Implode-Explode Heavy Industries news feed http://implode-explode.com/ Tracking the many faces of the global credit implosion. en-us iehi-feed-61955 Sun, 26 Mar 2017 15:49:20 GMT Bridgewater Releases Report on Populism http://implode-explode.com/viewnews/2017-03-26_BridgewaterReleasesReportonPopulism.html iehi-feed-61954 Sun, 26 Mar 2017 15:38:05 GMT The Swamp Drains Trump - KUNSTLER http://implode-explode.com/viewnews/2017-03-26_TheSwampDrainsTrumpKUNSTLER.html iehi-feed-61953 Sun, 26 Mar 2017 15:36:52 GMT Trump's path forward only gets tougher after health-care fiasco http://implode-explode.com/viewnews/2017-03-26_Trumpspathforwardonlygetstougherafterhealthcarefiasco.html ... others in the party acknowledged the political damage sustained by pulling the House bill, particularly for a president who had touted his own dealmaking prowess... While Republicans broadly share the goal of Trump's promised "big tax cuts," the president will have to bridge many of the same divides within his own party that sank the attempted overhaul of the Affordable Care Act. And without savings anticipated from the health-care bill, paying for the "massive" cuts Trump has promised for corporations and middle-class families becomes considerably more complicated.

Meanwhile, other marquee agenda items, including a $1 trillion investment in roads and other infrastructure and proposed crackdowns on both legal and illegal immigration, will require the support of Democrats, many of whom have been alienated by the highly partisan start to Trump's tenure.''

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iehi-feed-61951 Sat, 25 Mar 2017 15:25:26 GMT "It Was a Very Bad Earnings Season" (Again) http://implode-explode.com/viewnews/2017-03-25_ItWasaVeryBadEarningsSeasonAgain.html ``The recovery in earnings is as lackluster as the recovery in economy, a more constructed relationship where stocks are concerned. That leaves share prices, in general, operating on the far end of the probability spectrum; where everything has to go just right in the near future, including whatever may come out of Trump "stimulus" and economic policies. EPS, however, suggests, as the calculations for GDP potential, that that would be a very low probability outcome, including a high risk of "something" going wrong all over again just like it was in 2014.

For shareholders, that leaves them in a precarious position expecting something that just isn't very likely. Worse, any objective review of economic prospects for years before suggested the very same, meaning that nothing has really changed in terms of the long run except actual reported earnings which are supposed to matter more.''

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iehi-feed-61949 Sat, 25 Mar 2017 15:19:22 GMT A ‘deaths of despair' crisis is gripping America http://implode-explode.com/viewnews/2017-03-25_AdeathsofdespaircrisisisgrippingAmerica.html The Americans we are talking about are white and middle class. They are aged 45-55. They are losing the battle against heart disease and cancer, and they are succumbing to drugs, alcohol and suicide at rates unseen in modern history or in other developed countries.

"The combined effect means that mortality rates of whites with no more than a high school degree, which were around 30 percent lower than mortality rates of blacks in 1999, grew to be 30 percent higher than blacks by 2015," Case and Deaton wrote.

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iehi-feed-61947 Sat, 25 Mar 2017 15:10:42 GMT Death of the American Dream? Life In Post-Crisis America http://implode-explode.com/viewnews/2017-03-25_DeathoftheAmericanDreamLifeInPostCrisisAmerica.html iehi-feed-61945 Fri, 24 Mar 2017 03:00:52 GMT Sovereign Debt Crises Simmer At Opposite Ends of the Global Pecking Order: The U.S., and Greece http://implode-explode.com/viewnews/2017-03-23_SovereignDebtCrisesSimmerAtOppositeEndsoftheGlobalPeckingOrderTh.html On one side of the Atlantic, we have the United States of America, which triggered yet another debt ceiling disaster last Thursday when the US government's maximum allowable debt reset to just over $20 trillion. Of course, the US national debt is pretty much already at $20 trillion... It's a repeat of what happened in 2015. And 2013. And 2011. Pretty amazing to consider that the "richest" country in the world has to plunder retirement funds in order to keep the lights on.

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Greece has had nine different governments since 2009. At least thirteen austerity measures. Multiple bailouts. Severe capital controls. And a full-out debt restructuring in which creditors accepted a 50% loss. Yet despite all these measures GREECE IS STILL IN A DEBT CRISIS.

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iehi-feed-61943 Thu, 23 Mar 2017 21:09:28 GMT Lavish EU 60th Celebration Will Skirt Issues in Stumbling Italy, the Host Country http://implode-explode.com/viewnews/2017-03-23_LavishEU60thCelebrationWillSkirtIssuesinStumblingItalytheHostCou.html "Italy was until very recently at the forefront of the European integration process," Luigi Zingales, professor of finance at University of Chicago Booth School of Business, said in an interview. "Today it's undoubtedly Europe's weakest link."

The economy grew just 0.9 percent last year, below the euro area's 1.7 percent, and unemployment is at 11.9 percent. A recent EU poll put Italy as the monetary union's second-most euro-skeptic state after Cyprus with only 41 percent saying the single currency is "a good thing." The average in the 19-member euro area is 56 percent.

That widespread disenchantment may be felt at elections due in about one year. A poll published on Tuesday by Corriere della Sera put support for the Five Star Movement, which calls for a referendum to ditch the euro, at a record 32.3 percent, well ahead of the ruling Democratic Party. Summit host Prime Minister Paolo Gentiloni has only been in power since December, when Matteo Renzi resigned after losing a constitutional reform referendum.

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iehi-feed-61942 Thu, 23 Mar 2017 20:59:46 GMT A Fake $3.6 Trillion Deal Is Easy to Sneak Past the SEC http://implode-explode.com/viewnews/2017-03-23_AFake36TrillionDealIsEasytoSneakPasttheSEC.html The 32-year-old painter said Google's parent, Alphabet Inc., had bought his art company in exchange for a chunk of stock that made him wealthier than Microsoft Corp. co-founder Bill Gates, Berkshire Hathaway Inc.'s Warren Buffett and Amazon.com Inc.'s Jeff Bezos -- combined.

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For more than three decades, the SEC has accepted online submissions of regulatory filings -- basically, no questions asked. As many as 800,000 forms are filed each year, or about 3,000 per weekday. But, in a little known vulnerability at the heart of American capitalism, the government doesn't vet them, and rarely even takes down those known to be shams.

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iehi-feed-61939 Thu, 23 Mar 2017 20:42:21 GMT Trump Nominee: Lax Deal for Billionaire Pedo Jeffrey Epstein Was ‘A Good Thing' http://implode-explode.com/viewnews/2017-03-23_TrumpNomineeLaxDealforBillionairePedoJeffreyEpsteinWasAGoodThing.html iehi-feed-61938 Thu, 23 Mar 2017 16:52:24 GMT Apparent Hacked Texts From Manafort's Daughters Refer to Ukraine "Blood Money" http://implode-explode.com/viewnews/2017-03-23_ApparentHackedTextsFromManafortsDaughtersRefertoUkraineBloodMone.html ``In a series of texts reviewed by Business Insider that appear to have been sent by Andrea to her sister, Jessica, in March 2015, Andrea said their father had "no moral or legal compass." "Don't fool yourself," Andrea wrote to her sister, according to the texts. "That money we have is blood money."

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In a later exchange with a man who appeared to be Andrea's cousin -- and one of her father's former employees -- Collin Bond, Andrea appears to have said her mother and father couldn't go through a "public divorce" because Manafort had "too many skeletons" and "his work and payment in Ukraine is legally questionable."

This is certainly not good for Paulie (and by somewhat-attenuated connection, Trump). Our suspicion around here is that the bribes and related corruption allegations are in fact true (it's certainly easy to deny one didn't ever receive nearly $1M in bribe money if it was all in cash) -- and this is just some of more evidence that keeps surfacing in recent weeks supporting that case.

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iehi-feed-61937 Thu, 23 Mar 2017 16:31:33 GMT Trump Faces Bitter Defeat [Today]- The Wall Street Examiner http://implode-explode.com/viewnews/2017-03-23_TrumpFacesBitterDefeatTodayTheWallStreetExaminer.html iehi-feed-61935 Thu, 23 Mar 2017 00:08:39 GMT Matt Taibbi: Trump the Destroyer http://implode-explode.com/viewnews/2017-03-22_MattTaibbiTrumptheDestroyer.html Just a month or so into Trump's administration, one of the central promises of his campaign -- the killing off of the Affordable Care Act -- is in trouble. Trump's inability to hold coalitions together, or really do much of anything beyond generate TV ratings, is already showing. But just as it was last year when the punditocracy told him he'd made himself unelectable, Trump's ace in the hole may be that he doesn't care. His history is that when the playing field doesn't work for him, he moves it. The Framers may have designed the government to withstand bouts of popular madness, but there are no checks and balances against the power of celebrity. A president who is both a tyrant and disinterested in governance would have blown their minds.

"At some point, he just stopped appointing people," says an incredulous Hauser, the capital watchdog, at the end of February. "He's only made 30 appointments. That means he's still got over 1,000 empty posts. Nearly 200 ambassador posts are in limbo. He named Neil Gorsuch to the Supreme Court, but not a single judge beyond that -- with over 100 empty federal seats to be filled. Nobody knows what the hell is going on."

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iehi-feed-61930 Wed, 22 Mar 2017 14:40:25 GMT Trump Sought North Korea-Style Military Vehicle Parade for Inauguration http://implode-explode.com/viewnews/2017-03-22_TrumpSoughtNorthKoreaStyleMilitaryVehicleParadeforInauguration.html iehi-feed-61929 Wed, 22 Mar 2017 00:26:11 GMT How Long Can Stocks' P/E-Multiple Expansion Outlive Declining Earnings and Companies' Financial Engineering? http://implode-explode.com/viewnews/2017-03-21_HowLongCanStocksPEMultipleExpansionOutliveDecliningEarningsandCo.html ... stocks have soared despite these miserable growth fundamentals. So what gives in this no-earnings-growth environment? Turns out the only thing that has soared is the price-earnings multiple. Over the three-plus years, it expanded by 47% from a P/E ratio of 18.15 on January 1, 2014, to P/E ratio of 26.64 today

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This combination of flat earnings and soaring stock prices, and thus expanding P/E ratios, is not uncommon. It comes in cycles: periods of multiple expansion are followed by periods of multiple compression. The current cycle of year-over-year multiple expansion has lasted for 57 months, the longest on record. The prior three record cycles -- which ended in 1987, 2000, and 2009 -- turned into periods of multiple compression associated with blistering crashes.

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iehi-feed-61928 Tue, 21 Mar 2017 15:31:34 GMT H-1B Visa Reform Actually Needed... But Trump Looks Set To Punt It http://implode-explode.com/viewnews/2017-03-21_H1BVisaReformActuallyNeededButTrumpLooksSetToPuntIt.html As Bloomberg describes tonight, H-1B visa applications are due at the beginning of April, so if the Trump Administration fails to implement its fixes by then, it's at least a year before they'll have any effect. Moreover, the lack of apparent momentum on this front does not bode well for meaningful changes.

... the program has moved almost entirely away from its original goals. One aim was to import workers when employers couldn't find qualified Americans. The second was to cap the number of H-1B holders, since both the bill's drafters and industry lobbyists wanted companies to bring in "talent" via green cards and help them become citizens, rather than rent them.

The result instead has been the creation of a large industry of foreign workers who largely work abroad. Not only do they undercut US wages and eliminate entry-level jobs, meaning the US is no longer developing its own tech professionals, but the fact that much of the work is done overseas also results in reduced taxes to states and municipalities.

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In the U.S., outsourcers bring staffers into the country on work visas, train them in the tech departments of leading corporations and then rotate them back to India where pay and living costs are lower. Outsourcing companies now get far more visas than traditional technology companies, according to data collected by Howard University's Ron Hira through Freedom of Information Act requests.

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iehi-feed-61924 Tue, 21 Mar 2017 14:56:55 GMT While Nobody's Watching, Paul Ryan Is Taking A Sledgehammer To Medicaid's Promise To Seniors http://implode-explode.com/viewnews/2017-03-21_WhileNobodysWatchingPaulRyanIsTakingASledgehammerToMedicaidsProm.html iehi-feed-61916 Sun, 19 Mar 2017 17:30:55 GMT More Proof of Janet Yellen's Idiocy - David Stockman http://implode-explode.com/viewnews/2017-03-19_MoreProofofJanetYellensIdiocyDavidStockman.html ... the market is priced as if the business cycle has been outlawed and as if the feckless band of Keynesian pretenders who have seized control of financial markets have ushered in the Nirvana of permanent full-employment.

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if the Fed plans to keep raising until rates until they reach 3.0% by 2019, it will have to suck massive amounts of cash out of the financial markets. So doing, it will drive long-term yields substantially higher and thereby obliterate the ultra-low cap rate delusion on which the entire regime of Bubble Finance is based.

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Yellen proved she is clueless about the financial firestorm our rogue central bank is about to unleash. She claimed that the Fed could implement 3-4 money market rate increases a year, while deferring the shrinkage of its balance sheet into the indefinite future. But that it most assuredly cannot do.

With a staggering overhang of $2.1 trillion of excess reserves in the financial system, even our vaunted monetary politburo cannot command the tides to recede. If it wants the money rate to rise on its appointed path through 2019, it must drain loads of cash from Wall Street.

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iehi-feed-61914 Sun, 19 Mar 2017 01:35:48 GMT Deepening EU Banking Crisis Meets Euro-TARP, Taxpayers http://implode-explode.com/viewnews/2017-03-18_DeepeningEUBankingCrisisMeetsEuroTARPTaxpayers.html ... the European banking sector may face even higher bad loan risks if the ECB begins to scale back its monetary stimulus programs, something it has already begun, albeit extremely tentatively. The total stock of non-performing loans (NPL) in the EU is estimated at over €1 trillion, or 5.4% of total loans, a ratio three times higher than in other major regions of the world.

... someone else must step in, and soon. And that someone is almost certain to be the European taxpayer.

In February ECB Vice President Vitor Constancio called for the creation of a whole new class of government-backed "bad banks" to help buy some of the €1 trillion of bad loans putrefying on bank balance sheets. Constancio's idea bore a striking resemblance to a formal proposal put forward by the European Banking Authority (EBA) for the creation of a massive EU-wide bad bank that, in the words of EBA president Andrea Enria, would "make it much easier to achieve critical mass and to create a well functioning market for (impaired) assets."

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iehi-feed-61912 Sat, 18 Mar 2017 19:04:00 GMT A Bad Week and Getting Badder Bigly Fast - KUNSTLER http://implode-explode.com/viewnews/2017-03-18_ABadWeekandGettingBadderBiglyFastKUNSTLER.html ... the longer a debt ceiling stalemate goes on in congress, the more trapped President Trump will be. The cherry on top is the Federal Reserve's move to raise interest rates the same day the debt ceiling truce expired. That will thunder through the system, making many loans more expensive to repay, dampening the real estate markets (at a time when commercial real estate is already tanking), and draining all kinds of other mojo (however falsely engineered) from the Potemkin economy.

As if being trapped in a political minefield isn't bad enough, the remaining safe patch Trump is stranded on turns out to be the LaBrea Tar Pit of health care reform. At this point, the crusade is doing worse than going nowhere -- it's getting sucked into the primordial bitumen where the mastodons and camelops sleep.

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