Implode-Explode Heavy Industries news feed Tracking the many faces of the global credit implosion. en-us iehi-feed-56394 Thu, 26 Mar 2015 16:44:57 GMT U.S. Home Prices Are Surging 13 Times Faster Than Wages In many markets, the housing recovery has "largely been driven over the last two years by buyers who are not as constrained by incomes -- namely the institutional investors coming in and buying up properties as rentals,  and international buyers coming in and buying, often with cash," Daren Blomquist, vice president at RealtyTrac and author of the report, said in an interview...

With the economy improving and home prices climbing, central bankers seem to have achieved at least part of their goal. However, investors have reaped much of the benefits of rising prices, while meaningful wage growth -- and with it the ability of many Americans to buy homes -- has yet to materialize. That's been one reason housing has posted such inconsistent progress over the past two years, even with mortgage rates near historical lows.

iehi-feed-56393 Thu, 26 Mar 2015 14:39:05 GMT China meets London: UK starts first yuan money-market fund iehi-feed-56391 Thu, 26 Mar 2015 14:33:19 GMT ​Moody's downgrades Ukraine heralding imminent default iehi-feed-56390 Thu, 26 Mar 2015 14:31:33 GMT Price of Ground Beef Hits Record in February: $4.238 Per Pound (A 13.3% YEARLY INFLATION RATE SINCE QE!!) iehi-feed-56389 Thu, 26 Mar 2015 14:28:26 GMT Dow tumbles 292 points as economy shows cracks iehi-feed-56388 Thu, 26 Mar 2015 14:11:29 GMT SEC proposes rule aimed at monitoring high freq. trading more closely iehi-feed-56387 Thu, 26 Mar 2015 14:09:19 GMT U.S. consumer watchdog unveils plans to regulate payday loans iehi-feed-56386 Thu, 26 Mar 2015 00:30:17 GMT U.S. stocks sell off, dollar slips on growth worries iehi-feed-56385 Wed, 25 Mar 2015 18:08:46 GMT Indian Gold Import Exploding In March; Government Looks Towards New Suppression Schemes - Koos Jansen iehi-feed-56384 Wed, 25 Mar 2015 18:02:37 GMT More capital controls as France declares war... on cash iehi-feed-56383 Wed, 25 Mar 2015 17:46:02 GMT European Central Bank edges closer to pulling the trigger on Greece According to reports, the ECB will move to officially ban Greek banks from increasing their holdings of the country's short-term sovereign debt, in a bid to break a potentially toxic link between lenders and the stricken sovereign.

The restriction will place a further squeeze on the cash-strapped Greek government, which could run out of money to pay wages and pensions by the end of next month.

Speaking to the European Parliament on Monday, Mario Draghi denied the ECB was acting unfairly towards the Leftist government: "We haven't created any rule for Greece, rules were in place and they've been applied," said Mr Draghi.

iehi-feed-56380 Wed, 25 Mar 2015 17:14:46 GMT Moscow seeks removal of U.S. missiles from Europe iehi-feed-56379 Wed, 25 Mar 2015 17:12:01 GMT THEY ALL CAN SEE IT! (An epic "Triple Play" Asset Bubble) iehi-feed-56378 Wed, 25 Mar 2015 17:09:41 GMT Spanish anti-austerity party Podemos wins 15 seats in Andalusia iehi-feed-56377 Wed, 25 Mar 2015 17:07:14 GMT CNBC: 401(k) Plans Are Failing Retirees iehi-feed-56375 Wed, 25 Mar 2015 15:19:57 GMT How Cold Was It This Winter? So Cold That New Home Sales Hit A 7 Year Record! | The Wall Street Examiner iehi-feed-56374 Wed, 25 Mar 2015 02:24:51 GMT Westward ho on China's Eurasia BRIC road | Pepe Escobar iehi-feed-56373 Wed, 25 Mar 2015 02:22:14 GMT Bank analysts predicting gold price and demand growth, but still undershooting iehi-feed-56372 Wed, 25 Mar 2015 02:20:50 GMT China gold demand ups when price dips iehi-feed-56371 Tue, 24 Mar 2015 19:22:35 GMT The world's next credit crunch could make 2008 look like a hiccup Barclays has predicted that if the yields on 10-year Treasury bonds reverted back to their historical average it would wipe nearly a fifth off the tangible book value of European banks.

Yes, a fifth. This is what is meant by interest rate risk. It's big and it's real and the banks know all about it. Their answer is to hedge the risk with interest rate derivatives. It's one of the reasons why there are so many of these contracts in existence. So that's all OK then.

Just one question though: who have they bought those derivatives from? Why, other banks of course. This creates what is known as counterparty risk... This creates a potential Catch-22 situation: the derivatives work as long as they're not needed; calling them into action renders them useless.