Implode-Explode Heavy Industries news feed http://implode-explode.com/ Tracking the many faces of the global credit implosion. en-us iehi-feed-65168 Fri, 24 Jan 2020 23:42:58 GMT Why the coronavirus outbreak could trigger a stock-market pullback http://implode-explode.com/viewnews/2020-01-24_Whythecoronavirusoutbreakcouldtriggerastockmarketpullback.html The percentage of respondents with a bullish view in the survey rose to 59.4%, while the American Association of Individual Investors' survey saw its bullish percentage rise to 45.6%. Those are the highest bullish readings for both measures since October 2018, said Tony Dwyer, analyst at brokerage Canaccord Genuity, in a Friday note.

Dwyer, a long-term market bull who earlier this week said it was time to take the "offense temporarily off the field" and tactically move to a neutral position on stocks, highlighted a breakdown in the three-month correlation between individual S&P 500 components and the index, which fell to its lowest level since the first week of October 2018.

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iehi-feed-65167 Fri, 24 Jan 2020 21:52:07 GMT JPMorgan Chase Alert! Can JPM-Chase Validate Your Mortgage? http://implode-explode.com/viewnews/2020-01-24_JPMorganChaseAlertCanJPMChaseValidateYourMortgage.html iehi-feed-65166 Fri, 24 Jan 2020 20:23:57 GMT Someone Made A Killing on Futures Contracts In Advance of Solemani's (Actual) Killing (A KIND OF "LEAK" TRUMP LIKES??) http://implode-explode.com/viewnews/2020-01-24_SomeoneMadeAKillingonFuturesContractsInAdvanceofSolemanisActualK.html iehi-feed-65165 Fri, 24 Jan 2020 01:15:28 GMT Ex-Wells Fargo CEO John Stumpf barred from industry, to pay $17.5M for sales scandal http://implode-explode.com/viewnews/2020-01-23_ExWellsFargoCEOJohnStumpfbarredfromindustrytopay175Mforsalesscan.html ``The U.S. government announced Thursday that former Wells Fargo CEO John Stumpf has been banned from ever working at a bank again and will pay $17.5 million for scandals in which millions of fake accounts were set up to meet sales quotas.

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In addition to the $17.5 million fine, Stumpf's settlement declares he shall not participate "in any manner" at any bank regulated by the OCC or participate or attempt to participate in a bank's corporate board votes.

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The nation's fourth-largest bank, Wells Fargo has remained muddled in restructuring and regulatory reforms since 2016 stemming from the scandals at its consumer-facing community bank.

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iehi-feed-65164 Fri, 24 Jan 2020 00:21:05 GMT NYC City Council Passes Bill Requiring Restaurants & Other Retail Businesses To Accept Cash http://implode-explode.com/viewnews/2020-01-23_NYCCityCouncilPassesBillRequiringRestaurantsOtherRetailBusinesse.html "We in the Council have real concerns that an increasingly cashless marketplace could have a real-world discriminatory effect on the most vulnerable New Yorkers," said the bill's sponsor, Councilmember Ritchie Torres, in a phone interview. "There are some people, especially senior citizens...who prefer cash as a habitual method of payment. There are some who prefer cash because it's more predictable. Or they're concerned about privacy."

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The bill imposes civil penalties: $1,000 for the first violation, and $1,500 for additional violations. Businesses that have a way to convert cash into cards -- say, laundromats -- are exempt, but they must not impose a fee for the cards or require a minimum deposit more than $1, and the cards cannot expire.

Crypto-based consumer kiosk cards would be a good application for this.

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iehi-feed-65163 Thu, 23 Jan 2020 18:35:30 GMT Did Donald and Ivanka Trump plunder inauguration funds? Suit filed by D.C. AG says 'yes' http://implode-explode.com/viewnews/2020-01-23_DidDonaldandIvankaTrumpplunderinaugurationfundsSuitfiledbyDCAGsa.html The civil complaint, filed on behalf of the District of Columbia by D.C. Attorney General Karl Racine, details the objections of staffers to exorbitant pricing for the use of Trump's Washington, D.C., hotel ballroom space

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Trump's inaugural committee agreed to a contract that would enrich the Trumps at a rate of $175,000 per day--more than twice the amount per day that Wolkoff told Ivanka and Rick Gates, the deputy to the inaugural chairman, should be paid--for the use of their own space. According to the lawsuit, the charges included rental fees for days when the Trumps weren't throwing any events.

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The stories of financial fraud carried out by Trump and his inaugural committee have slowly dribbled out over the past couple of years. Big-ticket items are being investigated by federal prosecutors in New York, with subpoenas getting sent out as investigators try to figure out how all of this money, around $107 million from private "donors," was being spent, and who was pocketing it.

The complaint asks that at least one million dollars be put into a trust and "be restored to a proper public purpose by directing the funds to another nonprofit entity dedicated to promoting civic engagement of the citizens of the United States of America."

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iehi-feed-65162 Thu, 23 Jan 2020 14:43:37 GMT Bank Of America Alert: Can Bank of America Validate Your Mortgage? http://implode-explode.com/viewnews/2020-01-23_BankOfAmericaAlertCanBankofAmericaValidateYourMortgage.html iehi-feed-65161 Thu, 23 Jan 2020 01:27:46 GMT California's AB5 Leaves Many Small Business Owners -- Especially Women -- Reeling http://implode-explode.com/viewnews/2020-01-22_CaliforniasAB5LeavesManySmallBusinessOwnersEspeciallyWomenReelin.html iehi-feed-65159 Wed, 22 Jan 2020 18:12:28 GMT Almost All of the New Apartment Inventory Nationwide is "Ultra-Luxury" http://implode-explode.com/viewnews/2020-01-22_AlmostAlloftheNewApartmentInventoryNationwideisUltraLuxury.html There's a rampant homelessness crisis in large cities across the country, stoked by a lack of affordable housing units. But fear not -- developers are constructing new apartments at a rapid clip this year.

The catch: Up to 80% of those rental units to be completed this year will be in luxury buildings the average person likely can't afford, according to data obtained by the Wall Street Journal from the real estate analytics firm RealPage.

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A sizable portion of this year's expected 371,000 new rental units will also come online in cities with deep poverty and inequality crises, like Los Angeles, Dallas, and Washington, D.C., according to the data released Wednesday. In Dallas, nearly 21% of the city's population lives below the poverty line, compared to a national average near 12%. In Los Angeles, where the homelessness population has swelled to 36,300 people, the poverty rate is 19%. In D.C., nearly 17% of the population is impoverished. Collectively, those cities will get nearly 60,000 new units.

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Developers often argue that building a new apartment is prohibitively expensive, making luxury units the only real profitable option for them, according to the Journal. And ideally, developers say, building more units for wealthy tenants means they'll move out of their smaller apartments, leaving them available to lower-income renters. An analysis out of the Joint Center For Housing Studies of Harvard University found this isn't happening.

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iehi-feed-65158 Wed, 22 Jan 2020 15:39:24 GMT Amtrak Shakes Down 2 Disabled Riders For $25,000 http://implode-explode.com/viewnews/2020-01-22_AmtrakShakesDown2DisabledRidersFor25000.html iehi-feed-65157 Wed, 22 Jan 2020 01:47:36 GMT US-China deal is a disaster, former White House economist says http://implode-explode.com/viewnews/2020-01-21_USChinadealisadisasterformerWhiteHouseeconomistsays.html "While this deal is great in the sense that it has calmed things, additional tariffs aren't going on, aside from that the deal is essentially a disaster. It doesn't address any of the systemic issues," Chad Bown, senior fellow at the Peterson Institute for International Economics, said.

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200 billion in U.S. goods over the next two years, as part of the deal. President Donald Trump, who addressed the Davos forum earlier on Tuesday, said the number of purchases could end up closer to $300 billion.

"These are unrealistic numbers, which puts the whole viability of the deal into question," Bown said, adding that the only way to reach these figures is by diverting trade away from other countries, such as soy beans away from Brazil and fish away from Canada.

Among the additional purchases of U.S. goods, China has committed to buy at least $40 billion worth of American farming products. However, a leading commodities expert at Goldman Sachs casted doubts over whether China will manage to do that. Speaking to CNBC earlier this month Jeff Currie said "there is still a lot of uncertainty about how you would achieve $40 (billion) or potentially even $50 billion of agricultural purchases."

Note that in almost every previous, when Trump announced a big "investment" in the US, it either (a) didn't materialize in anywhere near the scale touted, or (b) was simply re-counting some other investment that was already planned or in-process. Thus, this critique is worrying.

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iehi-feed-65156 Mon, 20 Jan 2020 15:32:45 GMT New York Foreclosure Lawyers Must Now Prove Standing To Foreclose http://implode-explode.com/viewnews/2020-01-20_NewYorkForeclosureLawyersMustNowProveStandingToForeclose.html iehi-feed-65155 Fri, 17 Jan 2020 23:38:52 GMT What Happened When a State Made Food Stamps Harder to Get http://implode-explode.com/viewnews/2020-01-17_WhatHappenedWhenaStateMadeFoodStampsHardertoGet.html Four years ago, thousands of poor people here in Cabell County and eight other counties in West Virginia that were affected by a state policy change found themselves having to prove that they were working or training for at least 20 hours a week in order to keep receiving food stamps consistently. In April, under a rule change by the Trump administration, people all over the country who are "able-bodied adults without dependents" will have to do the same.

The policy seems straightforward, but there is nothing straightforward about the reality of the working poor, a daily life of unreliable transportation, erratic work hours and capricious living arrangements.

Still, what has happened in the nine counties in West Virginia in the last four years does offer at least an indication of how it will play out on a larger scale.

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The most visible impact has been at homeless missions and food pantries, which saw a big spike in demand that has never receded. But the policy change was barely noticeable in the work force, where evidence of some large influx of new workers is hard to discern. This reflects similar findings elsewhere, as states have steadily been reinstating work requirements in the years since the recession, when nearly the whole country waived them.

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iehi-feed-65154 Fri, 17 Jan 2020 14:37:44 GMT Why Luxury Units in Manhattan Are Vacant And The Rest of the Country Isn't Much Better http://implode-explode.com/viewnews/2020-01-17_WhyLuxuryUnitsinManhattanAreVacantAndTheRestoftheCountryIsntMuch.html From any rational perspective, what New York needs isn't glistening three-bedroom units, but more simple one- and two-bedroom apartments for New York's many singles, roommates, and small families. Mayor Bill De Blasio made affordable housing a centerpiece of his administration. But progress here has been stalled by onerous zoning regulations, limited federal subsidies, construction delays, and blocked pro-tenant bills.

... as the new houses have become more luxurious, homeownership itself has become a luxury. Young adults today are one-third less likely to own a home at this point in their lives than previous generations. Among young black Americans, homeownership has fallen to its lowest rate in more than 60 years.

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the most expensive housing markets, such as San Francisco and Los Angeles, haven't built nearly enough homes for the middle class. As urban living has become too expensive for workers, many of them have either stayed away from the richest, densest cities or moved to the south and west, where land is cheaper. This is a huge loss, not only for individual workers, but also for these metros, because denser cities offer better matches between companies and workers, and thus are richer and more productive overall. Instead of growing as they grow richer, New York City, Los Angeles, and the Bay Area are all shrinking.

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iehi-feed-65153 Wed, 15 Jan 2020 22:38:01 GMT Megxit Could Lead To An IRS Raid On Buckingham Palace http://implode-explode.com/viewnews/2020-01-15_MegxitCouldLeadToAnIRSRaidOnBuckinghamPalace.html iehi-feed-65152 Tue, 14 Jan 2020 19:05:46 GMT The Dogs Ate SoftBank's Money http://implode-explode.com/viewnews/2020-01-14_TheDogsAteSoftBanksMoney.html iehi-feed-65151 Tue, 14 Jan 2020 18:58:19 GMT WeWork debacle has unicorn investors seeking protections http://implode-explode.com/viewnews/2020-01-14_WeWorkdebaclehasunicorninvestorsseekingprotections.html A quarterly survey by law firm Fenwick & West, which tracks deal terms of startup clients, showed a sharp rise in those with senior liquidation preferences for later stage funding rounds in the third quarter, the time when WeWork's IPO plan unraveled.

For a graphic on Interactive graphic on liquidation preference clauses in deals, click here

Safeguards include a higher minimum price on shares in an IPO, "ratchets" that give investors more shares if the shares are priced below what they paid, guarantees of a certain return on investments, and rights to block the IPO.

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iehi-feed-65150 Tue, 14 Jan 2020 15:51:10 GMT Private Restaurants for New York's Richest Diners Are on the Rise http://implode-explode.com/viewnews/2020-01-14_PrivateRestaurantsforNewYorksRichestDinersAreontheRise.html ``Sound exciting? Unfortunately, you most likely won't be able to go. While Tavern by WS is open to the public, the space above it -- called simply WS New York -- is reserved for members willing to pay a $15,000 initiation fee, plus $7,500 in annual dues. A brochure for WS New York lures people to join for an "insider perspective on rarified worlds." As one of the club's managers was heard explaining at the party, "Think Soho House, but 10 years older, so 10 years richer and more exclusive.''

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Even harder to infiltrate are the increasing number of enviable dining rooms at high-end condominiums -- like 432 Park Avenue, where esteemed chef Shaun Hergatt oversees the kitchen, or 220 Central Park South, which will house the next New York restaurant from uber-chef Jean-Georges Vongerichten. There, all 54 seats will be off limits to anyone who's not a resident (or guest of one) at the building, where a penthouse sold for $238 million... In fact, exclusive restaurants with high-end chefs are becoming the latest in-demand amenity of luxury condos, according to Stacey Kanbar and Julie Kopel from the Kanbar Kopel Team at real estate firm Compass, who say they've noticed an uptick in the trend among clients looking at new upscale buildings.

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Private dining rooms have become important points of distinction and selling tools for the properties in part because the luxury real estate market in New York is suffering a glut of unsold spaces, says Stephen Zagor, a consultant who teaches restaurant and food entrepreneurship at Columbia Business School and New York University. A recent report found that more than 25 percent of new condos in Manhattan hadn't been sold as of September 2019, including some 40 percent of Billionaires' Row.

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iehi-feed-65149 Mon, 13 Jan 2020 14:07:42 GMT Michigan Zombie Foreclosures: Second Lien Holders Are Coming! http://implode-explode.com/viewnews/2020-01-13_MichiganZombieForeclosuresSecondLienHoldersAreComing.html iehi-feed-65148 Mon, 13 Jan 2020 00:02:05 GMT US job creation slowed under Trump in 2019 to the lowest growth in 8 years http://implode-explode.com/viewnews/2020-01-12_USjobcreationslowedunderTrumpin2019tothelowestgrowthin8years.html