Implode-Explode Heavy Industries news feed http://implode-explode.com/ Tracking the many faces of the global credit implosion. en-us iehi-feed-58937 Sun, 07 Feb 2016 21:19:02 GMT Debt, defaults, and devaluations: why this market crash is like nothing we've seen before http://implode-explode.com/viewnews/2016-02-07_Debtdefaultsanddevaluationswhythismarketcrashislikenothingwevese.html For many market watchers, a confluence of factors - led by oil, but encompassing China, the emerging world, and financial markets - are all brewing to create a perfect storm in a global economy that has barely come to terms with the Great Recession... Unlike previous pre-recessionary eras, the current sell-off has seen commodity prices, equities and credit conditions all move in dangerous lockstep.

... a tipping point may well be approaching. According to [Oliver] Blanchard's calculations, a 20pc decline in stock markets that persists for more than six months, will translate into a decline in consumption of between 0.5pc to 1.0pc.

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Spreads on high yield US energy corporates have soared to unprecedented highs. "They make Lehman look like a walk in the park" says Thygesen.

More than a third of the entire US high yield bond index is now vulnerable to crude prices remaining low or falling even further, according to calculations from Oxford Economics.

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The question exercising the minds of economists and investors is the extent to which this contagion could metastasize beyond the energy sector, as banks cut off credit access, loans turn bad, and financial conditions enter a critical tightening phase.

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Over the last 45 years, the S&P500 has suffered a loss of more than 12.5pc on 13 occasions. Six of these have given way to a recession in the US, providing a near 50pc probability that a global downturn is just around the corner.

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What, if anything, could halt this pernicious cycle of events from unfolding?

In the short-term, analysts are unanimous: all eyes are on the US Federal Reserve. The central bank's first rate hike in seven years last December has come to look frighteningly premature in the space of just eight weeks.

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iehi-feed-58936 Sun, 07 Feb 2016 21:13:03 GMT PBOC Has Only A Few Months Left "To Stop Collapse": Edwards http://implode-explode.com/viewnews/2016-02-07_PBOCHasOnlyAFewMonthsLeftToStopCollapseEdwards.html China's Foreign-Exchange Reserves Decline to $3.23 Trillion.]]> iehi-feed-58933 Sun, 07 Feb 2016 21:01:47 GMT $100 Trillion Up in Smoke http://implode-explode.com/viewnews/2016-02-07_100TrillionUpinSmoke.html iehi-feed-58932 Sun, 07 Feb 2016 20:09:36 GMT Obscure Chinese Firm Dives Into $22 Trillion U.S. Financial Market http://implode-explode.com/viewnews/2016-02-07_ObscureChineseFirmDivesInto22TrillionUSFinancialMarket.html iehi-feed-58931 Sun, 07 Feb 2016 17:32:41 GMT China's 3 trillion dollar mistake http://implode-explode.com/viewnews/2016-02-07_Chinas3trilliondollarmistake.html iehi-feed-58930 Sun, 07 Feb 2016 15:09:52 GMT Here Are The Banks The Market Is Most Concerned About http://implode-explode.com/viewnews/2016-02-07_HereAreTheBanksTheMarketIsMostConcernedAbout.html iehi-feed-58928 Sat, 06 Feb 2016 14:58:13 GMT Chart of Doom: When Private Credit Stops Expanding... http://implode-explode.com/viewnews/2016-02-06_ChartofDoomWhenPrivateCreditStopsExpanding.html iehi-feed-58927 Sat, 06 Feb 2016 14:56:06 GMT Collapsing Federal Revenues Show US In Deepening Recession (DON'T TELL DAVID "NEAR-ZERO CHANCE" ROSENBERG!) http://implode-explode.com/viewnews/2016-02-06_CollapsingFederalRevenuesShowUSInDeepeningRecessionDONTTELLDAVID.html iehi-feed-58925 Sat, 06 Feb 2016 12:22:07 GMT Gundlach Says Financials Below Crisis Prices 'Frightening' http://implode-explode.com/viewnews/2016-02-06_GundlachSaysFinancialsBelowCrisisPricesFrightening.html iehi-feed-58921 Fri, 05 Feb 2016 22:52:34 GMT The Nasdaq Bloodbath Led by LinkedIn, Tableau http://implode-explode.com/viewnews/2016-02-05_TheNasdaqBloodbathLedbyLinkedInTableau.html Some bears have long been warning that valuations in the "cloud" computer sector have been sky-high with investors focused on fast revenue growth rather than profitability. According to venture-capital firm Bessemer Venture Partners' cloud index, the average $1 billion-plus valued cloud company was trading at 7 times 2015 revenue as of yesterday's close.

If the pessimists are right, then these companies are very vulnerable to any suggestion that revenue growth might slow. Unlike other companies, they don't have a profit lever to pull to make up for any drop off in revenue growth.

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iehi-feed-58919 Fri, 05 Feb 2016 18:55:08 GMT Stocks Solidly Lower Following Weak Jobs Report http://implode-explode.com/viewnews/2016-02-05_StocksSolidlyLowerFollowingWeakJobsReport.html U.S. employers added 151,000 jobs in last month, a sharp deceleration from recent months as companies shed education, transportation and temporary workers. That was below economists' forecasts of a creation of 185,000 jobs, according to data from Factset.

On the positive side, the unemployment rate fell to 4.9 percent from 5 percent, the lowest level since February 2008. Average wages jumped 2.5 percent over the past year to $25.39 an hour, evidence that the past years of job growth are helping to generate larger pay raises.

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``We're not falling off the cliff, but it clearly shows the U.S. economy is not immune to the global slowdown," said Russ Koesterich, global market strategist with asset manager BlackRock.

Of course, there's no real confusion: the "unemployment" headline number is a jury-rigged joke; with the underemployment stats more telling.

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iehi-feed-58917 Fri, 05 Feb 2016 16:06:51 GMT Bass Predicts 30-40% Yuan Deval; Asks Why China is So Concerned With Him http://implode-explode.com/viewnews/2016-02-05_BassPredicts3040YuanDevalAsksWhyChinaisSoConcernedWithHim.html iehi-feed-58916 Fri, 05 Feb 2016 16:00:38 GMT Whistleblowers: Market "Flash Crash" Disease Mystery Solved--It's Toxic ETFs/ETPs http://implode-explode.com/viewnews/2016-02-05_WhistleblowersMarketFlashCrashDiseaseMysterySolvedItsToxicETFsET.html iehi-feed-58915 Fri, 05 Feb 2016 15:57:27 GMT Chinese Buying Silver To Escape Yuan? http://implode-explode.com/viewnews/2016-02-05_ChineseBuyingSilverToEscapeYuan.html iehi-feed-58909 Thu, 04 Feb 2016 20:48:41 GMT Martin Shkreli's eSports endeavors left a mountain of debt http://implode-explode.com/viewnews/2016-02-04_MartinShkreliseSportsendeavorsleftamountainofdebt.html iehi-feed-58905 Thu, 04 Feb 2016 14:03:47 GMT European banks near 'terrifying' crisis: Raoul Pal http://implode-explode.com/viewnews/2016-02-04_EuropeanbanksnearterrifyingcrisisRaoulPal.html iehi-feed-58904 Thu, 04 Feb 2016 14:02:21 GMT Oil bears closing of $600 million triple-short fund bet seen adding to tumult http://implode-explode.com/viewnews/2016-02-04_Oilbearsclosingof600milliontripleshortfundbetseenaddingtotumult.html "Speculators are getting out of the down oil market. People start unwinding these positions because they think they have gotten their juice out of it," David Nadig, vice president, director of exchange traded funds for FactSet, said.

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The net asset value of the fund - one of a handful of exchange funds that allows investors to trade oil without the complexity of a futures exchange - fell from close to $1 billion to $417 million on Tuesday and to $322 million on Wednesday, according VelocityShares' website.

As a result, the mass exodus likely forced the ETN's issuer, Credit Suisse, to quickly buy back short positions as investors redeemed shares.''

But the long-term damage is done as Shell to lay of 10,000.

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iehi-feed-58902 Thu, 04 Feb 2016 13:57:06 GMT Greek Pensions Reform Sparks Protests in Test for Tsipras http://implode-explode.com/viewnews/2016-02-04_GreekPensionsReformSparksProtestsinTestforTsipras.html iehi-feed-58900 Thu, 04 Feb 2016 13:47:56 GMT Ronald Stoeferle - "2016 Will Be A Good Year For Gold Investors" (Interview) http://implode-explode.com/viewnews/2016-02-04_RonaldStoeferle2016WillBeAGoodYearForGoldInvestorsInterview.html iehi-feed-58899 Thu, 04 Feb 2016 03:50:57 GMT Chicago on Brink of Bond Market Shutoff: Tax-Exempt Yield Hits Stunning 8.50% http://implode-explode.com/viewnews/2016-02-03_ChicagoonBrinkofBondMarketShutoffTaxExemptYieldHitsStunning850.html