Implode-Explode Heavy Industries news feed http://implode-explode.com/ Tracking the many faces of the global credit implosion. You can pull sub-categories from this feed by adding a ?tags=a,b,c,... style parameter. The category tags (which can be given as numbers or handles) are : id handle category description 1 housing_finance "Housing Finance News/ML-Implode Main" 2 hedge_funds "Hedge Funds News" 3 fed "The Fed, Central Banking and fin. reg." 4 foreclosures "Foreclosures (News)" 5 chavez "Hugo Chavez Watch (News)" 6 builders "Home Builders News" 7 banks "Banks News" 8 credit_bubble "Credit Bubble and Crash (News)" 9 peak_oil "Peak Oil and Energy Security (News)" 10 BRIC_v_us "BRIC countries vs. U.S. (News)" 11 gov_bk "Government Bankruptcy (News)" 12 mediawatch "Mainstream Media Watch" 13 Our commentary "IEHI Original Commentary" 14 rebalancing "Economic Rebalancing (News)" 15 pm "Precious Metals News" 16 inflation "Inflation and Deflation News" 17 nr "Natural Resources News" 18 consumer "Consumer Capitulation/Issues and Populism" 20 pe "Private Equity Implosion (News)" 21 recession "Recession/depression News" 22 ML_implosion "Mortgage Lender IMPLOSIONS" 23 HF_implosion "Hedge Fund IMPLOSIONS" 24 HB_implosion "Home Builder IMPLOSIONS" 25 Bank_implosion "Bank IMPLOSIONS" 26 ML_update "Mortgage Lender UPDATES" 27 HF_update "Hedge Fund UPDATES" 28 HB_update "Home Builder UPDATES" 29 Bank_update "Bank UPDATES" 30 RFWS "Radio Free Wall Street" 31 FHA "FHA and Mtg Regulation (News)" 32 martial_law "Martial Law/Big Brother/NWO Watch" 33 pension "Retirement Implosion (News)" 34 mtgindustry "Mortgage Industry (News)" 35 econlists "Econ insider lists" 36 iehi_fb "IEHI facebook feed" 37 robin_fb "robin facebook" 38 IEHItwitter "IEHI Twitter Feed" 39 ak_linkedin "akrowne LinkedIn (mtg industry)" en-us iehi-feed-59664 Fri, 29 Apr 2016 19:19:44 GMT U.S. Consumer Sentiment Fell as Caution Continued http://implode-explode.com/viewnews/2016-04-29_USConsumerSentimentFellasCautionContinued.html A closely watched gauge of U.S. consumer sentiment declined in April to its lowest level in seven months, the latest evidence of growing worry about the economy's momentum. The University of Michigan final consumer-sentiment index for April, released on Friday, was 89.0, down from March's final reading of 91.0 and the lowest level since September...

"The size of the decline, while troublesome, is still far short of indicating an impending recession," Mr. Curtin cautioned.

They'll keep saying that all the way down...

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iehi-feed-59663 Fri, 29 Apr 2016 19:15:56 GMT Puerto Rico's Governor Says the Island Will Default on Monday http://implode-explode.com/viewnews/2016-04-29_PuertoRicosGovernorSaystheIslandWillDefaultonMonday.html iehi-feed-59662 Fri, 29 Apr 2016 13:24:58 GMT Puerto Rico Risks Historic Default as Congress Chooses Inaction http://implode-explode.com/viewnews/2016-04-29_PuertoRicoRisksHistoricDefaultasCongressChoosesInaction.html Nearly 10 months after Governor Alejandro Garcia Padilla said the commonwealth was unable to repay all its obligations, Puerto Rico has failed to reach an accord on a broad restructuring deal presented to bondholders. During that time the administration has delayed payments to suppliers, postponed tax refunds, grabbed revenue originally used to repay other bonds and missed payments on smaller agency debt. With its options drying up, no bondholder agreement in sight and Congressional action delayed, defaulting may be the next step for Puerto Rico.

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The island's Government Development Bank, which lent to the commonwealth and its municipalities, is in talks with creditors to avoid defaulting on the $422 million that's due May 1. The commonwealth may use a new debt moratorium law if it cannot defer that GDB payment, Jesus Manuel Ortiz, a spokesman for Garcia Padilla, said Wednesday during a press conference in San Juan.

While a GDB default would be the largest yet by Puerto Rico, a missed payment on its general obligations would signal to investors that the commonwealth is finally executing on its warnings that it cannot pay its debts. Puerto Rico and its agencies owe $2 billion on July 1, including a $805 million payment on its general-obligation bonds, which are guaranteed under the island's constitution to be paid before anything else.

A general-obligation default would be the first by a state-level borrower since Arkansas missed payments on its bonds in 1933. That would likely trigger a restructuring of the commonwealth's $13 billion of general obligations, which would be the largest-ever in the tax-exempt bond market.

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iehi-feed-59661 Fri, 29 Apr 2016 12:24:01 GMT Australia Is Blocking China From Buying 1% of Its Landmass in Single Deal http://implode-explode.com/viewnews/2016-04-29_AustraliaIsBlockingChinaFromBuying1ofItsLandmassinSingleDeal.html iehi-feed-59660 Fri, 29 Apr 2016 03:30:16 GMT Volume Collapses As China Commodity Exchanges Ordered To "Curb Speculation" http://implode-explode.com/viewnews/2016-04-28_VolumeCollapsesAsChinaCommodityExchangesOrderedToCurbSpeculation.html iehi-feed-59659 Fri, 29 Apr 2016 03:23:49 GMT Exxon Mobil Loses 'AAA' Rating It Held Since Depression http://implode-explode.com/viewnews/2016-04-28_ExxonMobilLosesAAARatingItHeldSinceDepression.html iehi-feed-59658 Thu, 28 Apr 2016 20:06:01 GMT Russia to Price Its Own Oil, Ditch Dollars http://implode-explode.com/viewnews/2016-04-28_RussiatoPriceItsOwnOilDitchDollars.html iehi-feed-59657 Thu, 28 Apr 2016 19:56:52 GMT Loeb's Third Point Says Hedge Funds in 'Catastrophic' Period http://implode-explode.com/viewnews/2016-04-28_LoebsThirdPointSaysHedgeFundsinCatastrophicPeriod.html Third Point, founded by Dan Loeb, said hedge funds are in the first stage of a "washout" after "catastrophic" performance this year. The $2.9 trillion hedge fund industry had the worst start to a year in returns and outflows in at least seven years. Alan Howard's Brevan Howard Asset Management and Paul Tudor Jones' Tudor Investment Corp. are among the firms that clients are pulling billions of dollars from, while managers including Bill Ackman and John Paulson have posted steep losses.

Hedge funds lost 1.9 percent in the first quarter, according to Hedge Fund Research's global index, the poorest performance since 2008. The industry had net outflows of $16.6 billion in the last two quarters, the most since 2009, according to HFR. In 2015, 979 funds closed, more than any year since 2009, according to the research firm.

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"Further exacerbating the carnage was a huge asset rotation into market neutral strategies in late the fourth quarter," Third Point said. "Unfortunately, many managers lost sight of the fact that low net does not mean low risk and so, when positioning reversed, market neutral became a hedge fund killing field."

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iehi-feed-59656 Thu, 28 Apr 2016 19:28:07 GMT Why the Vampire Squid Wants Small Depositors' Money in 1 Frightening Chart http://implode-explode.com/viewnews/2016-04-28_WhytheVampireSquidWantsSmallDepositorsMoneyin1FrighteningChart.html iehi-feed-59655 Thu, 28 Apr 2016 18:57:30 GMT Radisson Hotel Chain Is Latest U.S. Giant to Be Snapped Up By Chinese http://implode-explode.com/viewnews/2016-04-28_RadissonHotelChainIsLatestUSGianttoBeSnappedUpByChinese.html iehi-feed-59654 Thu, 28 Apr 2016 15:12:57 GMT Japan consumer prices fall at fastest in 3 years before BOJ meeting http://implode-explode.com/viewnews/2016-04-28_Japanconsumerpricesfallatfastestin3yearsbeforeBOJmeeting.html iehi-feed-59653 Thu, 28 Apr 2016 15:10:20 GMT The European Union always was a CIA project, as Brexiteers discover http://implode-explode.com/viewnews/2016-04-28_TheEuropeanUnionalwayswasaCIAprojectasBrexiteersdiscover.html Brexiteers should have been prepared for the shattering intervention of the US.  The European Union always was an American project... Nor are many aware of declassified documents from the State Department archives showing that US intelligence funded the European movement secretly for decades, and worked aggressively behind the scenes to push Britain into the project.

As this newspaper first reported when the treasure became available, one memorandum dated July 26, 1950, reveals a campaign to promote a full-fledged European parliament. It is signed by Gen William J Donovan, head of the American wartime Office of Strategic Services, precursor of the Central Inteligence Agency.

The key CIA front was the American Committee for a United Europe (ACUE), chaired by Donovan. Another document shows that it provided 53.5 per cent of the European movement's funds in 1958. The board included Walter Bedell Smith and Allen Dulles, CIA directors in the Fifties, and a caste of ex-OSS officials who moved in and out of the CIA.

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iehi-feed-59652 Thu, 28 Apr 2016 15:07:43 GMT America's earnings recession just got worse http://implode-explode.com/viewnews/2016-04-28_Americasearningsrecessionjustgotworse.html Overall, S&P 500 earnings so far this quarter are down 8%. That marks the third quarterly decline in a row and the worst since 2009, according to S&P Global Market Intelligence. Weak global growth is closing consumers' wallets, while the strong dollar is only making iPhones and other American goods more expensive for foreign buyers. Add on still-low oil prices and Corporate America is facing major headwinds.

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With disappointing earnings like these, it's no wonder investors are worried about stocks getting too pricey. One key measure for value -- the price-to-earnings ratio -- shows stocks are at their most expensive point since 2009. The S&P 500 is trading at about 17.8 times its forward earnings, compared with 15.2 in mid-February.

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iehi-feed-59651 Thu, 28 Apr 2016 15:05:36 GMT Trump is Hip to Gold http://implode-explode.com/viewnews/2016-04-28_TrumpisHiptoGold.html iehi-feed-59650 Thu, 28 Apr 2016 14:35:42 GMT WSJ Master Word Soup Chef Greg Ip Missplains the Fed and Argentina Flation http://implode-explode.com/viewnews/2016-04-28_WSJMasterWordSoupChefGregIpMissplainstheFedandArgentinaFlation.html iehi-feed-59649 Wed, 27 Apr 2016 21:40:40 GMT Why Sam Zell ("The Grave Dancer") Is Cashing Out http://implode-explode.com/viewnews/2016-04-27_WhySamZellTheGraveDancerIsCashingOut.html iehi-feed-59648 Wed, 27 Apr 2016 21:38:51 GMT Fed leaves rates alone, signals confidence in economy (LOOK AT WHAT WE SAY, NOT WHAT WE DO!!) http://implode-explode.com/viewnews/2016-04-27_FedleavesratesalonesignalsconfidenceineconomyLOOKATWHATWESAYNOTW.html iehi-feed-59647 Wed, 27 Apr 2016 21:10:55 GMT More Greece "Uncertainty": Default Looms in July, EU Rejects Greek Emergency Summit http://implode-explode.com/viewnews/2016-04-27_MoreGreeceUncertaintyDefaultLoomsinJulyEURejectsGreekEmergencySu.html The creditors demand still more austerity but Tsipras said "no". Instead, Tsipras seeks an emergency meeting, but European Commission president Donald Tusk said "no" to that proposal.

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Greece is fast running out of cash to pay salaries and pensions in May because of lagging tax receipts. To cover the gap Mr Tsipras's government has been strong-arming state entities, from the cash-strapped health service to the profitable water utility, to empty their bank accounts and place the funds with the central bank in a short-term loan arrangement.

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iehi-feed-59646 Wed, 27 Apr 2016 14:39:50 GMT ECB likely to decide next week to scrap 500-euro bill http://implode-explode.com/viewnews/2016-04-27_ECBlikelytodecidenextweektoscrap500eurobill.html iehi-feed-59645 Wed, 27 Apr 2016 14:21:13 GMT Alarm over corporate debt and stalled earnings http://implode-explode.com/viewnews/2016-04-27_Alarmovercorporatedebtandstalledearnings.html According to Andrew Lapthorne of Société Générale, the reality is that "US corporates appear to be spending way too much (over 35 per cent more than their gross operating cash flow, the biggest deficit in over 20 years of data) and are using debt issuance to make up the difference". The decline in earnings and cash flows in the past year has accentuated the problem, and brought it to the top of investors' consciousness.

A further issue is the uses to which the debt has been put. As pointed out many times in the post-crisis years, it has generally not gone into capital expenditures, which might arguably be expected to boost the economy. It has instead been deployed to pay dividends, or to buy back stock -- or to buy other companies. Shifts in these uses of cash are now affecting markets.

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Such popularity for companies that pay out dividends is generally sign of bearishness and lack of trust. If investors want to be shown the money in this way, it suggests very low confidence in companies' ability to use the cash wisely. At this point, according to Mr Santschi, investors are eschewing buyback stocks because they fear that the buybacks will only be funded with further debt.

Companies can of course afford to stay highly levered without too much difficulty, while they enjoy fixed low rates. The problem, and the reason that investors have now started to focus on the problem, is producing the earnings and cash flows needed to pay their debt. That is why earnings are being watched with such anxiety.

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