Implode-Explode Heavy Industries news feed http://implode-explode.com/ Tracking the many faces of the global credit implosion. en-us iehi-feed-64538 Wed, 16 Jan 2019 22:13:37 GMT Anxiety and burnout: I work with kids. Here's why they're consumed with worry. http://implode-explode.com/viewnews/2019-01-16_AnxietyandburnoutIworkwithkidsHereswhytheyreconsumedwithworry.html Kids today have to constantly consider the perils of work and career with enough specificity to worry about it. At the same time that they stress about the future that's so very far off, they live with technology that keeps that anxiety consistently in the front of their minds.

... I rarely heard them frame any of this work and stress in terms of future success or even just stability. They usually didn't talk about their lives according to the myth so many parents, teachers, and community members raised Gen X and millennials with, the one that promises that if you work hard, you'll get a good job and have a nice, stable life or at least do better than your parents did. When they brought up their futures, if they weren't talking about careers, they understood that student debt was inevitable.

It later dawned on me: Why would they believe this myth? People in their 20s, 30s, and 40s teach and raise these kids. Those generations now know from experience that the idea that hard work and a little luck pays off isn't true. Between 30 years of stagnant wages, the rising costs of housing, health care, and education, and a recession just as many of us graduated from college, it's no wonder that millennials are on course to do financially worse than previous generations, just as Gen X did before us.

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iehi-feed-64537 Wed, 16 Jan 2019 22:12:01 GMT Bridgewater's Ray Dalio: Capitalism is not working for most people http://implode-explode.com/viewnews/2019-01-16_BridgewatersRayDalioCapitalismisnotworkingformostpeople.html "We're in a situation when the economy is at a peak, we still have this very big tension. That's where we are today," he said in November. "We're in a situation where, if you have a downturn, and we will have a downturn, I believe that -- I worry that that polarity will become greater."

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"If I was doing it, I think that you have to call that a national emergency," said Dalio. Then, reasoned Dalio, the President could "[take] responsibility for changing those metrics. I think there's a lot that can be done in private-public partnerships and so on to be able to change it, but I fear that that probably will not be done by the next time we have a downturn, and I fear for what that conflict is going to be like that."

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iehi-feed-64535 Wed, 16 Jan 2019 14:28:43 GMT Shutdown's Economic Damage Starts to Pile Up, Threatening an End to Growth http://implode-explode.com/viewnews/2019-01-16_ShutdownsEconomicDamageStartstoPileUpThreateninganEndtoGrowth.html iehi-feed-64532 Wed, 16 Jan 2019 01:34:49 GMT British pound strengthens after parliament rejects Brexit plan http://implode-explode.com/viewnews/2019-01-15_BritishpoundstrengthensafterparliamentrejectsBrexitplan.html Parliament on Tuesday struck down the divorce deal that Prime Minister Theresa May had negotiated with the rest of the European Union by a record margin. The defeat was expected, but the size of the loss -- 432 votes to 202 -- was a surprise.

The pound, which had fallen below $1.27 earlier on Tuesday, erased its losses after the vote and strengthened to $1.28. Some analysts had predicted the pound would rally if May suffered a major defeat because that would raise the chance of Brexit being delayed.

The crushing loss means parliament may now wield greater control over the process. Capital Economics said lawmakers could move to delay Brexit while they work on alternatives.

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iehi-feed-64528 Thu, 10 Jan 2019 21:49:34 GMT NYC Blockchain Center Opens As City Sticks With Crypto Plan http://implode-explode.com/viewnews/2019-01-10_NYCBlockchainCenterOpensAsCitySticksWithCryptoPlan.html New York isn't giving up on the digital-ledger technology that makes Bitcoin and other tokens work even after last year's collapse of the cryptocurrency market.

The New York City Economic Development Corporation said its Blockchain Center in Manhattan will open Thursday a part of a partnership with affiliates of venture-capital fund Future\Perfect Ventures and the Global Blockchain Business Council, a trade organization. The city may also start testing the use of blockchain technology in the fall.

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iehi-feed-64518 Sat, 05 Jan 2019 01:36:24 GMT Trump administration officials set to receive $10,000 raises during government shutdown. http://implode-explode.com/viewnews/2019-01-04_Trumpadministrationofficialssettoreceive10000raisesduringgovernm.html iehi-feed-64517 Fri, 04 Jan 2019 22:12:52 GMT The Rise of Gold-Backed Cryptos http://implode-explode.com/viewnews/2019-01-04_TheRiseofGoldBackedCryptos.html iehi-feed-64516 Fri, 04 Jan 2019 18:40:07 GMT Dow surges 700 points after Powell says the Fed will be patient with rate hikes http://implode-explode.com/viewnews/2019-01-04_Dowsurges700pointsafterPowellsaystheFedwillbepatientwithratehike.html "As always, there is no preset path for policy, " Powell said. "And particularly with muted inflation readings that we've seen coming in, we will be patient as we watch to see how the economy evolves."

Powell also said the central bank would not "hesitate" to change its balance-sheet reduction plan if it was causing problems. Fears that the Fed may be making a policy error by tightening too fast have contributed to the recent skittishness in financial markets, according to several market experts.

"I think he did what the market hoped he would do," said Tom Essaye, founder of The Sevens Report. "What he did with these comments is he acknowledged that they need to be more flexible."

"This is worth a bounce, but at the same time, the major issues facing the market are not resolved. We have a potential earnings problem in this market; we have a potential economic growth problem in this market," Essaye added. "Today's rally is more a result of the overextended downside from yesterday."

"Coincidentally," this is all exactly what Trump wants.

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iehi-feed-64509 Wed, 02 Jan 2019 23:46:27 GMT Markets plunge; China angst; Trump and the shutdown http://implode-explode.com/viewnews/2019-01-02_MarketsplungeChinaangstTrumpandtheshutdown.html iehi-feed-64504 Mon, 31 Dec 2018 21:28:36 GMT House Democrats to pass plan to reopen government Thursday http://implode-explode.com/viewnews/2018-12-31_HouseDemocratstopassplantoreopengovernmentThursday.html The Democrats plan to vote on a bipartisan package of six Senate spending bills and a stopgap measure to re-open the Department of Homeland Security at its current funding levels until February 8, the aide said. The temporary measure would maintain the current $1.3 billion in border security money, which can be used for fencing and repairs of current barriers.

Yet as the shutdown moves through its 10th day, it is clear that the House Democrats' plan to take the first legislative action since the start of the shuttering of roughly a quarter of the federal government remains a nonstarter for Republicans, who still control the chamber on the other side of the US Capitol.

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Democrats believe it's smart to separate Department of Homeland Security funding -- and the wall fight -- from the other six bills because they think it puts Trump and the Republicans in the position of holding the other agencies and furloughed workers hostage for the wall, the aide said. Democrats believe pressure will mount on Republicans as the shutdown drags on, the aide said.

The negotiations on a deal to open the government have sat frozen for days, according to people involved, as lawmakers in the House and Senate have deserted the Capitol for the holidays and, with no votes scheduled, likely won't return until the start of the next Congress. That, according to several aides involved in the process, has been viewed as the unofficial moment talks may begin, but there still remains no clear pathway forward for an agreement.

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iehi-feed-64503 Sun, 30 Dec 2018 21:00:00 GMT This Radical Plan to Fund the ‘Green New Deal' Just Might Work http://implode-explode.com/viewnews/2018-12-30_ThisRadicalPlantoFundtheGreenNewDealJustMightWork.html Abenomics has been declared a success even by the once-critical International Monetary Fund. After Abe crushed his opponents in 2017, Noah Smith wrote in Bloomberg, "Japan's long-ruling Liberal Democratic Party has figured out a novel and interesting way to stay in power--govern pragmatically, focus on the economy and give people what they want." Smith said everyone who wanted a job had one, small and midsize businesses were doing well; and the Bank of Japan's unprecedented program of monetary easing had provided easy credit for corporate restructuring without generating inflation. Abe had also vowed to make both preschool and college free.

Not that all is idyllic in Japan. Forty percent of Japanese workers lack secure full-time employment and adequate pensions. But the point underscored here is that large-scale digital money-printing by the central bank to buy back the government's debt, combined with fiscal stimulus by the government (spending on "what the people want"), has not inflated Japanese prices, the alleged concern preventing other countries from doing the same.

There seem to be some good ideas about public banking/national-treasury-based lending in here. However, it's not at all clear the non-inflationary result can be separated from general conditions of austerity present in the same economies (of course, if general depressionary conditions are a prerequisite for public banking recovery programmes to work en masse, that might both explain this result and motivate for its use under particular conditions).

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iehi-feed-64501 Sun, 30 Dec 2018 19:16:22 GMT Trump on the Fed: 2015 and 2016 vs. Now http://implode-explode.com/viewnews/2018-12-30_TrumpontheFed2015and2016vsNow.html "We have a big, fat bubble coming up, you watch. We have artificially induced low interest rates," Trump told MSNBC's "Morning Joe" two days after announcing his candidacy in 2015. "I borrow money . . . you pay like nothing; they give you free money. Now that's bad, that's not good."

This month, Trump asked advisers about firing Fed Chairman Jerome Powell over rate increases, even after he baselessly accused President Barack Obama of forcing the Fed to keep rates low two years prior (Trump "now realizes he does not have the authority" to fire Powell, acting White House chief of staff Mick Mulvaney said Sunday).

"The interest rates are kept down by President Obama; I have no doubt that that's the reason they are being kept down," Trump told CNBC on Sept. 12, 2016. "I used to hope that the Fed was independent, and the Fed is obviously not independent. It's obviously not even close to being independent."

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iehi-feed-64498 Sun, 30 Dec 2018 03:08:53 GMT CNBC: Trump Sought Advice on Market Rout From Hedge Fund Investor http://implode-explode.com/viewnews/2018-12-29_CNBCTrumpSoughtAdviceonMarketRoutFromHedgeFundInvestor.html The unidentified investor was said to tell the official to tell the president to end his criticism of Federal Reserve Chairman Jerome Powell on Twitter, stop administration turnover and reach a trade deal with China in order to help markets, sources told CNBC.

The administration, which has judged Trump's success in part on stock market performance, is "determined" to boost equities, the sources said.

The call took place after a selloff on Christmas Eve, the worst day of Dec. 24 trading ever.

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iehi-feed-64496 Mon, 24 Dec 2018 16:55:29 GMT Markets plunge following Mnuchin outreach to banks http://implode-explode.com/viewnews/2018-12-24_MarketsplungefollowingMnuchinoutreachtobanks.html Mnuchin said Sunday that he spoke with the heads of six major banks -- Bank of America, Citi, Goldman Sachs, JP Morgan Chase, Morgan Stanley and Wells Fargo -- and reported that they had "ample liquidity."

He also said he would convene a call with the president's working group on financial markets and a group of key regulators.

But the unusual message may have backfired, with analysts noting that the group Mnuchin was calling together was the same as the "Plunge Protection Team" that met at the height of the 2009 financial crisis.

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iehi-feed-64495 Mon, 24 Dec 2018 16:53:20 GMT Ned Davis Research Doubles Down on Its Bearish Global Equity Call http://implode-explode.com/viewnews/2018-12-24_NedDavisResearchDoublesDownonItsBearishGlobalEquityCall.html iehi-feed-64485 Thu, 20 Dec 2018 15:19:05 GMT World stocks suffer as Fed heightens recession fears http://implode-explode.com/viewnews/2018-12-20_WorldstockssufferasFedheightensrecessionfears.html The Fed on Wednesday stuck by a plan to keep withdrawing support from an economy it views as strong, hiking key overnight lending rates, as expected, by 0.25 percent points.

It said "some further gradual" rate hikes would be needed in the year ahead, with policymakers projecting two rises on average next year instead of the three predicted in September.

Although largely in line with expectations, that tweak failed to soothe a cocktail of market fears over slowing world growth, U.S. trade tensions with China, and tightening monetary conditions for companies in the world's biggest economy.

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iehi-feed-64484 Wed, 19 Dec 2018 20:33:27 GMT 100 days to Brexit, EU tells London - financiers on their own without a deal http://implode-explode.com/viewnews/2018-12-19_100daystoBrexitEUtellsLondonfinanciersontheirownwithoutadeal.html iehi-feed-64479 Tue, 18 Dec 2018 01:18:51 GMT US credit markets dry up as volatility rattles investors http://implode-explode.com/viewnews/2018-12-17_UScreditmarketsdryupasvolatilityrattlesinvestors.html US credit markets are grinding to a halt with fund managers refusing to bankroll buyouts and investors shunning high-yield bond sales as rising interest rates and market volatility weigh on sentiment.

Not a single company has borrowed money through the $1.2tn US high-yield corporate bond market this month. If that drought persists, it would be the first month since November 2008 that not a single high-yield bond priced in the market, according to data providers Informa and Dealogic.

In the leveraged loan market, two transactions were postponed last week after Barclays, Deutsche Bank, UBS and Wells Fargo failed to find buyers for the debt packages, a rarity in what has been one of the hottest corners of credit markets this year.

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"This is clearly more than year-end jitters," said Guy LeBas, a strategist at Janney Montgomery Scott. "What we're seeing now is pretty typical for end-of-credit-cycle behaviour."

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As prices in the loan market have slumped over the past two months, banks that committed to finance highly leveraged buyouts earlier this year have struggled to find investors to back the deals. Some lenders, including JPMorgan Chase and Goldman Sachs, have offered loans at substantial discounts to entice investors. But others, including Barclays, Deutsche Bank, UBS and Wells Fargo, have had to pull deals altogether. 

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iehi-feed-64474 Sun, 16 Dec 2018 22:32:07 GMT Cambridge University Study: Speculation of the Death of Bitcoin 'Greatly Exaggerated' http://implode-explode.com/viewnews/2018-12-16_CambridgeUniversityStudySpeculationoftheDeathofBitcoinGreatlyExa.html iehi-feed-64473 Sun, 16 Dec 2018 17:36:49 GMT Doug Noland: The Perils of Inflationism http://implode-explode.com/viewnews/2018-12-16_DougNolandThePerilsofInflationism.html What only weeks ago appeared a rather straightforward meeting is now a pivotal juncture for the Federal Open Market Committee. With low unemployment and relatively robust household and business expenditures, the Fed has been widely expected to raise rates next Wednesday. It may now be a close call. But, then again, the Fed may not yet appreciate the seriousness of what is unfolding in the markets. They're in a real predicament, along with central bankers around the world. They all waited way too long to begin normalizing monetary policy. Today, normalization has barely even commenced, and yet the Bubble they nurtured has already begun to deflate.

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I don't want to imply that resurgent Chinese Credit growth and/or even a more dovish Fed wouldn't matter. I just believe at this point the bursting global Bubble is increasingly beyond resuscitation. A bold statement, I fully appreciate. But Fear is rapidly supplanting greed in "Core" U.S. securities markets. The "Core" has seen de-risking/deleveraging dynamics attain important momentum. Latent "Core" fragilities are being exposed. And the further the global Bubble deflates, the greater the scope of monetary stimulus required to re-energize broad-based securities market inflation. I fully expect more QE. But it will come in a crisis backdrop. I'll presume the first few Trillion or so will, at best, accommodate deleveraging.

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