Implode-Explode Heavy Industries news feed http://implode-explode.com/ Tracking the many faces of the global credit implosion. en-us iehi-feed-62821 Sat, 19 Aug 2017 22:38:26 GMT Doug Noland: Crisis of Confidence http://implode-explode.com/viewnews/2017-08-19_DougNolandCrisisofConfidence.html ...before we segue to the mess in Washington, there are as well major near-term uncertainties with respect to global monetary management. There were indications this week that both the ECB and Federal Reserve lack the confidence and consensus necessary to communicate a plan for unwinding what have been years of unprecedented monetary stimulus. It's not confidence inspiring.

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There should be little doubt that the boom and bust dynamics experienced over recent decades have taken a toll on our nation's social and economic fabric. And while many want to blame "globalization," I believe much that we label "globalization" would be more accurately understood as fallout from years of unfettered global finance. Could NAFTA have been so destabilizing to U.S. manufacturing without endless cheap finance flooding into Mexico (and EM more generally). How dominant would China be today without essentially limitless amounts of virtually free "money" to finance over-investment the likes of which the world has never experienced?

I strongly believe that unfettered finance has been instrumental in the long period of U.S. deindustrialization -- the transformation from a manufacturing powerhouse into an experiment in a consumption and services-based economic structure. Bubbling securities markets and booming Wall Street finance were integral to this fateful structural shift.

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iehi-feed-62820 Sat, 19 Aug 2017 19:22:25 GMT Ditech Parent Walter Investment Could Be Kicked Off NYSE http://implode-explode.com/viewnews/2017-08-19_DitechParentWalterInvestmentCouldBeKickedOffNYSE.html iehi-feed-62819 Sat, 19 Aug 2017 17:31:15 GMT New York State Buying 400 Mortgages http://implode-explode.com/viewnews/2017-08-19_NewYorkStateBuying400Mortgages.html iehi-feed-62818 Sat, 19 Aug 2017 15:41:33 GMT So When Will China's Debt Bubble Finally Blow Up? http://implode-explode.com/viewnews/2017-08-19_SoWhenWillChinasDebtBubbleFinallyBlowUp.html [According to analyst Charlene Chu], by the end of 2017, bad debt in China could hit 51 trillion yuan, or $7.6 trillion. Or about 68% of GDP! It would take the bad-debt ratio to an astronomical 34% of all loans, and way above the 5.3% that the authorities are proffering. And the authorities -- the government, the central bank, supported by the state-owned banks -- are now pulling all levers to keep this under control.

"What I've gotten a greater appreciation for is how everything is so orchestrated by the authorities," she said. "The upside is that it creates stability. The downside is that it can create a problem of proportions that people would think is never possible. We're moving into that territory."

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iehi-feed-62817 Sat, 19 Aug 2017 15:29:49 GMT 5-Must See Charts For Retirement http://implode-explode.com/viewnews/2017-08-19_5MustSeeChartsForRetirement.html iehi-feed-62816 Fri, 18 Aug 2017 21:10:36 GMT Deutsche Bank, Bank of America settle agency bond rigging lawsuits http://implode-explode.com/viewnews/2017-08-18_DeutscheBankBankofAmericasettleagencybondrigginglawsuits.html Deutsche Bank AG and Bank of America Corp agreed to pay a combined $65.5 million to settle investor litigation accusing large banks of rigging the roughly $9 trillion government agency bond market over a decade.

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The collusion allegedly ran from 2005 to 2015, and forced customers to accept unfair prices on bonds they bought and sold, court papers show.

BNP Paribas SA, Citigroup Inc, Credit Agricole SA, Credit Suisse Group AG, HSBC Holdings Plc, Nomura Holdings Inc, Royal Bank of Canada and Toronto-Dominion Bank were also sued, and all sought dismissals.

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Late Wednesday night, another group of investors sued six banks, claiming they rigged the more than $1 trillion stock lending market.

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iehi-feed-62815 Fri, 18 Aug 2017 21:08:18 GMT Rickards: The Elites Will "Freeze" the Financial System in Next Crisis http://implode-explode.com/viewnews/2017-08-18_RickardsTheElitesWillFreezetheFinancialSysteminNextCrisis.html Eventually, the entire financial system will be frozen solid and investors will have no access to their money.

Some of my readers were skeptical of this scenario. But I researched it carefully and provided solid evidence that this plan is already in place -- it's just not well understood. But the ice-nine plan is now being put into practice.

Consider a recent Reuters article that admitted elites would likely shut down the entire system when the next financial crisis strikes.

The article claimed that the EU is considering actions that would temporarily prevent people from withdrawing money from banks to prevent bank runs.

Seems likely that they will attempt this -- there's just to much dependence built up in the decades-accumulated stock of debt-fueled paper assets to "admit" that they are near-worthless...

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iehi-feed-62814 Fri, 18 Aug 2017 21:03:50 GMT 'Simply doesn't cut it': Elizabeth Warren slams Wells Fargo's board changes http://implode-explode.com/viewnews/2017-08-18_SimplydoesntcutitElizabethWarrenslamsWellsFargosboardchanges.html iehi-feed-62813 Fri, 18 Aug 2017 20:58:29 GMT The Stock Market Bubble is So Big Even the Fed's Talking About It http://implode-explode.com/viewnews/2017-08-18_TheStockMarketBubbleisSoBigEventheFedsTalkingAboutIt.html iehi-feed-62812 Fri, 18 Aug 2017 20:47:07 GMT Why is Gary Cohn Still Hanging Around Trump? Probably To Snag Yellen's Post... http://implode-explode.com/viewnews/2017-08-18_WhyisGaryCohnStillHangingAroundTrumpProbablyToSnagYellensPost.html iehi-feed-62811 Fri, 18 Aug 2017 20:17:33 GMT Hospitals in Trump Country Suffer as Muslim Doctors Denied Visas to U.S. http://implode-explode.com/viewnews/2017-08-18_HospitalsinTrumpCountrySufferasMuslimDoctorsDeniedVisastoUS.html "This year, we had about 34 J-1 refusals that were reported to us. This is kind of a historic number," said Iqbal, who chairs the Committee on Young Physicians, which is a part of the Association of Physicians of Pakistani Descent of North America. APPNA only knows about denials that rejected applicants reported to them, so it may be just the tip of the iceberg. Many reapplied, starting from scratch, and were successful, but started their programs late.

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Small-town America has relied on foreign-born doctors for years, but, like the rest of the country, the demand for doctors exceeds the supply. By 2025, the U.S. will have a physician shortfall of between 61,700 and 94,700 physicians, according to a 2016 AAMC report. The dearth of doctors is one reason to be concerned about the Pakistani doctors' visa denials, Shick said. "As we face shortages, denying any physician that is accepted into a residency program is a bit shortsighted," he said.

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iehi-feed-62810 Fri, 18 Aug 2017 16:52:45 GMT Stocks turn higher after multiple reports that Bannon has left the White House http://implode-explode.com/viewnews/2017-08-18_StocksturnhigheraftermultiplereportsthatBannonhaslefttheWhiteHou.html U.S. equities rose on Friday after multiple reports said Steve Bannon, one of President Donald Trump's top advisors, was leaving the administration.

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Tension between Bannon and other top advisors to Trump, including Chief Economic Advisor Gary Cohn and National Security Advisor H.R. McMaster, had been festering inside the White House. On Wednesday, Reuters reported that discord between Bannon and McMaster is destabilizing Trump's team.

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Bannon has been the advisor pushing the hardest for a more nationalistic approach to U.S. economic policy. However, his influence has reportedly waned in the Trump administration.

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If Bannon leaves "I think that's positive for the market because it means that Gary Cohn is staying and if Cohn and McMaster are the ones left advising the president, that's ultimately market friendly," said Dave Lutz, head of ETF trading at JonesTrading.

More deck chairs-rearranging (along with Bannon's utter crap were some ballpark-reasonable reform ideas).

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iehi-feed-62809 Fri, 18 Aug 2017 14:57:16 GMT A billionaire-owned restaurant charged a "minimum wage" fee. Outrage ensued. http://implode-explode.com/viewnews/2017-08-18_AbillionaireownedrestaurantchargedaminimumwagefeeOutrageensued.html A customer dining at Washington's Oceanaire restaurant noticed an unusual line at the bottom of his receipt: "Due to the rising costs of doing business in this location, including costs associated with higher minimum wage rates, a 3% surcharge has been added to your total bill." He snapped a picture and sent it to local blog Popville, which posted a picture of his receipt. The outraged comments started rolling in.

"Just raise prices if you need to, don't try to slip this in under the radar and then pretty much blame [it] on employees who need to make a living!" wrote one commenter.

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But the surcharge has now been removed, at least in Washington. When contacted by The Post, Landry's issued a statement from Tim Whitlock, senior vice president of operations and chief operating officer of the Oceanaire:

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The minimum wage in Washington is $12.50 and will rise to $15 by 2020, according to legislation from the D.C. Council approved last year. The minimum wage for tipped workers in D.C. is $3.33, and will reach $5 by 2020.

A study earlier this year found that minimum wage hikes can force restaurants to close, as restaurateurs have been warning us for years -- but typically only bad restaurants. "Among 3.5-star restaurants, every $1 increase in the minimum wage increases the restaurant's chances of closing by 14 percent," wrote The Post's Caitlin Dewey. The Oceanaire currently has 3.5 stars on Yelp.

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iehi-feed-62808 Fri, 18 Aug 2017 14:47:27 GMT Donald Trump Is a Lame-Duck President http://implode-explode.com/viewnews/2017-08-18_DonaldTrumpIsaLameDuckPresident.html ... thinking about Trump as a lame duck who will just have to stumble through the rest of his presidency makes more sense, at least at the present moment, than expecting that Trump will be removed from office, whether by resignation, impeachment, or some more far-flung possibility.  The president shows little sign of being the sort of person who could be forced into resigning--after all, after he was bullied by staff into condemning racism, he was so agitated that the following day he defended the Charlottesville marchers with a more strongly worded statement.

... There is one other possibility [for redemption]: a crisis. In moments of catastrophe, citizens like to rally around even an unpopular president, seeking unity and leadership. But the signs so far about how Trump might handle a genuine, huge crisis are not promising. In fact, given the chance to deal with a crisis, he has often just made things worse for himself. Over the last week, his improvised language inflamed an already dangerous standoff with North Korea. Then he turned a national tragedy in Charlottesville into a huge personal liability for himself out of an inability to simply condemn racism and leave it at that.

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iehi-feed-62807 Fri, 18 Aug 2017 03:26:21 GMT Investors sell stocks, dollar on fears Trump agenda is foundering http://implode-explode.com/viewnews/2017-08-17_InvestorssellstocksdollaronfearsTrumpagendaisfoundering.html Asian stock investors joined a global retreat from riskier assets on Friday and the dollar wavered on growing doubts about U.S. President Donald Trump's ability to deliver his economic agenda.

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Concerns have grown over Trump's ability to push through his economic goals, such as tax cuts and infrastructure spending, following the exodus of executives from two prominent business councils in reaction to his response to clashes last weekend in Charlottesville, Virginia.

"Diminishing West Wing support from both business and political allies will continue to abrade investors' confidence in President Trump's economic agenda," Stephen Innes, head of Asia Pacific trading at OANDA in Singapore.

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iehi-feed-62806 Fri, 18 Aug 2017 03:25:22 GMT Trump signs order to speed infrastructure construction http://implode-explode.com/viewnews/2017-08-17_Trumpsignsordertospeedinfrastructureconstruction.html Trump's order includes revoking an earlier executive order signed by President Barack Obama concerning projects built in flood plains, White House officials said. The Obama order required that such projects built with federal aid take rising sea levels into account. Trump has suggested the predicted risks from sea level rise driven by climate change are overblown.

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Building trade groups had urged Trump to revoke the flood plain order, saying it was overly bureaucratic and increased the cost of projects. The Obama order was especially unwieldy because it didn't standardize across the government how sea level rise was to be taken into account, which left each federal agency to come up with its own standards, said Jimmy Christianson, an attorney with the Associated General Contractors.

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Transportation Secretary Elaine Chao has said that regulations, not a lack of funding, are a primary holdup faced by transportation infrastructure projects. But a Treasury Department report released earlier this year found that "a lack of public funding is by far the most common factor hindering completion" of major transportation and water infrastructure projects.

More mostly-bluster from Trump (that might sound good initially at 100,000 feet). Now let's see him craft an infrastructure plan with Congress that would actually fund something (or facilitate funding on a large scale)...

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iehi-feed-62805 Fri, 18 Aug 2017 03:22:23 GMT Trump ends plans for his Council on Infrastructure http://implode-explode.com/viewnews/2017-08-17_TrumpendsplansforhisCouncilonInfrastructure.html Trump's infrastructure council was still being formed but the President decided to end the process, the official said. No reason was given...

Trump was initially defiant when some business leaders indicated they would leave the councils.

"For every CEO that drops out of the Manufacturing Council, I have many to take their place. Grandstanders should not have gone on," Trump tweeted after a few departures. "JOBS!"

When more business leaders left, Trump pulled the plug.

Classic Trump... undoing/defeating himself within weeks... days... even hours...

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iehi-feed-62804 Thu, 17 Aug 2017 18:41:25 GMT Alibaba earnings have the Chinese company closing the gap with Amazon http://implode-explode.com/viewnews/2017-08-17_AlibabaearningshavetheChinesecompanyclosingthegapwithAmazon.html iehi-feed-62803 Thu, 17 Aug 2017 18:34:00 GMT Wall Street Extends Losses on Trump Policy Worries http://implode-explode.com/viewnews/2017-08-17_WallStreetExtendsLossesonTrumpPolicyWorries.html iehi-feed-62802 Thu, 17 Aug 2017 17:03:15 GMT Central banks: a sausage based conundrum http://implode-explode.com/viewnews/2017-08-17_Centralbanksasausagebasedconundrum.html