Implode-Explode Heavy Industries news feed http://implode-explode.com/ Tracking the many faces of the global credit implosion. en-us iehi-feed-61532 Sat, 21 Jan 2017 17:37:25 GMT The difference between Betsy DeVos and Past Education Secretaries | Mandelman Matters http://implode-explode.com/viewnews/2017-01-21_ThedifferencebetweenBetsyDeVosandPastEducationSecretariesMandelm.html iehi-feed-61530 Sat, 21 Jan 2017 15:58:55 GMT Mnuchin Grapples With the Strong-Dollar Dilemma Left by Rubin http://implode-explode.com/viewnews/2017-01-21_MnuchinGrapplesWiththeStrongDollarDilemmaLeftbyRubin.html iehi-feed-61529 Sat, 21 Jan 2017 15:51:41 GMT Trump issues executive order to start rolling back Obamacare http://implode-explode.com/viewnews/2017-01-21_TrumpissuesexecutiveordertostartrollingbackObamacare.html The order does not change the law, but could have a significant impact nonetheless. It directs the secretary of health and human services, as well as other agencies, to interpret regulations as loosely as allowed to minimize the financial burden on individuals, insurers, health care providers and others.

It stressed that agencies can "waive, defer, grant exemptions from or delay implementation of any provision or requirement" of Obamacare that imposes a burden "to the maximum extent permitted by law."

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In keeping with longstanding Republican beliefs, the order also looks to give states more flexibility and control over their health care markets and to allow insurers to offer policies across state lines.

All of these actions will start to shift the nation's health care rules toward Republican ideas. And it will allow the Trump administration to chip away at the law going forward.

However, little can be done until a health secretary -- and other key HHS officials -- are in place to work on changing those guidance and regulations. Trump's choice to lead HHS, Tom Price, faces the Senate Finance Committee on Tuesday.

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"He has been told that he needs to comply with the law," said Timothy Jost, an emeritus professor at Washington and Lee University School of Law, "but is directing the agencies to begin taking steps towards reducing regulatory requirements and giving more discretion to the states. It's going to take time."

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iehi-feed-61527 Sat, 21 Jan 2017 15:41:32 GMT Trump's Magic Wand: I Simply Don't Buy It! http://implode-explode.com/viewnews/2017-01-21_TrumpsMagicWandISimplyDontBuyIt.html Since we're not in a supply-side crisis like we were in the late 1970s and early 1980s when Ronald Reagan came in, those solutions aren't the answer. They worked then. They will NOT work now. And who are Trump's chief economic advisors? Larry Kudlow, Stephen Moore, and Art Laffer -- all zealous supply-siders.

Instead, we're in a demand-side crisis like what we saw in the early 1930s with global oversupply. In such a situation, cutting taxes will only create even faster growing deficits and debt, not investment in new capacity and jobs.

Besides, does Trump really think a Republican Congress is going to just approve of massive tax cuts and infrastructure investments that raise our already out of control public debt, just as the debt ceiling has to be raised above $20 trillion?

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President Trump was inaugurated today. I sincerely wish him the best of luck. But I have serious doubts that he'll last his first year without a major debacle and backlash.

At this point I would give the Trump rally through about July and then we could see one of those first, devastating bubble crashes that sees the markets down 30% to 40% in a few months.

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iehi-feed-61526 Fri, 20 Jan 2017 23:04:23 GMT Now we care about how Steve Mnuchin at OneWest Bank handled foreclosures? | Mandelman Matters http://implode-explode.com/viewnews/2017-01-20_NowwecareabouthowSteveMnuchinatOneWestBankhandledforeclosuresMan.html iehi-feed-61525 Fri, 20 Jan 2017 22:54:59 GMT Trump takes away FHA mortgage insurance premium cut not long after being sworn into office http://implode-explode.com/viewnews/2017-01-20_TrumptakesawayFHAmortgageinsurancepremiumcutnotlongafterbeingswo.html The move undid the quarter-point decrease in the FHA mortgage insurance premium that was announced earlier in the week by outgoing U.S. Department of Housing and Urban Development Secretary Julian Castro. For most borrowers, it would have been a reduction to 0.60 percent from 0.85 percent.

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House Republicans objected to the reduction because it would have lowered the amount of funds FHA has available to cover mortgage defaults. House Financial Services Chairman Jeb Hensarling (R-Tex.) issued a statement earlier in the week saying, "the Obama administration's parting gift to hardworking taxpayers is to put them at greater risk for footing the bill for another bailout."

... "According to our estimates, roughly 750,000 to 850,000 home buyers will face higher costs, and 30,000 to 40,000 new home buyers will be left on the sidelines in 2017 without the cut," William E. Brown, National Association of Realtors president, said in a statement. "We're disappointed in the decision but will continue making the case to reinstate the cut in the months ahead."

From the perspective of FHA being a bankrupt/fraudulent insurance fund, this is a good thing. However, it's just going to get bailed out anyways (in some form), so this consists of the removal of a marginal amount of housing-finance accessibility for a significant number of people. I.e., it's probably the fiscally right thing to do, but it's pretty interesting how scrooge-like of a move this is for one of Trump's first official acts....

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iehi-feed-61524 Fri, 20 Jan 2017 15:18:51 GMT Freshman congressman with guts is ready to file articles of impeachment against Trump http://implode-explode.com/viewnews/2017-01-20_Freshmancongressmanwithgutsisreadytofilearticlesofimpeachmentaga.html iehi-feed-61522 Fri, 20 Jan 2017 02:07:20 GMT USGov Has Been Massively Under-Reporting Student Loan Delinquencies Due To "Glitch" http://implode-explode.com/viewnews/2017-01-19_USGovHasBeenMassivelyUnderReportingStudentLoanDelinquenciesDueTo.html iehi-feed-61521 Thu, 19 Jan 2017 23:38:50 GMT Dimon: Euro Zone May Not Survive If Economic Concerns Are Ignored http://implode-explode.com/viewnews/2017-01-19_DimonEuroZoneMayNotSurviveIfEconomicConcernsAreIgnored.html Dimon said he had hoped European Union leaders would examine what caused the U.K. to vote to leave and then make changes. That hasn't happened, and if nationalist politicians including France's Marine Le Pen rise to power in elections across the region "the euro zone may not survive," Dimon, 60, said in a Bloomberg Television interview with John Micklethwait.

"What went wrong is going wrong for everybody, not just going wrong for Britain, but in some ways it looks like they're kind of doubling down," Dimon said in the interview Wednesday at the annual meeting of the World Economic Forum in Davos, Switzerland. Unless leaders address underlying concerns, "you're going to have the same political things about immigration, the laws of the country, how much power goes to Brussels."

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iehi-feed-61520 Thu, 19 Jan 2017 23:26:32 GMT How Deutsche Bank Made a $462 Million Loss Disappear (Monte Pasci) http://implode-explode.com/viewnews/2017-01-19_HowDeutscheBankMadea462MillionLossDisappearMontePasci.html iehi-feed-61518 Thu, 19 Jan 2017 22:50:47 GMT Mnuchin weathers stormy confirmation hearing http://implode-explode.com/viewnews/2017-01-19_Mnuchinweathersstormyconfirmationhearing.html In a wide-ranging hearing more than five hours long, Mnuchin was pressed by Democrats for details on everything from his thoughts on tax reform to his defense of foreclosures carried out by OneWest Bank while serving as its top executive.

Mnuchin also faced significant pressure over the fact that just one day earlier, he had to update his financial disclosures to include nearly $100 million in previously unreported assets, as well as a fund based in the Cayman Islands, a notorious tax haven.

But like many of Trump's picks, at the end of the day it appeared that Mnuchin could still rely on enough Republican support to win the job.

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Mnuchin took many of [the] critiques head-on Thursday, defending his time as a bank executive and his work in the private sector. While Democrats highlighted individuals who lost their homes to OneWest, Mnuchin emphasized the efforts his bank took to help struggling homeowners adjust their mortgages.

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iehi-feed-61517 Thu, 19 Jan 2017 04:21:33 GMT Janet Yellen: Economy is getting closer to "running on its own" http://implode-explode.com/viewnews/2017-01-18_JanetYellenEconomyisgettingclosertorunningonitsown.html [Yellen] said the long-run unemployment rate is probably 4.75 percent, just above the current 4.7 percent. Inflation is "inching back" toward the Fed's 2 percent goal, which has remained elusive even as the economy has stayed out of recession for nearly eight years and unemployment is at its lowest level since late 2007.

Despite the economic improvements, the Fed has remained cautious. "Right now our foot is still pressing on the gas pedal, though, as I noted, we have eased back a bit," Yellen said.

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The funds rate, which banks charge to lend to each other overnight, likely will be at 3 percent by the end of 2019, a target that Yellen acknowledged is "a full percentage point lower than our estimate just three years ago."

The Fed looks set to undershoot -- as they almost always do in rate-rise cycles. This is probably a major reason that gold usually rallies hard after rate hikes begin -- because it's too little, too late.

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iehi-feed-61516 Wed, 18 Jan 2017 23:30:34 GMT House Plan For Trump-ish "Border Adjustable Tax" Will Likely Hit WTO Wall http://implode-explode.com/viewnews/2017-01-18_HousePlanForTrumpishBorderAdjustableTaxWillLikelyHitWTOWall.html iehi-feed-61515 Wed, 18 Jan 2017 22:54:44 GMT The Dollar, "the Most Crowded Trade," Gets Less Crowded http://implode-explode.com/viewnews/2017-01-18_TheDollartheMostCrowdedTradeGetsLessCrowded.html iehi-feed-61513 Wed, 18 Jan 2017 21:42:45 GMT Credit Suisse finalizes $5.3 billion mortgage settlement with U.S. http://implode-explode.com/viewnews/2017-01-18_CreditSuissefinalizes53billionmortgagesettlementwithUS.html Credit Suisse has formally agreed to pay $5.3 billion to settle with U.S. authorities over claims it misled investors in residential mortgage-backed securities it sold in the run-up to the 2008 financial crisis.

As part of the settlement, announced by the U.S. Department of Justice on Wednesday, the Zurich-based bank acknowledged that home loans it pooled into the securities did not meet underwriting guidelines, with some described by employees as "complete crap" and "[u]tter complete garbage."

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Credit Suisse will pay a $2.48 billion cash penalty and provide $2.8 billion in consumer relief, including loan forgiveness and financing for affordable housing, the Justice Department said in the statement.''

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The settlement clears the biggest cloud over Credit Suisse. However, the total amount in U.S. penalties could climb as the bank is still defending itself against lawsuits by the New York and New Jersey attorneys general over similar claims involving billions of dollars in investor losses.

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Major U.S. banks, including JPMorgan Chase & Co and Bank of America Corp (BAC.N), have paid a total of $46 billion to resolve similar conduct involving the quality of loans pooled and sold.. While the Credit Suisse settlement will likely be the last under the Obama administration, other banks under investigation include Royal Bank of Scotland, Wells Fargo & Co, UBS Group AG, and HSBC.

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iehi-feed-61512 Wed, 18 Jan 2017 21:29:46 GMT China Housing Bubble Finally Pops: First Slowdown After 19 Months Of Acceleration http://implode-explode.com/viewnews/2017-01-18_ChinaHousingBubbleFinallyPopsFirstSlowdownAfter19MonthsOfAcceler.html iehi-feed-61509 Tue, 17 Jan 2017 23:04:55 GMT Gundlach's Projections: Stocks Will Correct; Euro Will Deteriorate http://implode-explode.com/viewnews/2017-01-17_GundlachsProjectionsStocksWillCorrectEuroWillDeteriorate.html iehi-feed-61508 Tue, 17 Jan 2017 22:36:28 GMT Survey Says: Americans Already Hate Their Incoming "Populist" President http://implode-explode.com/viewnews/2017-01-17_SurveySaysAmericansAlreadyHateTheirIncomingPopulistPresident.html The CNN/ORC poll shows 53 percent of Americans view Trump unfavorably, while only 44 percent have a favorable opinion of the incoming president. In the ABC News/Washington Post poll, Trump's favorable rating is just 40 percent, with 54 percent having an unfavorable opinion.

That, according to The Washington Post, makes Trump the least-popular incoming president of the past 40 years -- by a large margin. Eight years ago, ABC News/Washington Post polling showed Barack Obama with a 79 percent favorable rating. Even George W. Bush -- who lost the popular vote and was designated the next president only after a protracted recount in Florida -- had a 62 percent favorable rating on the eve of his inauguration. Bush's 36 percent unfavorable rating was the lowest of the modern era, until Trump's 54 percent score in the new poll.

This is only surprising to those that are in denial of the popular vote outcome (and let's not forget the vast pool of people who didn't vote at all or voted for neither major candidate, who are especially at liberty to start grousing); but we have to wonder if Trumps insular handling of staffing his administration and conducting his naescent policy (much more actively than for a typical president-elect) are already alienating additional people.

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iehi-feed-61507 Tue, 17 Jan 2017 22:03:37 GMT Why the Price of Gold Will Rise 15.2% This Year http://implode-explode.com/viewnews/2017-01-17_WhythePriceofGoldWillRise152ThisYear.html iehi-feed-61506 Tue, 17 Jan 2017 21:14:00 GMT A Hint of Gold Backwardation Means Rising Gold Scarcity http://implode-explode.com/viewnews/2017-01-17_AHintofGoldBackwardationMeansRisingGoldScarcity.html