Implode-Explode Heavy Industries news feed http://implode-explode.com/ Tracking the many faces of the global credit implosion. en-us iehi-feed-66136 Fri, 20 Jun 2025 13:53:20 GMT Housing Shortage Fix: US Cities Look To Vienna http://implode-explode.com/viewnews/2025-06-20_HousingShortageFixUSCitiesLookToVienna.html iehi-feed-66113 Mon, 21 Apr 2025 14:27:07 GMT New York AG Letitia James Accused Of Mortgage Fraud http://implode-explode.com/viewnews/2025-04-21_NewYorkAGLetitiaJamesAccusedOfMortgageFraud.html iehi-feed-66055 Sun, 08 Dec 2024 14:58:32 GMT Revenu Québec Raided Romspen Headquarters http://implode-explode.com/viewnews/2024-12-08_RevenuQubecRaidedRomspenHeadquarters.html iehi-feed-66053 Mon, 02 Dec 2024 16:07:56 GMT WolfStreet: Office CMBS Delinquency Spits to Over 10%--Worst Since Global Financial Crisis http://implode-explode.com/viewnews/2024-12-03_WolfStreetOfficeCMBSDelinquencySpitstoOver10WorstSinceGlobalFina.html iehi-feed-66026 Mon, 24 Jun 2024 20:50:31 GMT Fearing Losses, Banks Are Quietly Dumping Real Estate Loans - The New York Times http://implode-explode.com/viewnews/2024-06-25_FearingLossesBanksAreQuietlyDumpingRealEstateLoansTheNewYorkTime.html The problems with commercial real estate loans, while bad, have not yet reached a crisis level. The banking industry most recently reported that just under $37 billion in commercial real estate loans, or 1.17 percent of all loans held by banks, were delinquent -- meaning a loan payment was more than 30 days overdue. In the aftermath of the financial crisis of 2008, commercial real estate loan delinquencies at banks peaked at 10.5 percent in early 2010, according to S&P Global Market Intelligence.

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Jonathan Nachmani, a managing director with Madison Capital, a commercial real estate investment and finance firm, said hundreds of billions in office building loans were coming due in the next two years. He said banks hadn't been selling loans en masse because they didn't want to take losses and there wasn't enough interest from big investors.

"It's because nobody wants to touch office," said Mr. Nachmani, who oversees acquisitions for the firm.

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Michael Hamilton, one of the heads of the real estate practice at O'Melveny & Myers, said he had been involved with a number of deals in which banks were quietly giving borrowers a year to find a buyer for a property -- even if it meant a building was sold at a substantial discount. He said that the banks were interested in avoiding a foreclosure and that borrowers benefited by getting to walk away from a mortgage without owing anything.

"What I have been seeing is the cockroaches are starting to come out," said Mr. Hamilton. "The general public does not have a sense of the severity of the problem."''

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iehi-feed-65981 Tue, 16 Apr 2024 18:44:37 GMT Is the Boom-and-Bust Business Cycle Dead? http://implode-explode.com/viewnews/2024-04-17_IstheBoomandBustBusinessCycleDead.html ... a brigade of academic economists and prominent voices on Wall Street are asking if the unruly business cycle they learned in school, and witnessed in practice, has fundamentally morphed into a tamer beast... "Financial reporters and market strategists often argue about whether we are ‘early-cycle,' ‘mid-cycle' or ‘late-cycle,'" David Kelly, the chief global strategist at J.P. Morgan Asset Management, wrote in a March 11 note to investors that closely aligned with Mr. Rieder's "satellite" thesis. "However, these perspectives are based on an outdated model of how the U.S. economy behaves."

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Yet Mr. Kelly of J.P. Morgan lists various reasons that periods of U.S. economic growth may be elongated and less chaotic going forward. Federal deposit insurance, introduced after the Depression, sharply reduced bank panics and failures. Vastly improved information on inventory levels among goods-producing businesses, he said, has "tamed" the inventory cycle, preventing mismatches between supply and demand that can cause mass layoffs.

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[But] Mr. Herndon noted the work of the 20th-century Polish economist Michal Kalecki, who argued that business leaders feel "undermined" by the maintenance of full employment. Using their substantial influence over policy, Kalecki argued, they can help institute restrictive economic policies that bring times of economic expansion to an end and reset them with softer, more tolerable labor power.

And Mr. Herndon said he thought old-fashioned "bubble" manias and "credit cycles" remained a danger, too.

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iehi-feed-65976 Sun, 10 Mar 2024 02:20:02 GMT The YIMBY movement: not just for liberals any more http://implode-explode.com/viewnews/2024-03-10_TheYIMBYmovementnotjustforliberalsanymore.html iehi-feed-65973 Sun, 11 Feb 2024 18:15:12 GMT China's property crisis is starting to ripple across the world http://implode-explode.com/viewnews/2024-02-12_Chinaspropertycrisisisstartingtorippleacrosstheworld.html iehi-feed-65956 Sun, 21 Jan 2024 20:39:58 GMT Half of recent US inflation due to high corporate profits, report finds http://implode-explode.com/viewnews/2024-01-22_HalfofrecentUSinflationduetohighcorporateprofitsreportfinds.html

The report, compiled by the progressive Groundwork Collaborative thinktank, found corporate profits accounted for about 53% of inflation during last year's second and third quarters. Profits drove just 11% of price growth in the 40 years prior to the pandemic, according to the report.

Costs have come down substantially, and while corporations were quick to pass on their increased costs to consumers, they are surprisingly less quick to pass on their savings to consumers," Liz Pancotti, a Groundwork strategic adviser and paper co-author, said.

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iehi-feed-65949 Thu, 11 Jan 2024 01:54:40 GMT Forty-four of 50 US states worsen inequality with ‘upside-down' taxes http://implode-explode.com/viewnews/2024-01-11_Fortyfourof50USstatesworseninequalitywithupsidedowntaxes.html Only six states, plus the District of Columbia, have tax systems that reduce inequality rather than worsen it, with the poorest fifth of people paying a tax rate 60% higher, on average, than the top 1% of households.

The super-wealthy are treated particularly lightly by the tax system, with the top 1% paying less than every other income group across 42 states. In most states, 36 in all, the poorest residents are taxed at a higher rate than any other group.

The most regressive states in terms of taxation are, in order, Florida, Washington, Tennessee, Pennsylvania and Nevada. The least regressive jurisdictions are DC, Minnesota, Vermont, New York and New Jersey.

Various state-level policies, such as cutting taxes on the wealthy to supposedly drive economic activity, has worsened this situation, the report found.

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iehi-feed-65948 Mon, 08 Jan 2024 07:48:11 GMT New Revisionist Studies Attempting To Prove US Less Economically Unequal Don't Change The Underlying Reality http://implode-explode.com/viewnews/2024-01-08_NewRevisionistStudiesAttemptingToProveUSLessEconomicallyUnequalD.html iehi-feed-65936 Thu, 28 Dec 2023 03:22:41 GMT National Association of Realtors Headed For "Extinction-Level Event" http://implode-explode.com/viewnews/2023-12-28_NationalAssociationofRealtorsHeadedForExtinctionLevelEvent.html iehi-feed-65928 Thu, 21 Dec 2023 09:38:12 GMT Rich Charlatan, Poor Readers http://implode-explode.com/viewnews/2023-12-21_RichCharlatanPoorReaders.html iehi-feed-65923 Sun, 10 Dec 2023 18:28:00 GMT Famed Fed watcher expects interest rates stay high for ‘much, much, much longer' after unsustainable ‘free money era' http://implode-explode.com/viewnews/2023-12-11_FamedFedwatcherexpectsinterestratesstayhighformuchmuchmuchlonger.html Grant stands out from the Wall Street pack in another respect: Where many investment gurus are calling for the Fed to start cutting rates at some point in the coming year or two, Grant predicts an era of higher rates that could last a generation.

Fed Chair Jerome Powell has repeatedly warned that rates will need to remain "higher for longer" to truly tame inflation. But many Wall Street leaders, encouraged at inflation's steep fall from its June 2022 four-decade high, believe peak rates are already here.

Grant, however, takes a historical reading of monetary policy, and argues we're in for a generation of rising rates, with some volatility in between. "The phrase would be higher for much, much, much, much longer--but we have to underscore and italicize the conditional--if past is prologue," he told Fortune.

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"We seem to have hit some major point of demarcation with interest rates in 2020 and ‘21," he added. Based on history, he said, this new regime should last 40 years. Still, Grant clarified that the generation-long uptick likely won't be a straight line up. If a recession hits, there could be a "substantial," although temporary, pullback in interest rates.

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iehi-feed-65922 Sun, 10 Dec 2023 18:25:15 GMT "Georgist" Idea of Disused Land Tax Gains Steam http://implode-explode.com/viewnews/2023-12-11_GeorgistIdeaofDisusedLandTaxGainsSteam.html iehi-feed-65914 Sat, 02 Dec 2023 16:09:57 GMT Podcast: The Revenge of the Zero-Rate World Is Coming - Bloomberg http://implode-explode.com/viewnews/2023-12-03_PodcastTheRevengeoftheZeroRateWorldIsComingBloomberg.html iehi-feed-65913 Sat, 02 Dec 2023 16:08:42 GMT It Will Never Be a Good Time to Buy a House\ http://implode-explode.com/viewnews/2023-12-03_ItWillNeverBeaGoodTimetoBuyaHouse.html iehi-feed-65912 Sat, 02 Dec 2023 16:07:26 GMT ‘We will coup whoever we want!': the unbearable hubris of Musk and the billionaire tech bros http://implode-explode.com/viewnews/2023-12-03_WewillcoupwhoeverwewanttheunbearablehubrisofMuskandthebillionair.html iehi-feed-65901 Sun, 19 Nov 2023 23:35:13 GMT The Super Rich No Longer Try To Support Their Societies http://implode-explode.com/viewnews/2023-11-20_TheSuperRichNoLongerTryToSupportTheirSocieties.html iehi-feed-65892 Fri, 10 Nov 2023 23:31:32 GMT Is the Yield Curve a Reliable Recession Signal Anymore? http://implode-explode.com/viewnews/2023-11-11_IstheYieldCurveaReliableRecessionSignalAnymore.html