Implode-Explode Heavy Industries news feed 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-65625 Tue, 05 Apr 2022 16:53:18 GMT Moody's: Some Office, Hotel Loans Are Redefaulting In Warning Sign For Market At least 13 commercial mortgage-backed loans that were more than 60 days behind payments in August 2020, but then recovered, began missing their repayments between October 2021 and March of this year, according to Moody's Analytics research first reported by Bloomberg.

A total of 7.89% of CMBS loans were marked as "troubled" in March, according to Moody's, a slight increase over February. 

Moody's found the repayment challenges on retail and office properties are being caused by the fact that it is still hard to find tenants to fill space. As uncertainty hangs over the leasing market, the delinquency rate could be set to grow -- although if hospitality demand improves that may offset the challenges in other sectors.

iehi-feed-65624 Thu, 20 Jan 2022 16:07:42 GMT Puerto Rico's crypto scene is booming, but there is backlash among locals Real estate costs are rising in neighborhoods across San Juan, not just in touristy areas such as Condado, but also in hipster communities such as Ocean Park, where graffiti reading "Act 22 = Racismo" is painted across the street from a commune established by a San Francisco start-up founder. In a private Facebook group for sublets and housing, fights increasingly break out over expensive rentals. "Puerto ricans don't need your cash nor your bitcoins," one person wrote under a post about a one-bedroom apartment renting for $1,900.

Though repeal of Act 22 is unlikely, lawmakers are considering amendments to it, said Sen. Juan Zaragoza, a member of the centrist Popular Democrático party who chairs the Senate Finance Committee.

Some people want to "kick them out of the island, and repeal the law retroactively," Zaragoza said. "There's a high level of hate against these people.

iehi-feed-65623 Wed, 29 Dec 2021 14:44:27 GMT America runs on bad jobs "Wages were not set based on market forces but based on power disparities," said Bahn, meaning that people at the lower end of the income spectrum traditionally didn't have the means or power to ask for just pay.

But the pandemic may have fundamentally changed this dynamic: The old power mismatch "reflects an unhealthy and fragile economy," said Bahn. "We have this once in a lifetime chance to do something about it."

iehi-feed-65622 Mon, 20 Dec 2021 01:50:47 GMT The Path Ahead for Biden: Overcome Manchin's Inflation Fears Senator Joe Manchin III, the West Virginia Democrat, effectively killed President Biden's signature domestic policy bill in its current form on Sunday, saying he was convinced the spending and tax cuts in the $2.2 trillion legislation will exacerbate already hot inflation.

Economic evidence strongly suggests Mr. Manchin is wrong. A host of economists and independent analyses have concluded that the bill is not economic stimulus, and that it will not pump enough money into consumer pocketbooks next year to raise prices more than a modest amount.

The reason has to do with the pace at which the bill spends money and how much it raises through tax increases that are intended to pay for that spending. The legislation spends funds over a decade, allowing the taxes it raises on wealthy Americans and businesses, which will siphon money out of the economy, to help counteract the boost from spending and tax cuts.

The bill also does not provide the type of direct stimulus included in the $1.9 trillion pandemic aid package Mr. Biden signed in March -- and which Mr. Manchin supported. Some of its provisions would give money directly to people, like a continued expanded child tax credit, but others would fund programs that would take time to ramp up, like universal prekindergarten.

Economists say the net result is likely to be at most a tenth of a percentage point or two increase in the inflation rate. That would be a relatively small effect at a time when supply chain crunches, surging global oil demand and a pandemic shift among consumers away from travel and dining out and toward durable goods have combined to raise the annual inflation rate to 6.8 percent, its fastest pace in nearly 40 years.

iehi-feed-65621 Tue, 02 Nov 2021 15:29:38 GMT Zillow Looks to Sell 7,000 Homes for $2.8 Billion After Flipping Fiasco Zillow Group Inc. is looking to sell about 7,000 homes as it seeks to recover from a fumble in its high-tech home-flipping business. The company is seeking roughly $2.8 billion for the houses, which are being pitched to institutional investors, according to people familiar with the matter. Zillow will likely sell the properties to a multitude of buyers rather than packaging them in a single transaction, said the people, who asked not to be named because the matter is private


Zillow recently said it would stop making new offers in its home-flipping operation for the remainder of the year, though it continues to close on properties that were already under contract. The decision came after the company tweaked the algorithms that power the business to make higher offers, leaving it with a bevy of winning bids just as home-price appreciation cooled off a bit.

iehi-feed-65620 Fri, 29 Oct 2021 22:50:28 GMT We're Living Through the Greatest Transfer of Wealth From the Middle Class to the Elites in History | Opinion Meanwhile, [[during the pandemic,] the Federal Reserve was pumping trillions of dollars into the markets, helping to inflate stock valuations. Hundreds of thousands of small businesses were murdered in just a few short months--by government edict--while seven tech companies gained $3.4 trillion in market value. If you were able to access capital--which is code for already being big or wealthy, even if you weren't in some cases financially sound--it was plentiful and, for debt capital, available at historically low interest rates. 2020 became a record year for IPOs and for other capital-raising vehicles like special purpose acquisition companies. And some of this capital was likely used to compete with your local small businesses.

The one-two punch of government fiscal and Fed monetary policy continued to destroy the fabric of the economy for the average American. It dislocated the labor markets and the supply chain and it has ultimately led to inflation, which is making the basic cost of living much more expensive for Americans all across the country

In short, while your dollars today purchase fewer goods and services and your lives are more expensive and disrupted, those who are well-connected and asset-rich benefitted from outsized wealth increases driven by government policy.

Of course one party always seems to say "no" to any aid that might help support small businesses, because "that's socialism". With big business and elites having an inherent advantage, even when their considerable props are removed, small businesses still can't compete (e.g., consider the cost of capital between your average big business and small business -- it's not even close, with a healthy small business paying 20%+ for capital, and big business paying 0-8% -- or even less than zero).

iehi-feed-65619 Thu, 14 Oct 2021 12:52:58 GMT Today's tight housing market is already overbuilt, one analyst says McGill cited data from the latest Decennial Census from the U.S. Census showing household formation is about 24% below where it was in the prior four decades.

McGill's partner Ivy Zelman, who is perhaps best known for one of the first warnings about the subprime mortgage crisis over a decade ago, agreed.

"The market is too hot. There is just a massive amount of capital that's coming to the space," Zelman said, referring to the investor interest in the housing market. "We actually believe the industry is already overbuilding in single-family to normalized demand by roughly 20% and about 10% for multi-family, so we couldn't be on more of an opposite side of where the market is and where the industry is, frankly."

iehi-feed-65618 Tue, 28 Sep 2021 21:35:01 GMT The economy has shafted millennials: now it wants their offspring too iehi-feed-65617 Mon, 20 Sep 2021 14:29:00 GMT Evergrande debt: Collapse could have domino effect on China properties While the struggling developers are tiny individually, compared to Evergrande, they make up about 10%-15% of the total market on aggregate, Zeng said. She warned that a collapse could result in a "systemic" spillover to other parts of the economy.


Some economists have warned that the collapse of Evergrande could become China's "Lehman moment" -- a reference to the bankruptcy of Lehman Brothers as a result of the subprime mortgage crisis, which triggered the 2008 global financial crisis.

However, Capital Economics senior global economist Simon MacAdam described that narrative as "wide of the mark."

iehi-feed-65616 Mon, 20 Sep 2021 13:34:38 GMT Dow futures skid nearly 2% Monday as fear of market contagion from China's Evergrande intensifies iehi-feed-65615 Sun, 19 Sep 2021 21:55:41 GMT The College Gender Gap Is Spiraling Out of Control There are a number of worrying statistics, including the fact that at the close of last school year 59.5% of college students were women (a record high) and only 40.5% were men, but considering the gender gap doesn't appear to be slowing anytime soon, it may be a forward-looking figure that is the most shocking.

"In the next few years, two women will earn a college degree for every man, if the trend continues, said Douglas Shapiro, executive director of the research center at the National Student Clearinghouse," the Wall Street Journal writes. 

The story delves into the most obvious question: is this really such a big deal? After all, if men were prioritized in the past, isn't it only fair that women take the lead for now? According to experts, it's not as simple as a seesaw. 

"If you care about our society, one, and, two, if you care about women, you have to care about the boys, too," Jennifer Delahunty, a college enrollment consultant who previously worked at Kenyon College and Lewis & Clark College, told the paper. "If you have equally educated numbers of men and women that just makes a better society, and it makes it better for women."

Could young men (subconsciously or intentionally) be "boycotting" higher education because they feel they will be disfavored (or, alternatively, that they'll "finally have to really compete" against women)? Or perhaps men are more sensitive to the bum economic deal that college now presents, whereas women aren't? We definitely need to figure this out and address it, because this seems set to hugely destabilize society...

iehi-feed-65614 Fri, 17 Sep 2021 22:20:20 GMT Growing number of U.S. suburbs now dominated by renters Of the nearly 5 million residents who moved to suburbs surrounding the 50 largest U.S. metro areas, almost 80% were renters, the analysis found. And while the ranks of suburban homeowners grew 3% between 2010 and 2019, suburban renters jumped 22% over that period. 

Overall, roughly a quarter of the more than 1,100 suburbs near the nation's 50 largest metro areas are renter-dominated, according to Rent Cafe. Some 21 million people rented their homes in the suburbs as of 2019, up from 17 million a decade ago.

Millennials and members of Generation Z account for most suburban renters, Census data show. Rent Cafe notes that 55% of suburban renters are younger than 45, with median household earnings of around $50,000.

Meanwhile, the pandemic is expected to further fuel the shift away from suburban homeownership in favor of renting. Remote work opportunities have generated more interest in suburban areas within striking distance of cities.

iehi-feed-65613 Mon, 06 Sep 2021 14:48:34 GMT New York Eviction Ban Forces Veteran Landlord To Sleep In Her Car iehi-feed-65612 Fri, 03 Sep 2021 17:19:17 GMT Eviction Moratoriums Force Landlords To Liquidate Properties iehi-feed-65611 Thu, 02 Sep 2021 18:12:51 GMT Foreclosure Moratorium Alert! Homeowners Scramble To Find Help iehi-feed-65610 Sun, 08 Aug 2021 13:18:42 GMT Was The Great Pandemic Migration To Miami Overhyped? The Miami metro netted a loss of 42,100 people in 2020, 11% more net move-outs than in 2019, the CBRE analysis found. 

More New Yorkers did move to Florida than normal. The post office data logged 25,843 moves to Miami/Fort Lauderdale from the New York/Jersey City area in 2020. The year prior, when there was no pandemic, there'd been 20,794 similar moves.

Willett said the bump in NY-to-Miami movers represented "a meaningful increase, not just a small increase, but when you look at the grand scheme of migration into and out of South Florida, the flows from places like New York are still a very small portion of the moves to begin with."

... By far, young single urbanites made the most moves, while a demographic "GenXUrban" -- with kids, cars and mortgage payments -- made the fewest.

iehi-feed-65609 Mon, 02 Aug 2021 21:06:27 GMT An unemployment cliff is coming. More than 7.5 million may fall off "This is so many more people than have ever been cut off from something like this," Stettner said of the looming cliff relative to past cutoffs.

Of course, the economy has recovered more quickly than in past recessions. It's now larger than it was before the pandemic, according to Commerce Department data released Thursday.

Hiring is also up over the past few months. The economy added 850,000 new jobs in June, after 583,000 in May and 269,000 in April. However, the U.S. has yet to recover almost 7 million lost jobs versus pre-pandemic levels.


Twenty-six states ended their participation in federal unemployment programs over June and July, to try to encourage recipients to return to work -- effectively moving up the benefits cliff for residents by about two to three months.

With the $300 supplement, almost half of jobless workers (48%) make as much or more money on unemployment benefits than their lost paychecks, according to a recent paper published by the JPMorgan Chase & Co. Institute.

The extra funds had a small impact on job-finding among workers, but didn't significantly hold back the job market, according to economists Fiona Greig, Daniel Sullivan, Peter Ganong, Pascal Noel and Joseph Vavra, who authored the analysis.

And though it's still early, evidence so far doesn't suggest the state policies immediately pushed people back into the workforce.

If you believe the economy is larger now than before the COVID recession, I have a bridge to sell you (and when I do, we'll count that transaction towards economic growth as well!)

iehi-feed-65608 Sun, 01 Aug 2021 15:59:08 GMT Soaring Post-COVID Home Prices and the Fed So what can the Fed do about any of this? Officials, including Mr. Bullard, have suggested that it might make sense for the Fed to slow its monthly purchases of Treasury debt and mortgage-backed securities soon, and quickly, to avoid giving housing an unneeded boost by keeping mortgages so cheap.

Discussions about how and when the Fed will taper off its buying are ongoing, but most economists expect bond-buying to slow late this year or early next. That should nudge mortgage rates higher and slow the booming market a little.

But borrowing costs are likely to remain low by historical standards for years to come. Longer-term interest rates have fallen even as the Fed considers dialing back bond purchases, because investors have grown more glum about the global growth outlook. And the Fed is unlikely to lift its policy interest rate -- its more powerful tool -- away from rock bottom anytime soon.

Ideally, officials would like to see the economy return to full employment before lifting rates, and most don't expect that moment to arrive until 2023. They're unlikely to speed up the plan just to cool off housing. Fed officials have for decades maintained that bubbles are difficult to spot in real time and that monetary policy is the wrong tool to pop them.

For now, your local housing market boom is probably going to be left to its own devices -- meaning that while first time home buyers may end up paying more, they will also have an easier time financing it.

And they'll have an easier time ending up underwater whenever this boom reverses...

iehi-feed-65607 Fri, 30 Jul 2021 14:54:40 GMT Pandemic Housing Boom Is Over! iehi-feed-65606 Sat, 17 Jul 2021 16:11:21 GMT Going back to the office or permanent remote: the future of WFH