Implode-Explode Heavy Industries news feed http://implode-explode.com/ Tracking the many faces of the global credit implosion. en-us iehi-feed-64224 Wed, 19 Sep 2018 22:19:59 GMT Alibaba will no longer bring 1 million jobs to the US, citing tariffs http://implode-explode.com/viewnews/2018-09-20_Alibabawillnolongerbring1millionjobstotheUScitingtariffs.html iehi-feed-64223 Wed, 19 Sep 2018 18:02:17 GMT Disgraced Foreclosure Defense Attorney's Law Firm Imploding Into Chaos! http://implode-explode.com/viewnews/2018-09-20_DisgracedForeclosureDefenseAttorneysLawFirmImplodingIntoChaos.html iehi-feed-64221 Wed, 19 Sep 2018 15:16:58 GMT FTC Shuts Down Websites Preying On Section 8 Renters http://implode-explode.com/viewnews/2018-09-19_FTCShutsDownWebsitesPreyingOnSection8Renters.html iehi-feed-64220 Tue, 18 Sep 2018 23:43:08 GMT For Bitcoin, FOMO Is Being Replaced With FUD (Fear, Uncertainty And Doubt) http://implode-explode.com/viewnews/2018-09-19_ForBitcoinFOMOIsBeingReplacedWithFUDFearUncertaintyAndDoubt.html FUD says Mt. Gox's billion dollars of bitcoin will crash the price. I hope so, I really do, because I'm still waiting for some cheap bitcoins; $2,500 a coin is cheap enough for me.

I'm still waiting, because $1 billion of bitcoin will evaporate in a week or two of selling. $2 or $3 billion of bitcoin gets transacted a day... Already 82% of all bitcoins are mined and around May 2020 new supply will halve. You can love or hate that, but bitcoin is solid deflationary money. We shouldn't hold the ‘digital gold' moniker against it. Bitcoin is a global currency, with increasing acceptance, a huge brand up there with Trump and the NFL, a global audience and a record of appreciation.

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iehi-feed-64219 Tue, 18 Sep 2018 19:40:47 GMT NY's Unfunded Public Retirement Health Benefits Balloons To $90+ Billion http://implode-explode.com/viewnews/2018-09-19_NYsUnfundedPublicRetirementHealthBenefitsBalloonsTo90Billion.html New York's unfunded liability for state government retiree health coverage has reached $90.5 billion--an increase of $3 billion over last year's estimate, and nearly $13 billion in just two years, according to the just-released First Quarterly Update to the state's FY 2019 Financial Plan.

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What this basically means is that the state has a $91 billion debt in addition to its bonded state-related debt of $55 billion. And as the number of retirees and cost of health insurance grows, the OPEB debt will keep growing--unless something is done to reform or rein in these benefits.

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The annual charge for retiree health coverage--which, excluding SUNY, came to about $1.6 billion in fiscal 2018--is just the tip of a very big iceberg. Counting all public agencies in New York, including localities and authorities, the Empire Center estimated in 2012 that the total unfunded OPEB liability came to $250 billion--a figure that now probably is closer to $280 billion, if not higher.

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Government retirees at almost every level in New York are entitled to continuing health care coverage at a heavily discounted rate, or even for free--a benefit that has virtually disappeared from the private sector.

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iehi-feed-64218 Tue, 18 Sep 2018 18:06:22 GMT Trump Tower Condo Values Continue To Plummet By Double Digits http://implode-explode.com/viewnews/2018-09-19_TrumpTowerCondoValuesContinueToPlummetByDoubleDigits.html iehi-feed-64217 Mon, 17 Sep 2018 14:07:13 GMT China reportedly says it won't just play defense in a trade war with the US http://implode-explode.com/viewnews/2018-09-17_ChinareportedlysaysitwontjustplaydefenseinatradewarwiththeUS.html Beijing has said it would retaliate to trade war escalation with tariffs of its own as well as qualitative measures, which it has not specified but are perceived within the U.S. business community as likely to include increased customs and regulatory scrutiny.

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Beijing may also decline to participate in the proposed trade talks with Washington later this month if the Trump administration goes ahead with the additional tariffs, The Wall Street Journal reported on Sunday, citing Chinese officials.

The Journal report quoted one senior Chinese advisory official saying China would not negotiate "with a gun pointed to its head".

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iehi-feed-64216 Mon, 17 Sep 2018 13:09:22 GMT Porsche Dealership VP Disappears After Pocketing $2.5 Million In Deposits http://implode-explode.com/viewnews/2018-09-17_PorscheDealershipVPDisappearsAfterPocketing25MillionInDeposits.html iehi-feed-64215 Sun, 16 Sep 2018 15:05:37 GMT The 2008 crisis really did start off worse than the Great Depression http://implode-explode.com/viewnews/2018-09-16_The2008crisisreallydidstartoffworsethantheGreatDepression.html ``As economists Barry Eichengreen and Kevin O'Rourke have shown, global stocks, trade and output actually all fell faster in 2008 than they had in 1929. Maybe the best example, though, of how quickly things turned was that South Korea, which didn't have any exposure to subprime mortgages but did have banks that depended on borrowing the money they needed from markets, went from growing at a 3.5 percent pace right before the Lehman Bros. collapse to shrinking at a 12.7 percent pace right after.''

This is really fascinating. The debate is between those who believe "policymakers deserve credit for doing enough to stop this from turning into a Second Great Depression", and "those who say policymakers didn't do enough to stop this from being far worse than it needed to be." There is apparently no space for those who think policymakers did too much, or even that they screwed up royally in creating the conditions for the collapse in the first place. Be afraid.

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iehi-feed-64214 Sun, 16 Sep 2018 14:58:57 GMT Polarization in Poland: A Warning From Europe http://implode-explode.com/viewnews/2018-09-16_PolarizationinPolandAWarningFromEurope.html At that moment, when Poland was on the cusp of joining the West, it felt as if we were all on the same team. We agreed about democracy, about the road to prosperity, about the way things were going... That moment has passed. Nearly two decades later, I would now cross the street to avoid some of the people who were at my New Year's Eve party. They, in turn, would not only refuse to enter my house, they would be embarrassed to admit they had ever been there.

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Some of my New Year's Eve guests continued, as my husband and I did, to support the pro-European, pro-rule-of-law, pro-market center-right--remaining in political parties that aligned, more or less, with European Christian Democrats, with the liberal parties of Germany and the Netherlands, and with the Republican Party of John McCain. Some now consider themselves center-left. But others wound up in a different place, supporting a nativist party called Law and Justice--a party that has moved dramatically away from the positions it held when it first briefly ran the government, from 2005 to 2007, and when it occupied the presidency (not the same thing in Poland), from 2005 to 2010.

Since then, Law and Justice has embraced a new set of ideas, not just xenophobic and deeply suspicious of the rest of Europe but also openly authoritarian. After the party won a slim parliamentary majority in 2015, its leaders violated the constitution by appointing new judges to the constitutional court. Later, it used a similarly unconstitutional playbook to attempt to pack the Polish Supreme Court. It took over the state public broadcaster, Telewizja Polska; fired popular presenters; and began running unabashed propaganda, sprinkled with easily disprovable lies, at taxpayers' expense. The government earned international notoriety when it adopted a law curtailing public debate about the Holocaust. Although the law was eventually changed under American pressure, it enjoyed broad support by Law and Justice's ideological base--the journalists, writers, and thinkers, including some of my party guests, who believe anti-Polish forces seek to blame Poland for Auschwitz.

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iehi-feed-64213 Sun, 16 Sep 2018 14:24:16 GMT Mortgage Application Fraud Skyrocketing By Double Digits http://implode-explode.com/viewnews/2018-09-16_MortgageApplicationFraudSkyrocketingByDoubleDigits.html iehi-feed-64212 Sun, 16 Sep 2018 14:04:15 GMT Yellen Advocates Insane Boom-and-Bust-Cyclical Policy http://implode-explode.com/viewnews/2018-09-16_YellenAdvocatesInsaneBoomandBustCyclicalPolicy.html iehi-feed-64210 Sat, 15 Sep 2018 23:49:17 GMT Mortgage Shotgunning Scheme Sends NY Real Estate Broker To Prison http://implode-explode.com/viewnews/2018-09-16_MortgageShotgunningSchemeSendsNYRealEstateBrokerToPrison.html iehi-feed-64206 Thu, 13 Sep 2018 16:19:50 GMT Pro-Marijuana Candidate Keeps Having Bank Accounts Closed http://implode-explode.com/viewnews/2018-09-14_ProMarijuanaCandidateKeepsHavingBankAccountsClosed.html iehi-feed-64205 Wed, 12 Sep 2018 16:41:30 GMT Podiatrist Sentenced To 28 Month Of Enduring Rancid Foot Odors Of Prisoners http://implode-explode.com/viewnews/2018-09-13_PodiatristSentencedTo28MonthOfEnduringRancidFootOdorsOfPrisoners.html iehi-feed-64204 Tue, 11 Sep 2018 15:35:33 GMT American Homeownership At 35-Year Low And Plummetting http://implode-explode.com/viewnews/2018-09-11_AmericanHomeownershipAt35YearLowAndPlummetting.html iehi-feed-64202 Mon, 10 Sep 2018 21:07:23 GMT Elon Musk smoking weed has much more dire consequences than you realize http://implode-explode.com/viewnews/2018-09-11_ElonMusksmokingweedhasmuchmoredireconsequencesthanyourealize.html I want to be clear. This isn't about whether or not Elon puffed weed. Honestly, who cares. It's just a plant. What's important is that this is more demonstrably erratic and manic behavior from the visionary founder. He's just showing A LOT of inconsistencies.

And in addition to Tesla, the government is gunning for Zuckerberg and Facebook. Snapchat is proving to be a disastrous investment (down nearly 65% from its IPO). WeWork bonds just got downgraded to junk... We're starting to see major cracks in tech investors' faith.

This is a MAJOR turn that's taken place over the last couple of months. And if tech stocks go down, the market is going with it. Tech stocks, in particular "FAANG" stocks -- Facebook, Amazon, Apple, Netflix, Google -- have been holding this market up for a long time. Tech stocks have been responsible for around 95% of stock market gains this year.

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In addition to investor's losing faith, the government is also breathing down the necks of these tech giants... Senator Bernie Sanders introduced the cutely named Stop Bad Employers by Zeroing Out Subsidies Act (aka Stop BEZOS Act) that aims to tax companies for low-wage employees receiving government assistance.

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And now companies are viewing their visionary founders as liabilities... Apparently investors and boards have woken up to the fact that these guys are fallible (and mortal), so there's more talk of key man risk insurance should anything happen to them.

It's been nothing but buttercups and unicorns for tech stocks these past few years. And these recent developments go to show you, everything moves in cycles. And we may be entering a downcycle in tech.

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iehi-feed-64199 Mon, 10 Sep 2018 04:09:30 GMT Chinese government invites top Wall Street bankers to Beijing (CIRCUMVENTING "GREAT WALL OF TRUMP"?) http://implode-explode.com/viewnews/2018-09-10_ChinesegovernmentinvitestopWallStreetbankerstoBeijingCIRCUMVENTI.html The Chinese government is inviting Wall Street's top bankers to a hastily arranged meeting in Beijing as US president Donald Trump threatens to impose punitive tariffs on all Chinese exports to the US worth an estimated $267 billion (€230 billion).

According to three people briefed on the initiative, Chinese Communist party officials have invited the heads of America's leading financial institutions to attend a "China-US Financial Roundtable" in Beijing on September 16th, followed by a meeting with Wang Qishan, vice-president of China.

Chinese officials hope the new group, which will be jointly chaired by Zhou Xiaochuan, a former Chinese central bank governor, and John Thornton, the former Goldman Sachs executive who now chairs mining group Barrick Gold, will meet every six months to discuss Sino-US relations and advise the Chinese government on financial and economic reforms.

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People briefed on the planning for the China-US Financial Roundtable said it reflected the Chinese government's frustrations in dealing with Mr Trump, who has refused to designate a point person for China relations and has increasingly deferred to the hawkish views of Robert Lighthizer, the US trade representative.

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iehi-feed-64198 Mon, 10 Sep 2018 04:05:41 GMT Cryptocurrency Is Not Conducive for Terrorism, Says Defense Expert to U.S. Congress http://implode-explode.com/viewnews/2018-09-10_CryptocurrencyIsNotConduciveforTerrorismSaysDefenseExperttoUSCon.html iehi-feed-64194 Sun, 09 Sep 2018 17:52:09 GMT The Empty Storefronts of New York: A Panoramic View (UP TO 20% VACANCY!!) http://implode-explode.com/viewnews/2018-09-10_TheEmptyStorefrontsofNewYorkAPanoramicViewUPTO20VACANCY.html New York City's streetscape has been transformed -- visually and economically -- by the staggering numbers of vacant storefronts now dotting its most popular retail corridors. The Times set out with a panoramic camera to capture what this commercial blight feels like on the ground.

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A survey conducted by Douglas Elliman found that about 20 percent of all retail space in Manhattan is currently vacant, she said, compared with roughly 7 percent in 2016.

While a commercial crisis might more likely be associated with periods of economic distress, this one comes during an era of soaring prosperity, in a city teeming with tourism and booming with development.

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Particularly hard hit are gentrifying areas in Brooklyn and many of Manhattan's top retail strips in some of the world's priciest shopping districts, from Broadway in SoHo to Madison Avenue on the Upper East Side.

Yeah right, it's just a "period of prosperity" -- not a time of papered-over economic lacunae using cheap money...

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