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GWU Eliminates U.S. History As A Requirement For History Majors

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By Tyler Durden

Millennial

Upon his death in 1799, George Washington’s will set aside 50 shares of the Potowmack Company in his estate to fund the creation of a national university in the nation’s capital. Just over 20 years later, an Act of Congress created the Columbian College in the District of Columbia which subsequently changed its name to George Washington University in 1904 in honor of Washington. Per WikiPedia:

George Washington, the first president of the United States, had indicated to Congress through various letters, as well as his last will and testament, that he wanted to establish a university within the nation’s capital. Washington left fifty shares of the Potowmack Company in his estate for a national university in the District of Columbia. The university was chartered by an Act of Congress on February 9, 1821, as the Columbian College in the District of Columbia. In 1904, it changed its name to the George Washington University in honor of Washington.

Now, some 200 years later, GWU, like many of the nation’s universities, has been overrun with liberal, elitist professors who have decided to shun America’s first president, and the inspiration behind the founding their university, by removing U.S. History as a required course for history majors. Of course, why would U.S. history be important for history majors…this country has been a fairly irrelevant player in shaping world history for the past 200 years.

Syndicated radio host Larry Elders recently blasted the decision on Fox News as just another effort to indoctrinate students with the notion that “America is nothing more than a series of incidents that oppress people,
whether it’s Native Americans or women or blacks or Hispanics or Asian
people.”

“According to a lot of professors, the founding fathers are a bunch of old rich white guys who owned slaves,” syndicated radio host Larry Elder said Monday on “Fox & Friends.” “As a result, they’re no longer relevant.”

“I call this the access of indoctrination. Schools have long since passed the line from education to indoctrination, and this is one more step toward that.”

“Kids are learning that America is nothing more than a series of incidents that oppress people, whether it’s Native Americans or women or blacks or Hispanics or Asian people,” he said. “That’s what they’re learning.”

Meanwhile, the chair of GWU’s history department told the school’s newspaper that the move was nothing more than an effort to cater to the university’s snowflakes who may be saddened by the burden of being forced to take a U.S. history course.

Katrin Schultheiss, the chair of the history department, said faculty made the changes to the requirements largely due to enrollment pressures. She said by becoming more flexible and more responsive to students’ interests, the department hopes to recruit students who might not have decided to major in history otherwise.

“I think the main gain for students is that they have a great deal more flexibility than they had before, and they can adapt it to whatever their plans are for …read more

Source: GWU Eliminates U.S. History As A Requirement For History Majors

    

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This Is The Russian "Retreat" In Maryland Which The US Government Just Confiscated

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By Tyler Durden

As reported earlier today, amid the sweeping sanctions unveiled by Obama in response to Russian “hacking” of the elections, President Obama ordered the shut down, or rather confiscation, of a Russian-owned compound on Maryland’s Eastern Shore. Obama gave Russia 72 hours to leave the 45-acre property, which the Soviet government bought in 1972.

Live video shot from NBC Washington on Thursday afternoon showed multiple unmarked cars on the perimeter of the property. Officials appeared to set up an antenna and lights at each entrance. Intelligence officials tell NBC News the property was used for work to monitor the National Security Agency (NSA) headquarters in Fort Meade, Maryland, and another NSA building on Kent Island.

In what amounted to the strongest retaliation against Russia by the U.S. in decades, the administration also sanctioned two Russian intelligence services as well three companies officials said aided them, while expelling 35 diplomats. The administration also denied access to a recreational compound in Queen Anne’s County that officials said had been used for “intelligence collection activities.”

Why the focus on the Maryland compound? Here is a brief history of the property in question, courtesy of Baltimore Sun.

The 45-acre site on the Eastern Shore waterfront near Centreville was purchased by the Soviet Union in 1972, a State Department official said. Its ownership was not a secret — it has been widely covered by news organizations for decades — and Russian officials have previously said the site has been used as a retreat for diplomats and their families.

Property records show that the Russian government owns two parcels of land on Town Point Lane, about five miles west of Centreville, near where the Chester River meets the Corsica River. One parcel of 45.52 acres is valued at about $8 million for tax purposes, while the other is just shy of an acre and is valued at $537,200.

Both were transferred from the Soviet government to the Russian Federation in 1995, according to property records.

The U.S. Department of State also owns a 4-acre property on Town Point Lane. It has a 6,845-square-foot office building built in 1960, according to property records.

A spokesman at the Russian Embassy in Washington did not immediately respond to a request for comment about the Maryland property. In Moscow, a spokesman for Russian President Vladimir Putin told the Associated Press that the Kremlin regrets the new U.S. sanctions and will consider retaliatory measures.

* * *

Below, is a 1992 report from AP on the Russian Federation’s takeover of the Maryland Vacation retreat which 24 year later was repossessed by the US:

Russian Federation Takes Over Maryland Vacation Retreat

While turmoil and bloodshed surrounded the breakup of the Soviet Union, a vacation retreat in Maryland became the property of the the Russian Federation.

”It was bought by the former Soviet Union,” said Ivan Rumyantsev, a spokesman for the Russian Embassy in Washington.

There are no plans to sell the 45-acre estate, valued at $3 million, said Rumyantsev. It occupies prime property on the banks of …read more

Source: This Is The Russian "Retreat" In Maryland Which The US Government Just Confiscated

    

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Obama’s Vacation Costs Expected To Top $90 Million Over 8 Years

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By Tyler Durden

Obama Vacation

As the first family enjoys their 29th, and last, vacation on the taxpayer dime, we thought it would be appropriate to highlight just how much money the Obama’s have spent on expensive golf resorts, exclusive beach villas and African safaris over the past 8 years. Per a study conducted by Judicial Watch, taxpayers will have spent nearly $90 million on vacations for the first family after their current, annual trip to Hawaii wraps up on January 2nd.

Of course, with each trip to Obama’s home state costing $3 – $4 million a pop, it’s not difficult to see how the costs add up quickly. As McClatchy points out, the cost of Air Force One, fighter jet escorts, helicopters, cargo planes, secret service advance teams, etc. can get costly.

The cost of Air Force One and other government planes as well as helicopters, cargo planes, armored cars, Secret Service protection and advance, communications and medical staff has led Judicial Watch to push for less personal travel.

“The Secret Service and the Air Force are being abused by unnecessary travel,” Judicial Watch president Tom Fitton said. “Unnecessary presidential travel for fundraising and luxury vacations on the taxpayers’ dime would be a good target for reform for the incoming Trump administration.”

But we don’t fault him, all that time spent fundraising and signing executive orders is really exhausting.

To put things into perspective, the Obama’s took a total of 29 vacations over their eight years in the White House spanning 228 days. At an aggregate cost of $90 million, that equates to roughly $400,000 per day or $3.1 million per trip. As a side note, the aggregate vacation time implies that Obama spent nearly 63% of one of his eight years in office, on vacation.

Of course, none of the vacation expenditures above capture the money spent on Obama’s fundraising trips to fill the coffers of the DNC and/or to campaign for Hillary Clinton.

Judicial Watch has been trying to calculate the price tag of Obama personal trips for years through public records requests. It recently received records on Obama’s trips to New York City, Chicago, Los Angeles and Palm City, Florida, in 2014 and 2015 in which he raised money, campaigned and golfed. The group says the cost was $286,000 solely for Secret Service travel and accommodations.

Some trips included the entire family, while others included one other member. Most trips of the first lady and daughters are not publicized and remain unknown. But Judicial Watch has received some records about some of those trips, including the family’s trip to New York and first lady Michelle Obama’s ski trip to Aspen, Colorado, as well as several of Barack Obama’s golf outings.

Obama Hillary

And while Obama’s proponents often site George W. Bush’s vacation days in defense of the current first family, they tend to omit the fact that the majority of Bush’s vacations were to his home in Texas or his family’s …read more

Source: Obama’s Vacation Costs Expected To Top $90 Million Over 8 Years

    

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Bonds & Bullion Bounce But Banks Bruised As Dollar Dumps

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By Tyler Durden

Interesting day…

Bonds & Bullion now outpacing stocks post-Fed… (and bank stocks are down 1.6% post-fed)

Once again the opening ramp but it was lackluster as hopes for Dow 20,000 are dashed for now as pension rebalancing (and front-running tax-selling) accelerates…WTF was that idiotic panic buying atthe close in Small Caps!??

On the week, Trannies are worst…

VIX briefly tagged 13.5 today with The Dow now 200 points from Dow 20k…

Utilities are now the only sector green post-Xmas with financials underperforming… Financials biggest 2-day drop in 3 months

5Y yields dropped below 2.00% for the first time in 10 days, 10Y below 2.50%, and 3Y below 1.50% following the super strong 7Y auction…NOTE the 10Y yield briefly dipped lower post-Fed intraday but 30Y is -5bps…

This is the best 2 day drop in 5Y yields (-10bps) since June 27th.

As a reminder, despite the non-stop spewing on mainstream media, the yield curve is notably flatter post-Trump… not steeper!

The USD Index tumbled most since november 1st…

Led by JPY strength (on bank derisking following Toshiba contagion)

USD weakness sent PMs and copper higher but crude fell after inventory data…

WTI broke its 8-day win streak…

Gold is now up 5 days in a row…longest streak since before election

But we note that of all the precious metals, only Palladium is green post-Trump…

For the first time in the contracts' history, the Jan/Feb Gasoline spread has moved into backwardation (Bloomberg reports that recent regional refinery outages at PES Philadelphia Energy Solutions Inc. and Irving Oil Lt.’s Saint John unit have limited supplies to New York Harbor, pushing front month contracts higher than the forward period).

…read more

Source: Bonds & Bullion Bounce But Banks Bruised As Dollar Dumps

    

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Russia Responds To Obama Sanctions

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By Tyler Durden

Having already made it clear that any sanctions would be met with retaliation, IFX reports that Russian Commissioner Foreign Ministry on human rights, democracy and the rule of law, Konstantin Dolgov exclaimed that “any anti-Russian sanctions are futile and counter-productive.”

Via IFX (Google Translate)

Keyed US anti-Russian sanctions in connection with the alleged cyber attacks from Moscow are counterproductive and are intended to cause damage including the future of the process of restoring bilateral relations, said Commissioner Foreign Ministry on human rights, democracy and the rule of law, Konstantin Dolgov, via “Interfax” .

“Any anti-Russian sanctions are futile and counter-productive,” he said.

“I can only reconfirm that this hysteria demonstrates the complete lack of orientation by the outgoing US administration,” said the Russian diplomat

“Such unilateral steps are pursuing the aim of damage relations and complicate their recovery in the future”, – he said.

As a reminder, Russia had pre-emptively warned of retaliation…

The outgoing US administration still hopes to finally have time to do something else for bad relations with Russia, and so she brought down. With clearly inspired leaks in the American media have once again trying to scare the extension of anti-Russian sanctions measures “diplomatic” and even sabotage against our computer systems. And this last “Christmas greetings” from the Obama team, already preparing for eviction from the White House cynically want to present as a reaction to certain “cyber attack from Moscow.”

Frankly, we are tired of the lies about the “Russian hackers”, which continues to flow into the United States from the very top. The Obama administration has launched six months ago, this misinformation in an attempt to play up the desired for himself a candidate in the November presidential election, and not achieving the desired, looking for an excuse for their own failure, and with a vengeance is played on Russian-American relations.

But the truth of the provocation orchestrated by the White House, sooner or later will still come out. Yes, it's already happening. How else to December 8 reported the US media, the State of Georgia State Secretary Brian Kemp he said that the authorities in the region followed where came hacker attack on its electronic system of vote counting shortly after the election. Footprints led to the computer at the US Department of Homeland Security. This information quickly tried to cover up the stream of new anti-Russian charges that do not contain a single proof.

It only remains to add that if Washington really takes new hostile steps, it will get the answer. This also applies to any action against Russian diplomatic missions in the United States, which immediately ricocheted on US diplomats in Russia. Perhaps the Obama administration is quite indifferent to what will happen to the bilateral relations, but the story is unlikely to forgive her behavior on the principle of “after us the deluge.”

In other words, Europe is about to get screwed again.

Sanctions certainly did not hurt before…

US Announces Sanctions Against Russia, Expels 35 Diplomats In Retaliation For Election "Hacking"

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By Tyler Durden

As promised (or threatened), the Obama administration has just unveiled – via US Treasury – new sanctions against Russia over election hacking allegations (that as yet have not been supported by any actual evidence). Despite president-elect Trump’s comments that “we ought to get on with our lives,” the sanctions apply to five entities and six individuals. In addition, US officials are expelling 35 Russian diplomats.

Issuance of Amended Executive Order 13694; Cyber-Related Sanctions Designations

12/29/2016
?

Today, the President issued an Executive Order Taking Additional Steps To Address The National Emergency With Respect To Significant Malicious Cyber-Enabled Activities. This amends Executive Order 13694, “Blocking the Property of Certain Persons Engaging in Significant Malicious Cyber-Enabled Activities.” E.O. 13694 authorized the imposition of sanctions on individuals and entities determined to be responsible for or complicit in malicious cyber-enabled activities that result in enumerated harms that are reasonably likely to result in, or have materially contributed to, a significant threat to the national security, foreign policy, or economic health or financial stability of the United States. The authority has been amended to also allow for the imposition of sanctions on individuals and entities determined to be responsible for tampering, altering, or causing the misappropriation of information with the purpose or effect of interfering with or undermining election processes or institutions. Five entities and four individuals are identified in the Annex of the amended Executive Order and will be added to OFAC’s list of Specially Designated Nationals and Blocked Persons (SDN List). OFAC today is designating an additional two individuals who also will be added to the SDN List.

Specially Designated Nationals List Update

The following individual has been added to OFAC’s SDN List:
  • ALEXSEYEV, Vladimir Stepanovich; DOB 24 Apr 1961; Passport 100115154 (Russia); First Deputy Chief of GRU (individual) [CYBER2] (Linked To: MAIN INTELLIGENCE DIRECTORATE).
  • BELAN, Aleksey Alekseyevich (a.k.a. Abyr Valgov; a.k.a. BELAN, Aleksei; a.k.a. BELAN, Aleksey Alexseyevich; a.k.a. BELAN, Alexsei; a.k.a. BELAN, Alexsey; a.k.a. “Abyrvaig”; a.k.a. “Abyrvalg”; a.k.a. “Anthony Anthony”; a.k.a. “Fedyunya”; a.k.a. “M4G”; a.k.a. “Mag”; a.k.a. “Mage”; a.k.a. “Magg”; a.k.a. “Moy.Yawik”; a.k.a. “Mrmagister”), 21 Karyakina St., Apartment 205, Krasnodar, Russia; DOB 27 Jun 1987; POB Riga, Latvia; nationality Latvia; Passport RU0313455106 (Russia); alt. Passport 0307609477 (Russia) (individual) [CYBER2].
  • BOGACHEV, Evgeniy Mikhaylovich (a.k.a. BOGACHEV, Evgeniy Mikhailovich; a.k.a. “Lastik”; a.k.a. “lucky12345”; a.k.a. “Monstr”; a.k.a. “Pollingsoon”; a.k.a. “Slavik”), Lermontova Str., 120-101, Anapa, Russia; DOB 28 Oct 1983 (individual) [CYBER2].
  • GIZUNOV, Sergey (a.k.a. GIZUNOV, Sergey Aleksandrovich); DOB 18 Oct 1956; Passport 4501712967 (Russia); Deputy Chief of GRU (individual) [CYBER2] (Linked To: MAIN INTELLIGENCE DIRECTORATE).
  • KOROBOV, Igor (a.k.a. KOROBOV, Igor Valentinovich); DOB 03 Aug 1956; nationality Russia; Passport 100119726 (Russia); alt. Passport 100115101 (Russia); Chief of GRU (individual) [CYBER2] (Linked To: MAIN INTELLIGENCE DIRECTORATE).
  • KOSTYUKOV, Igor (a.k.a. KOSTYUKOV, Igor Olegovich); DOB 21 Feb 1961; Passport 100130896 (Russia); alt. Passport 100132253 (Russia); First Deputy Chief of GRU (individual) [CYBER2] (Linked To: MAIN INTELLIGENCE DIRECTORATE).
The following entities have been added to OFAC’s SDN List:

A Tale of Two Housing Markets: Hot, And Not So Hot

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By Tyler Durden

Submitted by Charles Hugh-Smith via OfTwoMinds blog,

If we had to guess which areas will likely experience the smallest declines in prices and recover the soonest, which markets would you bet on?

Though housing statistics such as average sales price are typically lumped into one national number, this is extremely misleading: there are two completely different housing markets in the U.S. One is hot, one is not so hot.

Just as importantly, one may stay relatively hot while the other may stagnate or decline.

All real estate is local, of course; there are thousands of housing markets if we consider neighborhoods, hundreds if we look at counties, cities and towns and dozens if we look at multi-city metro regions.

But consider what happens to average sales prices when million-dollar home sales are lumped in with $100,000 home sales. The average price comes in around $500,000– a gross distortion of both markets.

Here's a real-world example of what has happened in hot markets over the past 20 years. The house in question is located in a bedroom community suburb in the San Francisco Bay Area metro area. The home was built in 1916 and has 914 square feet, no garage and a small lot.

It sold in 1996 for $135,000. This was a bit under neighborhood prices due to the lack of garage and small size, but nearby larger homes sold in the $145,000 to $160,000 range.

The house was sold in 2004 for $542,000, and again in 2008 for $575,000. It is currently valued at $720,000. The neighborhood average is $900,000.

According to the Bureau of Labor Statistics inflation calculator, inflation since 1997 has added 50% to the cost of living: $1 in 1997 equals $1.50 in 2016.

Adjusted for inflation of 2.5% annually, calculated cumulatively, the home would be worth a shade over $220,000 today. Long-term studies have found that housing tends to rise about 1% above inflation annually, so if we add 1% annual appreciation (3.5% calculated cumulatively over the 20 years), the home would have appreciated about $47,000 above and beyond inflation, bringing its value to $268,000–almost double the purchase price.

But being in a hot market, this little house appreciated a gargantuan $450,000 above and beyond inflation and long-term appreciation of 1% annually.

Those who bought in hot markets are $500,000 richer than those who bought in not-so-hot markets.

Another house I know in a hot metro market sold for $438,000 in 1997 and is currently valued at $1.4 million. The owners picked up substantially more than $500,000 in bonus appreciation.

Or how about a home that sold for $607,000 in 2010 and is now valued at $960,000? (Note that I have picked neighborhoods and metro areas I have known for decades, so I can verify the current valuations are indeed in the real-world ballpark.)

Inflation alone added about $60,000 to the value since 2010; the $300,000 appreciation above and beyond inflation is pure gravy for the owners.

It's easy to dismiss these soaring valuations as credit-driven bubbles that will eventually pop, but that narrative misses the enormous differences in regional …read more

Source: A Tale of Two Housing Markets: Hot, And Not So Hot

    

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Dan Loeb Will Pay More Than $2 Million To His New 32-Year-Old Head Quant

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By Tyler Durden

It was some time back in 2009 when we first predicted that in a world in which central banks have taken away the “fun” from fundamental analysis (having effectively nationalized capital “markets”), that in the not too distant future quants – or “traders” whose only value added is to react rapidly after the news and/or be the fastest to chase any given momentum wave – would be paid far better than plain-vanilla fundamental analysts – those who use conventional financial analysis to make price forecasts, and whose work has traditionally highly prized by hedge funds yet are on their way to becoming obsolete in the New Normal.

For the likes of Dan Loeb, and his Third Point, once a staunchly fundamental-analysis driven hedge fund, that time has arrived.

According to Bloomberg, Dan Loeb will pay Matt Ober, a quant, pardon “data scientist” who left WorldQuant for Third Point more than $2 million according to a breach of contract claim filed by his former employer.

Matt Ober is smiling

Ober, 32, who starts next month as Third Point’s “chief data scientist”, i.e., head quant, said in a filing that he will be paid a base salary of $200,000, the same as WorldQuant gave him, plus bonuses, and disputed that $2 million in compensation is guaranteed.

As Bloomberg adds, Loeb is joining other hedge fund names in developing big data and quantitative investing to boost returns, i.e., phasing out fundamental analysis in favor of simple quant-driven trading.

Scientists and coders who mine, clean and model information are in high demand after being relegated for years to back office status. Experienced data scientists can earn $500,000 to $700,000, and as much as three times that for those with extensive backgrounds, according to recruiter Alexey Loganchuk.

“It is too early to call data scientists the new masters of the universe but they are on their way there,” said Loganchuk, founder of Upgrade Capital, a New York recruiting firm that focuses on alternative data. “Because of how new the space is, the transition from entry level to management can happen quickly. There are several people out there making seven figures in their mid-twenties.”

As Bloomberg’s Saijel Kishan notes, Ober joined Igor Tulchinsky’s WorldQuant in 2011 as a data product analyst and was later promoted to co-head of data strategies at the Old Greenwich, Connecticut-based hedge fund, according to the filing. He sought out data from vendors for use in trading.

Ober will help Third Point more quickly get up to speed with bid data, helping identify which datasets could be used for specific trades, according to the filing.

Meanwhile, as quant compensation soars, hedge fund managers and senior analysts are facing smaller paychecks. Those with seven years of experience expect a 14% decrease in total compensation to about $685,000 for 2016, according to a September survey by Odyssey Search Partners.

Winton Capital Management in London said in April it’s starting a data science center in San Francisco and plans to hire some 40 scientists. Citadel in …read more

Source: Dan Loeb Will Pay More Than $2 Million To His New 32-Year-Old Head Quant

    

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Amazon patent hints at floating warehouses

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A patent shows Amazon may launch drones from blimps to make extra speedy deliveries. …read more

Source: Amazon patent hints at floating warehouses

    

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Three Mini-Bubbles Are Bursting

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By Tyler Durden

Submitted by John Rubino via DollarCollapse.com,

The world has gotten so used to ultra-low interest rates that even economists and money managers seem to be shocked by what happens when rates start creeping back towards normal levels.

Some of the mini-bubbles that formed in an essentially free-money environment are now starting to leak. Notably:

US Housing
While the action in this sector is nothing like the raging mania of the 2000s, prices in many hot US markets are at all-time highs, while affordability is at or near an all-time low. And now rising mortgage rates are beginning to bite.

Pending Home Sales Reflect “Dispirited” Buyers.

(Mortgage News) – Pending sales, which were widely expected to make a good showing in November, pulled back sharply instead. The National Association of Realtors? (NAR) said its Pending Home Sales Index (PHSI), a forward-looking indicator based on contracts for existing home purchases, declined 2.5 percent to 107.3 in November from 110.0 in October. NAR said “the brisk upswing in mortgage rates and not enough inventory dispirited some would-be buyers.” The decrease brought the PHSI to its lowest level since January of this year and it is now 0.4 percent below the index last November which stood at 107.7.Analysts polled by Econoday had been upbeat about the November outlook. The consensus was for an increase of 0.5 percent with some analysts predicting as much as a 2.0 percent gain.

Lawrence Yun, NAR chief economist said, “The budget of many prospective buyers last month was dealt an abrupt hit by the quick ascension of rates immediately after the election. Already faced with climbing home prices and minimal listings in the affordable price range, fewer home shoppers in most of the country were successfully able to sign a contract.”

US Auto Sales
Cars and trucks have been one of the economy’s bright spots for several years — which seems to have gotten everyone just a little too excited. Auto financing practices have lately begun to resemble those of the subprime mortgage bubble: Today’s average loan is for more money, lasts much longer, and is held by a much weaker credit than ever before. Now, with interest rates rising and pretty much every potential buyer already locked into a car mortgage, the bubble optimism is evaporating.

GM Plant Closures Could Signal Trouble for U.S. Auto Industry

(NBC) – General Motors will temporarily idle five U.S. assembly plants next month in a bid to reduce bloated inventories.

The cuts focus on plants building sedans and coupes, such as the Chevrolet Cruze, Cadillac CTS and Chevy Camaro, which have been losing momentum as American motorists by the millions shift from passenger cars to utility vehicles and other light trucks.

But the move could also signal a broader slowdown of the U.S. automotive market after three consecutive years of record sales. The big questions are how fast and how far a slide the industry could be facing.

Forecasts by IHS Automotive and other research firms say sales could slide by 200,000 vehicles or more, …read more

Source: Three Mini-Bubbles Are Bursting

    

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