Implode-Explode Heavy Industries news feed http://implode-explode.com/ Tracking the many faces of the global credit implosion. en-us iehi-feed-63033 Mon, 25 Sep 2017 18:44:21 GMT AfD mobilized irrational fears of future, especially in the east, say pollsters (Germany) http://implode-explode.com/viewnews/2017-09-25_AfDmobilizedirrationalfearsoffutureespeciallyintheeastsaypollste.html iehi-feed-63030 Mon, 25 Sep 2017 15:50:09 GMT Devastation From Hurricane Maria Set Puerto Rico Back "Nearly 20 to 30 Years" http://implode-explode.com/viewnews/2017-09-25_DevastationFromHurricaneMariaSetPuertoRicoBackNearly20to30Years.html iehi-feed-63029 Mon, 25 Sep 2017 03:55:56 GMT German election results: Disappointing victory for Angela Merkel as CDU sinks, nationalist AfD hits 12.6% http://implode-explode.com/viewnews/2017-09-24_GermanelectionresultsDisappointingvictoryforAngelaMerkelasCDUsin.html iehi-feed-63025 Sat, 23 Sep 2017 15:54:14 GMT Stocks Will Get Crushed By New Treasury Issuance; End of QE http://implode-explode.com/viewnews/2017-09-23_StocksWillGetCrushedByNewTreasuryIssuanceEndofQE.html iehi-feed-63023 Sat, 23 Sep 2017 15:20:56 GMT "Puerto Rico Back in the 18th Century" - Kunstler http://implode-explode.com/viewnews/2017-09-23_PuertoRicoBackinthe18thCenturyKunstler.html iehi-feed-63018 Fri, 22 Sep 2017 20:47:54 GMT Why didn't Equifax protect your data? Because corporations have all the power http://implode-explode.com/viewnews/2017-09-22_WhydidntEquifaxprotectyourdataBecausecorporationshaveallthepower.html iehi-feed-63017 Fri, 22 Sep 2017 17:36:54 GMT Feierstein: Entire Global Economy Now a Ponzi; New Crisis On Horizon http://implode-explode.com/viewnews/2017-09-22_FeiersteinEntireGlobalEconomyNowaPonziNewCrisisOnHorizon.html Stock markets today are at all time highs, housing markets globally have been artificially reflated and companies who have not ever made a penny of profit are being floated for eye-watering sums.

When everybody is thinking the same thing, it is likely that no one is really thinking at all. Co-founder and presenter, Ross Ashcroft interviews investor, hedge fund manager and author of Planet Ponzi, Mitch Feierstein.

...

Feierstein cited the Resolution Trust debacle as an example of what should have happened. The Trust was declared insolvent as a consequence of the 1980s Savings and Loans Crisis and up to 300 bankers were jailed.

"This is what should have happened this time around, instead of taking hundreds of trillions of dollars taxpayer's money and placing the taxpayer at incredible peril and just added liquidity to the markets," he said. "Giving more money to an insolvent institution is not the solution. You cannot pay your way out of debt with borrowed money. It's not going to cure the underlying problem of insolvency."

This is why Feierstein refers to the entire global economy as a Ponzi scheme.

...

Feierstein predicts another financial crisis is on the horizon and says China is due for another significant credit event, but this time, companies should be allowed to go under.

"Capitalism without bankruptcy is like Catholicism without hell," he said. "What happens when you bail out the insolvency is you still have an insolvent bridge that has more debt." ''

]]>
iehi-feed-63016 Fri, 22 Sep 2017 17:31:55 GMT Ukraine prepares to repay Russia $3 billion debt http://implode-explode.com/viewnews/2017-09-22_UkrainepreparestorepayRussia3billiondebt.html The saga of Ukraine's $3 billion debt to Russia may be drawing to a close, with the first indication that Ukraine has grudgingly decided to pay the $3 billion Judgment the British High Court awarded Russia in their recent court case.

Though it has not been widely reported, it seems that Ukraine has today paid Russia the court costs and interests Russia was awarded in the case.

That is a strong sign that Ukraine now expects to lose the appeal it has made against the Judgment to Britain's Court of Appeal.

In the meantime, though the fact has also received scant attention, Ukraine within the last few days has also just borrowed $3 billion in the international money markets.

This should be subtitled: "Paul Manafort too busy to fix this one for Ukraine..."

]]>
iehi-feed-63013 Thu, 21 Sep 2017 17:17:20 GMT China's Dangerous House Price Boom Is Spreading http://implode-explode.com/viewnews/2017-09-21_ChinasDangerousHousePriceBoomIsSpreading.html In general, it's debt that's the warning sign. As developers and households become more leveraged, the risk is that a price downturn doesn't remain contained within the property market.

"The high leverage will amplify the damage to the economy if a property bust happens," said Bloomberg Intelligence economist Fielding Chen. "The shock wave will be passed onto the entire financial system, and losses will be greater," he said.

Once home prices tumble, about 40 percent of Chinese banks will be hit hard, according to a recent research note from Ping An Securities.

]]>
iehi-feed-63011 Thu, 21 Sep 2017 15:44:58 GMT Federal Reserve Will Continue Cutting Economic Life Support http://implode-explode.com/viewnews/2017-09-21_FederalReserveWillContinueCuttingEconomicLifeSupport.html iehi-feed-63009 Wed, 20 Sep 2017 21:14:21 GMT Catalan President blasts Madrid for 'illegal' referendum raids http://implode-explode.com/viewnews/2017-09-20_CatalanPresidentblastsMadridforillegalreferendumraids.html iehi-feed-63007 Wed, 20 Sep 2017 19:53:44 GMT Fed to Shrink Assets Next Month, Boost Rates by Year-End http://implode-explode.com/viewnews/2017-09-20_FedtoShrinkAssetsNextMonthBoostRatesbyYearEnd.html Federal Reserve officials set an October start for shrinking their $4.5 trillion stockpile of assets, moving to unwind a pillar of their crisis-era support for the economy. They continued to forecast one more interest-rate hike later this year, saying storm damage will have only a temporary impact on the economy.

...

Minutes from the July meeting showed deepening worries about a prolonged period of low inflation. FOMC participants -- including Fed governors and regional bank presidents -- forecast that inflation will reach their 2 percent target in 2019, compared with an expectation of 2018 in June, based on median estimates. They have missed the target for most of the past five years.

]]>
iehi-feed-63006 Wed, 20 Sep 2017 17:41:56 GMT Freelancer CEO destroys "delusional, stuffed, basket case, bubble, Third World economy like no other" (AU) http://implode-explode.com/viewnews/2017-09-20_FreelancerCEOdestroysdelusionalstuffedbasketcasebubbleThirdWorld.html iehi-feed-63005 Wed, 20 Sep 2017 16:09:29 GMT Fed's QT will push this market into 'brick wall': Boockvar http://implode-explode.com/viewnews/2017-09-20_FedsQTwillpushthismarketintobrickwallBoockvar.html We're finally here. About nine years after quantitative easing (QE) began, quantitative tightening (QT) is about to start. On Wednesday, after the Federal Open Market Committee releases its statement, Janet Yellen will follow with a press conference that she will do her best to make as boring as possible... [but] I expect no different an outcome this time and I believe the market -- with the S&P at an all-time high - is headed for a brick wall the deeper QT gets.

...

After QE1 ended when we knew exactly the full size and expiration date (March 31st, 2010), the market topped out three weeks after and then fell 17 percent. After QE2 ended when we also knew the exact amount and deadline (June 30th, 2011), the market peaked one week later and then fell about 20 percent. Around the time QE3 ended with the lead up being a very methodical process of tapering, stocks had a hissy fit of about 10 percent only saved by James Bullard who hinted that maybe they won't end QE.

In the two months after the well telegraphed first rate hike in December 2015, stocks fell by 13 percent. The stock market of course therefore wasn't very good at discounting the end of major monetary stimulus actions even though they knew what was coming.

]]>
iehi-feed-63002 Wed, 20 Sep 2017 03:32:31 GMT Fact-checking Donald Trump's United Nations speech: Modest on US Financing of UN; Baloney on Amazing Job Gains (AND MOST OTHER CLAIMS) http://implode-explode.com/viewnews/2017-09-19_FactcheckingDonaldTrumpsUnitedNationsspeechModestonUSFinancingof.html iehi-feed-63001 Wed, 20 Sep 2017 00:57:37 GMT Trump using campaign, RNC funds to pay legal bills from Russia probe http://implode-explode.com/viewnews/2017-09-19_TrumpusingcampaignRNCfundstopaylegalbillsfromRussiaprobe.html ``The U.S. Federal Election Commission allows the use of private campaign funds to pay legal bills arising from being a candidate or elected official. While previous presidential campaigns have used these funds to pay for routine legal matters such as ballot access disputes and compliance requirements, Trump would be the first U.S. president in the modern campaign finance era to use such funds to cover the costs of responding to a criminal probe, said election law experts.''

Trump is such a grifter, it's mind-boggling. How can someone's political supporters defend such blatant piggy-bank-raiding? Especially by someone who constantly brags about how rich they are and how they are self-funded...

]]>
iehi-feed-63000 Tue, 19 Sep 2017 19:56:15 GMT Donald Trump took bulk of $107 million for inauguration promised to charities ... and kept it http://implode-explode.com/viewnews/2017-09-19_DonaldTrumptookbulkof107millionforinaugurationpromisedtocharitie.html President Donald Trump's inaugural committee raised an unprecedented $107 million for a ceremony that officials promised would be "workmanlike," and the committee pledged to give leftover funds to charity.

...

The $107 million is a massive amount for even the most lavish inauguration. It's almost twice what Barack Obama took in for a celebration that was much more widely attended and which included many more events... Somehow, Trump supposedly blew through $25 million for [an] abbreviated event that seemed more suitable for a county fair. In a small county. It's an amount that seems amazing even to the people on Trump's own campaign committee. "I couldn't tell you how we possibly could have spent $25 million on a concert," said Kerrigan.

... [After that questionable expense of $25 million,] it's been eight months. How much has been given out? None. None at all.

This is large-scale scammery, even for Trump. The funny thing is, we were initially resistant to the claims of Trump's detractors early on that he just wanted to use the presidency to line his pockets... overtly. But that seems to be panning out to a greater degree than we ever imagined... and it has been going on since the campaign (e.g., jacking up the rent on his own campaign for Trump Tower by 2-3x), to say nothing of the presidency.

]]>
iehi-feed-62999 Tue, 19 Sep 2017 17:35:29 GMT 'No evidence QE works' as balance sheet unwind starts http://implode-explode.com/viewnews/2017-09-19_NoevidenceQEworksasbalancesheetunwindstarts.html There's little question that the program, known as quantitative easing or "money printing," boosted the stock market. The three iterations of QE between November 2008 and October 2014 each saw big boosts to the market, with a cumulative S&P 500 gain from beginning to end, including the various down periods between each leg, of about 140 percent.

The economic impacts, though, are less clear.

For most of the period, GDP struggled to gain more than 2 percent. Wealth disparity grew, income gains were hard to come by and the Fed continually came up short on its inflation goal.

...

In fact, one of the Fed's own economists recently penned a report indicating that QE has come up short of its goals.

"Evaluating the effects of monetary policy is difficult, even in the case of conventional interest rate policy," St. Louis Fed economist Stephen D. Williamson wrote. "With respect to QE, there are good reasons to be skeptical that it works as advertised, and some economists have made a good case that QE is actually detrimental."

]]>
iehi-feed-62996 Tue, 19 Sep 2017 14:27:16 GMT After single payer failed, Vermont embarks on a big health care experiment http://implode-explode.com/viewnews/2017-09-19_AftersinglepayerfailedVermontembarksonabighealthcareexperiment.html The underlying premise is simple: Reward doctors and hospitals financially when patients are healthy, not just when they come in sick.

...

Vermont is setting an ambitious goal of taking its alternative payment model statewide and applying it to 70 percent of insured state residents by 2022 which -- if it works -- could eventually lead to fundamental changes in how Americans pay for health care.

"You make your margin off of keeping people healthier, instead of doing more operations. This drastically changes you, from wanting to do more of a certain kind of surgery to wanting to prevent them," said Stephen Leffler, chief population health and quality officer of the University of Vermont Health Network.

Making lump sum payments, instead of paying for each X-ray or checkup, changes the financial incentives for doctors. For example, spurring the state's largest hospital system to invest in housing. Or creating more roles like Lajoie's, focused on diagnosing problems with housing, transportation, food and other services that affect people's well-being.

...

Critics, however, worry that it will create a powerful tier of middlemen charged with administering health-care payments without sufficient oversight. Those middlemen are Accountable Care Organizations, networks of hospitals and doctors that work to coordinate care and can share in the rewards if providers are able to save health-care costs, but remain on the hook if costs run too high. In Vermont, the goal is to limit the growth in overall annual health care spending to 3.5 percent each year.

]]>
iehi-feed-62994 Tue, 19 Sep 2017 04:56:01 GMT Gary Cohn Is Giving Goldman Sachs Everything It Ever Wanted From the Trump Administration http://implode-explode.com/viewnews/2017-09-19_GaryCohnIsGivingGoldmanSachsEverythingItEverWantedFromtheTrumpAd.html GOLDMAN SACHS had been a favorite cudgel for candidate Trump -- the symbol of a government that favors Wall Street over its citizenry. Trump proclaimed that Hillary Clinton was in the firm's pockets, as was Ted Cruz. It was Goldman Sachs that Trump singled out when he railed against a system rigged in favor of the global elite -- one that "robbed our working class, stripped our country of wealth, and put money into the pockets of a handful of large corporations and political entities." Cohn, as president and chief operating officer of Goldman Sachs, had been at the heart of it all. Aggressive and relentless, a former aluminum siding salesman and commodities broker with a nose for making money, Cohn had turned Goldman's sleepy home loan unit into what a Senate staffer called "one of the largest mortgage trading desks in the world." There, he aggressively pushed his sales team to sell mortgage-backed securities to unaware investors even as he watched over "the big short," Goldman's decision to bet billions of dollars that the market would collapse.

Now Cohn would be coordinating economic policy for the populist president.

The conflicts between the two men were striking. Cohn ran a giant investment bank with offices in financial capitals around the globe, one deeply committed to a world with few economic borders. Trump's nationalist campaign contradicted everything Goldman Sachs and its top executives represented on the global stage.

...

Prior administrations often had one or two people from Goldman serving in top positions. George W. Bush at one point had three. At its peak, the Trump administration effectively had six.

Drain the swamp! (LOL)

]]>