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-59926 Tue, 31 May 2016 21:43:12 GMT Dallas Fed Tumbles (Again) - 17th Consecutive Month Of Contraction http://implode-explode.com/viewnews/2016-05-31_DallasFedTumblesAgain17thConsecutiveMonthOfContraction.html iehi-feed-59925 Tue, 31 May 2016 21:39:30 GMT Alan Greenspan Warns That Venezuelan Style Martial Law Will Soon Come To The US http://implode-explode.com/viewnews/2016-05-31_AlanGreenspanWarnsThatVenezuelanStyleMartialLawWillSoonComeToThe.html iehi-feed-59924 Tue, 31 May 2016 21:37:36 GMT (Relatively) More in Debt Than Puerto Rico, the Virgin Islands Rejects Rescue http://implode-explode.com/viewnews/2016-05-31_RelativelyMoreinDebtThanPuertoRicotheVirginIslandsRejectsRescue.html The measure that passed a House committee last week would allow for a federal control board to oversee the finances -- and potentially restructure the debt -- of any U.S. territory, even though Puerto Rico is the only one now asking for help. Virgin Islands Governor Kenneth Mapp and Rep. Stacey Plaskett have blasted the bill, warning that it may tarnish its standing with investors. That concern is already starting to materialize: Returns on its securities are trailing the $3.7 trillion municipal market for the first time since 2011.

The Caribbean island, Puerto Rico's closest American neighbor, has a sliver of the population -- about 104,300 -- and a fraction of the debt, with $2.4 billion across all issuers. But divvied up, that's $23,000 of obligations per person, even more than Puerto Rico's $20,000. The two Caribbean territories with a shared culture also have similar fiscal strains: declining populations, underfunded pensions, histories of borrowing to cover budget shortfalls and unemployment rates that are twice as high as the U.S. mainland's.

... unlike some American local governments, the territories -- - American Samoa, Guam, Northern Mariana Islands, Puerto Rico and the U.S. Virgin Islands -- can't file for bankruptcy. That made investors confident they'd be paid back, a faith that was lost as Puerto Rico defaulted and Congress advanced legislation providing a way for distressed territories to reduce their debts in court if needed.

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iehi-feed-59923 Tue, 31 May 2016 17:26:53 GMT IMF Begins Distancing Itself From Neoliberalism http://implode-explode.com/viewnews/2016-05-31_IMFBeginsDistancingItselfFromNeoliberalism.html iehi-feed-59922 Tue, 31 May 2016 16:16:40 GMT Consumer Confidence Plunges To 10-Month Lows As Job Hope Fades http://implode-explode.com/viewnews/2016-05-31_ConsumerConfidencePlungesTo10MonthLowsAsJobHopeFades.html iehi-feed-59921 Tue, 31 May 2016 16:14:00 GMT Personal Spending Spikes Most Since Aug 2009, Savings Rate Plunges, As Fuel Costs Surge http://implode-explode.com/viewnews/2016-05-31_PersonalSpendingSpikesMostSinceAug2009SavingsRatePlungesAsFuelCo.html iehi-feed-59920 Tue, 31 May 2016 16:02:54 GMT Market Shocked By `Brexit' Poll Surprise http://implode-explode.com/viewnews/2016-05-31_MarketShockedByBrexitPollSurprise.html iehi-feed-59919 Tue, 31 May 2016 16:00:19 GMT Another Reason Obamacare is Self-Destructing: >100% Marginal Income "Cliff" http://implode-explode.com/viewnews/2016-05-31_AnotherReasonObamacareisSelfDestructing100MarginalIncomeCliff.html iehi-feed-59918 Tue, 31 May 2016 13:26:12 GMT Glitch in bailout talks fuels fears of delay in loan disbursement http://implode-explode.com/viewnews/2016-05-31_Glitchinbailouttalksfuelsfearsofdelayinloandisbursement.html There was fresh concern on Monday that there could be further delays in the disbursement of much-need bailout money to Greece owing to a disagreement between Athens and its creditors, who have demanded changes to prior actions passed in Parliament earlier this month... The country's lenders had given the green light for the disbursement of a tranche of 10.3 billion euros last week, on the condition the government made amendments to recent legislation it passed on pension, bad loans and privatizations.

However, Finance Minister Euclid Tsakalotos had informed the European Commission representative and the International Monetary Fund in a letter last week that their demands could not be met, neither could Athens fulfill the demands enshrined in the bailout deal signed last summer to privatize ADMIE, the country's grid operator, and to freeze the wages of essential services, like those of the coast guard and police.''

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iehi-feed-59917 Tue, 31 May 2016 13:24:09 GMT The Untold Story Behind Saudi Arabia's 41-Year U.S. Debt Secret http://implode-explode.com/viewnews/2016-05-31_TheUntoldStoryBehindSaudiArabias41YearUSDebtSecret.html With a handful of Treasury and Federal Reserve officials, the secret [of the amount of Saudia Arabia's official US Treasury holdings] was kept for more than four decades--until now. In response to a Freedom-of-Information-Act request submitted by Bloomberg News, the Treasury broke out Saudi Arabia's holdings for the first time this month after "concluding that it was consistent with transparency and the law to disclose the data," according to spokeswoman Whitney Smith. The $117 billion trove makes the kingdom one of America's largest foreign creditors.

Yet in many ways, the information has raised more questions than it has answered. A former Treasury official, who specialized in central bank reserves and asked not to be identified, says the official figure vastly understates Saudi Arabia's investments in U.S. government debt, which may be double or more.

The current tally represents just 20 percent of its $587 billion of foreign reserves, well below the two-thirds that central banks typically keep in dollar assets. Some analysts speculate the kingdom may be masking its U.S. debt holdings by accumulating Treasuries through offshore financial centers, which show up in the data of other countries.

...

Treasury officials solved the dilemma [of Saudi Arabia appearing to support Israel by way of buying US debt] by letting the Saudis in through the back door. In the first of many special arrangements, the U.S. allowed Saudi Arabia to bypass the normal competitive bidding process for buying Treasuries by creating "add-ons." Those sales, which were excluded from the official auction totals, hid all traces of Saudi Arabia's presence in the U.S. government debt market.

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iehi-feed-59916 Tue, 31 May 2016 13:14:15 GMT One-Minute Plunge Sends Chinese Stock Futures Down by 10% Limit http://implode-explode.com/viewnews/2016-05-31_OneMinutePlungeSendsChineseStockFuturesDownby10Limit.html Chinese stock-index futures plunged by the daily limit before snapping back in less than a minute, the second sudden swing to rattle traders this month. Contracts on the CSI 300 Index dropped as much as 10 percent at 10:42 a.m. local time, recovering almost all of their losses in the same minute.

...

The unexplained slump follows a similar drop in Hang Seng China Enterprises Index futures on May 16 in Hong Kong, a move that heightened anxiety among investors facing slower Chinese economic growth and a weakening yuan...

"Liquidity in the market is really thin at the moment," Fang Shisheng, Shanghai-based vice general manager at Orient Securities Futures Co., said by phone. "So the market will very likely see big swings if a big order comes in."

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iehi-feed-59915 Tue, 31 May 2016 13:11:14 GMT Mizuho Chief Warns of Japan Downgrade if Abe Delays Tax Hike http://implode-explode.com/viewnews/2016-05-31_MizuhoChiefWarnsofJapanDowngradeifAbeDelaysTaxHike.html The chief of Mizuho Financial Group Inc. said Japan risks a credit-rating downgrade if Prime Minister Shinzo Abe delays a scheduled sales-tax increase without explaining how the government plans to cut its deficit... "The worst scenario is [the government] will just announce a delay in the tax increase. That could send a message that Abenomics has failed or Japan is heading for a fiscal danger zone and then it will harm Japanese government bonds' credit ratings," Mr. Sato said in an interview, referring to the prime minister's growth program.

...

Moody's downgraded Japan's credit rating by one notch to A1 from Aa3, the same rating it has assigned to Israel and the Czech Republic, after Mr. Abe decided in November 2014 to delay the tax increase the first time.

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iehi-feed-59914 Mon, 30 May 2016 15:15:27 GMT The mystery of weak US productivity (WHEREIN ED LUCE SUBTLY TOUTS UBI HELICOPTER-MONEY) http://implode-explode.com/viewnews/2016-05-30_ThemysteryofweakUSproductivityWHEREINEDLUCESUBTLYTOUTSUBIHELICOP.html Productivity is the ultimate test of our ability to create wealth. In the short term you can boost growth by working longer hours, for example, or importing more people. Or you could lift the retirement age. After a while these options lose steam... recent studies -- and common sense -- say our iPhones chain us to our employers even when we are at leisure. We may thus be exaggerating productivity growth by undercounting how much we work.

The latter certainly fits with the experience of most of the US labour force. It is no coincidence that since 2004 a majority of Americans began to tell pollsters they expected their children to be worse off -- the same year in which the internet-fuelled productivity leaps of the 1990s started to vanish. Most Americans have suffered from indifferent or declining wages in the past 15 years or so. A college graduate's starting salary today is in real terms well below where it was in 2000. For the first time the next generation of US workers will be less educated than the previous, according to the OECD, which means worse is probably yet to come. Last week's US productivity report bears that out.

... the US and most of the west are stuck with a deepening productivity crisis. The slowdown has one manifest effect and a seductive remedy. The first, an embittered backlash against business as usual, is already upon us. Witness Donald Trump's ascent...

Imagine the US takes much the same course in the next ten years as it has over the last. That would mean a further corrosion of US infrastructure, continued relative decline in the quality of public education, and atrophying middle workforce skills. It would also hasten the breakaway of urban America's most gilded enclaves, further enriching the educated elites. It could also, quite possibly, trigger a breakdown in democratic order. If you think Mr Trump's rise is ominous, picture America after another decade like the last.

Which brings me to the remedy: a universal basic income. UBI has several plus points. It draws support from all parts of the ideological spectrum: libertarian and socialist alike. It would replace today's messy overlap of benefits and do away with the humiliation of proving your eligibility to federal bureaucrats. Most important of all, however, it would buy a measure of social peace. Today's stagnation may be temporary or lasting. We have no way of telling. Common sense dictates we must act as though it is here to stay.

It is very interesting that the Brahmins of opinion keep hammering on "universal basic income" as the remedy for wage inequality and the misery of the 90-ish-percent. Why not basic housing and food vouchers (extending measures that are already in place) and eliminate the EIC and income tax filing entirely for people under a reasonable income level? Why, more importantly, not abolish the central banking and top-heavy monetary system that is driving the worsening inequality? Most likely because the Brahmins want to leave this system in place, yet combine it with "helicopter money". They haven't given up yet on trying to force inflation into the decrepit system to "save" it, allowing it to limp on a few more years while all the underlying structural economy malady remains...

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iehi-feed-59913 Mon, 30 May 2016 15:01:32 GMT Iceland's Decoupling From Global Financial Capital Was The Right Move http://implode-explode.com/viewnews/2016-05-30_IcelandsDecouplingFromGlobalFinancialCapitalWasTheRightMove.html iehi-feed-59912 Mon, 30 May 2016 14:58:10 GMT Cameron Brexit Lies Prompt Conservative Party Rebellion; Calls For No-Confidence Vote (UK) http://implode-explode.com/viewnews/2016-05-30_CameronBrexitLiesPromptConservativePartyRebellionCallsForNoConfi.html Bridgen told the BBC's 5 Live that Cameron had been making "outrageous" claims in his bid to persuade voters to back remain and that, as a consequence, he had effectively lost his parliamentary majority.

"The party is fairly fractured, straight down the middle and I don't know which character could possibly pull it back together going forward for an effective government. I honestly think we probably need to go for a general election before Christmas and get a new mandate from the people," he said.

Bridgen said at least 50 Tory MPs -- the number needed to call a confidence vote -- felt the same way about Cameron and that a vote on the prime minister's future was "probably highly likely" after the referendum.

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iehi-feed-59911 Mon, 30 May 2016 14:55:06 GMT We're Already In A Bear Market: Charles Gave http://implode-explode.com/viewnews/2016-05-30_WereAlreadyInABearMarketCharlesGave.html iehi-feed-59910 Mon, 30 May 2016 02:54:19 GMT Silver Photovoltaic Needs Through 2020 Will Drive Shortage And Price Shock http://implode-explode.com/viewnews/2016-05-29_SilverPhotovoltaicNeedsThrough2020WillDriveShortageAndPriceShock.html After 2020, increasing silver demand will mean increasing rationing of the metal, which can only be done by via extraordinarily high prices. Of the world's major countries, only China seems to get the message and to be preparing for this eventuality, with China's recent silver imports soaring to five-year highs. Meanwhile, U.S. imports have stagnated.

Barring a miracle, silver prices are going to the moon, leaving the U.S. in a very difficult position. It would not surprise us one bit if silver is confiscated much like gold was during the Depression. This means, as was the case with gold, the best investments are likely to be silver producers. Over the next decade almost all credible silver producers could see their prices multiply by anywhere from 10- to 100-fold.

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iehi-feed-59909 Mon, 30 May 2016 02:43:54 GMT Bitcoin Skyrockets And Is Now Up More Than 100% This Jubilee Year http://implode-explode.com/viewnews/2016-05-29_BitcoinSkyrocketsAndIsNowUpMoreThan100ThisJubileeYear.html In [the past year], it has been pronounced dead at least once and is now at a 20-month high. We gave these three main reasons in the last year for why we thought it would go much higher. Still to this day most other financial analysts either ignore bitcoin or, even stupider, deride it as being some sort of scam or ponzi scheme.

The dollar and government "services" like Social Security are scams and ponzi schemes... but bitcoin clearly is not.  It is open source and so anyone who cares to look can see there is nothing nefarious about it.  Therefore, anyone who says it is a scam or ponzi scheme is just showing willful ignorance as they could very easily look at it themselves and see it is not.

Bitcoin was just declared "dead" again last week when Coinbase announced Ethereum support. Big whoop. We're not slamming Etherum (it is by all accounts great tech with wonderful potential) -- but that news was good for about a $20 "collapse"... on the 28th alone, bitcoin surged about $50. It is far from down for the count and may still be in the early innings.

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iehi-feed-59908 Mon, 30 May 2016 01:48:30 GMT 200M drive over structurally deficient bridges daily this Memorial Day http://implode-explode.com/viewnews/2016-05-29_200MdriveoverstructurallydeficientbridgesdailythisMemorialDay.html iehi-feed-59907 Sun, 29 May 2016 19:02:55 GMT Last Time this Happened, the Housing Market Collapsed http://implode-explode.com/viewnews/2016-05-29_LastTimethisHappenedtheHousingMarketCollapsed.html According to the Times: "Many say the sudden surge in hyperprice homes -- often built and sold by speculative investors -- is the ultimate bubble signal." And when was the last time this sort of pile-up happened? In 2007 and 2008, just as the housing market was beginning to spiral down and as the Financial Crisis was beginning to mature. So now, the same signs are popping up once again.

While overall home prices were still soaring in the first quarter, at the top 5% of the housing market, the bubble has begun to deflate, with prices down 1.1%, according to Redfin. In some cities, the very top end is starting to take some hits, including in Manhattan where a luxury condo boom has turned into a glut, and where prices have begun to sag.

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