Implode-Explode Heavy Industries news feed http://implode-explode.com/ Tracking the many faces of the global credit implosion. en-us iehi-feed-62639 Sat, 22 Jul 2017 16:15:24 GMT Jared Kushner's White House connection still being used to lure Chinese investors http://implode-explode.com/viewnews/2017-07-22_JaredKushnersWhiteHouseconnectionstillbeingusedtolureChineseinve.html iehi-feed-62638 Sat, 22 Jul 2017 15:36:52 GMT Wells Fargo: Too Big To Succeed? http://implode-explode.com/viewnews/2017-07-22_WellsFargoTooBigToSucceed.html iehi-feed-62637 Sat, 22 Jul 2017 15:30:32 GMT Bank of America picks Dublin for EU base following Brexit http://implode-explode.com/viewnews/2017-07-22_BankofAmericapicksDublinforEUbasefollowingBrexit.html iehi-feed-62636 Sat, 22 Jul 2017 12:44:47 GMT Kushner failed to disclose dozens of financial holdings, new document shows http://implode-explode.com/viewnews/2017-07-22_Kushnerfailedtodisclosedozensoffinancialholdingsnewdocumentshows.html iehi-feed-62635 Sat, 22 Jul 2017 12:28:28 GMT Bond Boom Fizzles Out Amidst Uncertainty; Low Volumes http://implode-explode.com/viewnews/2017-07-22_BondBoomFizzlesOutAmidstUncertaintyLowVolumes.html Dhaval Joshi, chief European investment strategist at BCA Research, said the bond boom had come to an end as the fog around the course of interest rates, made worse by Brexit and the election of Donald Trump, intensified.

"When the Federal Reserve signalled that it would begin to raise interest rates, it changed the story. Since then there hasn't been a clear path," he said.

Major bond investors got burned by this turn of events and while their initial reaction was to instruct the banks to switch their portfolios -- prompting a rise in trading fees -- they are now reluctant to take big bets.

Joshi says the long-run trend for low inflation and low interest rates is about to reassert itself. This might mean a few more fees for the bank's bond departments as asset managers adjust their holdings again. But in the longer term, it means a loss of business as investors go back to just holding long-term positions.

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iehi-feed-62634 Sat, 22 Jul 2017 12:23:22 GMT U.S. drops case against 'London Whale' alleged compatriots http://implode-explode.com/viewnews/2017-07-22_USdropscaseagainstLondonWhaleallegedcompatriots.html In seeking the dismissal of charges against Javier Martin-Artajo and Julien Grout, the Department of Justice said it "no longer believes that it can rely on the testimony" of Bruno Iksil, a cooperating witness who had been dubbed the London Whale, based on recent statements he made that hurt the case.

Prosecutors also said efforts to extradite Martin-Artajo and Grout, respectively citizens of Spain and France, to face the charges have been "unsuccessful or deemed futile."

Acting U.S. Attorney Joon Kim in Manhattan asked a federal judge for permission to drop charges that included securities fraud, wire fraud and falsifying records. Martin-Artajo and Grout were indicted in September 2013.

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iehi-feed-62633 Sat, 22 Jul 2017 00:07:28 GMT Bill Gross worried that central banks will lead world into recession http://implode-explode.com/viewnews/2017-07-21_BillGrossworriedthatcentralbankswillleadworldintorecession.html iehi-feed-62632 Fri, 21 Jul 2017 23:41:56 GMT Walking-Back Tough Talk, Draghi Holds on to Central Bank Easing-Baton Yet Longer http://implode-explode.com/viewnews/2017-07-21_WalkingBackToughTalkDraghiHoldsontoCentralBankEasingBatonYetLong.html The European Central Bank left its ultra-easy monetary policy stance unchanged as expected on Thursday, keeping rates at record lows and even leaving the door open to more asset buys if the outlook worsens.

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He stressed that the bank's governing council were unanimous both on the decision to keep its guidance unchanged and to avoid setting a precise date for a discussion of future policy, noting only that it would occur in the autumn.

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Still, the ECB is unable to kick the can down the road indefinitely as its asset buys are set to run until the end of the year and policymakers argue that a decision on an extension or a gradual wind down must be taken in September or October.

This has no doubt been a force behind gold and silver (and maybe bitcoin?) in the last day...

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iehi-feed-62631 Fri, 21 Jul 2017 22:34:00 GMT Why did Deutsche Bank give Donald Trump loans when no one else would trust him? http://implode-explode.com/viewnews/2017-07-21_WhydidDeutscheBankgiveDonaldTrumploanswhennooneelsewouldtrusthim.html iehi-feed-62630 Fri, 21 Jul 2017 20:22:28 GMT Bitcoin Soars as Upgrade Backers Hoist Beers to Armistice - Bloomberg http://implode-explode.com/viewnews/2017-07-21_BitcoinSoarsasUpgradeBackersHoistBeerstoArmisticeBloomberg.html

The community, which had been split on how best to make the cryptocurrency more manageable, rallied behind a code upgrade known as SegWit2x, which aims to increase the network's transaction capacity. That fueled a rally on in bitcoin's price against the dollar, which had plummeted from a peak in June as concerns grew about its future in what has been called a civil war.

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More than 93 percent of miners who function as the backbone of the digital tokens network locked in support for BIP91, the first necessary step in implementing SegWit2x, according to Coin Dance, a website tracking adoption. Bitcoin's miners are independent groups that verify and process bitcoin's transactions by solving complex computational problems, in order to be rewarded by fees and creation of the digital currency.

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iehi-feed-62629 Fri, 21 Jul 2017 19:11:39 GMT The Iron Throne of Westeros Is Heading Toward The Fiscal Cliff http://implode-explode.com/viewnews/2017-07-21_TheIronThroneofWesterosIsHeadingTowardTheFiscalCliff.html iehi-feed-62622 Thu, 20 Jul 2017 15:24:34 GMT Are Manhattan Bankruptcy Lawyers Misleading You About Foreclosures? http://implode-explode.com/viewnews/2017-07-20_AreManhattanBankruptcyLawyersMisleadingYouAboutForeclosures.html iehi-feed-62621 Thu, 20 Jul 2017 15:07:26 GMT Bank of America Pulls Ripcord on Chinese Conglomerate HNA (SIGN OF PEAK?) http://implode-explode.com/viewnews/2017-07-20_BankofAmericaPullsRipcordonChineseConglomerateHNASIGNOFPEAK.html Bank of America's decision to pull out of any deals with HNA shows the concerns other US and European banks must have as well, and that they too might be getting second thoughts about the risks of doing business with Chinese conglomerates, especially since even Chinese authorities are loudly fretting about the exposure of their own banks to these conglomerates, and their fear that the conglomerates threaten China's very fragile financial stability.

When banks step back from an opportunity to make vast sums of money because they finally see the risks, it's the moment the music stops for these conglomerates. That's when debt cannot be refinanced or serviced anymore. That's when the whole multi-layered debt constructs come tumbling down, and when Chinese authorities come face to face with their own black-swan event.

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iehi-feed-62619 Thu, 20 Jul 2017 14:25:53 GMT Did the City of London Just Press the Panic Button on Brexit? http://implode-explode.com/viewnews/2017-07-20_DidtheCityofLondonJustPressthePanicButtononBrexit.html In a memo to the British Treasury, MPs, and financial institutions, the City's Brexit envoy to the EU, Jeremy Browne, bemoaned that the French are pushing for the most damaging Brexit possible, even if France doesn't directly benefit. The memo was duly leaked to one of the UK's most anti-EU newspapers, The Daily Mail:

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If the City's euro-denominated clearing operations are relocated to the continent, there's a risk that other operations will follow in their wake. That could be a major problem for a country that has grown so dependent on the financial industry. Almost 2.2 million people work in financial and related services such as accounting and law, two-thirds of them outside London. They produce nearly 12% of the UK's GDP, 11% of its tax take, and a net trade surplus of £72 billion ($104 billion).

One of the glaring ironies of the Brexit debate is the extent to which the UK has benefited from the creation of the euro, despite not being a member. Since the creation of the single currency at the turn of the century, Britain's share of key financial markets has exploded. London is now home to almost one-half of the entire global interest-rate OTC derivatives market, compared to 35% in 2001. Its share of global forex turnover increased from 33% to 41% between 2001 and 2014. And its share of global hedge fund assets doubled, from 9% to 18%.

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iehi-feed-62617 Thu, 20 Jul 2017 03:36:54 GMT Overnight Paper Attack On Gold -- Why This One Was Different http://implode-explode.com/viewnews/2017-07-19_OvernightPaperAttackOnGoldWhyThisOneWasDifferent.html At exactly 3:56 EST, a clearly-motivated seller decided it was the best time to unload 2,741 August pieces of paper gold, driving the market down $4.50 instantaneously. If the gold were actually physically delivered into the buyer, that chunk would be 274,100 ozs, or roughly $360mm worth of gold...

INTERESTINGLY, the very next minute, some entity BOUGHT 2,373 August paper gold contracts, nearly offsetting the amount of contracts sold.... The question I have is whether or not the flash crash sale was perpetrated to induce the hedge fund black algos to mechanically sell, assuming stop-losses were triggered, to enable the buyer to buy 2,373 contracts at a lower price.

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Unfortunately, whoever decided to implement this operation strategically executed it one day AFTER the reporting cut-off date for Friday's COT report. It's a neat little maneuver the bullion banks have doing for years as a method of covering up their "tracks in the snow." It will be impossible to analyze what occurred overnight when the COT report a week from Friday is released. The "winds" will have blown snow over the tracks.

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iehi-feed-62616 Wed, 19 Jul 2017 18:40:29 GMT Brooklyn Office Market Passes High-Water Mark http://implode-explode.com/viewnews/2017-07-19_BrooklynOfficeMarketPassesHighWaterMark.html iehi-feed-62614 Wed, 19 Jul 2017 15:13:57 GMT Student Loan Debt Crisis Also Hitting Aging Baby Boomers http://implode-explode.com/viewnews/2017-07-19_StudentLoanDebtCrisisAlsoHittingAgingBabyBoomers.html iehi-feed-62613 Wed, 19 Jul 2017 15:07:03 GMT Chris Christie And His State Sanctioned Loan-Sharking Operation http://implode-explode.com/viewnews/2017-07-19_ChrisChristieAndHisStateSanctionedLoanSharkingOperation.html iehi-feed-62611 Wed, 19 Jul 2017 01:24:12 GMT "People Buy Payments" & Why Rates CAN'T Rise http://implode-explode.com/viewnews/2017-07-18_PeopleBuyPaymentsWhyRatesCANTRise.html In 1968 the average American family maintained a mortgage payment, as a percent of real disposable personal income (DPI), of about 7%. Back then, in order to buy a home, you were required to have skin in the game with a 20% down payment. Today, assuming that an individual puts down 20% for a house, their mortgage payment would consume more than 23% of real DPI. In reality, since many of the mortgages done over the last decade required little or no money down, that number is actually substantially higher. You get the point. With real disposable incomes stagnant, a rise in interest rates and inflation makes that 23% of the budget much harder to sustain.

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The ramifications of rising interest rates do not only apply to home prices, but also on virtually every aspect of the economy. As rates rise so do rates on credit card payments, auto loans, business loans, capital expenditure profitability, leases, etc... given the current demographic, debt, pension and valuation headwinds, the future rates of growth are going to be low over the next couple of decades until a "clearing" process is completed. (This is what the "Great Depression" provided.)

While there is little room left for interest rates to fall in the current environment, there is also not a tremendous amount of room for increases.

This is what the bond market continues to tell you if you will only listen. With the 10-year bond close to 2%, and the yield curve flattening, future rate increases are limited due to limited GDP growth due to "secular stagnation." Therefore, bond investors are going to have to adopt a "trading" strategy in portfolios as rates start to go flat-line over the next decade.

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iehi-feed-62610 Wed, 19 Jul 2017 01:17:47 GMT There Has Been Just One Type of Net Buyer Of Stocks Since 2009: Companies Themselves http://implode-explode.com/viewnews/2017-07-18_ThereHasBeenJustOneTypeofNetBuyerOfStocksSince2009CompaniesThems.html