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-61971 Tue, 28 Mar 2017 22:35:21 GMT In Another Blow, Wells Fargo Faulted for `Extensive' Discrimination in Review http://implode-explode.com/viewnews/2017-03-28_InAnotherBlowWellsFargoFaultedforExtensiveDiscriminationinReview.html Wells Fargo & Co. engaged in an "extensive and pervasive pattern" of discriminatory and illegal lending practices for years, a U.S. regulator said in slashing a key rating of how the bank serves communities, triggering restrictions that may hamper its growth.

While examiners credited Wells Fargo for "excellent responsiveness" in meeting customers' credit needs, 10 government inquiries over the past decade prompted the Office of the Comptroller of the Currency to lower its overall score of the company's compliance with community banking laws to "needs to improve." Enforcement cases cited by the OCC faulted the bank's treatment of minority neighborhoods, military personnel and women who had recently given birth.

...

The findings risk further damage to Wells Fargo's reputation as executives try to rebuild customer and investor trust in the wake of an account scandal that rocked the company and its stock price last year. Yet, many of the cases cited by the OCC already were announced years ago in settlements, including some misconduct that predated the 2008 financial crisis.

]]>
iehi-feed-61970 Tue, 28 Mar 2017 22:33:22 GMT Trump signs order dismantling Obama-era climate policies http://implode-explode.com/viewnews/2017-03-28_TrumpsignsorderdismantlingObamaeraclimatepolicies.html The order's main target is former President Barack Obama's Clean Power Plan, which required states to slash carbon emissions from power plants - a key factor in the United States' ability to meet its commitments under a climate change accord reached by nearly 200 countries in Paris in 2015.

Trump's decree also reverses a ban on coal leasing on federal lands, undoes rules to curb methane emissions from oil and gas production and reduces the weight of climate change and carbon emissions in policy and infrastructure permitting decisions. Carbon dioxide and methane are two of the main greenhouse gases blamed by scientists for heating the earth.''

...

The move drew swift backlash from a coalition of 23 states and local governments, as well as environmental groups, which called the decree a threat to public health and vowed to fight it in court.

]]>
iehi-feed-61969 Tue, 28 Mar 2017 21:43:30 GMT Merkel's party wins German state vote by large margin (PRESAGING CONTINUED DOMINANCE?) http://implode-explode.com/viewnews/2017-03-28_MerkelspartywinsGermanstatevotebylargemarginPRESAGINGCONTINUEDDO.html The vote in the tiny state on the French border, which has a population of only one million, was seen as a bellwether ahead of the September 24th general election in which Merkel, the veteran leader often dubbed "the Queen of Europe", will seek a fourth term.

...

The CDU's popular state premier Annegret Kramp-Karrenbauer, who was cheered by jubilant supporters, admitted she was "floored" by the strong result, about five points up from the last election amid strong turnout of around 70 percent.

]]>
iehi-feed-61968 Tue, 28 Mar 2017 20:03:02 GMT U.S. Travel Industry Fears a ‘Lost Decade' Under Trump http://implode-explode.com/viewnews/2017-03-28_USTravelIndustryFearsaLostDecadeUnderTrump.html Trump's rhetoric and unpopularity abroad is likely to reduce international arrivals by 4.3 million this year, according to  market strategy firm Tourism Economics LLC. New York City, Los Angeles, and Miami are all exposed to any declines, being among the most popular destinations for foreign travelers.

...

The USTA regularly refers to the century's first 10 years as "the lost decade" because of the steep decline in travel to America following restrictions imposed after the 2001 terror attacks, global antipathy toward the subsequent foreign policy of President George W. Bush, and the economic fallout of the Great Recession. Outside the U.S., however, foreign travel continued to increase over the same period.

]]>
iehi-feed-61967 Tue, 28 Mar 2017 18:54:31 GMT How middle-class and even "wealthy" American families are sliding inexorably into the red http://implode-explode.com/viewnews/2017-03-28_HowmiddleclassandevenwealthyAmericanfamiliesareslidinginexorably.html iehi-feed-61966 Tue, 28 Mar 2017 18:50:18 GMT Manhattan Landlords Are Offering Massive Giveaways to Lure Retail Clients (IN LIEU OF MUCH-NEEDED PRICE CUTS) http://implode-explode.com/viewnews/2017-03-28_ManhattanLandlordsAreOfferingMassiveGiveawaystoLureRetailClients.html Tenant-improvement allowances haven't been typical in the Manhattan retail market. But now the concessions, which can pay for anything from lighting and displays to a complete overhaul, are becoming a key component in some new leases, particularly for large, flagship stores in high-profile areas, such as Madison Avenue and Fifth Avenue, according to Steve Soutendijk, an executive director at brokerage Cushman & Wakefield Inc. 

"We're seeing tenant-improvement and concession packages that retail landlords never, ever contemplated before," he said.

...

The details of leases in Manhattan are often closely guarded secrets, making it difficult to quantify the incentives retailers are receiving. Landlords have a lot of ways to cut a deal without lowering asking rents, such as paying the construction contractor, offering an extended period of free rent or simply writing a check for the tenant to use at their discretion.

... Tepid demand for luxury goods and a stronger U.S. dollar that's crimped spending by tourists have particularly hurt Fifth Avenue, where the space-availability rate was at a record 15.9 percent in fourth quarter, up from 10.1 percent a year earlier, Cushman data show. The average rent on the stretch from 49th to 60th streets reached a record $3,213 a square foot in the third quarter before dropping in the last three months of the year to $2,985.

]]>
iehi-feed-61965 Tue, 28 Mar 2017 16:52:14 GMT Tensions flare Between Turkey And EU, Greece on Even of Erdogan Power-Expansion Vote http://implode-explode.com/viewnews/2017-03-28_TensionsflareBetweenTurkeyAndEUGreeceonEvenofErdoganPowerExpansi.html ``Western allies have argued that a vote endorsing the proposed constitutional change would invest the Turkish leader with unparalleled authority and limit checks and balances at a time when they fear he is exhibiting worrying signs of authoritarianism. Erdoğan has been enraged by recent bans on visiting Turkish officials rallying "yes" supporters in Germany and the Netherlands.

...

"We have a referendum on 16 April. After that we may hold a Brexit-like referendum on the [EU] negotiations," Erdoğan told a Turkish-UK forum attended by the British foreign secretary, Boris Johnson. "No matter what our nation decides we will obey it. It should be known that our patience, tested in the face of attitudes displayed by some European countries, has limits."

The animus -- reinforced last week when the leader said he would continue labelling European politicians "Nazis" if they continued calling him a dictator -- has also animated tensions between Greece and Turkey, and Erdoğan's comments came hours after the Greek defence minister said armed forces were ready to respond in the event of the country's sovereignty and territorial integrity being threatened.

...

Turkey's EU negotiations have long been hindered by Cyprus, and talks aimed at reuniting its estranged Greek and Turkish communities are at a critical juncture but have stalled and are unlikely to move until after the referendum.

But it is in the Aegean where tensions, matched by an increasingly ugly war of words, have been at their worst. After a tense standoff over eight military officers who escaped to Greece after the abortive coup against Erdoğan last July -- an impasse exacerbated when the Greek supreme court rejected a request for their extradition -- hostility has been measured in almost daily dogfights between armed jets and naval incursions of Greek waters by Turkish research vessels.

Related, see Erdogan Races Against the Dollar in Campaign for Unrivaled Power.

]]>
iehi-feed-61964 Tue, 28 Mar 2017 16:32:07 GMT Ford invests $1.2 billion in Michigan plants, Per 2015 UAW Contract (TRUMP ONCE AGAIN TRIES TO TAKE CREDIT) http://implode-explode.com/viewnews/2017-03-28_Fordinvests12billioninMichiganplantsPer2015UAWContractTRUMPONCEA.html Ford will invest $1.2 billion to build or modernize three facilities in Michigan where it plans to assemble trucks and SUVs, and to store consumer data, a reflection of the trends that are fundamentally reshaping the auto industry's business model and manufacturing operations in the U.S.

President Trump preempted the "big announcement" with an early morning tweet in which he touted, "Car companies coming back to U.S. JOBS! JOBS! JOBS!" ... But such massive investment decisions take longer to plan and execute than Trump has been in office. The investments Ford announced Tuesday, for example, are part of a 2015 contract between the automaker and United Auto Workers in which the company agreed to invest $9 billion and create or retain 8,500 jobs through 2019.''

]]>
iehi-feed-61963 Tue, 28 Mar 2017 16:21:59 GMT These Charts Show Alarm Bells Ringing on the Trump Trade http://implode-explode.com/viewnews/2017-03-28_TheseChartsShowAlarmBellsRingingontheTrumpTrade.html iehi-feed-61962 Tue, 28 Mar 2017 16:20:59 GMT Monte Paschi May Have Received Solvent-Status "Fudge" To Get Bailout http://implode-explode.com/viewnews/2017-03-28_MontePaschiMayHaveReceivedSolventStatusFudgeToGetBailout.html ``To make sense of the Monte Paschi debate, you have to start with a 2014 law known as the Bank Recovery and Resolution Directive, which sets out the EU's bank-failure rules. The law assumes that if a firm needs "extraordinary public financial support," this indicates that it's failing and should be wound down. In that process, investors including senior bondholders can be forced to take losses.

...

An exception, known as a precautionary recapitalization, is allowed for solvent banks if a long list of conditions is met. As the name suggests, this tool isn't intended to clear up a bank's existing problems, such as Monte Paschi's mountain of soured loans. This temporary aid is allowed to address a capital shortfall identified in a stress test.

...

"It is unclear if Monte Paschi meets the BRRD's exemption criteria, and their use has the appearance of promoting national political concerns over a stricter reading of the newly established European rules," said Simon Ainsworth, a senior vice president at Moody's Investors Service. "The plan could risk damaging the credibility of the resolution framework, especially given that it would mark its first major test case."

...

In the view of some ECB Supervisory Board members, while Monte Paschi cleared the hurdles for aid, its viability was bolstered by unrealistic valuations of its bad loan portfolio, the people said. The board gave the all-clear even though the possibility that Monte Paschi sold junior bonds inappropriately to retail investors wasn't fully reflected in the solvency assessment, they said.

]]>
iehi-feed-61961 Tue, 28 Mar 2017 16:15:22 GMT Pension Crisis Too Big for Markets to Ignore http://implode-explode.com/viewnews/2017-03-28_PensionCrisisTooBigforMarketstoIgnore.html The question is why haven't the headlines presaged pension implosions? As was the case with the subprime crisis, the writing appears to be on the wall. And yet calamity has yet to strike. How so? Call it the triumvirate of conspirators -- the actuaries, accountants and their accomplices in office. Throw in the law of big numbers, very big numbers, and you get to a disaster in a seemingly permanent state of making. Unfunded pension obligations have risen to $1.9 trillion from $292 billion since 2007.

...

By some estimates, unfunded liabilities would triple to upwards of $6 trillion if the prevailing yields on Treasuries were used. That would translate into much steeper funding requirements at a time when budgets are already severely constrained. Pockets of the country would face essential public service budgets being slashed to dangerous levels.

]]>
iehi-feed-61960 Tue, 28 Mar 2017 16:12:02 GMT Massive Canadian Gold Coin Worth Millions Stolen From German Museum http://implode-explode.com/viewnews/2017-03-28_MassiveCanadianGoldCoinWorthMillionsStolenFromGermanMuseum.html iehi-feed-61959 Mon, 27 Mar 2017 15:48:15 GMT Rich Chinese Race to Apply for a U.S. "Golden Visa" http://implode-explode.com/viewnews/2017-03-27_RichChineseRacetoApplyforaUSGoldenVisa.html As members of Congress in Washington debate raising the minimum required to obtain a U.S. immigrant investor visa from $500,000 to $1.35 million, concern about the hike has set off a scramble among wealthy would-be participants in China.

...

At stake if the EB-5 is curtailed is a program estimated to have played a role in creating at least 200,000 U.S. jobs and drawing as much as $14 billion from Chinese investors alone, based on data provided by Rosen Consulting Group and the Asia Society. Past projects taking advantage of EB-5 include New York's Hudson Yards, Hunter's Point Shipyard in San Francisco, and a Trump-branded tower in Jersey City.

New projects recently doing the rounds in China's chat rooms, web forums and hotel-ballroom investor seminars include a 5-star hotel complex in Palm Springs, California, and what's touted as "the world's tallest residential building," on New York's 57th Street, known as Billionaires' Row.

]]>
iehi-feed-61958 Mon, 27 Mar 2017 15:46:23 GMT Fading Trump rally threatened by rare contraction of US credit http://implode-explode.com/viewnews/2017-03-27_FadingTrumprallythreatenedbyrarecontractionofUScredit.html Data from the US Federal Reserve shows that the $2 trillion market for commercial and industrial loans peaked in December. The sector has weakened abruptly as lenders tighten credit, especially for non-residential property. Over the last three months it has dropped at a rate of 5.4pc on annual basis, a pace of decline not seen since December 2008.

The deterioration in the broader $9 trillion market for loans and leases has been less dramatic but it too is shrinking, falling at a 1.6pc rate on a three-month basis. "Corporate lending has ground to a halt and I am staggered that the Fed is raising rates. They have made a very big mistake," said Patrick Perret-Green from AdMacro.

... Credit has tended to pick up signs of trouble several weeks before equity markets in recent episodes of financial stress... Monetary tightening in the US so far this cycle has been equal to 13 rate rises under the Fed's Wu-Xia model, which includes the effects of withdrawing stimulus from quantitative easing. Nobody knows where the pain threshold lies in a global financial system that is more leveraged than at any time in history, including Fed officials themselves.

... Simon Ward from Henderson Global Investors said his early warning indicator - real six-month M1 money - turned negative in February. It has ticked up a little in March but not enough to prevent what would normally be an economic relapse later this year.

... Kevin Gaynor from Nomura says his model of asset pricing suggests markets are in effect assuming global growth of 5pc and earnings increases of 30pc a year. These are heroic. "There is a time decay on this new temporary equilibrium," he notes acidly.

]]>
iehi-feed-61957 Sun, 26 Mar 2017 16:07:58 GMT Condo Flippers in Miami-Dade Left Twisting in the Wind http://implode-explode.com/viewnews/2017-03-26_CondoFlippersinMiamiDadeLeftTwistingintheWind.html Miami-Dade's spectacular condo flipping mania is in turmoil, with sales plunging, inventory-for-sale soaring, and new supply flooding the market... In February, existing home sales of all types fell 10% year-over-year, to 1,835 homes. These sales "do not include Miami's multi-billion dollar new construction condo market," the Miami Association of Realtors clarified in its report on March 23.

...

[The current high] inventory [which is 2x the level in 2013] understates the total number of condos for sale. It only includes units listed for sale on the Multiple Listing Service (MLS). But developers normally don't list their new units on the MLS, and thus they're not included in the above chart.

]]>
iehi-feed-61956 Sun, 26 Mar 2017 16:05:17 GMT What Happens to the U.S. Midwest When the Water's Gone? http://implode-explode.com/viewnews/2017-03-26_WhatHappenstotheUSMidwestWhentheWatersGone.html In the coming decades this slow-speed crisis will unfold just as the world needs to increase food production by 60 percent, according to the United Nations, to feed more than nine billion people by mid-century.

The draining of North America's largest aquifer is playing out in similar ways across the world, as large groundwater basins in Asia, Africa, and the Middle East decline rapidly. Many of these aquifers, including the southern Ogallala, have little ability to recharge. Once their water is gone, they could take thousands of years to refill.

]]>
iehi-feed-61955 Sun, 26 Mar 2017 15:49:20 GMT Bridgewater Releases Report on Populism http://implode-explode.com/viewnews/2017-03-26_BridgewaterReleasesReportonPopulism.html iehi-feed-61954 Sun, 26 Mar 2017 15:38:05 GMT The Swamp Drains Trump - KUNSTLER http://implode-explode.com/viewnews/2017-03-26_TheSwampDrainsTrumpKUNSTLER.html iehi-feed-61953 Sun, 26 Mar 2017 15:36:52 GMT Trump's path forward only gets tougher after health-care fiasco http://implode-explode.com/viewnews/2017-03-26_Trumpspathforwardonlygetstougherafterhealthcarefiasco.html ... others in the party acknowledged the political damage sustained by pulling the House bill, particularly for a president who had touted his own dealmaking prowess... While Republicans broadly share the goal of Trump's promised "big tax cuts," the president will have to bridge many of the same divides within his own party that sank the attempted overhaul of the Affordable Care Act. And without savings anticipated from the health-care bill, paying for the "massive" cuts Trump has promised for corporations and middle-class families becomes considerably more complicated.

Meanwhile, other marquee agenda items, including a $1 trillion investment in roads and other infrastructure and proposed crackdowns on both legal and illegal immigration, will require the support of Democrats, many of whom have been alienated by the highly partisan start to Trump's tenure.''

]]>
iehi-feed-61952 Sun, 26 Mar 2017 15:28:48 GMT Week in Review: Stocks See Worst Week Since Election as Trump Dealt Setback With Health-Care Bill http://implode-explode.com/viewnews/2017-03-26_WeekinReviewStocksSeeWorstWeekSinceElectionasTrumpDealtSetbackWi.html