Implode-Explode Heavy Industries news feed http://implode-explode.com/ Tracking the many faces of the global credit implosion. en-us iehi-feed-59881 Wed, 25 May 2016 23:56:47 GMT Fannie And Freddie Are Mega-Frauds; Still Have Not Digested Derivatives & Accounting Losses From Crash http://implode-explode.com/viewnews/2016-05-25_FannieAndFreddieAreMegaFraudsStillHaveNotDigestedDerivativesAcco.html iehi-feed-59880 Wed, 25 May 2016 23:35:59 GMT Precious Metals: Fake-Rally Ends, Hostage Markets Return http://implode-explode.com/viewnews/2016-05-25_PreciousMetalsFakeRallyEndsHostageMarketsReturn.html In the real world, the quantity of investment dollars going into silver is roughly parallel to the quantity of dollars going into gold. Had a similar ratio of investor dollars entered the bankers "paper bullion" markets the price of silver would have had to rise roughly 20 times faster/higher than the price of gold during this supposed rally.

The notion, in this "precious metals rally", that no one was buying silver is patently absurd. The price of silver during most of this fake-rally wasn't merely improbable, it was impossible.

... the Big Bank crime syndicate remains totally in control of what we call our "markets" (for lack of a better word). Currency prices remain fixed (rigged). Equity market prices remain fixed (rigged). Bond market prices remain fixed (rigged). Are we to believe that the banksters simply 'forgot' to continue their precious metals price-fixing -- even as the mainstream media was shouting the word "rally" at the top of its lungs?

...

The current eight-year, bubble-and-crash cycle manufactured by the Big Banks is nearing its end. When this Next Crash is detonated, this crime syndicate obviously doesn't want precious metals to stand out as "safe havens" -- as all of their corrupt, paper assets are plunging in value. The problem: with gold and silver already at rock-bottom prices at the beginning of 2016, it would have been very difficult to crash those markets (along with everything else). Thus the banksters need to march gold and silver prices higher, to some modest level, before they were set up to be crashed along with all other asset classes.

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iehi-feed-59879 Wed, 25 May 2016 23:30:51 GMT DoubleLine's Gundlach: U.S. stock market is 'dead money' http://implode-explode.com/viewnews/2016-05-25_DoubleLinesGundlachUSstockmarketisdeadmoney.html iehi-feed-59878 Wed, 25 May 2016 16:48:05 GMT Eurozone hails 'breakthrough' with Greece, IMF debt deal http://implode-explode.com/viewnews/2016-05-25_EurozonehailsbreakthroughwithGreeceIMFdebtdeal.html The euro zone gave Greece its firmest offer yet of debt relief in what finance ministers called a breakthrough deal that won a commitment from the IMF finally to return to taking part in the bailout for Athens.

After talks that lasted into the small hours of Wednesday, the Eurogroup ministers gave a nod to releasing 10.3 billion euros (£8 billion) in new funds for Greece in recognition of painful fiscal reforms pushed through by Prime Minister Alexis Tsipras's leftist-led coalition, subject to some final technical tweaks.

But a bigger step forward was a deal by which the euro zone agreed to offer Athens debt relief in 2018 if that is necessary to meet agreed criteria on its payments burden. That was enough to secure an agreement from the International Monetary Fund to again join the euro zone in funding the bailout of Greece.

... the Fund made a big concession by agreeing that the debt relief would only be finally decided in 2018, rather than up-front, as was the IMF's initial position.

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iehi-feed-59877 Wed, 25 May 2016 16:41:06 GMT SWIFT Announces New Security Plan To Combat High-Level Bank Heists http://implode-explode.com/viewnews/2016-05-25_SWIFTAnnouncesNewSecurityPlanToCombatHighLevelBankHeists.html To help repair its damaged reputation, the Society for Worldwide Interbank Financial Telecommunication (SWIFT) announced on Tuesday (May 24) that it plans to launch a new security plan to help combat ongoing bank heists.

Reuters reported that SWIFT CEO Gottfried Leibbrandt confirmed the global interbank messaging system will introduce a new five-point plan this week. During a financial services conference in Brussels, Leibbrandt also noted that the Bangladesh Bank heist was a "watershed event for the banking industry."

"There will be a before and an after Bangladesh. The Bangladesh fraud is not an isolated incident ... This is a big deal. And it gets to the heart of banking," he continued.''

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iehi-feed-59876 Wed, 25 May 2016 14:29:23 GMT Donald Trump is going to win: This is why Hillary Clinton can't defeat what Trump represents http://implode-explode.com/viewnews/2016-05-25_DonaldTrumpisgoingtowinThisiswhyHillaryClintoncantdefeatwhatTrum.html iehi-feed-59875 Wed, 25 May 2016 14:18:35 GMT For First Time in Modern Era, Living With Parents Edges Out Other Living Arrangements for 18- to 34-Year-Olds | Pew report http://implode-explode.com/viewnews/2016-05-25_ForFirstTimeinModernEraLivingWithParentsEdgesOutOtherLivingArran.html In 2014, for the first time in more than 130 years, adults ages 18 to 34 were slightly more likely to be living in their parents' home than they were to be living with a spouse or partner in their own household

... trends in both employment status and wages have likely contributed to the growing share of young adults who are living in the home of their parent(s), and this is especially true of young men. Employed young men are much less likely to live at home than young men without a job, and employment among young men has fallen significantly in recent decades. The share of young men with jobs peaked around 1960 at 84%. In 2014, only 71% of 18- to 34-year-old men were employed. Similarly with earnings, young men's wages (after adjusting for inflation) have been on a downward trajectory since 1970 and fell significantly from 2000 to 2010. As wages have fallen, the share of young men living in the home of their parent(s) has risen.

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iehi-feed-59874 Wed, 25 May 2016 01:15:20 GMT Mortgage Borrowers Are Likely "Self-Sidelining" http://implode-explode.com/viewnews/2016-05-24_MortgageBorrowersAreLikelySelfSidelining.html "Thus, the observed decline in originations could be a result of potential applicants being either too cautious or discouraged from applying, more so than tight underwriting as the culprit in lower mortgage activity."

She suggests that this caution results in "self-sidelining" that makes it appear that credit is tightening.  This means that the policy solutions are quite different than if the cause was credit tightening and that more consumer education could be more successful in raising originations levels than introducing new lending products with lower credit standards.  

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iehi-feed-59873 Tue, 24 May 2016 17:55:52 GMT US court re-opens door to private Libor claims http://implode-explode.com/viewnews/2016-05-24_UScourtreopensdoortoprivateLiborclaims.html US appeals court has opened the door for more claims against the big banks for rigging benchmark interest rates, by overturning a three-year-old ruling which threw out a host of private antitrust-related lawsuits.

Monday's decision by the 2nd US Circuit Court of Appeals in Manhattan could be a setback for the likes of Bank of America, JPMorgan Chase and Citigroup, which had hoped that most of the wave of post-crisis litigation was behind them.

The decision reverses a lower court decision from 2013, in which US District Judge Naomi Reice Buchwald dismissed claims on the grounds that the plaintiffs had failed to plead antitrust injury.

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The lawsuits had accused 16 major banks of collusion in manipulating the London interbank offered rate, or Libor, which approximates the average rate at which a select group of banks can borrow money. Beginning in 2007, the plaintiffs argued, the banks engaged in a horizontal price-fixing conspiracy, with each submitting an artificially low cost of borrowing US dollars in order to drive Libor down.

... the appeals court on Monday disagreed and sent the case back to the lower court for further proceedings. A three-judge panel found that price-fixing was an antitrust violation in itself, and therefore needed no separate plea of harm.

...

In its verdict, the appeals court panel made use of damning extracts from banks' chat rooms, which emerged as evidence collected in governmental investigations. In one, one RBS trader gloated: "It's just amazing how Libor fixing can make you that much money . . . it's a cartel now in London."

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iehi-feed-59872 Tue, 24 May 2016 17:52:21 GMT U.S. new home sales race to eight-year high, prices surge http://implode-explode.com/viewnews/2016-05-24_USnewhomesalesracetoeightyearhighpricessurge.html iehi-feed-59871 Tue, 24 May 2016 17:40:23 GMT Clinton Foundation: Rife With "Sloppy" Accounting, Despite Major Auditors http://implode-explode.com/viewnews/2016-05-24_ClintonFoundationRifeWithSloppyAccountingDespiteMajorAuditors.html "For three years in a row beginning in 2010, the Clinton Foundation reported to the IRS that it received zero in funds from foreign and U.S. governments, a dramatic fall-off from the tens of millions of dollars in foreign government contributions reported in preceding years.

"Those entries were errors, according to the foundation: several foreign governments continued to give tens of millions of dollars toward the foundation's work on climate change and economic development through this three-year period."

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iehi-feed-59870 Tue, 24 May 2016 17:38:49 GMT Hillary Pimped Fracking http://implode-explode.com/viewnews/2016-05-24_HillaryPimpedFracking.html iehi-feed-59869 Tue, 24 May 2016 16:17:22 GMT Negative Rates Prompt Japan Banks to Seek Protection Via Derivatives http://implode-explode.com/viewnews/2016-05-24_NegativeRatesPromptJapanBankstoSeekProtectionViaDerivatives.html Japanese banks are getting hurt as the negative-rate policy compresses their lending margins, with the top-three firms including Mitsubishi UFJ Financial Group Inc. forecasting this month that net income will fall a combined 5.2 percent in the year started April 1. The BOJ's radical stimulus has already dragged yields on more than 70 percent of Japanese government bonds to below zero, meaning that investors will have to effectively pay a fee to hold such debt to maturity.

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Companies that borrow at floating rates may also be able to use floor options to ensure that interest-rate swaps they use to hedge against rising rates don't end up costing them due to negative rates, Takahashi said. Actual trades of such derivatives are still not that common because the contracts are expensive to buy now, he said.

"It will be hard to price these options unless we get more liquidity," said Tateo Komatsu, a deputy general manager of global markets at Sumitomo Mitsui Trust Bank Ltd. "It will take time for the market to get used to minus rates."

There's no free lunch, so it's not exactly clear how these options will spare banks the pain. After all, options cost something.

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iehi-feed-59868 Tue, 24 May 2016 16:14:26 GMT Cryan Says Deutsche Bank ‘Disappointed' as Moody's Cuts Rating http://implode-explode.com/viewnews/2016-05-24_CryanSaysDeutscheBankDisappointedasMoodysCutsRating.html iehi-feed-59867 Tue, 24 May 2016 16:12:33 GMT Coppola: IMF Predicts Unemployment In Greece Will Fall To 12 Percent....By 2040 http://implode-explode.com/viewnews/2016-05-24_CoppolaIMFPredictsUnemploymentInGreeceWillFallTo12PercentBy2040.html iehi-feed-59866 Tue, 24 May 2016 15:58:37 GMT Bitcoin Catches On With Gold Bugs http://implode-explode.com/viewnews/2016-05-24_BitcoinCatchesOnWithGoldBugs.html Bitcoin has become "a store of value for those concerned about other asset classes," said Gil Luria, head of technology research at Wedbush Securities. "Gold used to be the only refuge for those who have grave concerns over the global economy and monetary system."

...

Some are more bullish on the technology that underpins bitcoin than the digital asset itself. Peter Grosskopf, chief executive of Sprott Inc., said the blockchain system--a data structure that makes it possible to create and share a digital ledger of transactions--behind cryptocurrencies has the potential to improve gold transactions. But he doesn't see any tangible value in bitcoin.

"We will invest in the digitization of gold, but we're going to stick with gold," Mr. Grosskopf said.

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Murray Stahl, chief investment officer of Horizon Kinetics, which manages $6 billion in assets, said as bitcoin becomes more established, he plans to buy more cryptocurrencies in place of gold.

Horizon Kinetics holds shares of Bitcoin Investment Trust, the first publicly traded bitcoin investment vehicle. Mr. Stahl said his exposure to bitcoin comprises between 0.5% and 1% in several portfolios, compared with 3% to 4% holdings in gold-related securities.

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iehi-feed-59865 Tue, 24 May 2016 15:56:29 GMT The IMF and calling Berlin's bluff over Greece http://implode-explode.com/viewnews/2016-05-24_TheIMFandcallingBerlinsbluffoverGreece.html Pepare for some tense moments in the next few weeks and months as Greece and its creditors struggle to agree the first review of last year's bailout... The International Monetary Fund has concluded that Greek public debt, at 180 per cent of gross domestic product, is unsustainable; as is the agreed annual primary budget surplus, before interest payments, of 3.5 per cent of GDP. The fund insists on debt relief, but Germany resists.

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In private, senior German government officials agree that Athens needs debt relief. They are not blind. But they are trapped in the lie that Greece is solvent, which is what their own backbenchers were told. Without that lie, Greece would no longer be a eurozone member. But the lie cannot be sustained.

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[The IMF] wants to come clean now; or as an official recently told me it wants to regain its lost virginity. In doing so, it would restore its reputation and call Berlin's bluff. There is, of course, a risk this stand-off would trigger another euro­zone crisis. Ms Merkel has good reason not to let the situation escalate.

A Greek debt writedown might not be popular in the Bundestag but another eurozone crisis would be a political disaster for her. It would expose the dishonesty of her eurozone rescue strategy. I see no chance of her risking a Grexit at a point when her deal with Turkey to host refugees who reach Greece is on the verge of collapse.

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My conclusion is that a credible threat by the IMF to pull the plug on its participation in a Greek bailout could force the Europeans, and the Germans in particular, to come clean.

If the Europeans want to continue their path of "extend and pretend", extending the loans and pretending Greece is solvent, so be it. But it should at least be their own money they pour in. In this case they should buy out the IMF bailout loans to Athens, which means taking over the fund's credits to Greece.

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iehi-feed-59864 Tue, 24 May 2016 13:08:41 GMT MFI-Miami Attorney Gets Miami Judge To Toss Student Loan Debt http://implode-explode.com/viewnews/2016-05-24_MFIMiamiAttorneyGetsMiamiJudgeToTossStudentLoanDebt.html iehi-feed-59863 Mon, 23 May 2016 17:43:21 GMT Bank of America wins reversal of $1.27 billion penalty in Countrywide "Hustle" mortgage case http://implode-explode.com/viewnews/2016-05-23_BankofAmericawinsreversalof127billionpenaltyinCountrywideHustlem.html A U.S. appeals court on Monday overturned a jury's finding that Bank of America Corp was liable for mortgage fraud leading up to the 2008 financial crisis, tossing a $1.27 billion penalty and dealing the U.S. Justice Department a major setback.

The 2nd U.S. Circuit Court of Appeals in New York ruled that the proof was insufficient under federal fraud statutes to establish liability in connection with a mortgage program called "Hustle" run by the former Countrywide Financial Corp.

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But U.S. Circuit Judge Richard Wesley said the evidence at most showed Countrywide breached contracts to sell Fannie and Freddie loans of a specified quality, but that no proof existed to show it intended to deceive the buyers when those contracts were executed.

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The Justice Department contended the program rewarded staff for generating more mortgages and emphasizing speed over quality and resulted in Fannie Mae and Freddie Mac being lied to about the quality of loans they bought.

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iehi-feed-59862 Mon, 23 May 2016 17:40:51 GMT The "Doom Loop Is Coming Back" - Deutsche Bank http://implode-explode.com/viewnews/2016-05-23_TheDoomLoopIsComingBackDeutscheBank.html