Implode-Explode Heavy Industries news feed http://implode-explode.com/ Tracking the many faces of the global credit implosion. en-us iehi-feed-57089 Mon, 29 Jun 2015 21:05:21 GMT Puerto Rico governor says island can't pay its public debt http://implode-explode.com/viewnews/2015-06-29_PuertoRicogovernorsaysislandcantpayitspublicdebt.html iehi-feed-57088 Mon, 29 Jun 2015 20:50:42 GMT China Secures Veto Power as Members Sign Up to New Bank - Bloomberg Business http://implode-explode.com/viewnews/2015-06-29_ChinaSecuresVetoPowerasMembersSignUptoNewBankBloombergBusiness.html The AIIB gives China another platform to expand regional influence and augment its "New Silk Road" trade initiative. China's companies will get fresh opportunities in countries from Indonesia to Kazakhstan to counter the impact of slowing growth at home and sluggish demand for exports in Europe.

Major decisions for which China can exercise veto power include electing AIIB's president, increasing or decreasing the authorized capital stock, determining reserves, amending the agreement, and approving major operational and financial policies. Other matters will be decided by a simple majority.

... "Xi Jinping would like to see an early harvest from his One Belt, One Road project," Zhu said. "The AIIB provides a conduit for that. His reputation is now tied with the project."

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iehi-feed-57087 Mon, 29 Jun 2015 19:02:33 GMT Biggest one-day loss since 2011 for European stocks as Greek crisis deepens http://implode-explode.com/viewnews/2015-06-29_Biggestonedaylosssince2011forEuropeanstocksasGreekcrisisdeepens.html iehi-feed-57086 Mon, 29 Jun 2015 19:01:08 GMT Panic Sets in Among Hardy Hedge Fund Investors Remaining in Greece http://implode-explode.com/viewnews/2015-06-29_PanicSetsinAmongHardyHedgeFundInvestorsRemaininginGreece.html ... the question of what happens when the markets do open is particularly acute for the hedge fund investors -- including luminaries like David Einhorn and John Paulson -- who have collectively poured more than 10 billion euros, or $11 billion, into Greek government bonds, bank stocks and a slew of other investments... "People are freaking out," said Mr. Papapolitis [a lawyer to hedge funds], 32, his eyes red and his voice hoarse. "They have made some really big bets on Greece.

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Most of the hedge fund money in Greece is invested in about 30 billion euros of freshly minted Greek government debt securities that emerged from the 2012 restructuring of private sector bonds.

The largest investors include Japonica Partners in Rhode Island, the French investment funds H20 and Carmignac, and an assortment of other hedge funds like Farallon, Fortress, York Capital, Baupost, Knighthead and Greylock Capital.

... Mr. Einhorn at Greenlight Capital and Mr. Paulson, both of whom have invested and lost considerable sums in Piraeus Bank. Fairfax Financial Holdings and the distressed investor Wilbur Ross own a large stake in Eurobank, one Greece's four main banks.

Big positions have also been taken in some of Greece's largest companies. Fortress Capital bought $100 million in discounted debt belonging to Attica Holdings, Greece's largest ferryboat holder. York Capital has taken a 10 percent stake in GEK Terna, a prominent Greek construction and energy firm.

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iehi-feed-57085 Mon, 29 Jun 2015 15:20:39 GMT A Shortage of Tools for Betting Against China http://implode-explode.com/viewnews/2015-06-29_AShortageofToolsforBettingAgainstChina.html iehi-feed-57084 Mon, 29 Jun 2015 15:17:08 GMT Greece in shock as banks shut after snap referendum call http://implode-explode.com/viewnews/2015-06-29_Greeceinshockasbanksshutaftersnapreferendumcall.html iehi-feed-57083 Mon, 29 Jun 2015 15:11:34 GMT The Day The Euro Died http://implode-explode.com/viewnews/2015-06-29_TheDayTheEuroDied.html Freezing ELA means that Greece can now only regard itself as a "user" of the Euro rather than a full member of the currency union. There is no legal means for countries to leave the Euro, but it seems that they can be frozen out...The ECB's statement makes no mention of bank solvency: the liquidity freeze responds to the failure of the talks and the decision by the Greek government to call a referendum. The freeze is therefore an overtly political move. The independence of the ECB has been shattered.

The "irrevocability" of the Euro is no longer credible. Using liquidity restriction to force a country to introduce capital controls is tantamount to suspending its Euro membership. So the sovereign debt of other distressed Eurozone countries will now carry a risk premium because of the possibility of membership suspension...

The Euro can no longer be regarded as a "single currency". It has been revealed for what it really is, a system of hard currency pegs between 19 -- or perhaps now 18 -- sovereign countries. And a system of hard currency pegs is fragile. The risk that the Eurozone will unravel is substantially increased.

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iehi-feed-57082 Mon, 29 Jun 2015 14:56:42 GMT German, Dutch banks: We're prepared for Greek financial fallout because 'we've been anticipating this for a long time' http://implode-explode.com/viewnews/2015-06-29_GermanDutchbanksWerepreparedforGreekfinancialfalloutbecauseweveb.html iehi-feed-57080 Mon, 29 Jun 2015 14:47:47 GMT Fed won't hike rates because they're too scared: Economist http://implode-explode.com/viewnews/2015-06-29_FedwonthikeratesbecausetheyretooscaredEconomist.html iehi-feed-57077 Sun, 28 Jun 2015 18:25:39 GMT Greece Will Close Banks to Stem Flood of Withdrawals http://implode-explode.com/viewnews/2015-06-28_GreeceWillCloseBankstoStemFloodofWithdrawals.html Greece will keep its banks and stock market closed on Monday and place restrictions on the withdrawal and transfer of money, banking executives said Sunday night, as Athens tries to keep its financial crisis from growing worse.

The government's decision to close banks temporarily and impose other so-called capital controls came hours after the European Central Bank said it would not expand an emergency loan program that has been propping up Greek banks in recent weeks while the government was trying to reach a new debt deal with international creditors.

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iehi-feed-57076 Sun, 28 Jun 2015 14:41:23 GMT Here's why any Greek debt deal will amount to nothing - Satyajit Das http://implode-explode.com/viewnews/2015-06-28_HereswhyanyGreekdebtdealwillamounttonothingSatyajitDas.html iehi-feed-57075 Sun, 28 Jun 2015 14:14:22 GMT Greece: Why There Can Be No Winners in the Grexit Game http://implode-explode.com/viewnews/2015-06-28_GreeceWhyThereCanBeNoWinnersintheGrexitGame.html iehi-feed-57071 Sun, 28 Jun 2015 00:51:53 GMT Germany says surprise Greek referendum plan shuts door on negotiations http://implode-explode.com/viewnews/2015-06-27_GermanysayssurpriseGreekreferendumplanshutsdooronnegotiations.html iehi-feed-57069 Sat, 27 Jun 2015 14:12:24 GMT Why It Won't Be a Default If Greece Misses IMF Payment Next Week http://implode-explode.com/viewnews/2015-06-27_WhyItWontBeaDefaultIfGreeceMissesIMFPaymentNextWeek.html iehi-feed-57067 Sat, 27 Jun 2015 13:58:03 GMT Yield-starved investors driving asset prices to dangerous levels: OECD http://implode-explode.com/viewnews/2015-06-27_YieldstarvedinvestorsdrivingassetpricestodangerouslevelsOECD.html iehi-feed-57066 Fri, 26 Jun 2015 21:34:22 GMT The Shale Bloodbath Is Yet To Begin http://implode-explode.com/viewnews/2015-06-26_TheShaleBloodbathIsYetToBegin.html iehi-feed-57064 Fri, 26 Jun 2015 21:26:41 GMT With $21 Trillion, China's Savers Are Set to Change the World http://implode-explode.com/viewnews/2015-06-26_With21TrillionChinasSaversAreSettoChangetheWorld.html With China's leadership aiming to scale back the role of investment in the domestic economy, the nation's surfeit of savings -- deposits currently stand at $21 trillion -- will increasingly need to be deployed overseas. That's also becoming easier, as Premier Li Keqiang relaxes capital-flow regulations.

...

"This era will be marked by China shifting from a large net importer of capital to one of the world's largest exporters of capital," Charles Li, chief executive officer of Hong Kong Exchanges & Clearing Ltd., the city's stock market, wrote in a blog this month. Eventually, there will be "fund outflows of historic proportions, driven by China's needs to deploy and diversify its national wealth to the global markets," he wrote.

...

There are already signs of that potential. Chinese buyers topped Canadians to rank as the biggest foreign purchasers of U.S. homes by sales and dollar volume in the year through March, accounting for more than a quarter of all international spending... The U.S. wants more access to the world's second-biggest economy for its financial firms, something that's been elusive since China's WTO entry.

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iehi-feed-57063 Fri, 26 Jun 2015 20:13:05 GMT Shadow lending crackdown looms over China's stock market http://implode-explode.com/viewnews/2015-06-26_ShadowlendingcrackdownloomsoverChinasstockmarket.html ... regulators are cracking down on shadow lending to stock investors, a campaign analysts say is partly to blame for last week's 13 per cent fall in the Shanghai Composite Index -- the largest weekly drop since the global financial crisis in 2008.

...

Official margin lending totalled Rmb2.2tn ($354bn) as of Wednesday's close, up from Rmb403bn a year earlier, according to stock exchange figures. Yet this officially sanctioned margin lending, which is tightly regulated and relatively transparent, is only the tip of the iceberg for Chinese leveraged stock investing.

...

A universe of so called "fund matching" companies, known in Chinese as peizi, has sprung up over the past year to provide margin funding to virtually anyone who asks. Officially registered as consulting companies, these groups also subscribe to the subordinate tranche of umbrella trusts.

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iehi-feed-57060 Fri, 26 Jun 2015 18:05:17 GMT Why Angela Merkel's Is Wrong On Greece - Habermas http://implode-explode.com/viewnews/2015-06-26_WhyAngelaMerkelsIsWrongOnGreeceHabermas.html iehi-feed-57059 Fri, 26 Jun 2015 15:40:45 GMT China Plunges Most Since 2007, Points Away From Bear Market; Greek Drama Continues http://implode-explode.com/viewnews/2015-06-26_ChinaPlungesMostSince2007PointsAwayFromBearMarketGreekDramaConti.html