Implode-Explode Heavy Industries news feed http://implode-explode.com/ Tracking the many faces of the global credit implosion. en-us 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-64222 Wed, 19 Sep 2018 17:13:03 GMT CNBC Just Posted Fake Inflation News. What Are The Implications for Fed Dovishness? | Lee Adler http://implode-explode.com/viewnews/2018-09-20_CNBCJustPostedFakeInflationNewsWhatAreTheImplicationsforFedDovis.html ... is there any evidence of persistence here? Or is there any evidence that this month's headline reading was even material in the first place? A quick answer to the second question requiring no deeper analysis is...

No. There's no evidence that this was even material... In other words, the rally was based on the idea that the Fed might not tighten as fast or as much if inflation is really slowing. It's perfectly obvious to us that it isn't.

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There's simply no reason in the CPI data to believe that the Fed will back off from its tightening regimen. The longer the market stays high and the more it rises, the greater the risk of a severe adjustment.

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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-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-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-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-64211 Sun, 16 Sep 2018 14:02:22 GMT These countries are most vulnerable to the emerging market storm http://implode-explode.com/viewnews/2018-09-16_Thesecountriesaremostvulnerabletotheemergingmarketstorm.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-64209 Sat, 15 Sep 2018 14:51:51 GMT JPMorgan Sees Liquidity Wildcard in Gauging Depth of Next Crisis http://implode-explode.com/viewnews/2018-09-15_JPMorganSeesLiquidityWildcardinGaugingDepthofNextCrisis.html ``A decade after the collapse of Lehman Brothers sparked a plunge in markets and a raft of emergency measures, strategists at the bank have created a model aimed at gauging the timing and severity of the next financial crisis. And they reckon investors should pencil it in for 2020.

The good news is, the next one will probably generate a somewhat less painful hit than past episodes, according to their analysis. The bad news? Diminished financial market liquidity since the 2008 implosion is a "wildcard" that's tough to game out...

Assuming an average-length recession, the model came up with the following peak-to-trough performance estimates for different asset classes in the next crisis, according to the note:

U.S. stock slide of about 20 percent.

A jump in U.S. corporate-bond yield premiums of about 1.15 percentage points.

A 35 percent tumble in energy prices and 29 percent slump in base metals.

A 2.79 percentage point widening in spreads on emerging-nation government debt.

A 48 percent slide in emerging-market stocks, and a 14.4 percent drop in emerging currencies.

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[But] JPMorgan's Marko Kolanovic has previously concluded that the big shift away from actively managed investing -- through the rise of index funds, exchange-traded funds and quantitative-based trading strategies -- has escalated the danger of market disruptions. He and his colleagues wrote in a separate note Monday of the potential for a future "Great Liquidity Crisis." ... This change has "eliminated a large pool of assets that would be standing ready to buy cheap public securities and backstop a market disruption," Chang and Loeys warned.

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iehi-feed-64208 Fri, 14 Sep 2018 19:10:23 GMT Trader blows €100m hole in Nasdaq's Nordic power market http://implode-explode.com/viewnews/2018-09-15_Traderblows100mholeinNasdaqsNordicpowermarket.html One of Norway's richest men has blown a hole of more than €100m in a stability fund that ensures the safety of derivatives-trading in European electricity markets.Coming in the same week as the 10th anniversary of Lehman Brothers' collapse, the trading losses will focus attention on the robustness of standards promoted by policymakers globally after the financial crisis.Einar Aas, a private trader who has been among Norway's highest earners in recent years thanks to aggressive bets in European power markets, saw his positions collapse on Monday after extreme market moves in German and Nordic energy markets.Nasdaq, the principal trading exchange where futures contracts tied to physical energy markets in the Nordic region are transacted, said Mr Aas had defaulted on Tuesday after he was unable to meet margin calls at its clearing house on lossmaking trades.

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Nasdaq cut the entire trade on Wednesday and the exchange confirmed that the loss accounted for all of the exchange's own default fund of €7m and swallowed €107m, or two-thirds, of its €166m mutual default fund that clearing house members must contribute to.

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With Nasdaq and members of its clearing house repairing the damage, questions as to how a single trader could come close to wiping out the clearing house's layers of protection will merit the attention of regulators, including the European Central Bank.Members of the clearing house include some of the biggest banks and energy traders such as Morgan Stanley, UBS and Equinor, Norway's state oil company... .The catalyst for the trading loss was a series of backfiring bets on the price difference between German and Nordic power markets, according to multiple sources in the industry.

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iehi-feed-64207 Fri, 14 Sep 2018 15:10:30 GMT Miami Escort Service Owner Sentenced To 24 Months In Prison For Tax Fraud http://implode-explode.com/viewnews/2018-09-14_MiamiEscortServiceOwnerSentencedTo24MonthsInPrisonForTaxFraud.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-64203 Mon, 10 Sep 2018 23:40:15 GMT Forget the stock. Tesla's bonds are imploding http://implode-explode.com/viewnews/2018-09-11_ForgetthestockTeslasbondsareimploding.html $1.8 billion of Tesla bonds due in August 2025 plunged to a record low on Friday. The bonds traded for just 84 cents on the dollar, down from 98 cents a year ago. The yield, which moves opposite price, almost doubled over that span to 8.6%.

The action in the bond market signals mounting worry about the high-wire act at Tesla. Elon Musk is scrambling to ramp up Model 3 production fast enough to turn a profit -- and use that money for looming debt payments.

...

More than $9 billion of Tesla's debt is scheduled to mature before 2025, including a total of $2.7 billion this year and next, according to a Goldman Sachs research report that called the company's balance sheet "concerning."

"Tesla is extremely leveraged. They have a gun to their heads dictated by the timing of the debt payments," said Cowen's Osborne, who has an "underperform" rating on the stock.

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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.

...

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.

...

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-64201 Mon, 10 Sep 2018 18:57:12 GMT No more neutral rate? The shine comes off the Fed's r-star http://implode-explode.com/viewnews/2018-09-11_NomoreneutralrateTheshinecomesofftheFedsrstar.html "In some sense lower rates beget lower rates," said Piti Disyatat, one of the authors of the paper and a research economist with the Bank of Thailand. If Fed policy decisions also affect the neutral rate, "its ability to act as a benchmark is undermined," he said.

...

A shift away from the focus on the neutral rate could buttress the arguments of those who feel the Fed should instead pay more attention to financial markets, and particularly to the evolution of financial risks.

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In a paper released Thursday evening, [Boston Fed President] Rosengren said the Fed in conjunction with state and local authorities should be preparing more to fight the next recession, including with the possible use of higher capital buffers for banks.

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