Implode-Explode Heavy Industries news feed http://implode-explode.com/ Tracking the many faces of the global credit implosion. en-us iehi-feed-59895 Sat, 28 May 2016 00:30:46 GMT The Great Race: USA, Germany, Japan All Have Negative Real 10 Year Sovereign Yields http://implode-explode.com/viewnews/2016-05-27_TheGreatRaceUSAGermanyJapanAllHaveNegativeReal10YearSovereignYie.html iehi-feed-59894 Fri, 27 May 2016 15:40:36 GMT Essence of BofA "Hustle" Ruling: Sign A Contract And LATER Decide To Commit Fraud, and It's Not Fraud http://implode-explode.com/viewnews/2016-05-27_EssenceofBofAHustleRulingSignAContractAndLATERDecideToCommitFrau.html The judges based their ruling on the contracts that Countrywide had reached with Fannie and Freddie, pledging to provide those government-sponsored firms with "investment quality" mortgages. There was no evidence, the appellate judges found, that the executives who signed those contracts intended at the time to stuff the pipeline with toxic junk. It just turned out that way. Because there was no intent to defraud when the contracts were signed, the judges ruled, this whole affair is merely a case of breach of contract, not fraud...

There are a few problems with this analysis. One was pointed out presciently by Judge Rakoff. In a 2013 ruling in the case, he observed that under the federal mail fraud statute, that limitation [of fraud needing to occur at the moment of contract signing] doesn't apply. In any event, the bank's misrepresentations were continuous and ongoing: every time it sold Fannie or Freddie a substandard loan, it was arguably lying... Judge Rakoff anticipated and rejected [the Appeals Court's] argument, and even pointed out that Congress closed the loophole by amending the mail fraud statute -- in 1909. It's also likely that the government will appeal the latest ruling to the full 2nd circuit court, and thence, if necessary, to the Supreme Court.

Yes, this will likely get reversed again. The ruling simply seems to be in error, aside from leading to nonsensical conclusions (i.e., that anyone can now defraud the government with abandon as long as they don't show any evidence of intent to defraud at the time they sign a contract or make covenants).

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iehi-feed-59884 Thu, 26 May 2016 14:52:21 GMT Greece is Being Looted, Despite IMF "Agreement" - Paul Craig Roberts http://implode-explode.com/viewnews/2016-05-26_GreeceisBeingLootedDespiteIMFAgreementPaulCraigRoberts.html iehi-feed-59882 Thu, 26 May 2016 00:44:53 GMT The Fed Setting Up For A U.S. Dollar Collapse If No June Rate Hike http://implode-explode.com/viewnews/2016-05-25_TheFedSettingUpForAUSDollarCollapseIfNoJuneRateHike.html

The U.S. dollar index has bounced from its 15-month low on May 3, thanks to Fed officials talking up rate hikes and thereby propping up the U.S. dollar, referred to as a "Fed Dollar Put". The Fed may have already painted itself into a corner, even as job growth is decelerating, core inflation is trending downward, and the U.S. economy may be one step closer to a recession, as seen by the yield spread between the 10-year and 2-year U.S. Treasury Notes.

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Many economists may not be aware that the S&P 500 Utilities sector is now trading near its all-time high, as money has rotated into safe-havens. The last time Utilities outperformed the broader market, the U.S. economy entered into a recession 12 months later.

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iehi-feed-59881 Wed, 25 May 2016 23:56:47 GMT Fannie And Freddie Are Mega-Frauds; Still Have Not Digested Derivatives & Accounting Losses From Crash http://implode-explode.com/viewnews/2016-05-25_FannieAndFreddieAreMegaFraudsStillHaveNotDigestedDerivativesAcco.html iehi-feed-59880 Wed, 25 May 2016 23:35:59 GMT Precious Metals: Fake-Rally Ends, Hostage Markets Return http://implode-explode.com/viewnews/2016-05-25_PreciousMetalsFakeRallyEndsHostageMarketsReturn.html In the real world, the quantity of investment dollars going into silver is roughly parallel to the quantity of dollars going into gold. Had a similar ratio of investor dollars entered the bankers "paper bullion" markets the price of silver would have had to rise roughly 20 times faster/higher than the price of gold during this supposed rally.

The notion, in this "precious metals rally", that no one was buying silver is patently absurd. The price of silver during most of this fake-rally wasn't merely improbable, it was impossible.

... the Big Bank crime syndicate remains totally in control of what we call our "markets" (for lack of a better word). Currency prices remain fixed (rigged). Equity market prices remain fixed (rigged). Bond market prices remain fixed (rigged). Are we to believe that the banksters simply 'forgot' to continue their precious metals price-fixing -- even as the mainstream media was shouting the word "rally" at the top of its lungs?

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The current eight-year, bubble-and-crash cycle manufactured by the Big Banks is nearing its end. When this Next Crash is detonated, this crime syndicate obviously doesn't want precious metals to stand out as "safe havens" -- as all of their corrupt, paper assets are plunging in value. The problem: with gold and silver already at rock-bottom prices at the beginning of 2016, it would have been very difficult to crash those markets (along with everything else). Thus the banksters need to march gold and silver prices higher, to some modest level, before they were set up to be crashed along with all other asset classes.

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iehi-feed-59879 Wed, 25 May 2016 23:30:51 GMT DoubleLine's Gundlach: U.S. stock market is 'dead money' http://implode-explode.com/viewnews/2016-05-25_DoubleLinesGundlachUSstockmarketisdeadmoney.html iehi-feed-59871 Tue, 24 May 2016 17:40:23 GMT Clinton Foundation: Rife With "Sloppy" Accounting, Despite Major Auditors http://implode-explode.com/viewnews/2016-05-24_ClintonFoundationRifeWithSloppyAccountingDespiteMajorAuditors.html "For three years in a row beginning in 2010, the Clinton Foundation reported to the IRS that it received zero in funds from foreign and U.S. governments, a dramatic fall-off from the tens of millions of dollars in foreign government contributions reported in preceding years.

"Those entries were errors, according to the foundation: several foreign governments continued to give tens of millions of dollars toward the foundation's work on climate change and economic development through this three-year period."

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iehi-feed-59870 Tue, 24 May 2016 17:38:49 GMT Hillary Pimped Fracking http://implode-explode.com/viewnews/2016-05-24_HillaryPimpedFracking.html iehi-feed-59862 Mon, 23 May 2016 17:40:51 GMT The "Doom Loop Is Coming Back" - Deutsche Bank http://implode-explode.com/viewnews/2016-05-23_TheDoomLoopIsComingBackDeutscheBank.html iehi-feed-59859 Mon, 23 May 2016 14:38:15 GMT Why The Flyover Zone Is Hurting: Bubble Finance Is Strictly For The Bicoastal Elites | Stockman http://implode-explode.com/viewnews/2016-05-23_WhyTheFlyoverZoneIsHurtingBubbleFinanceIsStrictlyForTheBicoastal.html iehi-feed-59857 Mon, 23 May 2016 14:30:19 GMT PIMCO: Fed Should Buy Gold At $5000/oz To Jumpstart Inflation http://implode-explode.com/viewnews/2016-05-23_PIMCOFedShouldBuyGoldAt5000ozToJumpstartInflation.html iehi-feed-59856 Mon, 23 May 2016 14:25:40 GMT Das: The global economy is no Lazarus -- the outlook is bleak http://implode-explode.com/viewnews/2016-05-23_DasTheglobaleconomyisnoLazarustheoutlookisbleak.html The fact that current policies have not led to a recovery after six years suggests that they are ineffective. A general lack of demand combined with demographics, slower improvements in productivity, reduced rates of innovation, resource constraints, environmental factors and rising inequality is likely to constrain growth. Overcapacity, technological improvements, competitive devaluations and a lack of pricing power is likely to keep inflation low, despite loose monetary conditions.

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The final scenario is the mother of all crashes. Financial system failures occur as a significant number of sovereigns, corporate and households are unable to service their debt. Defaults trigger problems in the banking system which leads to a major liquidity contraction, which in turn feeds back into real economic activity.

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Some historians view World War II as a continuation of World War I with an interval. Any new crisis is likely to be a further phase of the 2008 crisis, reflecting the fact that the causes remain largely unresolved. But a future downturn will exacerbated by several factors.

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iehi-feed-59854 Sun, 22 May 2016 17:53:46 GMT Despite June Hike Talk, Yield Curve is Not Cooperating http://implode-explode.com/viewnews/2016-05-22_DespiteJuneHikeTalkYieldCurveisNotCooperating.html iehi-feed-59853 Sun, 22 May 2016 17:53:20 GMT "We Are Becoming Convinced That The System Won't Stabilize" - Citi Explains How Central Banks Broke The Market http://implode-explode.com/viewnews/2016-05-22_WeAreBecomingConvincedThatTheSystemWontStabilizeCitiExplainsHowC.html We talk about money flowing from one market to another as though there is a fixed amount of it. Yet we have argued elsewhere that it is constantly being created through credit expansion in the private sector and on central bank balance sheets, or destroyed through deleveraging and defaults, and that changes in the multipliers -- as opposed to the flows themselves -- are at least as important as a driver of market movements and economic growth.

On multiple fronts we fear that what was a positive-sum game previously is now turning negative, and that the potential for some recent trends to run and run is still underappreciated, with potentially far-reaching repercussions... Constraints on financial leverage do not just lead to liquidity settling at a lower level; they risk sparking a cycle of ever-diminishing liquidity. Banks exiting markets do not just lead to increased opportunities for the rest; they lead to a diminished pie for all

I.e. the deflation of a system based on excess leverage is, well, deflationary...

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iehi-feed-59852 Sun, 22 May 2016 15:58:11 GMT Companies masking $6.6 trillion of debt; Cash Concentrated at Top http://implode-explode.com/viewnews/2016-05-22_Companiesmasking66trillionofdebtCashConcentratedatTop.html third of all the cash held by US companies is in a mere five companies (Apple, Microsoft, Alphabet, Cisco Systems and Oracle). see article in USAToday. So the cash/debt position of everyone else is a lot more precarious.]]> iehi-feed-59850 Sun, 22 May 2016 15:48:13 GMT Not Just Glyphosate: Monsanto's Roundup Contains Toxic Soup of Secret Ingredients http://implode-explode.com/viewnews/2016-05-22_NotJustGlyphosateMonsantosRoundupContainsToxicSoupofSecretIngred.html iehi-feed-59849 Sun, 22 May 2016 13:48:18 GMT The New Abnormal: "Disequilibrium Flirting with Deflationary Depression" http://implode-explode.com/viewnews/2016-05-22_TheNewAbnormalDisequilibriumFlirtingwithDeflationaryDepression.html iehi-feed-59848 Sat, 21 May 2016 22:09:34 GMT Fannie, Freddie and the Secrets of a Bailout With No Exit http://implode-explode.com/viewnews/2016-05-21_FannieFreddieandtheSecretsofaBailoutWithNoExit.html with the unsealing of documents this week that were produced as part of a lawsuit filed against the government, new evidence is coming to light on how intimately the White House was involved in the Treasury's decision in August 2012 to keep all the companies' profits for the government. That move effectively maintained Fannie's and Freddie's status as wards of the state.

The newly released documents go beyond previous disclosures in the case and make clear that the Obama administration never had any intention of restoring Fannie and Freddie, which enjoyed implicit backing from the government before the takeover, to their status as stand-alone entities.

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The new materials cast further doubt on arguments made in court by government lawyers that the profit sweep came about because Fannie and Freddie were in a death spiral and taxpayers needed protection from future losses. Documents unsealed last month also served to undermine that legal stance.

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Preventing the companies from using their profits to rebuild a strong capital position was an explicit goal of the Obama administration, the newly unsealed materials show. In an email sent the day the profit sweep was announced, Mr. Parrott said diverting Fannie's and Freddie's profits would eliminate "the possibility that they ever go (pretend) private again."

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The unsealed documents indicate an intense desire to get rid of Fannie and Freddie as independent entities once and for all. They do not show any concern among Treasury officials that their actions on the profit sweep might violate the law.

Another way to view this is that the Treasury simply knew it needed whatever subsidy it could squeeze out of F&F....

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iehi-feed-59842 Sat, 21 May 2016 14:45:45 GMT Three of Hillary's Mega Donors Are in Panama Papers; Another Tied to $6.8 Billion Tax Avoidance Scheme http://implode-explode.com/viewnews/2016-05-21_ThreeofHillarysMegaDonorsAreinPanamaPapersAnotherTiedto68Billion.html