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-60323 Thu, 28 Jul 2016 15:09:36 GMT Can the World Deal With a New Bank Crisis? - Satyajit Das http://implode-explode.com/viewnews/2016-07-28_CantheWorldDealWithaNewBankCrisisSatyajitDas.html As Europe braces for the release of its bank stress tests on Friday, the world could be on the verge of another banking crisis. The signs are obvious to all. The World Bank estimates the ratio of non-performing loans to total gross loans in 2015 reached 4.3 percent. Before the 2009 global financial crisis, they stood at 4.2 percent.

If anything, the problem is starker now than then: There are more than $3 trillion in stressed loan assets worldwide, compared to the roughly $1 trillion of U.S. subprime loans that triggered the 2009 crisis. European banks are saddled with $1.3 trillion in non-performing loans, nearly $400 billion of them in Italy. The IMF estimates that risky loans in China also total $1.3 trillion, although private forecasts are higher. India's stressed loans top $150 billion.

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To make matters worse, the world's limp recovery since 2009 is intensifying loan stresses. In advanced economies, low growth and disinflation or deflation is making it harder for companies to pay off what they owe. Many European firms are suffering from a lack of global competitiveness, exacerbated by the effects of the single currency.

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Current monetary policy is partly to blame. Zero or negative rates drive down bank lending rates more than deposit rates, which can't be cut because of the need to maintain deposits and comply with regulatory requirements for stable funding.

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iehi-feed-60322 Thu, 28 Jul 2016 15:04:55 GMT Schäuble "bails out" Spain, Portugal (In attempt to defuse political rebellions) http://implode-explode.com/viewnews/2016-07-28_SchublebailsoutSpainPortugalInattempttodefusepoliticalrebellions.html By the time the so-called College of Commissioners gathered mid-morning on Wednesday, the sentiment in the room had shifted away from coming down on Spain and Portugal. "That is having an impact," a source in the room wrote during the deliberations, referring to Schäuble's intervention.

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Officials pointed to various political reasons for Schäuble's move. Primarily, the de facto number two in Germany's government doesn't want to hurt an ally in Mariano Rajoy, the center-right Spanish leader who is struggling to put together a government after last month's elections. With France and Italy in the hands of the Left, Germany's CDU-led coalition prefers to see a fellow conservative take power in the eurozone's fourth-largest economy. During his conversations at the G20 in China, Schäuble stressed the need for "political stability" in southwestern Europe, according to someone familiar with the conversation. Portugal's leftist government got a free ride on the Schäuble train.

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iehi-feed-60321 Thu, 28 Jul 2016 14:56:24 GMT Insanity In Japan http://implode-explode.com/viewnews/2016-07-28_InsanityInJapan.html iehi-feed-60320 Thu, 28 Jul 2016 14:45:46 GMT U.S. diplomatic strategy on South China Sea appears to founder http://implode-explode.com/viewnews/2016-07-28_USdiplomaticstrategyonSouthChinaSeaappearstofounder.html Yet after the international court rejected Beijing's position, the U.S. calls for a united front appear to have made little headway, with only six countries joining Washington in insisting that the decision should be binding.

They include the Philippines, but not several other countries with their own claims to parts of the South China Sea that might benefit if Beijing observed the decision.

China also scored a major diplomatic victory earlier this week, when the Association of Southeast Asian Nations (ASEAN) dropped any reference to the ruling from a joint statement at the end of a meeting of the 10-country group's foreign minister in Laos. This followed objections from Cambodia, Beijing's closest ASEAN ally.

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"... the international community has voted by not saying anything. The consensus seems to be 'We don't care. We don't want to hold China to these standards.'" [said Greg Poling, a South China Sea expert at Washington's Center for Strategic and International Studies think-tank.]

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iehi-feed-60319 Thu, 28 Jul 2016 14:42:47 GMT San Fran's Lending Standards Put The Last Housing Bubble To Shame http://implode-explode.com/viewnews/2016-07-28_SanFransLendingStandardsPutTheLastHousingBubbleToShame.html iehi-feed-60318 Thu, 28 Jul 2016 01:53:08 GMT Sudden Spike - Trend Reversal and Record Swiss Gold Flow Into The United States http://implode-explode.com/viewnews/2016-07-27_SuddenSpikeTrendReversalandRecordSwissGoldFlowIntoTheUnitedState.html iehi-feed-60317 Thu, 28 Jul 2016 01:26:31 GMT Cameron was right, Britain is broken. But it's businessmen who are to blame http://implode-explode.com/viewnews/2016-07-27_CameronwasrightBritainisbrokenButitsbusinessmenwhoaretoblame.html In Brexit Britain, one of the most important contracts between businesses and the public has been broken. Companies increasingly rely on the public to pay their way: to top up wages with benefits and public services, and billions in subsidies and grants and tax reliefs. What goes with that is another broken contract: the one that says work always pays. From Norman Tebbit to Brown to IDS, that idea has been central to employment and welfare policy. It is now dead. As the Institute for Fiscal Studies said last week: "The new poor tend to live in households where there is someone in work." This is a fact that those at the bottom of the labour market have known for years, but is only now working its way into the minds of policymakers.

Cameron warned of "the slow-motion moral collapse that has taken place in parts of our country these past few generations". He was right. It's just that it's been led by those at the top -- the ones at the boardroom tables, their expensive helpers -- and their mates and supporters in politics using taxpayer money to wave them on.

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iehi-feed-60316 Wed, 27 Jul 2016 22:05:29 GMT IRS Launches Investigation Of Clinton Foundation, At Behest of Congress http://implode-explode.com/viewnews/2016-07-27_IRSLaunchesInvestigationOfClintonFoundationAtBehestofCongress.html The [World Bank's] IFC also awarded $150 million to another company owned by Frank Giustra, a close friend of Bill Clinton. Giustra donated $100 million to create the "Clinton Giustra Enterprise Partnership" within the Clinton Foundation... Giustra also was an owner in Uranium One, a uranium mining company with operations in Kazakhstan and in the western United States. Giustra wanted to sell a share of the uranium business to Russia's atomic energy agency, which required U.S. approval, including that of Secretary Clinton. The Russian investment was approved.

Blackburn added that it appeared the Clinton Foundation -- which was tax-exempt only to construct and manage Clinton's presidential library -- never got IRS approval to become a tax-exempt global organization with operations in Africa, Asia, Latin America, the Pacific and the Caribbean.

"In the Clinton Foundation we have a charity that has never filed the appropriate paperwork," [Rep.] Blackburn charged.

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iehi-feed-60315 Wed, 27 Jul 2016 19:42:57 GMT Fed Says Risks Have Diminished, Yet Leaves Rate Unchanged http://implode-explode.com/viewnews/2016-07-27_FedSaysRisksHaveDiminishedYetLeavesRateUnchanged.html "Near-term risks to the economic outlook have diminished," the Federal Open Market Committee said in its statement Wednesday after a two-day meeting in Washington, before repeating language from June that the panel "continues to closely monitor" inflation and global developments. Job gains were "strong" in June and indicators "point to some increase in labor utilization in recent months," the Fed said.

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"It's kind of an upbeat statement, although guarded," said Roberto Perli, partner at Cornerstone Macro LLC in Washington and former associate director for monetary affairs at the Fed Board. "It's a sign of a little bit of confidence, if you want, in the outlook going forward."

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Data since the Fed's June meeting indicate "that the labor market strengthened and that economic activity has been expanding at a moderate rate," the Fed said. The statement contained three references to recent improvement in the labor market.

The market seems to be wondering why the Fed didn't hike if the data is looking so good... the read might be that this is confirmation that, "yes, the Fed is constrained by the dollar"...

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iehi-feed-60314 Wed, 27 Jul 2016 18:19:34 GMT Behind The New Home Sales Data: A Darker Backdrop http://implode-explode.com/viewnews/2016-07-27_BehindTheNewHomeSalesDataADarkerBackdrop.html Sales have nearly doubled from the June 2010 and June 2011 lows of 28,000 to this June's 54,000. But this is still down sharply from the June 2005 peak of 115,000 units. At the same time, it barely exceeds the low of 47,000 reached in June 1991 and 53,000 in June 1992 during that recession...

From the 2002 recession until this year, nominal median household income has risen by approximately 32%, using estimated 2% increases for 2015 and this year, which is consistent with the BLS data on nominal wage growth. However, the rate of sales per million people has declined by almost 22% over that period

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iehi-feed-60313 Wed, 27 Jul 2016 14:52:15 GMT The Real Secret of the South China Sea http://implode-explode.com/viewnews/2016-07-27_TheRealSecretoftheSouthChinaSea.html And so we finally discover Rosebud -- the ultimate South China Sea "secret". China under Clinton's "rule-based regional and global order" effectively means that China must obey and keep the South China Sea open to the US Navy.

That spells out inevitable escalation further on down the sea lanes. China, slowly but surely, is developing an array of sophisticated weapons which could ultimately "deny" the South China Sea to the US Navy, as the Beltway is very much aware. 

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The US, for its part, is all about Exceptionalism and Manifest Destiny. As it stands, more than Russia's western borderlands, the Baltics or "Syraq", this is where the hegemon "rules" are really being contested. And the stakes couldn't be higher. That'll be the day when the US Navy is "denied" from the South China Sea; and that'll be the end of its imperial hegemony.

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iehi-feed-60312 Wed, 27 Jul 2016 13:39:17 GMT Hong Kong June exports fall for 14th month, Brexit to deepen pain http://implode-explode.com/viewnews/2016-07-27_HongKongJuneexportsfallfor14thmonthBrexittodeepenpain.html Hong Kong's total exports in June fell for the 14th straight month, dampened by a slowdown in China, with the city's factories bracing for more pain in coming months from the impact of Brexit.

Open and trade-dependent economies in Asia such as Hong Kong are expected to be among the most vulnerable to a slowdown in global trade from Britain's shock vote to leave the European Union as the effects filter through factory supply chains, analysts say.

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iehi-feed-60311 Wed, 27 Jul 2016 13:36:35 GMT Shadow banking understates overall China leverage, Moody's says http://implode-explode.com/viewnews/2016-07-27_ShadowbankingunderstatesoverallChinaleverageMoodyssays.html iehi-feed-60310 Wed, 27 Jul 2016 13:35:07 GMT Deutsche Bank's second-quarter net income plunges nearly 100% year-on-year http://implode-explode.com/viewnews/2016-07-27_DeutscheBankssecondquarternetincomeplungesnearly100yearonyear.html iehi-feed-60309 Wed, 27 Jul 2016 13:33:13 GMT Japan PM unveils $266 bn stimulus plan to boost economy http://implode-explode.com/viewnews/2016-07-27_JapanPMunveils266bnstimulusplantoboosteconomy.html iehi-feed-60308 Tue, 26 Jul 2016 19:58:23 GMT "Low Credibility" Federal Reserve gets ready to talk policy http://implode-explode.com/viewnews/2016-07-26_LowCredibilityFederalReservegetsreadytotalkpolicy.html Despite chatter from central bank leaders and speculation from the financial press about looming hikes, the market is becoming pretty immune to Fed saber-rattling.

Indeed, just seven months ago, the Fed was prepping investors for four rate hikes this year. Now the market is pricing in only a 2.4 percent chance of a move this week and a fairly low likelihood farther down the road.

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Multiple Wall Street pros have been talking up September in recent days, but the market gives just a 19.9 percent probability of a hike then. December is about a coin flip, with traders anticipating a funds rate of 0.47 percent from the current 0.4 percent. The CME says that equates to a 47.8 percent chance.

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Fed officials, however, continue to insist that rate hikes will be appropriate sometime soon.

Maybe it's time to introduce a Fed moniker for the Trump era: "Low-Cred Fed"!!!

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iehi-feed-60307 Tue, 26 Jul 2016 19:50:00 GMT ‘Impending gold production cliff' may deliver a jolt to prices http://implode-explode.com/viewnews/2016-07-26_Impendinggoldproductioncliffmaydeliverajolttoprices.html iehi-feed-60306 Tue, 26 Jul 2016 19:45:47 GMT Wall Street banks "need" to catch a break http://implode-explode.com/viewnews/2016-07-26_WallStreetbanksneedtocatchabreak.html Allowing banks to free up more capital for things like home loans would be a boost for banks, and for the U.S. economy, he added. Many market watchers have expressed concern that big banks are being regulated into utilities -- that is to say, saddled with enough requirements and boxes to check that they would face low margins in virtually any economy.

But regulators, for now, look determined to head in the opposite direction, which would create additional pressure on Wall Street.

... not everyone thinks banks deserve a break. Christopher Whalen, senior managing director at the Kroll Bond Rating Agency, said the banks are in a mess of their own making.

"It's puzzling why banks and nonbanks have positioned for higher interest rates," he said. "The notion you should position for higher rates is downright reckless."

From the looks of it, Wall Street won't have its expectations met in the way of higher rates in 2016. It isn't even clear a rate hike is coming this year at all. If one doesn't happen, that likely would mean big banks will miss projected return-on-capital estimates.

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iehi-feed-60305 Tue, 26 Jul 2016 18:52:41 GMT New legislation proposes to "bail in" Social Security http://implode-explode.com/viewnews/2016-07-26_NewlegislationproposestobailinSocialSecurity.html Even Social Security knows that they're bankrupt and unable to keep their promises to taxpayers.... Well, the government has figured out a solution. And it's genius. Two weeks ago a new bill was introduced on the floor of Congress...

It's called the SAVE UP Accounts Act, which stands for... . . . "Secure, Accessible, Valuable, Efficient Universal Pension Accounts Act"... the bill is slapping a 2% wage tax on employers. Funny thing, employers are already paying 6.2% to Social Security. So an additional 2% tax effectively constitutes a 32% proportional increase.

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And yet the best solution these people can come up with is to raise your taxes, steal more money, and establish a brand new government-run retirement fund. Their logic is unbelievable: "If at first you don't succeed, keep trying the same loser tactics.''

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iehi-feed-60304 Tue, 26 Jul 2016 17:44:29 GMT Miami Judge Throws Out Bitcoin Money Laundering Case http://implode-explode.com/viewnews/2016-07-26_MiamiJudgeThrowsOutBitcoinMoneyLaunderingCase.html