Implode-Explode Heavy Industries news feed http://implode-explode.com/ Tracking the many faces of the global credit implosion. en-us iehi-feed-60115 Thu, 30 Jun 2016 14:46:04 GMT Was Brexit fear a giant hoax or is this the calm before the next storm? - AEP http://implode-explode.com/viewnews/2016-06-30_WasBrexitfearagianthoaxoristhisthecalmbeforethenextstormAEP.html iehi-feed-60112 Thu, 30 Jun 2016 13:29:38 GMT When Central Planning Fails http://implode-explode.com/viewnews/2016-06-30_WhenCentralPlanningFails.html iehi-feed-60109 Thu, 30 Jun 2016 01:48:00 GMT The Italian Job http://implode-explode.com/viewnews/2016-06-29_TheItalianJob.html iehi-feed-60104 Wed, 29 Jun 2016 01:21:58 GMT A Brexit conspiracy theory nails the no-win situation Boris Johnson now finds himself in http://implode-explode.com/viewnews/2016-06-28_ABrexitconspiracytheorynailsthenowinsituationBorisJohnsonnowfind.html If [Boris Johnson] runs for leadership of the party, and then fails to follow through on triggering Article 50, then he is finished. If he does not run and effectively abandons the field, then he is finished. If he runs, wins and pulls the UK out of the EU, then it will all be over -- Scotland will break away, there will be upheaval in Ireland, a recession ... broken trade agreements. Then he is also finished. Boris Johnson knows all of this. When he acts like the dumb blond it is just that: an act.

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When Boris Johnson said there was no need to trigger Article 50 straight away, what he really meant to say was "never". When Michael Gove went on and on about "informal negotiations" ... why? why not the formal ones straight away? ... he also meant not triggering the formal departure. They both know what a formal demarche would mean: an irreversible step that neither of them is prepared to take.''

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iehi-feed-60103 Wed, 29 Jun 2016 01:04:22 GMT Hospital stays top $1,200 out-of-pocket even with insurance, U-M study finds http://implode-explode.com/viewnews/2016-06-28_Hospitalstaystop1200outofpocketevenwithinsuranceUMstudyfinds.html Even if you have what you might think of as good health insurance, your next hospital stay could cost more than $1,200 out of your pocket, University of Michigan researchers say.

That amount has gone up sharply in recent years, rising more than 37 percent just for straightforward hospital stays for common conditions. The statistics come from the first published analysis of actual out-of-pocket spending by people with private health insurance, most of it provided by employers. The study appears in JAMA Internal Medicine.

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The biggest change in out-of-pocket spending came from two types of insurance plan charges. Deductibles - the amount patients pay for their care before their insurance kicks in - increased 86 percent. Coinsurance - a percentage of hospital costs insurance plans often expect patients to pay - rose 33 percent.

"These results open up the 'black box' of health care and show all the costs of hospitalization that are billed to people with private insurance. For many, these may appear to be 'hidden costs' that they didn't realize they would owe," said first author Emily Adrion, a research fellow with the U-M Center for Healthcare Outcomes and Policy. "It shows that even people with the most comprehensive insurance are paying thousands of dollars, at a time when they need hospital care and may not have time to shop around."

Adrion and colleagues, including senior author Dr. Brahmajee Nallamothu, say that growth in out-of-pocket costs was 6.5 percent a year, compared to 5.1 percent growth in health insurance premiums and 2.9 percent growth in overall health care spending.

Isn't it just fantastic that we engaged in a comprehensive "reform" of health care in the US just a few years ago, without there ever having been a study on out-of-pocket costs (and their likely trajectory)?

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iehi-feed-60102 Tue, 28 Jun 2016 23:40:40 GMT Satyajit Das: What If Anything Does Brexit Really Signify? http://implode-explode.com/viewnews/2016-06-28_SatyajitDasWhatIfAnythingDoesBrexitReallySignify.html The decision by Boris Johnson, an Etonian like David Cameron and of similar background and leanings, to back the Leave vote showed ruthless calculation and accurate political sensitivities. His position reflected his aspirations for leadership not solidarity with the Leave voters or fundamental policy shifts. In an editorial after the vote, Mr. Johnson seized with post Brexit Bre-gret or Bre-morse suggested that wholesale changes in the relationship between the UK and the EU were now unnecessary.

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In essence, for those who believe they are born to rule, Brexit signals the need to limit democracy to ensure that important decisions are left to self-certified experts. European Parliament President Martin Schultz was refreshingly clear: "It is not the EU philosophy that the crowd can decide its fate".

History may well record that little changed as a result of Brexit after the long tortured process of negotiation of the terms of withdrawal and arrangements regarding trade and other matters with the EU. Those in charge and their attendant retinues continued, as British blogger John Ward wrote in 2015, to ignore the individual, State sovereignty, debt mountains, currency realities, poverty, its responsibilities and every legal and constitutional restraint on their power.

If the deep seated economic and social divisions within Britain or other societies cannot be dealt with peacefully and through existing processes, the risk is that it will unleash the furies of nationalism and isolationism in unknown ways and with unpredictable results.

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iehi-feed-60101 Tue, 28 Jun 2016 23:31:57 GMT When Markets Sour, Stuff Suddenly Oozes from the Woodwork ("The bezzle shrinks": LendingClub, Theranos, Breitling Energy) http://implode-explode.com/viewnews/2016-06-28_WhenMarketsSourStuffSuddenlyOozesfromtheWoodworkThebezzleshrinks.html iehi-feed-60096 Tue, 28 Jun 2016 14:36:37 GMT Greenspan Warns A Crisis Is Imminent, Urges A Return To The Gold Standard http://implode-explode.com/viewnews/2016-06-28_GreenspanWarnsACrisisIsImminentUrgesAReturnToTheGoldStandard.html iehi-feed-60089 Mon, 27 Jun 2016 16:44:57 GMT Nevermind the Brexit, UK will emerge with a good trade deal; Worry About the EU Itself http://implode-explode.com/viewnews/2016-06-27_NevermindtheBrexitUKwillemergewithagoodtradedealWorryAbouttheEUI.html The U.K. is by far Germany's most profitable export market. Last year, Germany's trade surplus with the U.K. came in at 51 billion euros ($56 billion), accounting for 34 percent of the German surplus with the EU. That surplus was also 42 percent higher than the German trade surplus with France, Berlin's largest European trade partner.

With its 89.3 billion euro worth of exports to the U.K. last year, Britain is Germany's third-largest export market, after the U.S. and France. Will Germany give this up by shutting the U.K. out of a free-trade agreement with the EU? Of course it won't.

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No wonder that Chancellor Merkel keeps saying that there is no need to be "nasty" with the U.K., while reassuring her compatriots that she would negotiate the U.K.'s exit from the EU with a great attention to German interests.

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The existing trade and defense ties explain why I think that the U.K. will have no trouble getting a deal it wants with the EU.

But the EU, and its future, is a much bigger worry. The union's leading tenors - Germany, France and Italy - have no idea what to do next, mostly because they are in a state of an intractable political disarray.

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iehi-feed-60088 Mon, 27 Jun 2016 16:41:46 GMT BofA Predicts Record Low Bond Yields In Q3, Resumed Central Bank Easing http://implode-explode.com/viewnews/2016-06-27_BofAPredictsRecordLowBondYieldsInQ3ResumedCentralBankEasing.html Equity indexes worldwide are likely to endure sustained declines and heightened volatility, as uncertainty persists. Our European equity strategists see a 16% downside the Stoxx 600 that would push through the February lows. Our US equity strategists expect up to a 6-7% drop in the S&P 500.

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The spillover from Brexit to global growth is modest but not trivial, in our view. We have trimmed 0.2pp from our US GDP growth forecast for the next six quarters, bringing 2017 growth down to 1.8% from 2.0% previously.

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Central banks that held their fire ahead of the UK referendum may soon deploy additional easing. Some fiscal stimulus is likely as well. In particular, we look for the BOJ and RBA to ease further at upcoming meetings, and the ECB to extend QE at its July meeting. We expect the BOE to cut rates by 50bp to zero in July and to expand QE by £50bn within the next few policy meetings.

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iehi-feed-60087 Mon, 27 Jun 2016 16:39:12 GMT Death to All Zombies! - Kunstler http://implode-explode.com/viewnews/2016-06-27_DeathtoAllZombiesKunstler.html The next stage of this protean global melodrama [post-Brexit] is what happens when currencies and interest rates become completely unglued from their assigned roles as patsies in financial racketeering. Sooner or later we'll know what's going on in the vast shadowy gloaming of "derivatives," especially the "innovative" arrangements that affect to be "insurance" against losses in currency and interest rate "positions" -- bets made on the movements of these things. When currencies rise or fall quickly, these so-called "swaps" are "triggered," and then some hapless institution is left holding a big bag of dog-shit. A zombie is a terrible thing to behold, but a zombie holding a bag of dog-shit is like unto the end of the world.

Once this contagion starts burning, the people-in-charge won't be able to quell it the way they did last time: by drowning it in torrents of money-from-nowhere. At least not without inducing real-deal inflation, the kind that leads to epochal ruin and more intense political upheaval: the nation-changing kind.

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iehi-feed-60085 Mon, 27 Jun 2016 16:07:53 GMT Soros: The Man Who DIDN'T Break The Pound (This Time) http://implode-explode.com/viewnews/2016-06-27_SorosTheManWhoDIDNTBreakThePoundThisTime.html "George Soros did not speculate against sterling while he was arguing for Britain to remain in the European Union. In fact, he was long the British pound leading up to the vote," the spokesman said in an emailed statement.

Soros, however, did profit from other investments "because of his generally bearish outlook on world markets," according to the statement.

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Soros had urged British citizens to vote to remain in the European Union in the run-up to last Thursday's referendum. The investor warned that a "leave" vote would spark a sterling plunge but without the beneficial impact that followed the "Black Wednesday" devaluation that accompanied the pound's 1992 ejection from the European exchange-rate mechanism.

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iehi-feed-60078 Sun, 26 Jun 2016 02:14:43 GMT Brexit Blowback Hits Italian and Spanish Banks http://implode-explode.com/viewnews/2016-06-25_BrexitBlowbackHitsItalianandSpanishBanks.html iehi-feed-60076 Sat, 25 Jun 2016 14:17:00 GMT Why the Bitcoin Price Rise on Brexit News Matters http://implode-explode.com/viewnews/2016-06-25_WhytheBitcoinPriceRiseonBrexitNewsMatters.html ``The global financial community has come around to viewing Bitcoin as a transformational technology, and not so much a tech novelty, so the next logical step is for it to be thought of as a kind of "digital gold." "This is Bitcoin's coming out party as a global safe-haven investment. Amazing," tweeted Barry Silbert, founder and CEO of the Digital Currency Group and the creator of the Bitcoin Investment Trust.

We got a nice preview of this when Cyprus' banking system collapsed...

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iehi-feed-60072 Fri, 24 Jun 2016 22:31:40 GMT AEP: Eurocrats Bred Splittist "Terroir-ists", Not Terrorists; Post-Brexit Ground Fraught, But Manageable http://implode-explode.com/viewnews/2016-06-24_AEPEurocratsBredSplittistTerroiristsNotTerroristsPostBrexitGroun.html threatening emanations out of Brussels and from remaining EU members, the case for optimally managing the Brexit doesn't look great... hopefully cooler heads will ultimately prevail...]]> iehi-feed-60069 Fri, 24 Jun 2016 16:17:47 GMT Brexit: The System Cannot Hold http://implode-explode.com/viewnews/2016-06-24_BrexitTheSystemCannotHold.html iehi-feed-60068 Fri, 24 Jun 2016 15:05:38 GMT Hilsenrath's Take: `Brexit' Vote Means More Fed Delay http://implode-explode.com/viewnews/2016-06-24_HilsenrathsTakeBrexitVoteMeansMoreFedDelay.html Officials just a few weeks ago were looking at a move by their July 26-27 policy meeting. That now looks highly unlikely and a move at subsequent meetings becomes less likely, too, at least until it becomes clearer how events in Europe will affect the U.S. economic outlook.

The most important development from the Fed's perspective is a sharp rise in the dollar, which rose 2% against a broad basket of currencies.

The strengthening dollar is in effect a policy tightening for the U.S. that hurts exports and puts downward pressure on import prices. Stock market declines and the global flight from risky assets add to this tightening effect.

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iehi-feed-60055 Thu, 23 Jun 2016 01:10:38 GMT Nervy global investors revisit 1930s playbook (AMIDST MOUNTING SLOWDOWN EVIDENCE) http://implode-explode.com/viewnews/2016-06-22_Nervyglobalinvestorsrevisit1930splaybookAMIDSTMOUNTINGSLOWDOWNEV.html Global investors are once again dusting off studies of the 1930s as fears of protectionism, nationalism and a retreat of globalization, sharpened by this week's Brexit referendum, escalate anew... Broader worries about global trade, frail growth and dwindling investment returns have festered since the banking shock of 2007/08 and have mounted this year.

Stalling trade growth has already led the world economy to the brink of recession for the second time in a decade, with growth now hovering just above the 2.0-2.5 percent level most economists say is needed to keep per capita world output stable. Three-month averages for growth of world trade volumes through March this year have turned negative compared with the prior three months, according to the Dutch government statistics body widely cited as the arbiter of global trade data. And it's not a seasonal blip...

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iehi-feed-60053 Thu, 23 Jun 2016 01:07:19 GMT US dollar may be up to 20% overvalued, IMF says http://implode-explode.com/viewnews/2016-06-22_USdollarmaybeupto20overvaluedIMFsays.html iehi-feed-60052 Thu, 23 Jun 2016 01:01:49 GMT Fed Warns on Commercial Real Estate, Stock Valuations http://implode-explode.com/viewnews/2016-06-22_FedWarnsonCommercialRealEstateStockValuations.html