THE JOHN LOTHIAN NEWS DAILY UPDATE – 5/3/2021

John Lothian

John Lothian

Executive Chairman and CEO

 

The John Lothian Daily Update is a podcast turning the daily JLN hits and takes comments, our original content and the stories and quips in the top box of First Read into a daily podcast.

 

Hits & Takes

JLN Staff

Hemp Farming Looking For Credit; Carbon Credit, That Is
Thom Thompson – John Lothian News

Well, it is now May, and in most of the United States it is high time to get the field crops planted. Among them is hemp, industrial hemp, which despite being an ancient crop and a generally legal one since 2019, still has an uncertain future.

In America today, you can plant it, harvest it, you can distill it down to its individual compounds – except Delta-9 THC, depending on where you are! You can take CBD-rich biomass and extract and distill it until you have the purest of pure CBD isolates. You can make fiber and concrete out of hemp. You can eat the seeds. You can keep the seeds and plant them next year.

In most states, you can take the flower and dry it and smoke it with or without spraying it first with Delta-8 THC. You can grind the seeds and feed the seed meal to your pets and other animals and refine the oil for human consumption. In a few places, though, you cannot plant your hemp because its pollen might interfere with nearby field-grown marijuana varieties.

Nonetheless, while it is clear that America is open for hemp, it is not clear that you can make a living growing the stuff.

To read the rest of this story, go HERE.

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Historian Niall Ferguson has a new book coming out on May 4 titled, “Doom: The Politics of Catastrophe.” It tells the story of when a midcentury pandemic of “Asian Flu” hit the U.S. and how it was dealt with. An early progenitor of the flu’s spread was an outbreak at the Boy Scout National Jamboree held in 1957 in Valley Forge, Pennsylvania. When the scouts returned home they brought the flu with them and spread it throughout the country. This spreading of the flu did not qualify as doing a good turn daily. The Wall Street Journal has an excerpt from Ferguson’s book telling the story. — WSJ

Bloomberg reports that the “EU Looks to Open Its Borders After a Year of Pandemic Isolation.” — Bloomberg

The NFA will hold a virtual Member Regulatory Workshop for commodity pool operator (CPO), commodity trading advisor (CTA), futures commission merchant (FCM), forex dealer member (FDM), introducing broker (IB) and swap dealer (SD) members on May 11-13, 2021. — NFA

Melissa Acker, formerly of Trading Technologies, was honored with the 2021 Built In’s Moxie Award along with a bunch of other talented women. Her husband Steve Acker is a former brokerage client of mine. — Builtin

We had no new donations to our JLN MarketsWiki Education GoFundMe campaign over the weekend. Support our efforts to preserve industry history by giving to our GoFundMe campaign. Have your donations matched by Trading Technologies.

Robby Lothian turned 20 over the weekend, which means the Lothian household has no teenagers for the first time in 13 years.

Have a great day and stay safe and treat people the same way you want to be treated: with respect, equality and justice.~JJL

First Read

Brood X: Trillions of cicadas are about to emerge after 17 years underground
CBS News
Films about invading insects have been scaring movie-goers for decades. But now, a real-life insect invasion of what are called periodical cicadas will put Hollywood to shame by its sheer size and scope. Over the next few weeks along the East Coast and Midwest, the cicadas will emerge from the ground, shed their skins and partake in a month-long mating ritual, making quite a scene — climbing trees and singing mating songs as loud as 100 decibels, the same intensity as a jackhammer.
/jlne.ws/3aXqJbQ

*****Get ready for some loud insect noise this summer.~JJL

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Challenging Skin in the Game
John McPartland, Director of Research, Hidden Road Partners LP
In the old days of the 1970s, few understood what the term Skin in the Game signified. The International Monetary Market (IMM (part of the CME)) introduced the “good to the last drop” rule, which involved borrowing financial mass from its clearing members in times of loss. The IMM Rule Book duly listed the sequential tranches of financial assets that would be brought to bear should the Clearing House suffer financial loss. Moreover, the indeterminate term “excess retained earnings” of the Clearing House would be brought into play, subsequent to initial margin, exchange memberships and the guarantee fund deposits of the defaulter. The general perception then was that the 1970’s version of Skin in the Game was not unlike an insurance deductible. In other words, before any remaining loss went to the clearing membership for satisfaction, a material amount of cash of the CCP would go first. Skin in the Game seemed largely based on the CCP’s ability to pay.
/bit.ly/3e3kpBs

*****John McPartland may have left the Chicago Fed, but he still is a sharing thinker.~JJL

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ICE Sells Coinbase Stake For $1.2bn
Shanny Basar – MarketsMedia
Intercontinental Exchange said it sold its stake in US cryptocurrency exchange Coinbase for more than $1.2bn (EUR1bn) as the operator of global exchanges, clearing houses and provider of mortgage technology, data and listings services reported record revenues and net income for the first quarter of this year.
/bit.ly/3vv2aea

*****Jeff Sprecher’s ICE had an early play in crypto that paid off big.~JJL

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Why So Many Millennials Fall Prey to Imposter Syndrome; When young adults doubt their financial success—and knowledge—it can complicate decision making
Julia Carpenter – WSJ
“I don’t know what I’m doing when it comes to managing my money.”
“I don’t deserve to be earning/saving/spending as much as I am.”
“I just know I’m going to screw this all up eventually anyway.” These are some of the thoughts that run through my head whenever I open my banking app or check my credit score—me, a personal-finance reporter at The Wall Street Journal. My confidence in my job and my confidence in my own finances are two different things. And I’m not alone in feeling insecure about managing my own money.
/jlne.ws/3ukOdQ0

*****Who are you?~JJL

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TikTok Is the Place To Go for Financial Advice If You’re a Young Adult; The short videos are ideal for many people. But is the advice any good?
Cheryl Winokur Munk – WSJ
TikTok is the place to go for new dances, viral taco recipes—and, now, financial advice. The big benefit of TikTok is that it allows users to dole out and obtain information in short, easily digestible video bites, also called TikToks. And that can make unfamiliar, complex topics, such as those related to personal finance and investing, more palatable to a younger audience.
/jlne.ws/33bjAQQ

*****I can think of some better spots to get advice, but none as cool.~JJL

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Friday’s Top Three
The most-clicked story on Friday was actually a tweet by @HideNotSlide of an image, The Chicago Board of Trade building, built in 1930 to house the CBOT’s trading pits, was the city’s tallest building until 1955 & sits at the end of LaSalle St. The second most-clicked story was from Business Insider, The ‘Disaster Girl’ just made close to a half a million by selling the NFT of her meme. And the third was from Bloomberg, Affluent Americans Rush to Retire in New ‘Life-Is-Short’ Mindset.

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