Implode-Explode Heavy Industries news feed http://implode-explode.com/ Tracking the many faces of the global credit implosion. en-us iehi-feed-62160 Sat, 29 Apr 2017 12:46:43 GMT $1B Louisiana bank failure is costliest since financial crisis http://implode-explode.com/viewnews/2017-04-29_1BLouisianabankfailureiscostliestsincefinancialcrisis.html Regulators on Friday seized New Orleans-based First NBC Bank in the costliest bank failure since the financial crisis, with cleanup costs estimated at $1 billion .

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The billion-dollar loss comes from the difference in the FDIC's obligations and what it can expect to collect from the assets. The last time the FDIC paid more than $1 billion to absorb losses was when two banks in Puerto Rico failed in 2010.

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First NBC was founded in 2006 and proclaimed its mission to be helping Louisiana rebuild from Hurricane Katrina. The bank got in trouble in part because it became unusually reliant on projects that revolve around federal tax credits for low-income or less developed areas. The bank would finance projects and get tax credits good in the future. But regulators decided that First NBC was overstating the value of those tax credits, forcing the bank to write down their value. Regulators increased scrutiny and ordered the bank to raise capital, but the bank had to set aside another $86 million in the last three months of 2016 to cover increasing loan losses.

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iehi-feed-62159 Sat, 29 Apr 2017 03:35:04 GMT Delving Into That Q1 GDP Stinker... http://implode-explode.com/viewnews/2017-04-28_DelvingIntoThatQ1GDPStinker.html iehi-feed-62158 Fri, 28 Apr 2017 23:06:33 GMT U.S. first quarter growth weakest in three years as consumer spending falters http://implode-explode.com/viewnews/2017-04-28_USfirstquartergrowthweakestinthreeyearsasconsumerspendingfalters.html iehi-feed-62157 Thu, 27 Apr 2017 23:31:27 GMT 'Fist bumps' at hedge funds over Trump's tax plan http://implode-explode.com/viewnews/2017-04-27_FistbumpsathedgefundsoverTrumpstaxplan.html "For hedge funds, this is an unmitigated benefit as their tax liabilities could drop significantly," said Robert Willens, an independent tax consultant. "Obviously, they are quite enthusiastic and there may be a few fist bumps along the way."

A manager whose hedge fund earns $50 million a year, for example, would be paying some $19.8 million in taxes, or 39.6 percent, under the current rules. That could drop to as little as $7.5 million if the rate were cut to 15 percent.

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Aside from the pass-through proposal, an open question is what kind of treatment will be given to so-called carried interest. That allows managers to pay a tax rate as low as 20 percent, a loophole that Trump has railed against in the past.

Similarly, there is no clarity on whether businesses would be required to pay "reasonable compensation" to their managers, income that could be taxed at a higher rate, experts said. Including that could help Trump appeal to his base and mollify critics who say the plan is a giveaway for millionaires.

"Who needs to worry about carried-interest going away if you have a 15 percent pass-through tax rate," said hedge fund manager Jim Chanos, who runs Kynikos Associates. "This should really be called the 'Put Rich Guys Back on Top Tax Act of 2017.'"

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iehi-feed-62156 Thu, 27 Apr 2017 23:29:46 GMT Donald Trump used to hate Wall Street. Now he embraces it http://implode-explode.com/viewnews/2017-04-27_DonaldTrumpusedtohateWallStreetNowheembracesit.html The Wall Street influence is evident already in Trump's policy flip flops.

He's dialed back massively on the protectionist trade talk, especially on China. Trump campaigned on ripping up trade agreements like NAFTA and labeling China a currency manipulator (a fancy word for a cheater) on "Day One" in office. None of that happened.

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He's even started saying nice things about Janet Yellen, the head of the Federal Reserve, whom he blasted on the campaign trail for rigging the economy to make Obama look better.

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Trump relishes praise, and investors have cheered his pro-Wall Street shift by sending the stock market to record highs. It's been dubbed the "Trump rally." The Dow and S&P 500 have jumped over 10% since he won the election, a fact the president likes to tout on Twitter and in his speeches (it's even mentioned on the White House website).

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iehi-feed-62155 Thu, 27 Apr 2017 21:32:06 GMT If Mortgage Rates Tick Up Even a Little, What'll Happen to Canada's House Price Bubble? http://implode-explode.com/viewnews/2017-04-27_IfMortgageRatesTickUpEvenaLittleWhatllHappentoCanadasHousePriceB.html iehi-feed-62154 Thu, 27 Apr 2017 21:28:22 GMT Pending Home Sales Drop In March - Now Stagnant For 2 Years http://implode-explode.com/viewnews/2017-04-27_PendingHomeSalesDropInMarchNowStagnantFor2Years.html iehi-feed-62153 Thu, 27 Apr 2017 16:51:50 GMT Obama's $400,000 Wall Street Speech Is Completely In Character http://implode-explode.com/viewnews/2017-04-27_Obamas400000WallStreetSpeechIsCompletelyInCharacter.html iehi-feed-62152 Thu, 27 Apr 2017 16:46:56 GMT Walmart pushes deeper into financial services http://implode-explode.com/viewnews/2017-04-27_Walmartpushesdeeperintofinancialservices.html iehi-feed-62151 Thu, 27 Apr 2017 16:18:38 GMT Why Trump should have ditched the mortgage-interest deduction http://implode-explode.com/viewnews/2017-04-27_WhyTrumpshouldhaveditchedthemortgageinterestdeduction.html While many Americans and lobbyists working on behalf of the real estate industry defend the mortgage-interest deduction, not too many people are taking it. Wealthy Americans are far more likely to benefit from the mortgage-interest deduction than others, in part because they're more likely to itemize their tax returns.

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Trump's plan calls for doubling the standard deduction to $12,400 for single individuals and $25,200 for married couples filing jointly, which consequently would raise the bar in terms of the amount homeowners need to pay in mortgage interest to qualify.

That makes it even more likely that wealthy Americans and those living in high-priced real estate markets will be the ones to benefit, said Svenja Gudell, chief economist at real estate website Zillow. "Before it was for the wealthy, now it's for the ultra-wealthy," Gudell said.

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iehi-feed-62150 Thu, 27 Apr 2017 15:05:05 GMT The U.S. Student Loan Implosion: By The Numbers http://implode-explode.com/viewnews/2017-04-27_TheUSStudentLoanImplosionByTheNumbers.html iehi-feed-62149 Thu, 27 Apr 2017 14:53:20 GMT Canada's Biggest Mortgage Lender Crashes; Gets Rescue -- End of Line For Housing Bubble? http://implode-explode.com/viewnews/2017-04-27_CanadasBiggestMortgageLenderCrashesGetsRescueEndofLineForHousing.html Today... the stock of Home Capital Group cratered by over 60%, its biggest drop on record, after the company disclosed that it struck an emergency liquidity arrangement for a C$2 billion ($1.5 billion) credit line to counter evaporating deposits at terms that will leave the alternative mortgage lender unable to meet financial targets, and worse, may leave it insolvent in very short notice.

As part of this inevitable outcome, one which presages the company's eventual disintegration and likely liquidation, Bloomberg reports that the non-binding rescue loan with an unnamed counterparty will be secured by a portfolio of mortgage loans originated by Home Trust, the Toronto-based firm said in a statement Wednesday. Home Capital shares dropped by 61% in Toronto to the lowest since 2003, dragging down other home lenders. Equitable Group Inc. fell 17 percent, Street Capital Group Inc. fell 13 percent, while First National Financial Corp. declined 7.6 percent. In short, the Canadian mortgage bubble has finally burst.

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iehi-feed-62148 Thu, 27 Apr 2017 14:43:57 GMT Fiscal FactCheck: How Much Will Trump's Tax Plan Cost? http://implode-explode.com/viewnews/2017-04-27_FiscalFactCheckHowMuchWillTrumpsTaxPlanCost.html iehi-feed-62147 Wed, 26 Apr 2017 20:19:47 GMT Lucky, good or tipped off? the curious case of government data and the Pound http://implode-explode.com/viewnews/2017-04-26_LuckygoodortippedoffthecuriouscaseofgovernmentdataandthePound.html iehi-feed-62146 Wed, 26 Apr 2017 19:58:52 GMT Trudeau's Reward for Courting Trump Is a Trade War on Lumber http://implode-explode.com/viewnews/2017-04-26_TrudeausRewardforCourtingTrumpIsaTradeWaronLumber.html iehi-feed-62145 Wed, 26 Apr 2017 18:47:46 GMT There's a Huge Disagreement Between Bonds and Stocks http://implode-explode.com/viewnews/2017-04-26_TheresaHugeDisagreementBetweenBondsandStocks.html iehi-feed-62144 Wed, 26 Apr 2017 14:57:12 GMT Trump to Stick to Proposed Standard Deduction Boost; 15% Corp and Pass-Thru Rate http://implode-explode.com/viewnews/2017-04-26_TrumptoSticktoProposedStandardDeductionBoost15CorpandPassThruRat.html President Trump on Wednesday plans to call for a significant increase in the standard deduction people can claim on their tax returns, potentially putting thousands of dollars each year into the pockets of tens of millions of Americans, according to two people briefed on the plan.

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Trump will call for a sharp reduction in the corporate tax rate, from 35 percent to 15 percent. He will also propose lowering the tax rate for millions of small businesses that now file their tax returns under the individual tax code, two people familiar with the plan said.

These companies, often referred to as "pass throughs" or S corporations, would be subject to the 15 percent rate proposed for corporations. Many pass throughs are small family-owned businesses, but they can also be large, such as parts of Trump's own real estate empire or law firms with partners who earn more than a million dollars annually. The White House is expected to pursue safeguards to ensure that companies like law firms can't take advantage of this new tax rate and allow their highly paid partners to pay much lower tax bills.

We can't say we wouldn't like these tax rates, though slim chance they get through Congress in one piece. And of they're done, they'll probably finally blow a fatal hole in U.S. finances, due to the deficit impact.

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iehi-feed-62143 Wed, 26 Apr 2017 04:45:34 GMT Wells Fargo's Fraud-Fostering Board Saved By "Uncle Warren" http://implode-explode.com/viewnews/2017-04-26_WellsFargosFraudFosteringBoardSavedByUncleWarren.html iehi-feed-62142 Tue, 25 Apr 2017 22:44:33 GMT Trump is caving on border wall funding after showing his base that he tried http://implode-explode.com/viewnews/2017-04-25_Trumpiscavingonborderwallfundingaftershowinghisbasethathetried.html Last night the president backed off his demand that any deal to fund the federal government include money to start construction on his border wall. At an event with conservative journalists, Trump said he's okay waiting until September to have this fight.

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Even after he realizes the border wall is infeasible, he is unlikely to ever acknowledge it publicly because it was such a central rationale of his candidacy. "I will build a great wall," Trump promised in his June 2015 announcement speech. "And nobody builds walls better than me, believe me. ... And I will make Mexico pay for that wall. Mark my words." (The Huffington Post created a timeline tracking his promises on the wall over the past two years.)

-- The president's aides have convinced him that he can present a little bit of money for border security, especially technology and more agents, as a victory. And he will avert a government shutdown that would have raised questions about his competence and basic leadership ability, especially with the GOP in total control of Washington. Trump has already begun taking credit for a drop in illegal border crossings and a reduction in crime along the border. He says his tough enforcement policies are deterring many from trying to enter the country.

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iehi-feed-62141 Tue, 25 Apr 2017 16:45:58 GMT Desperate "Naked selfie" Loans Proliferate on Chinese Platforms http://implode-explode.com/viewnews/2017-04-25_DesperateNakedselfieLoansProliferateonChinesePlatforms.html Interest on the "nude loans" reached an astonishing 30 percent a week, according to the Global Times newspaper. Lenders told female borrowers that if they failed to repay the loans, their nude photos would be sent to their families and friends, whose information was also required for some transactions, the article said.

Material in the file put on the web last Wednesday showed some borrowers also promised to repay loans with sexual favours, according to screen captures posted on social media websites.

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