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-64129 Wed, 18 Jul 2018 22:49:09 GMT Millennial Homeownership Headwinds Worrisome for Future http://implode-explode.com/viewnews/2018-07-18_MillennialHomeownershipHeadwindsWorrisomeforFuture.html UI put some numbers to the demographic and social differences displayed by the generation. First, being married increases the probability of owning a home by 18 percentage points after accounting for other factors. If the marriage rate among that age group in 2015 had bbeen the same as in 1990, Millennial homeownership would be about 5 points higher.

...

Yet the researchers also found that even among white households that are married, with children, and even with substantial income, the homeownership rate is 2 to 3 percentage points lower than earlier generations.  Obviously other factors are at play, some of them defined as attitudinal.

The preference of educated Millennials to move to more expensive urban centers has contributed to their lower homeownership rate.  In high-cost cities the housing supply is inelastic and within large metro areas, Young adults additionally migrate to the counties with a more urban environment where prices have increased more than in surrounding areas.  This shift in preference was mostly observed among those who are higher educated. The supply of affordable housing has declined overall during the last decade, but this is especially true in areas where Millennials prefer to live.

...

Obtaining a mortgage has become more challenging over the last ten years. The process is unwieldy, and underwriting has not adapted to the unstable and non-traditional labor market and tightening credit standards.

]]>
iehi-feed-64128 Wed, 18 Jul 2018 19:28:14 GMT Google's $5 billion fine: What you need to know http://implode-explode.com/viewnews/2018-07-18_Googles5billionfineWhatyouneedtoknow.html ``EU antitrust regulators ruled that the company, whose Android software powers more than 80 percent of the world's smartphones, pushed consumers to its search engine, further weakening rival search providers and app makers.

...

Although Google offers the open source mobile software for free, the EU takes issue with the requirements placed on manufacturers to pre-install Google's search and Chrome browser apps if they want to license the Play app store. Google actually ties Play to a suite of 11 different apps, including Maps, Gmail and Docs, but the only ones that the EU has called for it to separate from Play are Chrome and Search.

The EU also says that it's illegal for Google to pay manufacturers and carriers to exclusively pre-install Google's search app on phones, which it says it did between 2011 and 2014, and to use so-called anti-fragmentation agreements to prevent phone makers from selling modified versions of Android.

...

"So far, the Android business model has meant that we haven't had to charge phone makers for our technology, or depend on a tightly controlled distribution model," Pichai wrote.

]]>
iehi-feed-64127 Wed, 18 Jul 2018 19:25:17 GMT Billionaire Druckenmiller: "Can we try capitalism? Real capitalism. Give it a chance" http://implode-explode.com/viewnews/2018-07-18_BillionaireDruckenmillerCanwetrycapitalismRealcapitalismGiveitac.html ... [with the recent tax reform bill] we missed the golden opportunity to offset some revenue loss and address generational equity when Congress passed tax reform. Instead, government debt, which has doubled over the last decade, is set to increase to levels only reached during World War II over the next decade. So we will have sacrificed our future during a relatively peaceful economic period . . . simply because politicians can't say no.

...

Bond-buying by central bankers, commonly referred to as Quantitative Easing (QE), has become so ingrained in current thinking that it is now in the Fed's conventional toolkit-- a tool once reserved for a depression or financial crisis is now to be used at the first inkling of the next recession.

... it is most surprising that forty years after wage and price controls were sadly rejected by every economic textbook and policymakers, today we have settled to allowing the most important price of all, long-term interest rates, to be regularly distorted by [the central bank.]

]]>
iehi-feed-64126 Wed, 18 Jul 2018 15:57:59 GMT Powell backs more rate hikes as economy growing 'considerably stronger' http://implode-explode.com/viewnews/2018-07-18_Powellbacksmoreratehikesaseconomygrowingconsiderablystronger.html ... remarks he provided ahead of a question-and-answer session, Powell painted a largely positive picture of the economy, which he said is expanding at an increasing pace and is being boosted by aggressive fiscal policy on Capitol Hill.

"Overall, we see the risk of the economy unexpectedly weakening as roughly balanced with the possibility of the economy growing faster than we currently anticipate," Powell said.

"The unemployment rate is low and expected to fall further. Americans who want jobs have a good chance of finding them," he added.

...

However, the "upbeat tone" from the testimony likely means the trade issues won't keep the Fed from hiking rates, said Andrew Hunter, U.S. economist at Capital Economics.

]]>
iehi-feed-64125 Wed, 18 Jul 2018 15:54:06 GMT Sea-Level Rise Could Knock Out Miami, NYC, Seattle Internet, Study Warns http://implode-explode.com/viewnews/2018-07-18_SeaLevelRiseCouldKnockOutMiamiNYCSeattleInternetStudyWarns.html iehi-feed-64124 Wed, 18 Jul 2018 13:28:41 GMT Federal Housing Finance Agency Structure Ruled Unconstitutional http://implode-explode.com/viewnews/2018-07-18_FederalHousingFinanceAgencyStructureRuledUnconstitutional.html iehi-feed-64123 Wed, 18 Jul 2018 00:18:56 GMT States sue U.S. to void state and local tax deduction cap http://implode-explode.com/viewnews/2018-07-17_StatessueUStovoidstateandlocaltaxdeductioncap.html Four U.S. states sued the federal government on Tuesday to void the new $10,000 cap on federal deductions for state and local taxes included in President Donald Trump's 2017 tax overhaul.

...

David Gamage, an Indiana University tax law professor, said the lawsuit faces an uphill battle, despite suggesting that keeping the SALT deduction was a factor when states in 1913 gave Congress power to levy income taxes through the 16th Amendment.

"I think it's very unlikely that it succeeds," he said. "The Supreme Court has generally given Congress wide latitude in carrying out its taxing power, especially in setting deductions. It would be a pretty dramatic change of direction to allow this lawsuit."

In the complaint filed with the U.S. District Court in Manhattan, the four states said a $10,000 cap "effectively eviscerates" a deduction that has been on the books since 1861.

Guess liberals are no longer cheering about the Supreme Court upholding the Obamacare individual mandate as a valid "tax" a few years ago, eh? (That decision expanded the federal government's taxing power in an unprecedented way; it appears effectively unlimited now.)

]]>
iehi-feed-64122 Tue, 17 Jul 2018 22:33:13 GMT International Finance Watchdog Declares Cryptos Not A "Stability Risk" http://implode-explode.com/viewnews/2018-07-17_InternationalFinanceWatchdogDeclaresCryptosNotAStabilityRisk.html iehi-feed-64121 Tue, 17 Jul 2018 13:08:38 GMT Mortgage Fraudster Family Sentenced To 45 Years In Prison http://implode-explode.com/viewnews/2018-07-17_MortgageFraudsterFamilySentencedTo45YearsInPrison.html iehi-feed-64120 Tue, 17 Jul 2018 00:42:01 GMT NYC "Billionaire's Row" Hotel Sells At Massive Loss After 5 Years http://implode-explode.com/viewnews/2018-07-16_NYCBillionairesRowHotelSellsAtMassiveLossAfter5Years.html Arden Group entered contract to acquire the 29-story, 240-key hotel at 120 West 57th Street for $41 million. When the deal closes in the third quarter, New York REIT will have liquidated its entire portfolio, except for a 50.1 percent stake in One Worldwide Plaza. Ark Partners developed the Viceroy in 2013, and that same year, sold the leasehold for $148.5 million to New York REIT. The deal marked the first hotel purchase for the real estate investment trust, then known as New York Recovery REIT.

...

In addition to Vicecroy's mounting expenses, the Manhattan hotel market is in a radically different place. The borough saw a slump in RevPAR -- or revenue per available room -- and pricing power, but there appears to be turning around in recent months.

]]>
iehi-feed-64119 Mon, 16 Jul 2018 17:03:43 GMT Connecticut Foreclosures Still Some Of The Highest In The USA http://implode-explode.com/viewnews/2018-07-16_ConnecticutForeclosuresStillSomeOfTheHighestInTheUSA.html iehi-feed-64118 Sun, 15 Jul 2018 19:12:28 GMT Tech Companies Worsening Social Divide By Milking Municipalities For Insane Subsidies http://implode-explode.com/viewnews/2018-07-15_TechCompaniesWorseningSocialDivideByMilkingMunicipalitiesForInsa.html Cities and states across the United States are struggling. When a massive company with a positive reputation (many large tech firms lead rankings of the most loved and admired brands) pitches governments on new developments, politicians want to do everything they can to attract their business.

Because these companies are so large, politicians hope that if the initial project works out, even more jobs may be created either by the large tech company or by smaller companies that follow it to the new locale. Attracting big companies helps politicians show voters they've been effective and should be reelected -- they created jobs! -- but they can also serve the ideological position of the politician. Republicans can view handing corporations huge sums of public money as forwarding their goal to slash government to the bone.

Good Jobs First, a national policy resource center, estimates that major tech companies have received $9.3 billion in subsidies and incentives to build data centers and warehouses across the United States over the past five years. These companies are already massively profitable and some of the incentives amount to hundreds of thousands to millions of dollars per job created -- an amount that obviously will not pay off in the long run, especially when another state can just hand them a check to move when the benefit wears off.

Though Apple has an estimated $285 billion in cash reserves, it still looks for subsidies when opening new facilities. The company was awarded $213 million to open a data center in Waukee, Iowa in 2017, even though it would only create 50 jobs at a price tag of $4.3 million per job created, making it almost impossible to see how those incentives would ever be recovered.

Similarly, when officials in Nevada awarded Tesla a tax incentive of $1.25 billion to win its Gigafactory, watchdogs warned that it would starve the state of funding for public services. Now, years later, with the incentive expected to be closer to $1.4 billion, that's exactly what happened. Since the factory isn't contributing to the budget, there isn't money to increase funding to police and fire services, which are feeling the strain of population growth. Schools are also overcrowded and bus routes for students are being cut, while those suffering from increased prices talk of being "Tesla'd."

]]>
iehi-feed-64117 Sun, 15 Jul 2018 19:06:19 GMT Of Welfare Queens and Conservative Lies http://implode-explode.com/viewnews/2018-07-15_OfWelfareQueensandConservativeLies.html iehi-feed-64116 Sun, 15 Jul 2018 11:18:07 GMT Hasidic Heavyweights Taking Over New York Get Unmasked http://implode-explode.com/viewnews/2018-07-15_HasidicHeavyweightsTakingOverNewYorkGetUnmasked.html iehi-feed-64115 Sat, 14 Jul 2018 17:41:52 GMT Are We Running Out of Gold? http://implode-explode.com/viewnews/2018-07-14_AreWeRunningOutofGold.html iehi-feed-64114 Sat, 14 Jul 2018 15:02:48 GMT The WSJ Sounds Bullish Here. But They're Ignoring Half the Equation - Lee Adler http://implode-explode.com/viewnews/2018-07-14_TheWSJSoundsBullishHereButTheyreIgnoringHalftheEquationLeeAdler.html while the bulls were snorting about the corporate buybacks being such a huge boost for the market, something else was going on that they're not talking about. The Fed tells us that despite a dip of $300 billion in the first quarter, there were $1.8 trillion more in nonfinancial corporate equities outstanding in the first quarter than in Q1 2017. All of those buybacks have barely made a dent in the trend of increasing supply of equities. And financial [corps], banks, shadow banks, insurers, and brokers issued a cool trillion in net new equities. There's more supply, not less!

... [So how has the market stayed levitated?] Speculative fever among institutional investors and hedge funds has heated up. They have increased their borrowings in an effort to chase an overheated market higher. The increased use of leverage has only increased risk.

]]>
iehi-feed-64113 Fri, 13 Jul 2018 21:44:28 GMT Logarithmic Analysis: Bitcoin Looks Set to Carve Out $4k-5k Low, Then Do a 10-Bagger http://implode-explode.com/viewnews/2018-07-13_LogarithmicAnalysisBitcoinLooksSettoCarveOut4k5kLowThenDoa10Bagg.html iehi-feed-64112 Fri, 13 Jul 2018 21:34:07 GMT Trump's Escalating Trade War With China Set to Backfire on Consumers http://implode-explode.com/viewnews/2018-07-13_TrumpsEscalatingTradeWarWithChinaSettoBackfireonConsumers.html China didn't take [Trump's initial] tariffs lying down... Instead, it responded by imposing tariffs on $34 billion worth of U.S. goods.That led to an even bigger retaliation by the White House. On Tuesday, Trump announced 10% tariffs on $200 billion worth of Chinese goods.

...

China has vowed to "strike back hard, and launch comprehensive measures that match the U.S. move in quantity and quality." This means China could introduce more tariffs. It could also further devalue its currency to stay "competitive," which would encourage Trump to introduce even more tariffs.

In short, everyday goods could soon get a lot more expensive. And that's the last thing working-class Americans can afford... [And now] inflation is already creeping higher... We can see this in the Consumer Price Index (CPI), a broad measure of inflation. It's rising at its fastest pace since 2012.

The Producer Price Index (PPI), another popular measure of inflation, is also climbing fast. In fact, it just had the biggest yearly jump in nearly seven years.

...

If the trade war escalates, other companies will have no choice but to [pass prices along to consumers]... And that could take a huge toll on consumer spending, which is by far the biggest segment of the U.S. economy.

]]>
iehi-feed-64111 Fri, 13 Jul 2018 17:21:09 GMT New Wells Fargo Public Relations Campaign Blows Up In Their Face http://implode-explode.com/viewnews/2018-07-13_NewWellsFargoPublicRelationsCampaignBlowsUpInTheirFace.html iehi-feed-64110 Fri, 13 Jul 2018 16:25:23 GMT Wells Fargo earnings bomb for Q2 as scandal taint lingers http://implode-explode.com/viewnews/2018-07-13_WellsFargoearningsbombforQ2asscandaltaintlingers.html Wells couldn't meet Wall Street's already low expectations for the second quarter, as revenue and net income in the bank's three business lines fell compared with the same period last year.

"The broad-based weakness of Wells Fargo's results is troubling, with many indicators such as deposits, commercial and consumer lending trending down. It appears that the slew of scandals that Wells Fargo has been involved in are taking their toll," said Octavio Marenzi, CEO of capital markets management consulting firm Opimas. "Compared to JPMorgan's excellent results earlier today, Wells Fargo is looking rather hapless, unable to get it right."

...

Shares of Wells Fargo are down more than 10 percent this year.

Wells said it had state income tax charges of $481 million, related to a recent Supreme Court ruling regarding e-commerce sales (South Dakota v. Wayfair) that said states can charge taxes on purchases from out-of-state sellers even if the seller isn't located in that state.

]]>