Implode-Explode Heavy Industries news feed http://implode-explode.com/ Tracking the many faces of the global credit implosion. en-us iehi-feed-57154 Tue, 07 Jul 2015 14:22:31 GMT Be Bold, Frau Merkel | Foreign Policy http://implode-explode.com/viewnews/2015-07-07_BeBoldFrauMerkelForeignPolicy.html Critics contend that this is ancient history, but it isn't. That tragic decision and subsequent mistakes have transformed the political economy of the eurozone. Initially a voluntary union of equal member states, it has become a hierarchical relationship in which eurozone institutions have become instruments for creditors to impose their will on debtors. The bailout of Greece's private creditors has also set Europeans against each other: Germans, Spaniards, Slovaks, and others now have an interest in resisting the debt relief that Greece needs to recover. To find an amicable solution to the Greek crisis, the eurozone needs to escape from this destructive logic.

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The starting point is to be honest with voters. Merkel and others need to explain that Greece cannot pay its debts in full. So the choice is not whether Greece's debts are written down, but how. They could be restructured in an orderly fashion in which creditors get some of their money back. Or they will be defaulted on in a chaotic fashion in which some creditors may get nothing back. If that forced Greece out of the eurozone, the country would also default on its Target2 liabilities to the European Central Bank (ECB). The total bill: 350 billion euros or more.

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iehi-feed-57153 Tue, 07 Jul 2015 14:07:38 GMT Greece and the Troika: Next Moves | Janet Tavakoli http://implode-explode.com/viewnews/2015-07-07_GreeceandtheTroikaNextMovesJanetTavakoli.html iehi-feed-57152 Tue, 07 Jul 2015 13:47:30 GMT Juncker Pretends To Find No Message In Greek Vote (OR: EU FINDS CREATIVE NEW WAY OF IGNORING MEMBER STATES' DEMOCRATIC WISHES!) http://implode-explode.com/viewnews/2015-07-07_JunckerPretendsToFindNoMessageInGreekVoteOREUFINDSCREATIVENEWWAY.html iehi-feed-57151 Tue, 07 Jul 2015 13:41:44 GMT Eurozone Officials Gather to Hear Greek Debt Plan (AND REMAIN AS STUBBORN AS EVER!) http://implode-explode.com/viewnews/2015-07-07_EurozoneOfficialsGathertoHearGreekDebtPlanANDREMAINASSTUBBORNASE.html iehi-feed-57150 Tue, 07 Jul 2015 13:29:02 GMT ECB turns the screws on Greek banks http://implode-explode.com/viewnews/2015-07-07_ECBturnsthescrewsonGreekbanks.html iehi-feed-57147 Mon, 06 Jul 2015 21:30:53 GMT LA Woman Gets Slammer Time For Foreclosure Rescue Scam http://implode-explode.com/viewnews/2015-07-06_LAWomanGetsSlammerTimeForForeclosureRescueScam.html iehi-feed-57146 Mon, 06 Jul 2015 18:35:59 GMT Brooklyn Swindler Sobs As He Admits To $11M Mortgage Fraud Scheme http://implode-explode.com/viewnews/2015-07-06_BrooklynSwindlerSobsAsHeAdmitsTo11MMortgageFraudScheme.html iehi-feed-57145 Mon, 06 Jul 2015 17:03:49 GMT It Is NOT Priced-In, Stupid! | David Stockman http://implode-explode.com/viewnews/2015-07-06_ItIsNOTPricedInStupidDavidStockman.html What has transpired in a relative heartbeat is that one of the four central banks of the world that matter is suddenly on the ropes. In the hours and days ahead, the ECB will be battered by desperate actions emanating from Athens, as it struggles with a violent meltdown of its banking and payments system; and it will be simultaneously stymied and paralyzed by an outbreak of public confusion, contention and recrimination among the politicians and apparatchiks who run the machinery of the Eurozone and ECB superstate.

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But this time there is a decent chance that even the concerted central banks of the world will not be able to contain the panic. That's because the blind confidence of the caribou soccer players will be sorely tested by the possibility that the ECB will be exposed as impotent in the face of a cascading crisis in the euro debt markets.

We saw an article this morning that assured the Greek crisis would be "contained." That reminded us of 2007... and sent shivers up our spine...

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iehi-feed-57143 Mon, 06 Jul 2015 14:51:26 GMT Greece votes No -- now what? http://implode-explode.com/viewnews/2015-07-06_GreecevotesNonowwhat.html But despite predictions by Greek ministers that a new bailout deal could be just days away, other than Mr Macron and his French colleagues, there are few elsewhere in the eurozone who predicted a resounding No would lead to much more than continued stalemate. If that is the result of overwhelming rejection of creditors' terms, it would mean a slow march to Greece exiting the eurozone.

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The key date in the crisis is now July 20, when Greece owes €3.5bn on a bond held by the ECB. If Athens defaults on that bond, it would be almost impossible for the ECB to continue accepting collateral from Greek banks, and the €89bn in emergency liquidity assistance (ELA) would be withdrawn, devastating Greece's banking sector.

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Greece could be left in limbo for months, circulating a parallel currency while technically still in the eurozone. EU lawyers have already been working overtime to figure a way out of that dilemma.

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iehi-feed-57142 Mon, 06 Jul 2015 14:42:59 GMT What Are the Geostrategic Implications of a Grexit? http://implode-explode.com/viewnews/2015-07-06_WhatAretheGeostrategicImplicationsofaGrexit.html iehi-feed-57141 Mon, 06 Jul 2015 14:36:00 GMT Yanis Varoufakis: why bold, brash Greek finance minister had to go http://implode-explode.com/viewnews/2015-07-06_YanisVaroufakiswhyboldbrashGreekfinanceministerhadtogo.html Varoufakis may have been forced to leave frontline politics, but he does so hugely vindicated by the historic no vote delivered by Greeks on Sunday. There are few in Athens today who don't believe he is also a victim of his own success... The morning after, he had to go.

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Ever the maverick, Varoufakis is unlikely to vanish overnight. Although never a member of the ruling Syriza party, he remains an MP and, very possibly, will continue to influence Tsipras behind the scenes. There are few who doubt he will also be working on an unexpurgated version of the euro crisis, Varoufakis style.

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iehi-feed-57140 Mon, 06 Jul 2015 13:17:52 GMT Thomas Piketty: "Germany has never repaid its debt" http://implode-explode.com/viewnews/2015-07-06_ThomasPikettyGermanyhasneverrepaiditsdebt.html iehi-feed-57139 Sun, 05 Jul 2015 23:41:04 GMT After Resounding "No" At Polls, Eurozone Central Bank Now Controls Destiny of Greece's Battered Banks http://implode-explode.com/viewnews/2015-07-05_AfterResoundingNoAtPollsEurozoneCentralBankNowControlsDestinyofG.html A resounding ‘no' from Greece (Washington Post).]]> iehi-feed-57138 Sun, 05 Jul 2015 17:47:01 GMT China's Market Rout Is a Double Threat http://implode-explode.com/viewnews/2015-07-05_ChinasMarketRoutIsaDoubleThreat.html iehi-feed-57137 Sun, 05 Jul 2015 17:31:36 GMT Quartet of crises threatens Europe's core http://implode-explode.com/viewnews/2015-07-05_QuartetofcrisesthreatensEuropescore.html iehi-feed-57133 Sun, 05 Jul 2015 13:55:08 GMT China Creates Its Own Plunge Protection Team http://implode-explode.com/viewnews/2015-07-05_ChinaCreatesItsOwnPlungeProtectionTeam.html iehi-feed-57129 Sat, 04 Jul 2015 14:47:38 GMT Stop lying to the Greeks -- life without the euro is great http://implode-explode.com/viewnews/2015-07-04_StoplyingtotheGreekslifewithouttheeuroisgreat.html iehi-feed-57127 Sat, 04 Jul 2015 14:36:12 GMT Greece's Yanis Varoufakis prepares for economic siege as companies issue private currencies http://implode-explode.com/viewnews/2015-07-04_GreecesYanisVaroufakispreparesforeconomicsiegeascompaniesissuepr.html iehi-feed-57126 Sat, 04 Jul 2015 00:21:45 GMT Major Retail Gold Bullion Dealer Can't Get Gold; Suspends Operations (AND OTHER TIMELY PM'S MARKET PUZZLES...) http://implode-explode.com/viewnews/2015-07-03_MajorRetailGoldBullionDealerCantGetGoldSuspendsOperationsANDOTHE.html iehi-feed-57125 Sat, 04 Jul 2015 00:17:03 GMT China Tells Investors: Go Ahead, Bet the House on Stocks http://implode-explode.com/viewnews/2015-07-03_ChinaTellsInvestorsGoAheadBettheHouseonStocks.html