Implode-Explode Heavy Industries news feed http://implode-explode.com/ Tracking the many faces of the global credit implosion. en-us iehi-feed-57138 Sun, 05 Jul 2015 17:47:01 GMT China's Market Rout Is a Double Threat http://implode-explode.com/viewnews/2015-07-05_ChinasMarketRoutIsaDoubleThreat.html iehi-feed-57137 Sun, 05 Jul 2015 17:31:36 GMT Quartet of crises threatens Europe's core http://implode-explode.com/viewnews/2015-07-05_QuartetofcrisesthreatensEuropescore.html iehi-feed-57136 Sun, 05 Jul 2015 15:40:10 GMT Greek Default Would Nuke Entire European Sovereign Market http://implode-explode.com/viewnews/2015-07-05_GreekDefaultWouldNukeEntireEuropeanSovereignMarket.html [The ESM] loaned Greece €145 billion. If Greece defaults, the ESM, a Luxembourg corporation owned by the 19 European Monetary Union governments, will have to declare loans to Greece as nonperforming within 120 days. Accounting rules and regulators insist that financial institutions write off nonperforming assets in full, charging losses against reserves and hitting capital...

How do you get a triple-A rating on a bond backed entirely by loans to junk-rated sovereign borrowers? Well, the governments guarantee the bonds, and because they are unfunded off-balance-sheet liabilities, they aren't counted in their debt burdens--unless borrowers default... The strength of these guarantees is untested. Would the German Bundestag vote tomorrow to raise €35 billion by selling Bunds, the government debt, to cover Germany's share of ESM losses on Greek bonds? That seems improbable...

A hard default would produce other losses to be covered. The ECB would have to be recapitalized after it writes off the €89 billion it has loaned the Greek banks to keep them liquid. The ECB would need to call for a capital contribution from its shareholders--the governments.

And don't forget that Greek banks owe the Target2 bank clearinghouse, a key link in the interbank payment system, an estimated €100 billion. The governments are on the hook to make good that shortfall, too. The cash required to cover these contingencies would have to be funded with new bond sales.

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iehi-feed-57135 Sun, 05 Jul 2015 14:41:54 GMT Whistleblower Andrew Maguire Says Gold Short-Selling Racket Running Out of Physical http://implode-explode.com/viewnews/2015-07-05_WhistleblowerAndrewMaguireSaysGoldShortSellingRacketRunningOutof.html iehi-feed-57134 Sun, 05 Jul 2015 14:40:22 GMT China Official Lets Slip That Gold Reserves Almost 10,000 tonnes http://implode-explode.com/viewnews/2015-07-05_ChinaOfficialLetsSlipThatGoldReservesAlmost10000tonnes.html iehi-feed-57133 Sun, 05 Jul 2015 13:55:08 GMT China Creates Its Own Plunge Protection Team http://implode-explode.com/viewnews/2015-07-05_ChinaCreatesItsOwnPlungeProtectionTeam.html iehi-feed-57132 Sun, 05 Jul 2015 13:53:01 GMT Greeks Head To Polls With "No" Camp In Lead http://implode-explode.com/viewnews/2015-07-05_GreeksHeadToPollsWithNoCampInLead.html iehi-feed-57131 Sun, 05 Jul 2015 01:55:35 GMT China spends billions to prevent stock market crash http://implode-explode.com/viewnews/2015-07-04_Chinaspendsbillionstopreventstockmarketcrash.html iehi-feed-57129 Sat, 04 Jul 2015 14:47:38 GMT Stop lying to the Greeks -- life without the euro is great http://implode-explode.com/viewnews/2015-07-04_StoplyingtotheGreekslifewithouttheeuroisgreat.html iehi-feed-57128 Sat, 04 Jul 2015 14:40:05 GMT Good On You, Greece----But Don't Waver Now (Part 2) | Stockman http://implode-explode.com/viewnews/2015-07-04_GoodOnYouGreeceButDontWaverNowPart2Stockman.html iehi-feed-57127 Sat, 04 Jul 2015 14:36:12 GMT Greece's Yanis Varoufakis prepares for economic siege as companies issue private currencies http://implode-explode.com/viewnews/2015-07-04_GreecesYanisVaroufakispreparesforeconomicsiegeascompaniesissuepr.html iehi-feed-57126 Sat, 04 Jul 2015 00:21:45 GMT Major Retail Gold Bullion Dealer Can't Get Gold; Suspends Operations (AND OTHER TIMELY PM'S MARKET PUZZLES...) http://implode-explode.com/viewnews/2015-07-03_MajorRetailGoldBullionDealerCantGetGoldSuspendsOperationsANDOTHE.html iehi-feed-57125 Sat, 04 Jul 2015 00:17:03 GMT China Tells Investors: Go Ahead, Bet the House on Stocks http://implode-explode.com/viewnews/2015-07-03_ChinaTellsInvestorsGoAheadBettheHouseonStocks.html iehi-feed-57124 Sat, 04 Jul 2015 00:16:13 GMT Panic sets in as Shanghai Composite drops 30pc, $3.7 trillion wiped of China share market despite crackdown http://implode-explode.com/viewnews/2015-07-03_PanicsetsinasShanghaiCompositedrops30pc37trillionwipedofChinasha.html iehi-feed-57123 Fri, 03 Jul 2015 22:12:53 GMT Putin Gobsmacks Uncle Sam ... Again - Mike Whitney http://implode-explode.com/viewnews/2015-07-03_PutinGobsmacksUncleSamAgainMikeWhitney.html iehi-feed-57122 Fri, 03 Jul 2015 19:23:54 GMT World stocks drift lower ahead of Greek vote; Chinese stocks plunge as support measures fail http://implode-explode.com/viewnews/2015-07-03_WorldstocksdriftloweraheadofGreekvoteChinesestocksplungeassuppor.html iehi-feed-57120 Fri, 03 Jul 2015 14:46:51 GMT Did The IMF Just Open Pandora's Box? Admits Greek Debt "Unsustainable" http://implode-explode.com/viewnews/2015-07-03_DidTheIMFJustOpenPandorasBoxAdmitsGreekDebtUnsustainable.html iehi-feed-57119 Fri, 03 Jul 2015 14:44:07 GMT China Could Come to Greece's Aid http://implode-explode.com/viewnews/2015-07-03_ChinaCouldCometoGreecesAid.html iehi-feed-57118 Fri, 03 Jul 2015 14:41:42 GMT The Smart Money is "Selling Everything That's Not Nailed Down" http://implode-explode.com/viewnews/2015-07-03_TheSmartMoneyisSellingEverythingThatsNotNailedDown.html iehi-feed-57117 Fri, 03 Jul 2015 04:51:52 GMT Greek banks only have 500 million euros left http://implode-explode.com/viewnews/2015-07-03_Greekbanksonlyhave500millioneurosleft.html