Implode-Explode Heavy Industries news feed http://implode-explode.com/ Tracking the many faces of the global credit implosion. en-us iehi-feed-64540 Thu, 17 Jan 2019 21:02:50 GMT Brexit: France activates no-deal plan; Others likely follow http://implode-explode.com/viewnews/2019-01-17_BrexitFranceactivatesnodealplanOtherslikelyfollow.html The Netherlands' foreign trade minister, Sigrid Kaag, said on Wednesday night that the Netherlands was launching a major information campaign on 28 January.

"After Ireland, the Dutch economy is most entwined with that of the UK," she said, citing fisheries, meat-processing and flower exports. She warned that many small and medium enterprises had failed to make sufficient preparation for a no-deal Brexit.

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Germany's foreign minister, Heiko Maas, said on Thursday that plans for a disorderly Brexit would have to be stepped up.

"In the coming days and weeks, we will do everything we can so that Britain exits with and not without an agreement," he told the Bundestag (German parliament).

Spain said on Thursday that staffing of immigration offices would be beefed up if the UK left the EU without a deal. Some 310,000 UK citizens live in Spain and they would have to confirm their residency under a no-deal Brexit, officials said.''

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iehi-feed-64538 Wed, 16 Jan 2019 22:13:37 GMT Anxiety and burnout: I work with kids. Here's why they're consumed with worry. http://implode-explode.com/viewnews/2019-01-16_AnxietyandburnoutIworkwithkidsHereswhytheyreconsumedwithworry.html Kids today have to constantly consider the perils of work and career with enough specificity to worry about it. At the same time that they stress about the future that's so very far off, they live with technology that keeps that anxiety consistently in the front of their minds.

... I rarely heard them frame any of this work and stress in terms of future success or even just stability. They usually didn't talk about their lives according to the myth so many parents, teachers, and community members raised Gen X and millennials with, the one that promises that if you work hard, you'll get a good job and have a nice, stable life or at least do better than your parents did. When they brought up their futures, if they weren't talking about careers, they understood that student debt was inevitable.

It later dawned on me: Why would they believe this myth? People in their 20s, 30s, and 40s teach and raise these kids. Those generations now know from experience that the idea that hard work and a little luck pays off isn't true. Between 30 years of stagnant wages, the rising costs of housing, health care, and education, and a recession just as many of us graduated from college, it's no wonder that millennials are on course to do financially worse than previous generations, just as Gen X did before us.

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iehi-feed-64537 Wed, 16 Jan 2019 22:12:01 GMT Bridgewater's Ray Dalio: Capitalism is not working for most people http://implode-explode.com/viewnews/2019-01-16_BridgewatersRayDalioCapitalismisnotworkingformostpeople.html "We're in a situation when the economy is at a peak, we still have this very big tension. That's where we are today," he said in November. "We're in a situation where, if you have a downturn, and we will have a downturn, I believe that -- I worry that that polarity will become greater."

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"If I was doing it, I think that you have to call that a national emergency," said Dalio. Then, reasoned Dalio, the President could "[take] responsibility for changing those metrics. I think there's a lot that can be done in private-public partnerships and so on to be able to change it, but I fear that that probably will not be done by the next time we have a downturn, and I fear for what that conflict is going to be like that."

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iehi-feed-64535 Wed, 16 Jan 2019 14:28:43 GMT Shutdown's Economic Damage Starts to Pile Up, Threatening an End to Growth http://implode-explode.com/viewnews/2019-01-16_ShutdownsEconomicDamageStartstoPileUpThreateninganEndtoGrowth.html iehi-feed-64532 Wed, 16 Jan 2019 01:34:49 GMT British pound strengthens after parliament rejects Brexit plan http://implode-explode.com/viewnews/2019-01-15_BritishpoundstrengthensafterparliamentrejectsBrexitplan.html Parliament on Tuesday struck down the divorce deal that Prime Minister Theresa May had negotiated with the rest of the European Union by a record margin. The defeat was expected, but the size of the loss -- 432 votes to 202 -- was a surprise.

The pound, which had fallen below $1.27 earlier on Tuesday, erased its losses after the vote and strengthened to $1.28. Some analysts had predicted the pound would rally if May suffered a major defeat because that would raise the chance of Brexit being delayed.

The crushing loss means parliament may now wield greater control over the process. Capital Economics said lawmakers could move to delay Brexit while they work on alternatives.

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iehi-feed-64531 Wed, 16 Jan 2019 01:32:35 GMT Why mortgage lending at Wells Fargo, Chase and Citi plunged http://implode-explode.com/viewnews/2019-01-15_WhymortgagelendingatWellsFargoChaseandCitiplunged.html With earnings from three of the four biggest banks in, one metric stands in sharp relief. Mortgage lending just keeps plunging. In the fourth quarter, mortgage originations at Citi C, +4.16%   were down 23% compared to a year ago. At Wells Fargo WFC, -1.55%  , they were 28% lower, and at JPMorgan Chase JPM, +0.73%  , they were down 30%.

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What's going on? Here's how JPMorgan CFO Marianne Lake described it in her prepared remarks to analysts Wednesday: "Home Lending revenue was down 8%, driven by lower net reduction revenue in a low volume highly competitive environment."

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Mortgage lending is down, mostly because there aren't enough houses for people to buy to sustain a healthy housing market -- although rising rates aren't helping either. Also thanks to those higher rates, the long refinance boom is over

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iehi-feed-64530 Sat, 12 Jan 2019 00:10:28 GMT The story behind the biggest price chop in NYC trophy-property history (TAG: ALSO NOT STEVE COHEN'S SHINING MOMENT) http://implode-explode.com/viewnews/2019-01-11_ThestorybehindthebiggestpricechopinNYCtrophypropertyhistoryTAGAL.html After reducing the price a painful eight times, the unit at 151 East 58th Street has now been relisted at $45 million. That's a whopping $70 million discount from its original 2013 listing price of $115 million.

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Cohen's troubles started in November 2013, when he pleaded guilty to insider trading and agreed to pay a penalty of $1.2 billion.

It was that April that he first listed the apartment for sale at $115 million, but by the end of 2013 he had dropped the price to $98 million.

In 2014, he went down to $82 million, then $79 million in 2015, and $72 million in 2016. By January 2017, the price was at $67.5 million, according to StreetEasy, and by the fall of that year it was $57.5 million, or $6,389 per square foot.

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iehi-feed-64527 Thu, 10 Jan 2019 20:34:36 GMT For SoftBank, no majority stake in WeWork as it scales down talks from a new $16 billion investment to $2 billion http://implode-explode.com/viewnews/2019-01-10_ForSoftBanknomajoritystakeinWeWorkasitscalesdowntalksfromanew16b.html Several weeks after it was reported by the WSJ that two of the biggest investors in SoftBank's massive Vision Fund vehicle were cool on its planned $16 billion investment in the coworking company WeWork, those plans have changed radically, says the Financial Times.

According to its sources -- and confirmed by our own -- SoftBank is now in "detailed negotiations" to invest a comparatively modest $2 billion more into WeWork, plans that could be firmed up as soon as the end of this week.

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As it stands, including the $2 billion that WeWork looks to receive from SoftBank imminently, SoftBank will have sunk $10 billion into the company. Perhaps it's no wonder that the newest $2 billion is not coming from the Vision Fund but from SoftBank directly. (Son sometimes invests off SoftBank's balance sheet directly, for expediency's sake and, presumably, in a case such as this one, when there may be pushback from Vision Fund investors.)

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iehi-feed-64524 Mon, 07 Jan 2019 23:32:44 GMT The Men Peddling the 'Secrets' to Getting Rich on Amazon http://implode-explode.com/viewnews/2019-01-07_TheMenPeddlingtheSecretstoGettingRichonAmazon.html It may seem obvious to an outsider that most people aren't going to become rich by selling things on Amazon. But that's the thing about gold rushes: Some people do find gold, and it is sometimes hard to tell what distinguishes the people who make it from those who don't. Travis Tolman, the travel-product seller, is about to launch his second product on Amazon, and said he thinks he'll be able to make about $8,000 a month. When I asked him why he succeeded while so many others at the seminar failed, he said he wasn't quite sure. "I think I just did a really good job of following directions," he told me.

There's something uniquely American about believing that with a little bit of hard work, anybody can make money fast. In the 19th century, advertisements promised people exclusive selling rights to a certain product, for a fee. They'd pay the money, and then find out that the product didn't exist, or that dozens of other people were selling it. "In the U.S., the depth of commitment to social mobility and uplift seems to give some degree of distinctiveness to how fraud operates," said Edward J. Balleisen, a professor at Duke University who has written a book on the history of fraud in America.

The success of the Amazon-coaching market says something about the current state of the economy. As the American middle class disappears, many people feel as if they've lost their financial footing and are seeking an easy shortcut back to stability. "The best indicator of whether someone will be amenable to being defrauded has to do with financial insecurity," David Vladeck, the former director of the Federal Trade Commission's Bureau of Consumer Protection, who is now a professor at Georgetown, told me.

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It's not low-income people who fall victim to online frauds, Vladeck said--they don't have the thousands of dollars needed to pay scammers in the first place. It's people who have a little bit of extra money, and want to invest it to get more breathing room. When, during the Great Recession, millions of families lost jobs or saw their income reduced, business-opportunity scams proliferated, he said. Many of the people I talked to at the seminar said they just wanted a little bit more money than they had--to build a bigger retirement fund, work less, buy a vacation home.

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iehi-feed-64522 Sun, 06 Jan 2019 15:10:38 GMT Wyoming, DATA and the Gold Rush of coming Crypto Regulations http://implode-explode.com/viewnews/2019-01-06_WyomingDATAandtheGoldRushofcomingCryptoRegulations.html Steven Lupien, Executive Director of DATA noted that "DATA, which is a non-profit, had its' bank account closed" and that "The Compliance departments of traditional banks will not allow for the banking of crypto, because they worry their FDIC insurance will be pulled".

However DATA, and a number of Wyoming legislators are championing SPDIs -- a special purpose bank that eschews FDIC insurance, in order to allow for the creation of US banks that are both crypto friendly and allow for the growth and proliferation of Blockchain businesses.

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iehi-feed-64519 Sat, 05 Jan 2019 02:46:10 GMT A Trump County Confronts the Administration Amid a Rash of Child Cancers http://implode-explode.com/viewnews/2019-01-04_ATrumpCountyConfrontstheAdministrationAmidaRashofChildCancers.html There are conflicting views in Johnson County of the administration's environmental rollbacks. There is talk that the federal government should get out of people's lives, even as local officials have called on the E.P.A. to take over the response to the contamination.

"When it comes to public health, we can go against party lines. And I don't agree with trying to roll back the E.P.A.'s role," said Steve Barnett, Franklin's mayor and a Republican. "Back in the day, there weren't any rules. That's why there was so much contamination," he said.

Many members of If It Was Your Child in the Franklin area play down the politics, noting that both parties have let the cleanup fall by the wayside. Nevertheless, their demands come at a time when the Trump administration has weakened the very rules that could prevent another Franklin.

"We should not have to fight Republicans or Democrats to save our children. It's not a political fight for us," said Stacie Davidson, a Trump voter who co-founded the parents' group with Mrs. Rhinehart (who didn't vote for Mr. Trump).

Mrs. Davidson said, "His loosening of E.P.A. regulations, it's infuriating." She added, "We're ruining the environment for money."

Mrs. Davidson learned in 2014 that her stepson, Zane, who was 10 at the time, had a rare form of leukemia. He is now in remission. She has traveled to Washington to speak in favor of stronger TCE regulations. "What we're fighting for is seemingly being undone right now," she said.

Still, she said, she did not regret her vote. "Trump's a businessman. There are great things he can do for our country. But he's used to building high rises for money," she said. "He's not as environmentally savvy. Our hope is that he surrounds himself with people who are more knowledgeable."

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Despite the emergence of alternatives to TCE, the Trump administration has stalled action on restricting its use. "There have been greener alternatives to TCE for years," said Tom Forsythe, an executive vice president at Kyzen, a Tennessee cleaning-materials company, who joined E.P.A. officials in a conference call in August 2017 to lay out other options.

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"I see good things that Trump has done," said Mr. Barnett, the mayor, emphasizing his town's future. "The economy's good. There's been a lot of investment into our city."

So sad to see kids literally poisoned to death because Trump panders to support from business and industry, meanwhile, the effected communities make excuses for Trump based on fictions of all the good he's doing. (Were these same people praising Obama for "surrounding himself with knowledgeable people", or the "economy doing well" on his watch? Our money's on "probably not"...)

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iehi-feed-64518 Sat, 05 Jan 2019 01:36:24 GMT Trump administration officials set to receive $10,000 raises during government shutdown. http://implode-explode.com/viewnews/2019-01-04_Trumpadministrationofficialssettoreceive10000raisesduringgovernm.html iehi-feed-64517 Fri, 04 Jan 2019 22:12:52 GMT The Rise of Gold-Backed Cryptos http://implode-explode.com/viewnews/2019-01-04_TheRiseofGoldBackedCryptos.html iehi-feed-64516 Fri, 04 Jan 2019 18:40:07 GMT Dow surges 700 points after Powell says the Fed will be patient with rate hikes http://implode-explode.com/viewnews/2019-01-04_Dowsurges700pointsafterPowellsaystheFedwillbepatientwithratehike.html "As always, there is no preset path for policy, " Powell said. "And particularly with muted inflation readings that we've seen coming in, we will be patient as we watch to see how the economy evolves."

Powell also said the central bank would not "hesitate" to change its balance-sheet reduction plan if it was causing problems. Fears that the Fed may be making a policy error by tightening too fast have contributed to the recent skittishness in financial markets, according to several market experts.

"I think he did what the market hoped he would do," said Tom Essaye, founder of The Sevens Report. "What he did with these comments is he acknowledged that they need to be more flexible."

"This is worth a bounce, but at the same time, the major issues facing the market are not resolved. We have a potential earnings problem in this market; we have a potential economic growth problem in this market," Essaye added. "Today's rally is more a result of the overextended downside from yesterday."

"Coincidentally," this is all exactly what Trump wants.

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iehi-feed-64514 Fri, 04 Jan 2019 00:16:15 GMT Dow slides after Apple delivers bombshell China warning; ISM Plunges http://implode-explode.com/viewnews/2019-01-03_DowslidesafterAppledeliversbombshellChinawarningISMPlunges.html Apple, among the world's most widely held stocks, plummeted 10% in its darkest day in six years. The former king of the stock market fell to the fourth-biggest public company, behind Amazon, Microsoft and Alphabet.

The news sent shudders through global markets. The Nasdaq plunged 3%, closing back in bear market territory. The S&P 500 shed 2.5%, led lower by tech and industrial stocks. The market ended near the lows of the day.

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Beyond Apple, investors were also rattled by the biggest one-month decline in US factory activity since the Great Recession. The closely-watched ISM manufacturing index tumbled to a two-year low, providing further evidence of slowing growth and pain from the US-China trade war. ISM said manufacturing activity is still growing, but suffered a "sharp decline" last month.

"Awful, and worse to come," Ian Shepherdson, chief economist at Pantheon Macroeconomics, wrote to clients on Thursday. "Trade wars are not easy to win."

The "since the Great Recession/2008" comparables are coming at an increasing pace...

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iehi-feed-64513 Fri, 04 Jan 2019 00:00:15 GMT One Of America's Most Expensive Mansions Sells For 73% Below Ask http://implode-explode.com/viewnews/2019-01-03_OneOfAmericasMostExpensiveMansionsSellsFor73BelowAsk.html After four years on the market, an overpriced 60,000-square-foot Hillsboro Beach estate known as "Le Palais Royal" was recently auctioned off. First listed for a then record-setting national price of $139 million in 2014, the mansion was quickly bumped up to $159 million the following year. The listing was withdrawn in 2016/17 after no buyers came forward. It went to auction via Concierge Auctions, in conjunction with Ralph Arias of ONE Sotheby's International Realty, on November 12.

... Price cuts tend to be a great leading indicator and give a forward-looking view into the real estate market. So, when one of America's most expensive homes experiences 73% collapse in asking price from 2015, it probably signals that a luxury real estate market crash could be ahead.

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The seller, Robert Pereira, founder of the Massachusetts-based construction company Middlesex Corp., possibly lost tens of millions of dollars on the transaction; Pereira told The Wall Street Journal in 2015 that the build costs exceeded $100 million.

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iehi-feed-64511 Thu, 03 Jan 2019 01:24:31 GMT Apple being investigated by investor rights law firm for ‘potential securities fraud' related to China http://implode-explode.com/viewnews/2019-01-02_Applebeinginvestigatedbyinvestorrightslawfirmforpotentialsecurit.html iehi-feed-64510 Thu, 03 Jan 2019 01:18:00 GMT Real Estate inventory is piling up - Dr. Housing Bubble http://implode-explode.com/viewnews/2019-01-02_RealEstateinventoryispilingupDrHousingBubble.html iehi-feed-64509 Wed, 02 Jan 2019 23:46:27 GMT Markets plunge; China angst; Trump and the shutdown http://implode-explode.com/viewnews/2019-01-02_MarketsplungeChinaangstTrumpandtheshutdown.html iehi-feed-64507 Tue, 01 Jan 2019 16:19:22 GMT What 46 Populist Leaders Did to Democracy - The Atlantic http://implode-explode.com/viewnews/2019-01-01_What46PopulistLeadersDidtoDemocracyTheAtlantic.html Populists aren't just more likely to win reelection once or twice; they are also much more likely to remain in power for well over a decade. Six years after they are first elected, populist leaders are twice as likely as non-populist leaders to still be in power; twelve years after they are first elected, they are more than five times as likely.

... only 17 percent of populists stepped down after they lost free and fair elections. Another 17 percent vacated high office after they reached their term limits. But 23 percent left office under more dramatic circumstances--they were impeached or forced to resign. Another 30 percent of all populist leaders in our database remain in power to this day. This is partially a function of the recent rise of populism: Thirty-six percent of those populist rulers who still remain in power were elected over the past five years. But even more of them have been in office long enough to raise serious concerns: About half have led their country for at least nine years.

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In many countries, populists rewrote the rules of the game to permanently tilt the electoral playing field in their favor. Indeed, an astounding 50 percent of populists either rewrote or amended their country's constitution when they gained power, frequently with the aim of eliminating presidential term limits and reducing checks and balances on executive power.

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Since 1990, 13 right-wing populist governments have been elected; of these, five brought about significant democratic backsliding. Over the same time period, 15 left-wing populist governments were elected; of these, the same number, five, brought about significant democratic backsliding. This suggests that left-wing populists are not likely to be a cure for right-wing populism; they are, on the contrary, likely to accelerate the speed with which democracy burns out.''

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