Good morning. All Gaza hostages freed after two years. Your 2026 tax brackets just shifted. Why chasing status guarantees financial misery. Today's essential reads.

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All 20 living hostages were released from Gaza on Monday, Hamas and Israeli military confirmed. President Trump arrived in Israel as releases occurred. Hostages were transferred through the Red Cross to reunite with families.

This marks two years since Hamas killed 1,200 Israelis and took 251 hostages on October 7, 2023. Israel will release 250 Palestinian prisoners and 1,700 detained Gazans under the Trump-brokered deal. Another 28 deceased hostages will be returned.

Freed hostages include soldiers and Nova festival attendees. Israel's Gaza war killed over 67,000 according to Hamas authorities (disputed by Israel but cited by Western sources). What to know about Trump’s deal (WSJ).

First Brands Group filed for bankruptcy with over $2 billion unaccounted for. CEO Patrick James built the auto-parts manufacturer into a 26,000-employee empire. The Justice Department opened an inquiry, and major banks including UBS face significant exposure.

James borrowed over $10 billion while concealing billions in off-balance-sheet debt through receivable financing. He started buying Ohio factories in the 1990s and accumulated 25 automotive brands. The company generated $5 billion in annual revenue.

Directors investigating suspect First Brands double-pledged receivables to multiple lenders. When asked about $1.9 billion in payments, bankruptcy counsel replied: "We don't know" and "$0." James agreed to step aside.

Bank denies earning undisclosed fees from First Brands.

The IRS announced 2026 tax brackets Thursday with inflation adjustments. Lower brackets increase 4% while higher brackets rise 2.3%. The top 37% rate applies to income above $768,700 for married couples and $640,600 for singles.

Standard deduction rises to $16,100 for individuals and $32,200 for married couples. The estate-tax exclusion jumps to $15 million per person. Married couples can earn $100,800 in taxable income and remain in the 12% bracket.

Capital gains thresholds increased, with 0% rate applying to singles earning up to $49,450. Adjustments apply to 2027 tax returns. The overall 2.7% adjustment trails current inflation and wage growth rates. See tax brackets here.

Pursuing status destroys happiness faster than any market crash, according to Morgan Housel's new financial psychology research.

The Guaranteed Misery Playbook:

Charlie Munger's advice: "Succeed by first knowing what to avoid."

The pattern: People who spend so much income they become reliant on bosses and bankers, risking what they need to gain what they don't, create a contract with themselves to be unhappy. Money as identity breeds misery; money as tool creates freedom.

Read the article. Get the book.

Canadian scientists discovered toenail clippings reveal lifetime radon exposure, the second-leading lung cancer cause after smoking. Radioactive lead from inhaled radon stores in slow-shedding tissues like nails, creating a decades-long exposure archive. Researchers need 10,000 Canadian toenail donations to validate this breakthrough detection method.

Read this article.

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▲ Ray Dalio warns U.S. entering "civil war" amid $38 trillion debt and irreconcilable differences

▲ Paramount Warner circles $75B bid for larger rival despite CEO rebuff, may approach shareholders directly

▲ Powerball winner buys 15 fire-scorched Altadena lots for $10M to rebuild hometown after Eaton blaze

▲ California wine crisis forces vineyard removal as 30% of grapes unsold, Canadian exports plunge 96%

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