but "after we all saw how the strategy fails of just hoping and wishing for him to go away, nobody learned from it."
In the meantime, most GOP leaders and 2024 hopefuls are going out of their way to stay on Trump's good side. One reason is Trump's ability to steer huge sums of money to friendly Republicans, Politico notes. But Trump also holds sway over a sizable faction of the GOP electorate — though just how sizable is a matter of dispute — and he seems to relish savaging Republican critics.
Trump "intimidates people because he will attack viciously and relentlessly, much more than any other politician, yet somehow people crave his approval," Mike DuHaime, a Chris Christie adviser in 2016, told the Times. "Trump did self-destruct eventually, after four years in office," he said. "But he can still make or break others, and that makes him powerful and relevant." Peter Weber
The Senate on Wednesday voted 92-6 to open debate on the COVID-19 Hate Crimes Act, which addresses the rising number of hate crimes being perpetrated against Asian Americans.
The bill, introduced by Sen. Mazie Hirono (D-Hawaii), would instruct the Justice Department to expedite its review of hate crimes and coordinate with local law enforcement agencies to raise awareness of how to report a hate crime.
GOP Sens. Ted Cruz (Texas), Tom Cotton (Ark.), Josh Hawley (Mo.), Rand Paul (Ky.), Tommy Tuberville (Ala.), and Roger Marshall (Kansas) voted against opening debate. Cotton and Sen. Chuck Grassley (R-Iowa) released a statement before the vote saying they "believe the Senate should have the benefit of hearing from the Department of Justice before blindly acting on this issue."
Democrats have indicated they are open to Republican amendments, and Hirono on Tuesday addressed the concern that by having "COVID" in the name, the bill is too narrow in focus. "The whole point is that there is a connection between COVID and the rise of these hate crimes," she said. "We wanted to make sure that everyone understood there's a cause and effect here, but I'm open to eliminating that so that we can get to the real issue, which is the rise in hate crimes against [Asian Americans and Pacific Islanders] and what we can do about it." Catherine Garcia
The United States is prepared to sanction dozens of Russian individuals and entities and expel as many as 10 Russian officials and diplomats in response to election interference and hacks, people familiar with the matter told Bloomberg News.
The sanctions, which could be announced as soon as Thursday, would target about 12 individuals, including government and intelligence officials, and 20 entities, with several linked to the Internet Research Agency, a troll farm that meddled in the 2016 election, or the SolarWinds hack, Bloomberg News reports.
Shortly after President Biden was inaugurated, he ordered a review of reports that Russia placed bounties on U.S. soldiers in Afghanistan; Russian interference in U.S. elections; the poisoning of Russian opposition leader Alexey Navalny; and the SolarWinds hack, which is believed to have been orchestrated by Russia.
On Tuesday, Biden and Russian President Vladimir Putin spoke on the phone, and the White House said Biden "made clear that the United States will act firmly in defense of its national interests in response to Russia's actions, such as cyber intrusions and election interference." Russia has denied meddling in U.S. elections and the bounty report. Read more at Bloomberg News. Catherine Garcia
On Thursday, four Democratic lawmakers will stand on the steps of the Supreme Court to introduce legislation expanding the country's highest court from nine to 13 justices.
The bill is being proposed by Sen. Edward Markey (D-Mass.), Rep. Jerrold Nadler (D-N.Y.), Rep. Hank Johnson (D-Ga.), and Rep. Mondaire Jones (D-N.Y.), The Washington Post reports. The Constitution does not state how many judges should sit on the Supreme Court, and it could be expanded by an act of Congress. There have been nine justices since 1869; now, there are six nominated by a Republican president and three by Democrats.
Those in favor of expanding the Supreme Court say having more justices would help prevent major decisions coming down to one "swing" justice, while also serving as a stronger check on the presidency. Last week, President Biden signed an executive order creating an independent commission to examine the structure of the Supreme Court. Catherine Garcia
Rep. Steve Scalise (R-La.) on Wednesday said if "something really formal" happens with the Justice Department's investigation of Rep. Matt Gaetz (R-Fla.), Republican leadership will "of course react and take action."
The Justice Department is investigating whether Gaetz, 38, had sex with a 17-year-old girl and paid for her to travel out of state with him, allegations that Gaetz denies. Scalise, the No. 2 House Republican leader, told reporters that he hasn't talked to Gaetz about the investigation, but will likely meet with him later this week.
"It's serious things alleged," Scalise told reporters. "Obviously we want to get the facts." Gaetz is a member of the House Armed Services and Judiciary committees, and Scalise said GOP lawmakers who find themselves facing serious charges are removed from their committees.
Last week, Rep. Adam Kinzinger (R-Ill.) became the first Republican member of Congress to call on Gaetz to resign, and on Sunday, Rep. Liz Cheney (R-Wyo.), the No. 3 House GOP leader, said the allegations against Gaetz are "sickening." Catherine Garcia
A Centers for Disease Control and Prevention advisory panel decided in an emergency meeting on Wednesday that members need more data before voting on how to proceed with Johnson & Johnson's one-dose COVID-19 vaccine.
On Tuesday, the CDC and Federal Drug Administration recommended a pause in using the Johnson & Johnson vaccine after six women who received it developed rare brain blood clots. One of the women died. The panel is seeking more information on the clots, including the risk factors and frequency, and will reconvene in the next seven to 10 days.
Dr. Lynn Batha, an epidemiologist at the Minnesota Department of Health and a member of the CDC advisory panel, said she supported extending the pause because "by having more robust information, I think we can be more confident about how we talk about the safety of this vaccine."
Johnson & Johnson's vaccine is one of three authorized for use in the U.S., and because only one shot is needed and doses can be stored at normal refrigerator temperatures, it is considered the best option for people who are vulnerable, like those who are incarcerated or homeless. Catherine Garcia
Former Minneapolis Police Officer Derek Chauvin's attorneys continued their defense on Wednesday, arguing Chauvin's knee on the neck of George Floyd was not what ultimately killed him, reports The Washington Post.
Floyd, a 46-year-old Black man, died in May 2020 after Chauvin placed him under arrest, restraining him with his knee for more than nine minutes. Experts who testified for the prosecution previously said it was the pressure of Chauvin's knee that killed Floyd via a lack of oxygen, but David Fowler, a former Maryland chief medical examiner, testified Wednesday that none of Floyd's injuries were in areas that Chauvin's knee pressed on.
"The amount of force that was applied to Mr. Floyd was less than enough to bruise him," said Fowler, testifying that "all of Floyd's injuries were in areas that Chauvin's knee did not press on." Fowler concluded that Floyd died of a cardiac arrhythmia due to heart disease, with contributing factors, but criticized the fact that Floyd did not receive immediate medical attention to reverse his cardiac arrest.
Chauvin's lawyers have argued Floyd died as a result of drug use and underlying health issues. Chauvin is facing murder and manslaughter charges.
Read more at The Washington Post.