Implode-Explode Heavy Industries news feed http://implode-explode.com/ Tracking the many faces of the global credit implosion. en-us iehi-feed-60286 Sat, 23 Jul 2016 14:51:29 GMT Mexico May Be On Verge of Backing Peso With Silver: "Would Unleash a Global Power Shift" http://implode-explode.com/viewnews/2016-07-23_MexicoMayBeOnVergeofBackingPesoWithSilverWouldUnleashaGlobalPowe.html iehi-feed-60285 Sat, 23 Jul 2016 14:48:35 GMT Are Wall Street Banks in Trouble? You'd Never Know from the Headlines http://implode-explode.com/viewnews/2016-07-23_AreWallStreetBanksinTroubleYoudNeverKnowfromtheHeadlines.html One would never know by these headlines that big bank earnings were actually down year over year -- and in some cases, down dramatically. JPMorgan Chase earned $6.2 billion in the second quarter of 2016 versus $6.29 billion in the second quarter of 2015.

The news was far worse at Citigroup, despite the rosy headline at CNBC. Citigroup's second quarter profit fell 17.5 percent year over year, to $4 billion from $4.85 billion in the second quarter of 2015. Its revenues were the lowest in 14 years according to S&P Capital IQ.

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Now news of jobs cuts is spilling out with the Wall Street Journal reporting that Bank of America will make "$5 billion in annual cost cuts by 2018 as part of its strategy to deal with persistently low interest rates that are eating away at lenders' profitability."

The New York Post is calling job cuts at Goldman Sachs the worst since the financial crisis in 2008. Fortune's Stephen Gandel reported two days ago that Goldman had slashed a whopping "1,700 positions in the past three months."

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iehi-feed-60284 Sat, 23 Jul 2016 14:46:52 GMT Once-expanding EU prepares to contract for the first time in its history http://implode-explode.com/viewnews/2016-07-23_OnceexpandingEUpreparestocontractforthefirsttimeinitshistory.html iehi-feed-60283 Sat, 23 Jul 2016 00:49:14 GMT Pension Funds Are Underwater And Taxpayers Along http://implode-explode.com/viewnews/2016-07-22_PensionFundsAreUnderwaterAndTaxpayersAlong.html iehi-feed-60282 Sat, 23 Jul 2016 00:47:51 GMT Lagarde Seen Likely to Avoid Jail Time, Keep IMF Job Amid Trial http://implode-explode.com/viewnews/2016-07-22_LagardeSeenLikelytoAvoidJailTimeKeepIMFJobAmidTrial.html iehi-feed-60281 Sat, 23 Jul 2016 00:46:42 GMT How Sub-Zero Government Bonds Turned the Hunt For Yield Upside Down http://implode-explode.com/viewnews/2016-07-22_HowSubZeroGovernmentBondsTurnedtheHuntForYieldUpsideDown.html iehi-feed-60280 Sat, 23 Jul 2016 00:37:35 GMT Japan joins China in opening a physical gold exchange, Amidst Japan Retail "Gold Rush" http://implode-explode.com/viewnews/2016-07-22_JapanjoinsChinainopeningaphysicalgoldexchangeAmidstJapanRetailGo.html The Tokyo Commodities Exchange (TOCOM) is joining with the Shanghai Gold Exchange (SGE) to become the second major physical gold market in Asia.  Beginning on July 25, the TOCOM will begin deliveries for spot contracts, and is the only gold exchange accepted for futures contracts in Japan.

Since Japanese bonds fell into negative yields, investors and consumers have been buying physical gold at incredible rates.  And now that their market will have an official gold exchange like the one that opened in Shanghai last year, the precious metal will become even more liquid and draw more customers into gold.

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iehi-feed-60279 Sat, 23 Jul 2016 00:32:15 GMT Denmark Faces ‘Out of Control' Housing Market http://implode-explode.com/viewnews/2016-07-22_DenmarkFacesOutofControlHousingMarket.html Denmark's biggest mortgage bank is warning there's a risk the housing market may get "out of control," especially around cities, as long-term negative interest rates make borrowers complacent.

"To be concrete, there is a danger that Danes go blind to the risk of rates ever rising again," Tore Stramer, chief analyst at Nykredit in Copenhagen, said in an e-mail. "That raises the risk of a major housing price decline, when rates at some point or other start to rise again."

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With no other country on the planet having experienced negative rates longer than Denmark, the distortions the policy is wreaking may provide a preview of what other economies face should they go down a similar path. Danes can get short-term mortgages at negative interest rates, and pay less to borrow for 30 years than the U.S. government.

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iehi-feed-60276 Fri, 22 Jul 2016 00:08:17 GMT Toga! Toga! Toga! - Jared Dillon http://implode-explode.com/viewnews/2016-07-21_TogaTogaTogaJaredDillon.html Both candidates for [U.S.] president have increasingly grandiose visions for the sorts of things government should do, and I don't see any scenario in 2017 where the deficit doesn't widen sharply.

... the debt problem is most acute in Japan, obviously, where debt to GDP is now about 240%. Japan was insolvent at a debt-to-GDP ratio of 120%, so the rest is just gravy... What if the Ministry of Finance simply defaults to the BOJ?... This is in fact being seriously considered... Think about it: back when we started doing QE, people were freaking out about what would happen when the Fed sold bonds back into the market. That was never going to happen--that was never the intent at all.

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So if debt doesn't matter and we're going to build roads and trains and bridges to nowhere, it means that shorting this market is a huge waste of time. It will end badly someday, but keep in mind that people have been predicting disaster for the last 45 years, when Nixon took us off gold. We could have 15 more years of this crap... The obvious trade here is gold...''

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iehi-feed-60275 Thu, 21 Jul 2016 23:08:09 GMT The Entire Market is Being Driven by a "Once in History" Asset Bubble About to Burst http://implode-explode.com/viewnews/2016-07-21_TheEntireMarketisBeingDrivenbyaOnceinHistoryAssetBubbleAbouttoBu.html iehi-feed-60271 Thu, 21 Jul 2016 14:01:25 GMT 'Crexit' warning as corporate debt seen ballooning to $75 trillion (ZIRP+NIRP NEEDED FOREVER!!) http://implode-explode.com/viewnews/2016-07-21_Crexitwarningascorporatedebtseenballooningto75trillionZIRPNIRPNE.html By 2020, business debt likely will climb to $75 trillion from its current $51 trillion level, according to S&P Global Ratings. Under normal conditions, that wouldn't be a major problem so long as credit quality stays high, interest rates and inflation remain low, and there are economic growth persists. However, the alternative is less pleasant should those conditions not persist. Should interest rates rise and economic conditions worsen, corporate America could be facing a major problem as it seeks to manage that debt...

Close to half of companies outside the financial sector are considered "highly leveraged," which is the lowest category for risk, and up to 5 percent of that group has negative earnings or cash flows. There already have been 100 debt defaults in 2016, the most since the financial crisis for the period.

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iehi-feed-60269 Thu, 21 Jul 2016 00:44:00 GMT Investor cash levels highest in 15 years according: Survey http://implode-explode.com/viewnews/2016-07-20_Investorcashlevelshighestin15yearsaccordingSurvey.html iehi-feed-60267 Wed, 20 Jul 2016 22:34:55 GMT The financial system is breaking down at an unimaginable pace http://implode-explode.com/viewnews/2016-07-20_Thefinancialsystemisbreakingdownatanunimaginablepace.html iehi-feed-60266 Wed, 20 Jul 2016 21:48:32 GMT HSBC Global Head Of FX Cash Trading Arrested At JFK Airport http://implode-explode.com/viewnews/2016-07-20_HSBCGlobalHeadOfFXCashTradingArrestedAtJFKAirport.html iehi-feed-60265 Wed, 20 Jul 2016 15:46:38 GMT The world is taking its revenge against elites. When will America's wake up? http://implode-explode.com/viewnews/2016-07-20_TheworldistakingitsrevengeagainstelitesWhenwillAmericaswakeup.html iehi-feed-60264 Wed, 20 Jul 2016 14:10:10 GMT These Sicilian Mortgages Show How Difficult It Is to Rescue Italian Banks http://implode-explode.com/viewnews/2016-07-20_TheseSicilianMortgagesShowHowDifficultItIstoRescueItalianBanks.html A court may auction the loan collateral and use the proceeds to pay the bonds, but that is a slow process. Italy is almost as well known these days for its sluggish and cumbersome insolvency procedures as it is for the Leaning Tower of Pisa or the AC Milan soccer club. Italian bankruptcy proceedings last an average of 7.8 years, compared to an average of just over two years for the rest of Europe... the thus-far glacial pace of cash collections from NPLs has resulted in multiple credit ratings downgrades for the Island Refinancing deal...

Last week [Fitch] affirmed its previous ratings and said it expects slow collections will result in the default of the 60 million-euro ($66.4 million) class C notes and the write-down of the 32 million-euro class D notes with zero recovery forecast.

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iehi-feed-60262 Wed, 20 Jul 2016 13:55:57 GMT Three Standard Deviation Market Make "Take Elevator Down" http://implode-explode.com/viewnews/2016-07-20_ThreeStandardDeviationMarketMakeTakeElevatorDown.html iehi-feed-60261 Tue, 19 Jul 2016 23:47:22 GMT "The Last Time This Happened, Silver Prices Rallied 900%" http://implode-explode.com/viewnews/2016-07-19_TheLastTimeThisHappenedSilverPricesRallied900.html iehi-feed-60259 Tue, 19 Jul 2016 23:34:53 GMT Republican Party formally nominates Donald Trump http://implode-explode.com/viewnews/2016-07-19_RepublicanPartyformallynominatesDonaldTrump.html The New York delegation put Trump over the 1,237-delegate threshold necessary to claim the Republican Party's presidential nomination during a roll call vote on the floor of Cleveland's Quicken Loans Arena on Tuesday. Convention rules permitted the delegation from Trump's home state, which initially passed when called to announce its votes, to go out of order during the alphabetical roll call vote of states and territories.

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The anti-Trump effort also fell short one day earlier after party leaders upended a faction of delegates' move to hold a roll call vote to free delegates to vote their conscience instead of binding them to support a candidate based on the results of their states' primaries and caucuses. The failed attempt and ensuing chaos, which played out on national TV, further illustrated the disarray inside a fractured party at what was supposed to be its unifying convention.

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iehi-feed-60258 Tue, 19 Jul 2016 18:40:51 GMT US Futures Dip, European Stocks Slide After EU Court Slams Italian Bank Bailout Hopes http://implode-explode.com/viewnews/2016-07-19_USFuturesDipEuropeanStocksSlideAfterEUCourtSlamsItalianBankBailo.html "Burden-sharing by shareholders and subordinated creditors as a prerequisite for the authorization, by the commission, of state aid to a bank with a shortfall is not contrary to EU law," according to the EU Court of Justice. The Luxembourg-based court's decision is binding and can't be appealed. The European Commission, which checks whether state aid violates EU rules, welcomed the ruling, which it said "confirms the commission's current case practice and application of EU state aid rules to the banking sector." The ruling also made the case for a bailout as opposed to a bail in more difficult and Italian banks dropped after the decision with Banca Monte dei Paschi declining as much as 7.1%. UniCredit SpA slipped 3.2% in early trading, while Intesa Sanpaolo SpA decreased 2.5%. 

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As a result, some wondered if the hopium inspired rally is finally coming to an end: "The market is taking a pause," said Tony Farnham, a strategist at Paterson Securities in Sydney. "There isn't much of a catalyst out there. People are starting to question if there's still value in the market following the post-Brexit rally."

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