Implode-Explode Heavy Industries news feed Tracking the many faces of the global credit implosion. en-us iehi-feed-59000 Sat, 13 Feb 2016 19:48:53 GMT January "Strong" Retail Sales Was On The Back of 2x Seasonal Adjustment Fudge Factor iehi-feed-58997 Sat, 13 Feb 2016 18:48:45 GMT Schaeuble Directs Attention to Portugal Over DeutscheBank iehi-feed-58995 Sat, 13 Feb 2016 14:36:44 GMT Hillary Clinton and Henry Kissinger: It's Personal. Very Personal. iehi-feed-58994 Sat, 13 Feb 2016 14:25:59 GMT Roasting the DOJ's Morgan Stanley Fraud Settlement - Bill Black iehi-feed-58993 Sat, 13 Feb 2016 14:14:46 GMT Watch What Happens When 1400 Americans Learn They're Losing Their Jobs to Mexico iehi-feed-58992 Sat, 13 Feb 2016 14:12:20 GMT Soros: Putin Destabilizing Syria To Collapse Europe Before Russia iehi-feed-58989 Sat, 13 Feb 2016 04:02:32 GMT Is Anybody NOT Deeper In Debt? iehi-feed-58988 Fri, 12 Feb 2016 18:54:05 GMT U.S. Retail Sales Increased in January (BUT IT'S BASICALLY STILL JUST INFLATION) iehi-feed-58973 Thu, 11 Feb 2016 16:30:29 GMT Notes from the Locked Ward | KUNSTLER iehi-feed-58968 Thu, 11 Feb 2016 03:44:07 GMT Gold's Outperformance: This Time, It May Really Be Different iehi-feed-58966 Wed, 10 Feb 2016 22:57:01 GMT Deutsche Bank "Technically Insolvent"; Bond-buyback Scheme "Legalized Fraud" I would conservatively estimate that the 1.53 trillion euros of financial assets + for sale assets + loans + other assets should be written down by at least 20%.   That would imply that, conservatively, DB could write-down its assets 306 billion euros and likely still be overstating the value of its total asset base.  A write-down of that magnitude would imply that DB has negative net worth of 238 billion euros.


It's fine with me if DB management wants to puff up its image by taking a few billion of liquidity that it technically does not have and buy back some of its debt... However this is highly misleading because the only "gains" generated are a non-cash generating accounting "gain" that is now permitted. It was an accounting change that was passed after the 2008/2009 collapse which gave banks the ability to fabricate net income for the purposes of padding their retained earnings and therefore their book value. It's nothing more than legalized fraudulent accounting... anyone who is not selling their stock into this rally is a complete moron.

iehi-feed-58965 Wed, 10 Feb 2016 20:27:42 GMT TandZ Talk Podcasts: Progressive voices for social, financial, and political change in America support them.]]> iehi-feed-58964 Wed, 10 Feb 2016 17:54:34 GMT Yellen: Fed not likely to reverse course on rates despite risks iehi-feed-58962 Wed, 10 Feb 2016 16:01:36 GMT Europe Banks May Face $27 Billion Energy-Loan Losses (+EURO-BANKS CRUMBLING NEWS ROUND-UP) ``European banks face potential loan losses from energy firms of $27 billion, or about 6 percent of their pretax profit over three years, according to analysts at Bank of America Corp.''

There's too many articles on this topic to post separately; see below:

Here's a choice quote from the Coppola article:

So what will happen next? There are already rumors that Deutsche Bank will need a bail-in, which is no doubt why stock and subordinated debt prices have collapsed and CDS prices have soared. Bail-out is an alternative, given Deutsche Bank's systemic importance, though it would probably break EU state aid rules. But if the alternative were meltdown in the financial system due to the threat of bail-in for other systemically-important banks, those rules would no doubt quickly be ditched. Deutsche Bank is by no means the only European bank on a knife edge, and the Bank of Portugal's recent decision to use the BRRD to justify wiping some senior creditors in a solvent bank has fatally undermined the BRRD. The threat of invoking BRRD now would be likely to spark wholesale bank runs all over Europe.
iehi-feed-58959 Wed, 10 Feb 2016 15:43:13 GMT Border fences will not stop migrants heading to Europe, think-tank says iehi-feed-58957 Wed, 10 Feb 2016 03:21:01 GMT Donald Trump and Bernie Sanders Win the New Hampshire Primaries ``Donald J. Trump and Senator Bernie Sanders of Vermont harnessed working-class fury to surge to commanding victories in a New Hampshire primary that drew huge turnout across the state.

The success by two outsider candidates dealt a remarkable rebuke to the political establishment, and left the race deeply unsettled.


With close to half the precincts reporting, Mr. Trump had received almost 34 percent of the vote, and Mr. Sanders approached 60 percent.

The win for Mr. Sanders amounted to a powerful and painful rejection of Hillary Clinton, who has deep history with New Hampshire voters and offered policy ideas that seemed to reflect the flinty, moderate politics of the state. But Mr. Sanders, who has proposed an emphatically liberal agenda to raise taxes and impose regulations on Wall Street, drew support from a wide cross-section of voters, even edging her out among women, boosted by his appeal to younger women.

... the wave of support for both men was nonetheless stunning to leaders of both parties who believed that in the end, voters would embrace more experienced candidates like Mrs. Clinton or one of the Republican governors in the race. Yet the two men won significant support from voters who felt betrayed by their parties and were dissatisfied or angry with the federal government.

... Mr. Trump's candidacy, in particular, represents a hostile takeover of a party to which he has scant ties. Leveraging celebrity and a ubiquitous presence across both traditional and social media, Mr. Trump has embraced a style of populism on trade, foreign policy and immigration closer to the European nationalist parties than to American conservatism. He has never held elected office and was not even a registered Republican this time four years ago.


The unaffiliated New Hampshire voters who participated in both party primaries, and who supported Mr. Trump and Mr. Sanders in sizable numbers, appear to have found those candidates' anti-establishment messages to be an asset.

... New Hampshire's Republican leaders, who jealously guard their first-in-the-nation status, were as perplexed as they were horrified.

"By name, I only know five people supporting Donald Trump," John H. Sununu, a former governor, said Tuesday. "So I say I cannot understand this electorate."

iehi-feed-58956 Wed, 10 Feb 2016 02:51:12 GMT A Crash Course on Deflation iehi-feed-58946 Tue, 09 Feb 2016 14:42:41 GMT We Are Watching The Financial Collapse! iehi-feed-58944 Mon, 08 Feb 2016 21:24:54 GMT BOMBSHELL: A Week After Silver "Fix" Broken; 6 Large Miners Ditch LME iehi-feed-58943 Mon, 08 Feb 2016 17:24:22 GMT Dot Com 2.0 -- The Sequel Unfolds