Exclamation point on Friday: +244K
EV total = nominally over 2.5mm
Context: Warnock campaign aspired to a 2.1mm EV cycle target. Anything >2.3mm = terrific, anything >2.4mm = almost unthinkable.
And then 2.5mm happened.
Gender spread? Women +10 !!!!
Context most favorable to Walker: Old Dixiecrats (white men & women >50yrs) showed up huge. Older white voters, both wealthy suburban & rural, are the largest % participation rate strata by a large measure.
Walker campaign did everything it needed to do to feed the MAGA beast…
That as given, GOP has a numbers problem along the Old Dixie I-95 corridor in VA, NC & in GA.
The pluses: older white voters are a group that has ardently showed up at rates >80% of RVs & is now breaking ~85% GOP straight ticket. It’s also a cluster growing on a nominal basis.
But, the Old Dixie + MAGA cluster is a declining market. On a percentage basis, the attribution of younger, non-white RVs is rising. Their % participation rates are anemic versus older white voters, however they are growing faster on BOTH notional & a participation rate basis.
Election eye candy: Older whites rock out huge RV participation rates & breaks huge GOP (85/15 breaks in rural Congressional districts, Arkansas statewide goes 70/30, etc.)
But +6 women RVs add w/ +9 or +10 EV gender gap, +8 youth RVs add w/ +12 EV participation rate? That’s 🧨
At bottom you can’t raise the roof.
There isn’t much excess capacity in the MAGA/Dixiecrats block.
There’s a lot of excess capacity in the market for younger/non-white & politically centrist women.
Excess capacity will partially fill out in 2022 & capturing that matters most.
Last point:
If just 1 race matters most, it’s #VA02 Luria v Kiggans.
A wildly diverse district: lots of active & ex-military, large non-white block in Norfolk proper, age population demographic trending younger.
And it’s 2 women on the ballot: a moderate D vs. an ultra MAGA.
There’s purportedly 3 tossups in VA (#VA02#VA07#VA10) but in reality it’s just #VA02.
#VA02 & #VA10 are NoVa districts & GOP basically ran brain dead MAGA campaigns replete with Brother Glenn’s Traveling Salvation Show playing all the old race bait hits.
Know what’s hard to do? Suck at being a digital meth dealer inside the Murdoch cartel.
And yet, Senator Ole Ball Coach Who Lost The Iron Bowl 36-0 @TTuberville pulled it off.
His own the libs *not gonna defund the police* bill passed 99-0.
FL exercised savvy tactics. They’re technically not spending federal $. What happened is DeSantis stonewalled disbursements of COVID relief federal $ Congress appropriated & FL received. Then FL put those $ in the state’s general fund, now DeSantis is spending earned interest.
One of the smart apolitical moves this Congress & the Biden admin made last year was to disburse the federal child tax credits $ directly to the qualified receivers. Doing it that way removed a risk that mercurial actors like DeSantis couldn’t withhold or steer those $ elsewhere.
Madoff was not a pure Ponzi scheme. It was a 15 year ledger of imaginary trades resulting in nominal principal side losses. >80% of LP $ recovered.
3AC is a pure Ponzi scheme. All of the equity capital is gone by way of principal losses. 0% will be recovered.
/1
Why/how were most of Madoff investors’ losses recovered?
1. Madoff didn’t do real trades & lose. 2. Remuneration Madoff took were commissions on imaginary trades. No mgmt fee, no 20% carry. So on total capital, his rake was modest as a % of capital (albiet still 10s of millions)
When the shit truly hits the fan & it gets settled in a US bankruptcy court there’s only 1 place to focus: in the middle. Who has custody of the remaining liquidity? Clearing broker dealers (could be material) & demand deposit accounts at banks or fund admin firms (usually small)
US can’t unilaterally take Russia off the SWIFT system. Sadly, not all EUR allies on board yet. SWIFT is for non $US transactions which, if into $US, involve US banks as *correspondent banks*
That last part is gone & (at least) $2tn in assets are frozen now. That’s huge.
Its correct behind dispute that what Biden did just now goes well beyond SWIFT. Basically no $US balances or assets can move now. That is an umbrella over all oligarchs’ balances, mortgages/commercial loans & securities & other securitized holdings.
Russia, Inc. is now insolvent
I’ve always been a fan of the term that applies to investment banks that fail (including the first one I worked for):
You don’t go out of business when there are losses, you go out of business when you can’t fund yourself.
Russia, Inc. has no liquidity now. None. Zero. Done.
Last of the Wall St bonus clearing this week or next depending on your tax choices. Thinking about starting your own fund?
Some unsolicited free advice worth a, well, hopefully of some well meaning help.
Some basic rules:
1. On your desk float what you are considering to your boss(es). Successful people in this biz know that talented people want to seek their own shot & respect that. If you find your bosses don’t respond well, you’re in a bad place anyways & that’s worth knowing.
2. The advice you get might disappoint you: you’re not ready yet, your peer network isn’t big enough, allocators are not looking for your niche right now, etc. Be grateful for well meaning advice you don’t like to hear - it is honest & could save you from a mistake.