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-62132 Mon, 24 Apr 2017 16:00:11 GMT Euro and shares rally after Emmanuel Macron wins first voting round of French election http://implode-explode.com/viewnews/2017-04-24_EuroandsharesrallyafterEmmanuelMacronwinsfirstvotingroundofFrenc.html "Macron will be reassuring to markets, with his pledge to lower corporate taxes and to lighten the administrative burden on firms. He basically represents continuity," said Octavio Marenzi, CEO of Opimas, a capital markets management consultancy.

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According to the latest polling of voters' intentions in the second round, Mr Macron is forecast to beat Ms Le Pen by 62 per cent to 38 per cent, with many political figures quick to join the 'anyone but Le Pen camp'.

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iehi-feed-62131 Mon, 24 Apr 2017 15:56:06 GMT Dividend Cuts Hit High For Past 4 Years; Suggest Economy In Contraction http://implode-explode.com/viewnews/2017-04-24_DividendCutsHitHighForPast4YearsSuggestEconomyInContraction.html iehi-feed-62130 Mon, 24 Apr 2017 14:23:52 GMT America is Regressing into a Developing Nation for Most People http://implode-explode.com/viewnews/2017-04-24_AmericaisRegressingintoaDevelopingNationforMostPeople.html iehi-feed-62129 Mon, 24 Apr 2017 14:18:18 GMT Trump push for border wall threatens to cause government shutdown http://implode-explode.com/viewnews/2017-04-24_Trumppushforborderwallthreatenstocausegovernmentshutdown.html Looming above Washington as Congress and the White House attempt to avert a funding shutdown in only five days' time, Donald Trump's central campaign promise to build a wall on the Mexican border threatens to bring the US government to a halt this week in a national display of dysfunction

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The president himself waded into the negotiations on Sunday, holding out two sticks and no carrot. "ObamaCare is in serious trouble," he tweeted. "The Dems need big money to keep it going -- otherwise it dies far sooner than anyone would have thought."

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Trump's threats did not appear to faze Democratic leaders, who watched last month as Republicans failed to make a deal within their own party on repealing and replacing Barack Obama's healthcare reform

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iehi-feed-62128 Sun, 23 Apr 2017 20:54:13 GMT Broken Employment http://implode-explode.com/viewnews/2017-04-23_BrokenEmployment.html iehi-feed-62127 Sun, 23 Apr 2017 20:32:32 GMT Trump Has To Pay For Tax Cuts -- But Will He Touch Real Estate Give-Aways? http://implode-explode.com/viewnews/2017-04-23_TrumpHasToPayForTaxCutsButWillHeTouchRealEstateGiveAways.html "Trump said he knows where the loopholes are, but so far he hasn't proposed closing any of them," Mr. Rosenthal said. "Maybe he will. But so far he hasn't made any of the hard decisions that would show he's willing to close the loopholes that benefit him in order to make the tax code more fair and efficient."

... it is hard to see a path toward reducing overall corporate tax rates -- the crucial element in making any overhaul palatable to a wide swath of businesses -- without the added revenues from eliminating the interest deduction.

(Individuals generally cannot deduct interest payments -- with the major exception of mortgage interest, another boon to the real estate industry, albeit one that also benefits millions of homeowners. Mr. Trump has said eliminating the mortgage deduction is off the table.)

Then there is the ability of "active" real estate investors such as Mr. Trump (but virtually no other group) to deduct their real estate losses against other income. That loophole was eliminated for most investors -- including real estate investors -- in the landmark tax legislation in 1986. But because of aggressive lobbying by the powerful real estate industry, including Mr. Trump himself, Congress passed legislation in 1993 restoring the tax break for so-called active real estate developers.

... Another loophole for real estate developers is the so-called like-kind exchange provision, which allows real estate investors to defer or even eliminate capital gains tax by using the proceeds from a sale to reinvest in a similar property (which does not have to be all that similar -- just about any real estate can be exchanged, even an apartment complex for vacant land).

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iehi-feed-62126 Sun, 23 Apr 2017 20:17:33 GMT Telling the truth: The looming pension-pocalypse http://implode-explode.com/viewnews/2017-04-23_TellingthetruthTheloomingpensionpocalypse.html iehi-feed-62125 Sun, 23 Apr 2017 20:06:10 GMT Outsiders "Storm Bastille" in France: Macron and Le Pen Take Lead (Respectively); Will Face-Off http://implode-explode.com/viewnews/2017-04-23_OutsidersStormBastilleinFranceMacronandLePenTakeLeadRespectively.html The storming of the Bastille in 1789 sets the bar high. As a result, few phrases should be used with more circumspection than "French revolution". But the result of the first round of France's 2017 presidential election is an epochal political upheaval for France all the same. For the first time in the nearly 60-year history of the Fifth Republic the second-round contest on 7 May will be between two outsider candidates, Emmanuel Macron and Marine Le Pen. Neither of the candidates of the established parties of left and right will be in the runoff. Whichever of the second-round candidates emerges as the winner in two weeks' time, France is set upon a new political course, with major implications for itself and for the rest of Europe.

The defeat of the established parties is a humiliation for modern French party politics of left and right. The Socialist candidate Benoît Hamon, representing the party of the outgoing president François Hollande, received a mere 6.2% of the votes, according to early estimates. The conservative candidate François Fillon, carrier of the tarnished Gaullist baton, did better, with 19.7%. Yet this is the first time that an official centre-right candidate has failed to get into the second round since General de Gaulle created modern France in 1958. Given the scandals about his use of public funds, it was remarkable that Mr Fillon did so well. Even so, between them Mr Hamon and Mr Fillon took only a quarter of the votes. Instead three French voters out of four, in a turnout of 78%, voted for change.

Le Pen is projected to have pulled 21.9%, and Macron 23.7%, making him the favorite. However, anything can happen as the remaining votes (a majority) are re-allocated... and a lot can happen between now and May 7th.

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iehi-feed-62124 Sun, 23 Apr 2017 15:06:17 GMT Michigan Taxpayers To Get Slapped With An $8.2+ Billion Stealth Tax Increase http://implode-explode.com/viewnews/2017-04-23_MichiganTaxpayersToGetSlappedWithAn82BillionStealthTaxIncrease.html iehi-feed-62123 Sun, 23 Apr 2017 13:37:38 GMT Doug Noland: Liquidity Supernova and the Big Ugly Flaw http://implode-explode.com/viewnews/2017-04-23_DougNolandLiquiditySupernovaandtheBigUglyFlaw.html iehi-feed-62122 Fri, 21 Apr 2017 22:27:31 GMT You Are Not An Investor http://implode-explode.com/viewnews/2017-04-21_YouAreNotAnInvestor.html You are not an investor. One can only be an investor in functioning markets. There have been no functioning markets since at least 2008, and probably much longer. That's when central banks started purchasing financial assets, for real, which means that is also the point when price discovery died. And without price discovery no market can function.

You are therefore not an investor. Perhaps you are a cheat, perhaps you are a chump, but you are not an investor. If we continue to use terms like ‘investor' and ‘markets' for what we see today, we would need to invent new terms for what these words once meant. Because they surely are not the same thing. Even as there are plenty people who would like you to believe they are, because it serves their purposes.

Central banks have become bubble machines, and that is the only function they have left. You could perhaps get away with saying that the dot-com bubble, maybe even the US housing bubble, were not created by central banks, but you can't do that for the everything bubble of today.

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iehi-feed-62121 Fri, 21 Apr 2017 22:14:14 GMT This expert thinks Donald Trump will fold on the government shutdown http://implode-explode.com/viewnews/2017-04-21_ThisexpertthinksDonaldTrumpwillfoldonthegovernmentshutdown.html iehi-feed-62120 Fri, 21 Apr 2017 21:36:21 GMT Weekend Reading: Move Over UBI - The "Guaranteed Job" Solves A Lot More Problems http://implode-explode.com/viewnews/2017-04-21_WeekendReadingMoveOverUBITheGuaranteedJobSolvesALotMoreProblems.html With full employment, the capitalists lose their leverage to depress workers' wages and must give up more profits. But, more than that, when it comes to running endeavors that are ostensibly "theirs," the capitalists are forced to bargain with and bend to the will of workers "below" them. Their position as the demigods of the economy--granting employment when they are appeased, and taking it away when they are angered--is undone.

Capitalists do not want recessions, of course, since their income and wealth holdings suffer as well. But they don't want the economy running at full steam, either. Their solution, as John Maynard Keynes put it, has been "abolishing booms and thus keeping us permanently in a quasi-slump." Perhaps this sounds familiar.

In defiance of this economic regime, the job guarantee asserts that, if individuals bear a moral duty to work, then society and employers bear a reciprocal moral duty to provide good, dignified work for all. It would finally make real the ideal, stated in Franklin Roosevelt's "Economic Bill of Rights," that every American possesses a "right to a useful and remunerative job" and "to earn enough to provide adequate food and clothing and recreation." Not a paternalistic aid, and not some tribute to aristocratic virtue, but a right to be claimed and exercised. ''

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Intriguing is the direct tie-in to ending the central banking-dysfunction, which is in place in large part supposedly to ameliorate recessions and the destruction of jobs:

From then on, every private sector recession would swell the ranks of job-guarantee recipients again, but never by that much. Right now, recessions feed on themselves: People lose jobs, their consumption drops, so more people lose jobs, until the recession bottoms out. But employment through the job guarantee is limited only by human imagination and ingenuity. A recession is just a collapse in the private sector's ability to employ everyone according to the capitalists' priorities. So recessions would simply throw workers onto the job guarantee's alternate employment, with its attendant wage floor. The bottom for recessions would be much shallower, and recoveries much faster, shrinking the job guarantee rolls again. We would be spared the human and social wreckage that comes with spells of mass unemployment. Preventing mass joblessness would prove far cheaper than eliminating it once it's set in.

An even more intriguing possibility is that the job guarantee would eliminate the need for the Fed to adjust interest rates... with a job guarantee, the downturn would simply move workers onto the set wage and compensation rate, which doesn't engage in a bidding war. This would end the arms race as well, but without casting people into joblessness and all its attendant human destruction. So the job guarantee could stabilize the ups and downs of inflation as well.

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iehi-feed-62119 Fri, 21 Apr 2017 16:18:39 GMT Analyst Who Predicted Trump's Ascendancy Bets on Le Pen Win http://implode-explode.com/viewnews/2017-04-21_AnalystWhoPredictedTrumpsAscendancyBetsonLePenWin.html "The market is talking about the nightmare scenario but it's not pricing it in" said Mark Tinker, head of AXA Framlington Asia. Tinker's a GaveKal client, and admirer of Gave's tail-risk warnings over the past year. "After Sunday, we will have more information to make a considered risk-return wager to trade and hedge, but high-quality European companies and German bonds look like an attractive bet," Tinker said.

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The euro held steady on Friday and French bonds gained after a police officer was shot in Paris, which may influence the outcome of the first-round vote, according to some analysts. The CAC 40 dropped for the first time in three days, declining 0.5 percent.

The stars, however, appear to be aligning for the National Front candidate, said Gave. The fact two candidates for the runoff are likely to be determined by voters who have yet to make up their minds -- as many as 40 percent -- is a bad omen for the centrist contender, he said.

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Supporters of Francois Fillon, a center-right candidate whose momentum has been curtailed by graft charges, and a sizable chunk of Macron's followers would probably rally to Le Pen's cause if she were to face leftist Jean-Luc Mélenchon in the final round, according to Gave. He sees only Fillon with a chance to defeat Le Pen in the run-off.

If she emerges victorious, the euro would tank as markets would price in the prospect of its dissolution, rather than focus on Le Pen's legislative hurdles to exit the single-currency bloc. French and Italian bonds will be "unquotable" given vanishing bids, and the European banking system would be beset by seismic turmoil, he said.

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iehi-feed-62118 Fri, 21 Apr 2017 16:11:01 GMT Paul Tudor Jones Says U.S. Stocks Should ‘Terrify' Janet Yellen http://implode-explode.com/viewnews/2017-04-21_PaulTudorJonesSaysUSStocksShouldTerrifyJanetYellen.html The legendary macro trader says that years of low interest rates have bloated stock valuations to a level not seen since 2000, right before the Nasdaq tumbled 75 percent over two-plus years. That measure -- the value of the stock market relative to the size of the economy -- should be "terrifying" to a central banker... Jones is voicing what many hedge fund and other money managers are privately warning investors: Stocks are trading at unsustainable levels. A few traders are more explicit, predicting a sizable market tumble by the end of the year.

Last week, Guggenheim Partner's Scott Minerd said he expected a "significant correction" this summer or early fall. Philip Yang, a macro manager who has run Willowbridge Associates since 1988, sees a stock plunge of between 20 and 40 percent, according to people familiar with his thinking.

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iehi-feed-62117 Fri, 21 Apr 2017 16:09:04 GMT Desperate Malls Turn to Concerts and Food Trucks http://implode-explode.com/viewnews/2017-04-21_DesperateMallsTurntoConcertsandFoodTrucks.html With customer traffic sagging, U.S. retail landlords are using their sprawling concrete lots to host events such as carnivals, concerts and food-truck festivals. They're aiming to lure visitors with experiences that can't be replicated online -- and then get them inside the properties to spend some money.

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The idea is gaining traction. Next month, Simon Property is having the first carnival in its Round Rock Premium Outlets parking lot, about 20 miles (32 kilometers) north of Austin, Texas. Similar events are being held for the first time at locations such as Central Mall in Port Arthur, Texas, managed by Jones Lang LaSalle Inc., and a Cheyenne, Wyoming, mall owned by CBL & Associates Properties Inc. In July, Simon Property's Orland Square Mall, southwest of Chicago, will be holding its first parking-lot food-truck festival, with plans for live music performances, Herkimer said.

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Some malls are doing fine even without renting out their outdoor space, especially higher quality properties with upscale stores. They have been drawing visitors with grocery stores, medical offices and high-end restaurants -- all businesses that face less risk from e-commerce competition than traditional tenants. Some retail REITs are adding office space or apartments to their portfolios to diversify.

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"This very painful process will surely take more than five years," Steven Roth, Vornado Realty Trust's chief executive officer, said in a letter to shareholders this month. "It will also create enormous opportunity for those with the capital and management platforms to feed on the carnage."

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iehi-feed-62116 Fri, 21 Apr 2017 14:59:36 GMT Retail death spiral: Bebe to go Bye-bye http://implode-explode.com/viewnews/2017-04-21_RetaildeathspiralBebetogoByebye.html iehi-feed-62115 Fri, 21 Apr 2017 14:54:27 GMT Only China Can "Fix" Venezuela http://implode-explode.com/viewnews/2017-04-21_OnlyChinaCanFixVenezuela.html iehi-feed-62114 Fri, 21 Apr 2017 01:27:53 GMT Ocwen Sued, Shut Down in Multiple States http://implode-explode.com/viewnews/2017-04-20_OcwenSuedShutDowninMultipleStates.html There are bad days, and worse days, and there are days like Ocwen Financial Corporation (OFC) had on Thursday. The company was not only sued on multiple grounds by both the Consumer Financial Protection Bureau (CFPB) and the State of Florida, but saw its operations effectively shut down by the North Carolina Commissioner of Banks.

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First, the North Carolina commissioner, Ray Grace, issued a cease and desist order against the company after a determination that it "has engaged in, or is engaging in, or is about to engage in, acts of practices constituting violations of state and federal law and applicable regulations."

... On February 28, 2015, Florida, Maryland, Massachusetts, Mississippi, Montana, and Washington conducted a multi-state examination of the company covering operations from January 1, 2013 to the examination date. That examination identified several violations of state and federal law including consumer escrow accounts that could not be reconciled and willful and ongoing unlicensed activity in certain states. The examination also found that the company's financial condition was deteriorating.

The order alleges the company subsequently failed to respond to requests for information on its apparent unlicensed activity and company executives were warned the violations were unacceptable and would not be tolerated. OFC partially addressed these violations after a lapse of two years, but the Commissioner's order states that unlicensed activity is believed to continue in some jurisdictions.

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In December 2016 OFC and state regulators entered into a Memorandum of Understanding (MOU) which required OFC to retain an independent auditing firm to perform a comprehensive audit and reconciliation of all escrow accounts with a report submitted to and approved by the MMC by January 13, 2017.  On that date, the company informed the MMC that the $1.5 billion cost of that audit was beyond its financial capability and asked to sample 457 accounts out of the 2.5 million it had serviced over the initial audit period.  The company has also failed to provide a suitable going-forward business plan to address its financial condition.

The Cease and Desist Order requires OFC to immediately cease acquiring new mortgage servicing rights and acquiring or originating new residential mortgages until it provides a sufficient analysis of its financial condition and provides state regulators with a reconcilement of its escrow accounts showing that consumer funds are appropriately collected, accounted for, and distributed.  OFC has 20 days in which to request a hearing.

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iehi-feed-62113 Fri, 21 Apr 2017 00:39:20 GMT The evidence is piling up -- Silicon Valley is being destroyed http://implode-explode.com/viewnews/2017-04-20_TheevidenceispilingupSiliconValleyisbeingdestroyed.html