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-61492 Sun, 15 Jan 2017 23:13:06 GMT Trump Gets Return-Flamed by Entire City After Bashing Atlanta To Get at John Lewis http://implode-explode.com/viewnews/2017-01-15_TrumpGetsReturnFlamedbyEntireCityAfterBashingAtlantaToGetatJohnL.html iehi-feed-61491 Sun, 15 Jan 2017 17:57:43 GMT Trump/Congressional Proposed Tax Changes and How to Benefit from Them http://implode-explode.com/viewnews/2017-01-15_TrumpCongressionalProposedTaxChangesandHowtoBenefitfromThem.html iehi-feed-61490 Sun, 15 Jan 2017 15:06:55 GMT The President Who Wasn't There: Barack Obama's Legacy of Impotence http://implode-explode.com/viewnews/2017-01-15_ThePresidentWhoWasntThereBarackObamasLegacyofImpotence.html Obama assumed the presidency at a moment when much of the nation seemed ready to confront the unwelcome fact that the American project had derailed.... Corporate capitalism just wasn't delivering the goods anymore. Not for the bottom 80 percent, any way. The economy was in ruins, mired in what appeared to be a permanent recession. The manufacturing sector had been killed from the inside-out, with millions of well-paying jobs outsourced and nothing but dreary service-sector positions to take their place. Chronic long-term unemployment hovered at more than 10 percent, worse, much worse, in black America. Those who clung to their jobs had seen their wages stagnate, their home values shrivel and were suffocating under merciless mounds of debt. Meanwhile, capital moved in ever-tightening circles among a new odious breed of super-rich, making sweat-free billions from the facile movement of money.

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With his sunny disposition and Prospero-like aptitude for mystification, Obama should have been able to convert [the discontented] or, at least, to roll over them. Instead, they kicked his ass. How? ... Obama's most grievous political wounds were self-inflicted, starting even before his election when he rushed back to Washington to help rescue Bush's Wall Street bailout. This was perhaps the first real indication that the luminous campaign speeches about generational and systemic change masked the servile psyche of a man who was desperately yearning to be embraced by the nation's political and financial elites.

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iehi-feed-61489 Sun, 15 Jan 2017 02:40:01 GMT Icahn Hedge Fund Loses 20% of Its Value in 2016 http://implode-explode.com/viewnews/2017-01-14_IcahnHedgeFundLoses20ofItsValuein2016.html Billionaire Carl Icahn is coming off another poor investment year as a nearly $6 billion hedge fund that he oversees suffered a loss of 20.3% in 2016 after a decline of 18% in 2015, according to a disclosure in a regulatory filing in conjunction with a bond deal and rights offering being made by Icahn Enterprises (ticker: IEP), a publicly traded limited partnership that is controlled by Icahn.

The weak 2016 performance reflected Icahn's bearish stance as the fund had a sizable short position in the U.S. equity market that hurt results as the S&P 500 index gained almost 10% last year. The Icahn fund had a net short position of 138% at the end of the third quarter--fourth quarter positioning has not yet been disclosed.

It's ironic that Icahn, one of the Wall Street's prominent supporters of president-elect Donald Trump, failed to capitalize on the postelection market rally in stocks.

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iehi-feed-61488 Sun, 15 Jan 2017 02:36:53 GMT American Apparel Could Be A Puzzler For Trump: Can He Coerce a Bankrupt Company Bought And Moved Overseas By Foreigners? http://implode-explode.com/viewnews/2017-01-14_AmericanApparelCouldBeAPuzzlerForTrumpCanHeCoerceaBankruptCompan.html Gildan's purchase agreement covers American Apparel's assets, including most of its manufacturing and distribution equipment. Gildan bought American Apparel's existing inventory in a separate deal. But the company has declined the option to assume the leases of two Los Angeles manufacturing facilities that employ nearly 1,300 factory workers.

Gildan also declined the lease on American Apparel's headquarters, which employs nearly 2,200 people. The downtown offices will continue to manage the company's retail operations and website, but in December American Apparel warned all its Los Angeles-area employees that they may lose their jobs. Though the company might retain some operations in the United States, analysts expressed skepticism to the Los Angeles Times that any of American Apparel's current U.S. manufacturing workers would keep their jobs, speculating that Gildan would likely move factory work to its existing facilities in Honduras and the Dominican Republic.

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iehi-feed-61487 Sun, 15 Jan 2017 00:42:05 GMT Why DeLong, Summers, Bernanke, Krugman, Keen, Pettis, Edwards et al. Can't Figure Out "Secular Stagnation" http://implode-explode.com/viewnews/2017-01-14_WhyDeLongSummersBernankeKrugmanKeenPettisEdwardsetalCantFigureOu.html iehi-feed-61486 Sun, 15 Jan 2017 00:13:57 GMT China: No negotiation on 'One China' policy despite Trump remarks http://implode-explode.com/viewnews/2017-01-14_ChinaNonegotiationonOneChinapolicydespiteTrumpremarks.html "The 'One China' principle is the political foundation of Sino-US relations and it is non-negotiable. We urge the relevant side in the US to recognize the high sensitivity of the Taiwan issue and abide by the pledges by successive US administrations from both parties," spokesman Lu Kang said.

He was responding to a question about Trump's remarks Friday in The Wall Street Journal in which he said, "Everything is under negotiation, including 'One China.' "

"The pledges include adopting the 'One China' policy, adhering to the principles in the three Sino-US joint communiques and properly handling the Taiwan issue. Only doing so would prevent the healthy and stable development of Sino-US relations as well as bilateral cooperation in major areas from being affected," Lu added.

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"There is only one China in the world. Taiwan is an inseparable part of Chinese territory and the People's Republic of China is the sole legitimate government representing China," Lu said. "These are facts recognized by the international community and no one can change this."

This pushback was of course expected. And of course, China is lying -- the U.S. has never agreed to the One-China policy; it has only agreed to respect Taiwan's and China's views (both of which have historically been in agreement that there is "One China", though Taiwan seems to no longer truly hold that conviction); and, rather than being "inseparable", the PRC has never exercised dominion over Taiwan for even a single minute (meanwhile, Taiwan's government has exercised control over the mainland). But, despite being on the side of obvious truth in this case, Trump appears to be heading unwittingly into a diplomatic shredder. This will certainly be interesting.

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iehi-feed-61485 Sat, 14 Jan 2017 15:22:08 GMT GOP's Go Slow 'Rescue Mission' Plan To Replace Obamacare http://implode-explode.com/viewnews/2017-01-14_GOPsGoSlowRescueMissionPlanToReplaceObamacare.html As their first major act of the new Congress, Republicans rushed approval of a budget resolution this week that sets up a framework for repealing Obamacare, but what exactly to replace it with is still a puzzle Republicans are piecing together. And it could take a while.

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Ryan says Republicans will use their annual GOP retreat for a "full, exhausting" conversation on how exactly to repeal and replace the law. The go-slow approach is at odds with the increasing urgency of the rhetoric on the state of the Affordable Care Act.

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The incoming president said they will not offer a plan until his nominee for Health and Human Services secretary, Rep. Tom Price, R-Ga., is confirmed. Republicans expect a significant amount of the repeal effort to come through executive action by HHS since much of the implementation of Obamacare was done through the same agency.

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iehi-feed-61484 Sat, 14 Jan 2017 15:05:25 GMT Are Investors bracing for a massive stock-market selloff? http://implode-explode.com/viewnews/2017-01-14_AreInvestorsbracingforamassivestockmarketselloff.html Demand for one-month call options tied to the CBOE Volatility Index, a popular gauge of stock-market volatility, has spiked in the past week, a sign that some are bracing for a sharp downturn following the inauguration of President-elect Donald Trump.

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Since the beginning of the year, stock-market volatility has been relatively subdued despite increasing uncertainty surrounding the future direction of fiscal and monetary policy in the U.S. The Daily Shot, a popular market newsletter, illustrates this divergence in the chart below.

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iehi-feed-61483 Sat, 14 Jan 2017 15:03:20 GMT Addicted To Gov? Ben Carson And The 30 Year Mortgage Backstop http://implode-explode.com/viewnews/2017-01-14_AddictedToGovBenCarsonAndThe30YearMortgageBackstop.html iehi-feed-61482 Sat, 14 Jan 2017 03:24:58 GMT Carson will "Examine" FHA Premium Cut http://implode-explode.com/viewnews/2017-01-13_CarsonwillExamineFHAPremiumCut.html iehi-feed-61481 Fri, 13 Jan 2017 20:11:08 GMT Chinese state media slams Tillerson over South China Sea (THREATENS SHOOTING WAR) http://implode-explode.com/viewnews/2017-01-13_ChinesestatemediaslamsTillersonoverSouthChinaSeaTHREATENSSHOOTIN.html iehi-feed-61480 Fri, 13 Jan 2017 19:41:52 GMT JPMorgan, BofA make out like a bandits on post-Trump market surge http://implode-explode.com/viewnews/2017-01-13_JPMorganBofAmakeoutlikeabanditsonpostTrumpmarketsurge.html JPMorgan Chase & Co reported a 24 percent rise in fourth-quarter profits on Friday, beating analyst expectations, as its Wall Street business benefited from a surge in trading activity following the U.S. election... [ex-tax adjustments] the bank earned $1.58 per share, well above the average analyst estimate of $1.44 per share...

Revenue from fixed-income trading -- JPMorgan's most volatile business -- rose 31 percent to $3.4 billion, while stock trading revenue increased 8 percent to $1.2 billion. Bank of America Corp (BAC.N), which reported results earlier on Friday, also said trading revenue surged last quarter.

Here's a piece on BofA, to the same effect.

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iehi-feed-61479 Fri, 13 Jan 2017 19:37:51 GMT Do Russians Really Have Something on Trump? Israelis Have Apparently Been Convinced So... http://implode-explode.com/viewnews/2017-01-13_DoRussiansReallyHaveSomethingonTrumpIsraelisHaveApparentlyBeenCo.html Ynet in Israel is reporting that Israeli intelligence officials are deciding not to share intelligence with the incoming Trump administration. The report indicates they came to this conclusion after a recent meeting with American intelligence officials, who told them the Russians have "leverages of pressure" to use against Trump.

This is an extraordinary story. If our intelligence community really believes this, then playtime is over.

No more Clapper-style hedging or waffling. If Israel gets to hear why they think Trump is compromised, how is the American public not also so entitled?

But if all they have are unverifiable rumors, they can't do this, not even to Donald Trump.

The only solution is an immediate unveiling of all the facts and an urgent public investigation. A half-assed whispering campaign a week and a half from a Trump presidency, with BuzzFeed at the center of the action, isn't going to cut it. We need to know what the likes of Clapper and Comey know, and we need it all now, before it's too late.

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iehi-feed-61478 Fri, 13 Jan 2017 17:33:07 GMT Core Retail Sales Growth Weakest In Almost 3 Years (CONTRADICTING NRF'S RAH-RAH REPORT) http://implode-explode.com/viewnews/2017-01-13_CoreRetailSalesGrowthWeakestInAlmost3YearsCONTRADICTINGNRFSRAHRA.html Earlier this week Bank of America warned that December retail sales could come in weaker than expected, when it looked at its internal credit and debt card spending data and found a 1.0% drop. Moments ago the official data released from the Dept of Commerce confirmed that once again BofA was right, when it announced that in December, US retail spending rose 0.6%, below the expected 0.7%, however much of this was thanks to spending on cars and gas. If one excludes autos, the rise was only 0.2%, below the 0.5% expected, and if one also excludes gas, there was no increase in spending in December whatsoever.

Meanwhile, the National Retail Federation is in full-on party-hats mode, trumpeting Holiday Sales Outpace Forecast Despite Department-Store Woes. We have a guess at what the true reality is...

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iehi-feed-61477 Fri, 13 Jan 2017 17:27:38 GMT US wholesale prices rise 0.3 pct., led by costlier gas, food http://implode-explode.com/viewnews/2017-01-13_USwholesalepricesrise03pctledbycostliergasfood.html December's gain was led by a big climb in wholesale gas prices, which rose 7.8 percent. Food prices increased 0.7 percent, with chicken eggs, a volatile category, jumping 69.3 percent. Fresh fruits and melons, which soared last month, declined by the most in more than six years.

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Consumers have seen higher prices in housing and health care in recent months. That's pushed up core consumer prices, which exclude food and energy, by 2.1 percent in the past year.

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iehi-feed-61476 Fri, 13 Jan 2017 16:51:16 GMT Millennials are falling behind their boomer parents http://implode-explode.com/viewnews/2017-01-13_Millennialsarefallingbehindtheirboomerparents.html With a median household income of $40,581, millennials earn 20 percent less than boomers did at the same stage of life, despite being better educated, according to a new analysis of Federal Reserve data by the advocacy group Young Invincibles.

The analysis being released Friday gives concrete details about a troubling generational divide that helps to explain much of the anxiety that defined the 2016 election. Millennials have half the net worth of boomers. Their home ownership rate is lower, while their student debt is drastically higher.

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The declining fortunes of millennials could impact boomers who are retired or on the cusp of retirement. Payroll taxes from millennials helps to finance the Social Security and Medicare benefits that many boomers receive -- programs that Trump has said won't be subject to spending cuts. And those same boomers will need younger generations to buy their homes and invest in the financial markets to protect their own savings.

But... but... but... but... isn't the answer to all economic problems "more education"?? Seriously, though -- this issue of millennials not socking-away enough to continue to float social security and the financial markets is a HUGE (yooge?), un-appreciated one...

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iehi-feed-61475 Fri, 13 Jan 2017 16:42:22 GMT Wells Fargo profit falls after sales scandal http://implode-explode.com/viewnews/2017-01-13_WellsFargoprofitfallsaftersalesscandal.html Wells Fargo & Co. reported a decline in fourth-quarter profit as moves in interest rates, a falloff in mortgage revenue and the bank's recent sales-tactics scandal weighed on the nation's third-largest bank.

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Since the scandal, new retail banking business such as customer checking account openings and credit card applications have fallen dramatically, including a drop of 40% and 43%, respectively, in December from a year ago.

Overall profits at Wells Fargo's community banking division, which includes the unit responsible for the questionable sales tactics, were $2.73 billion, a 15% decrease from the $3.3 billion it earned in the fourth quarter of 2015.

The scandal has boosted expenses, which are likely to remain high for some time. Wells Fargo CEO Timothy Sloan has said the bank expects to spend tens of millions of dollars to get through investigations and other regulatory matters related to its sales-practices scandal. Wells faces a spate of state and federal investigations, including by the Justice Department and the Securities and Exchange Commission.

Making matters worse, the higher costs come as interest rates remain at relatively low levels, despite a recent uptick. The result of this combination: Wells Fargo's return on equity continues to grind lower in the fourth quarter, at 10.94%, its lowest level in years.

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iehi-feed-61474 Fri, 13 Jan 2017 16:36:50 GMT Germany's Wolfgang Schaeuble urges ECB to start unwinding stimulus this year http://implode-explode.com/viewnews/2017-01-13_GermanysWolfgangSchaeubleurgesECBtostartunwindingstimulusthisyea.html The European Central Bank should start unwinding its ultra-loose monetary policy this year, German Finance Minister Wolfgang Schaeuble said in an interview to be published on Friday, adding that it would not be easy.

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He said forecasts that inflation could reach 3 percent in Germany this year would exacerbate concerns about current low interest rates.

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The conservative minister said it would take a great effort to convince German citizens that the common currency provided more employment, social and business benefits than risks and negative consequences.

To help Germany make the argument, he said it was essential that Italy and other countries stuck to the agreed rules.

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iehi-feed-61473 Fri, 13 Jan 2017 16:35:17 GMT Edwards: ‘Waste of time' to save Italian bank; Get Italy Out of Euro http://implode-explode.com/viewnews/2017-01-13_EdwardsWasteoftimetosaveItalianbankGetItalyOutofEuro.html