Implode-Explode Heavy Industries news feed http://implode-explode.com/ Tracking the many faces of the global credit implosion. en-us iehi-feed-64644 Tue, 26 Mar 2019 00:00:10 GMT Brother Of Meghan Markle Being Evicted From Oregon Home http://implode-explode.com/viewnews/2019-03-25_BrotherOfMeghanMarkleBeingEvictedFromOregonHome.html iehi-feed-64643 Sun, 24 Mar 2019 19:16:16 GMT "Is the world running out of gold?" - Mainstream Catching On http://implode-explode.com/viewnews/2019-03-24_IstheworldrunningoutofgoldMainstreamCatchingOn.html The murmurs that the world is running out of gold deposits have grown louder in the past two years... Gold production reaching its peak levels is nothing new. The production of the yellow metal has reached its highest levels on at least four occasions in the past before witnessing sharp declines.

But many say there is something that makes the current gold peak stand out: There is simply no new major gold deposit left to be discovered.

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Gold has been hovering around the psychological level of $1,300 an ounce since the beginning of this year -- a far cry from the highs of $1,800 an ounce witnessed in 2011-12. Analysts estimate that a minimum price of $1,500 per ounce is needed to maintain current production levels.

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The prospective impact of a lack of "world class" discoveries on future gold production can be gauged from the fact that such mines account for nearly half of the global gold production today.

The average grade of the new gold deposits -- the amount of gold that can be extracted per ton -- has also been declining. The average mine grade has fallen from over 10 gram per ton in the early 1970s to around 1.4 grams per ton today, according to Metals Focus, a precious metals consultancy.

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Analysts expect gold prices to rise in the longer term as gold mine supply struggles to expand. High prices and technological advancements are expected to push miners to explore new frontiers for the precious metal, including the seabed and possibly even asteroids.

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"In future most of the gold supply will come from recycling and not mining," Miller said.

The World Gold Council expects the demand for gold in jewelry to increase over the next 30 years "in a richer, more middle-class, connected world."

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iehi-feed-64642 Fri, 22 Mar 2019 20:28:14 GMT U.S. Treasury Yield Curve Inverts for First Time Since 2007 http://implode-explode.com/viewnews/2019-03-22_USTreasuryYieldCurveInvertsforFirstTimeSince2007.html The Treasury yield curve inverted for the first time since the last crisis Friday, triggering the first reliable market signal of an impending recession and rate-cutting cycle.

The gap between the three-month and 10-year yields vanished as a surge of buying pushed the latter to a 14-month low of 2.416 percent. Inversion is considered a reliable harbinger of recession in the U.S., within roughly the next 18 months.

Demand for government bonds gained momentum Wednesday, when U.S. central bank policy makers lowered both their growth projections and their interest-rate outlook. The majority of officials now envisage no hikes this year, down from a median call of two at their December meeting. Traders took that dovish shift as their cue to dig into positions for a Fed easing cycle, pricing in a cut by the end of 2020 and a one-in-two chance of a reduction as soon as this year.

"It looks like the global slowdown worries have been confirmed and the market is beginning to price in Fed easing, potential recession down the road," said Kathy Jones, chief fixed-income strategist at Charles Schwab & Co.

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iehi-feed-64641 Thu, 21 Mar 2019 19:20:56 GMT Jared and Ivanka: Cashing in on Power http://implode-explode.com/viewnews/2019-03-21_JaredandIvankaCashinginonPower.html Ward's book ["Kushner, Inc."] suggests that the search for someone who would bail out 666 Fifth Avenue has played a significant role in American foreign policy during the Trump administration. And since the completion of her book, we've learned that Trump overrode intelligence officials, who were concerned about Kushner and his family's ties to foreign investors, to give Kushner a security clearance.

In the end, the Kushner family seems to have gotten what it wanted. Last year, Brookfield Asset Management, which has substantial investment from the government of Qatar's sovereign wealth fund, came to the Kushners' rescue. (The Qataris have denied any advance knowledge of the deal.)

"You'll notice that the U.S. position toward Qatar changes when the Qataris bail out 666 Fifth Avenue," said Ward, adding, "We look like a banana republic." Maybe that's why Jared and Ivanka appear so blithely confident. As public servants, they're obviously way out of their depth. But as self-dealing scions of a gaudy autocracy? They're naturals.

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iehi-feed-64640 Thu, 21 Mar 2019 14:52:06 GMT Porn Addict Got $250,000 In Hush Money From Michigan Taxpayers http://implode-explode.com/viewnews/2019-03-21_PornAddictGot250000InHushMoneyFromMichiganTaxpayers.html iehi-feed-64639 Wed, 20 Mar 2019 00:02:34 GMT Wall Street's Latest Love Affair With Risky Repackaged Debt http://implode-explode.com/viewnews/2019-03-19_WallStreetsLatestLoveAffairWithRiskyRepackagedDebt.html Just as they did in much of 2007 and 2008, before the markets exploded in a crisis of epic proportions, investors in the debt market, which is even larger than the equity market, are feverishly chasing higher yields and are too eagerly buying up the risky securities that will deliver those yields without demanding the proper premium for the risks being taken. A decade ago, the high-yield investment du jour pushed by Wall Street was mortgage-backed securities -- home mortgages that had been packaged up and sold as "safe" investments all over the world. Nowadays bankers and traders are pushing another form of supposedly "safe" investment, the "collateralized loan obligation," or C.L.O.

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C.L.O.s are nothing more than a package of risky corporate loans made to companies with less than stellar credit. The big Wall Street banks make these loans to their corporate clients and then seek to move them off their balance sheets as quickly as possible, in the same way that a decade ago they packaged up and offloaded risky mortgage securities. Just as with mortgage-backed securities, to move the loans out the door the banks have been counting on the nearly insatiable demand for higher yields ... This is not a tiny slice of the market. Of the trillions of dollars of corporate loans outstanding in the United States, roughly $1.2 trillion of them are considered "leveraged loans," or loans to companies considered bigger credit risks.

In a speech before the Economic Club of New York in November, Mr. Powell said he thought that investors in C.L.O.s would bear the brunt of an uptick in corporate bankruptcies, rather than the big Wall Street banks. Those investors include Japanese banks as well as investors in hedge funds, mutual funds and pension funds (in other words, you and me).

Janet Yellen, Mr. Powell's predecessor, aired the same concern in December, in a conversation with the Times columnist Paul Krugman. Ms. Yellen said she worried that corporate indebtedness was "quite high": it's now more than $9 trillion, up from $4.9 trillion, in 2006, according to the Securities Industry and Financial Markets Association. "I think a lot of the underwriting of that debt is weak," she said. "I think investors hold it in packages like the subprime packages," which became so popular before the 2008 crisis. "The same thing has happened. It's called C.L.O.s, or collateralized loan obligations."

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After a brief moment of sanity in December, the loopy demand for high-risk debt has once again heated up. More than $13 billion of leveraged loans were sold in February, and they will soon worm their way into the financial markets as C.L.O.s. The existential question remains: Why do investors fail to learn the harsh lessons about risk, even though the consequences of them still remain so fresh?

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iehi-feed-64638 Mon, 18 Mar 2019 21:24:20 GMT The Fed has exacerbated America's new housing bubble: FT http://implode-explode.com/viewnews/2019-03-18_TheFedhasexacerbatedAmericasnewhousingbubbleFT.html Hyman Minsky would have had a field day with last week's US inflation numbers. One of the key points in the late, great economist's Financial Instability Hypothesis was that there are two kinds of prices -- prices for goods and services, and asset prices. Inflation in the two areas should, as a result, differ. And indeed they have, quite markedly. The latest Consumer Price Index figures show that almost all core inflation, which was weaker than expected, was in rent or the owner's equivalent of rent (up 0.3 per cent). Core goods inflation, meanwhile, was down 0.2 per cent. Very simply, this means that the housing market is once again completely out of sync with the rest of the economy.

A decade on from the subprime bubble, housing, which is not only shelter but also the biggest financial asset for most Americans, is the only major component of the CPI with a national inflation rate that is consistently above the overall number. Why is this? Because, just as Minsky would have predicted, loose monetary policy over the past several years buoyed assets, but didn't create meaningful new supply or, consequently, enough demand in construction and other home-related areas. The point is illustrated in an academic paper, "What the Federal Reserve got totally wrong about inflation and interest rate policy" from the Mario Einaudi Center for International Studies at Cornell University. As its author Daniel Alpert says: "What we have now is a form of inflation that's never been seen before -- it's all concentrated in housing."

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iehi-feed-64637 Sun, 17 Mar 2019 21:32:53 GMT NYC's Hudson Yards Is a Billionaire's Fantasy City http://implode-explode.com/viewnews/2019-03-17_NYCsHudsonYardsIsaBillionairesFantasyCity.html Architecture, like politics and war, springs from a million separate decisions made within the context of vast historical forces, decisions that can seem freer or more meaningful than they really are. At Hudson Yards, the path to the ribbon-cutting followed an inexorable trajectory based on impregnable financial logic. Underutilized space must be reclaimed for its highest and best use. The MTA needed cash. Costs were high, so potential profits had to be too. The most efficient way to finance and engineer the project was to hand it off to a single developer, who was only ever going to build a city as a luxury product. Each decision made the next one essentially foreordained.

At times, that relentless march of circumstance can produce results that look insane or visionary, depending on the month. Conceived in the wake of the 2008 recession and executed during the boom that followed, the megadevelopment opens onto a troubling future. The market for ultradeluxe condos is sagging, and we'll see whether that's one of the shocks that Hudson Yards is built to withstand. A dozen years ago, it seemed obvious that retail would prop up a shaky market for office space. Now the opposite is true. The 720,000-square-foot mall comes online even as storefronts are shuttering all over New York and Amazon threatens the whole concept of entering a shop with money and walking out with a shopping bag. On the other hand, businesses that were once squeamish about relocating to an uncertain frontier zone are now gobbling up square footage. Companies like Coach, L'Oréal, Warner Media, Wells Fargo, and Boston Consulting Group will cohabit with creations of the millennial boom like Stonepeak, and the demand for office space seems likely to outpace the current glut.

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iehi-feed-64636 Sun, 17 Mar 2019 17:03:11 GMT The Most Splendid Housing Bubbles in Canada Deflate | Wolf Street http://implode-explode.com/viewnews/2019-03-17_TheMostSplendidHousingBubblesinCanadaDeflateWolfStreet.html iehi-feed-64635 Sun, 17 Mar 2019 13:40:27 GMT Former COO of Long Island Federal Credit Union Pleads Guilty http://implode-explode.com/viewnews/2019-03-17_FormerCOOofLongIslandFederalCreditUnionPleadsGuilty.html iehi-feed-64634 Sat, 16 Mar 2019 13:37:59 GMT Adoption Scam Alert: Michigan Mother Busted For Wire Fraud http://implode-explode.com/viewnews/2019-03-16_AdoptionScamAlertMichiganMotherBustedForWireFraud.html iehi-feed-64633 Fri, 15 Mar 2019 15:34:05 GMT Lawmakers Support Special Tax on Multimillion Dollar Second Homes in NYC http://implode-explode.com/viewnews/2019-03-15_LawmakersSupportSpecialTaxonMultimillionDollarSecondHomesinNYC.html There's speculation that after Kenneth C. Griffin, the hedge fund multibillionaire, bought a Central Park South apartment for $238 million, it became a little more feasible to suggest that maybe people worth $10 billion could afford to pay a little more in taxes so the roads, bridges, and mass transit systems that keep the cities and their businesses running can be fixed in the supposedly greatest city in the world in the country of American Exceptionalism

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The New York Times explains why the tax makes sense in these cases and how the city is hurt right now without it. "The $238 million record purchase was a visceral reminder that when wealthy buyers like Mr. Griffin purchase expensive apartments as second homes or investments, New York City and the state get less financial benefits than if the home was owned as a primary residence. If the buyers live out of state, they are not subject to state or city income taxes, and do not pay New York sales tax while outside the state."

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iehi-feed-64632 Wed, 13 Mar 2019 22:10:54 GMT The housing market is turning: Millennials unhappy with purchases; CA supply at highest since 2012 http://implode-explode.com/viewnews/2019-03-13_ThehousingmarketisturningMillennialsunhappywithpurchasesCAsupply.html iehi-feed-64631 Wed, 13 Mar 2019 16:18:10 GMT Prominent Miami CPA Sentenced to Prison for $1.4 Million Tax Evasion Scheme http://implode-explode.com/viewnews/2019-03-13_ProminentMiamiCPASentencedtoPrisonfor14MillionTaxEvasionScheme.html iehi-feed-64630 Tue, 12 Mar 2019 17:57:06 GMT DACA Dreamers Denied FHA Mortgages Contrary To HUD Statements http://implode-explode.com/viewnews/2019-03-12_DACADreamersDeniedFHAMortgagesContraryToHUDStatements.html iehi-feed-64629 Mon, 11 Mar 2019 14:47:32 GMT Motor City Casino Phone Scam Alert http://implode-explode.com/viewnews/2019-03-11_MotorCityCasinoPhoneScamAlert.html iehi-feed-64628 Sun, 10 Mar 2019 00:10:38 GMT Colorado Joins Wyoming With New Securities-Exempt Digital Blockchain Token Law http://implode-explode.com/viewnews/2019-03-09_ColoradoJoinsWyomingWithNewSecuritiesExemptDigitalBlockchainToke.html iehi-feed-64627 Sat, 09 Mar 2019 15:54:34 GMT Iconic Chrysler Building sold at a huge loss http://implode-explode.com/viewnews/2019-03-09_IconicChryslerBuildingsoldatahugeloss.html The Chrysler Building, the famous art deco New York skyscraper, will be sold for a small fraction of its previous sales price. The deal, first reported by The Real Deal, was for $150 million, according to a source familiar with the deal.

Mubadala, an Abu Dhabi investment fund, purchased 90% of the building for $800 million in 2008. Real estate firm Tishman Speyer had owned the other 10%.

The buyer is RFR Holding, a New York real estate company. Officials with Tishman and RFR did not immediately respond to a request for comments.

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The incentive to sell the building at such a huge loss was due to the soaring rent the owners pay to Cooper Union, a New York college, for the land under the building. The rent is rising from $7.75 million last year to $32.5 million this year to $41 million in 2028.

Meantime, rents in the building itself are not rising nearly that fast. While the building is an iconic landmark in the New York skyline, it is competing against newer office towers with large floor-to-ceiling windows and all the modern amenities.

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iehi-feed-64626 Sat, 09 Mar 2019 15:52:14 GMT Venezuela's Power Outage Draws Its Leaders Into Deeper Tensions http://implode-explode.com/viewnews/2019-03-09_VenezuelasPowerOutageDrawsItsLeadersIntoDeeperTensions.html iehi-feed-64625 Fri, 08 Mar 2019 05:44:13 GMT Paul Manafort's 'Otherwise Blamess Life' of Crime http://implode-explode.com/viewnews/2019-03-08_PaulManafortsOtherwiseBlamessLifeofCrime.html