Implode-Explode Heavy Industries news feed http://implode-explode.com/ Tracking the many faces of the global credit implosion. en-us iehi-feed-63884 Thu, 19 Apr 2018 15:09:09 GMT Manhattan Residential Property Listing Prices Plummet By 10.9% http://implode-explode.com/viewnews/2018-04-19_ManhattanResidentialPropertyListingPricesPlummetBy109.html iehi-feed-63882 Thu, 19 Apr 2018 00:09:45 GMT World debt hits record $164 trillion as crisis hangover lingers http://implode-explode.com/viewnews/2018-04-18_Worlddebthitsrecord164trillionascrisishangoverlingers.html The world's debt load has ballooned to a record $164 trillion, a trend that could make it harder for countries to respond to the next recession and pay off debts if financing conditions tighten, the International Monetary Fund said.

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The global debt burden clouded the IMF's otherwise upbeat outlook of the world economy, which is in its strongest upswing since 2011. The fund on Tuesday forecast expansion of 3.9 per cent in 2018 and 2019, while saying in subsequent years the global economy could be impacted by tighter monetary policy and the fading effects of U.S. fiscal stimulus.

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The IMF figures bare the scale of the debt hangover from which the world is still recovering from a decade after the financial crisis pushed the global banking system to the brink, and tipped the world economy into recession. Governments increased spending to boost growth, while central banks resorted to unconventional methods to ease financing conditions, such as buying bonds.

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iehi-feed-63881 Wed, 18 Apr 2018 23:44:43 GMT UK government loses key Brexit Vote: Stuck with the Customs Union http://implode-explode.com/viewnews/2018-04-18_UKgovernmentloseskeyBrexitVoteStuckwiththeCustomsUnion.html iehi-feed-63880 Wed, 18 Apr 2018 19:30:17 GMT U.S. Debt Load Seen Worse Than Italy's by 2023, IMF Predicts http://implode-explode.com/viewnews/2018-04-18_USDebtLoadSeenWorseThanItalysby2023IMFPredicts.html iehi-feed-63879 Wed, 18 Apr 2018 19:27:26 GMT Bon-Ton Stores closing: See list of Boston Store, Carson's, Younkers http://implode-explode.com/viewnews/2018-04-18_BonTonStoresclosingSeelistofBostonStoreCarsonsYounkers.html Bon-Ton Stores, the corporate parent of several department store chains, has agreed to sell its assets to a group of debtholders and liquidators, likely setting the stage for going-out-of-business sales to start imminently.

The York, Pa.-based company's brands include Bon-Ton, Bergner's, Boston Store, Carson's, Elder-Beerman, Herberger's and Younkers.

Although it's not official yet, chances are high that all the locations will close. It's still possible the brands could live on in some fashion, such as online-only outlets under new ownership.

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Bon-Ton's approximately 250 locations are scattered throughout 23 states in the Midwest, Northeast and upper Great Plains.

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iehi-feed-63878 Wed, 18 Apr 2018 19:26:30 GMT US crude tops $68 for the first time in more than three years http://implode-explode.com/viewnews/2018-04-18_UScrudetops68forthefirsttimeinmorethanthreeyears.html iehi-feed-63877 Wed, 18 Apr 2018 16:11:54 GMT Apparent Quicken Loans Fraud Costs Single Dad With 4 Kids His Home http://implode-explode.com/viewnews/2018-04-18_ApparentQuickenLoansFraudCostsSingleDadWith4KidsHisHome.html iehi-feed-63874 Mon, 16 Apr 2018 18:54:09 GMT Former Soup Nazi CFO Sentenced To 9 Months In Prison http://implode-explode.com/viewnews/2018-04-16_FormerSoupNaziCFOSentencedTo9MonthsInPrison.html iehi-feed-63871 Mon, 16 Apr 2018 15:14:50 GMT Japan PM Abe's woes deepen as ratings drop amidst scandals, Koizumi predicts resignation http://implode-explode.com/viewnews/2018-04-16_JapanPMAbeswoesdeepenasratingsdropamidstscandalsKoizumipredictsr.html Japanese Prime Minister Shinzo Abe's political crisis deepened on Monday after polls showed that suspected cronyism scandals have pushed his support to record lows and a popular predecessor said Abe would probably resign in June....

Abe has denied that he had intervened to ensure preferential treatment for the educational institution Kake Gakuen, run by his friend Kotaro Kake, to set up a veterinary school.

He has also repeatedly denied that he or his wife intervened in a heavily discounted sale of state-owned land to another school operator, Moritomo Gakuen, which has ties to his wife.

The Moritomo affair has ensnared the finance ministry, which has admitted officials doctored documents related to the land-sale.

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iehi-feed-63869 Sun, 15 Apr 2018 23:16:23 GMT Premier Miami Pimp Dennis Zarudny Pleads Guilty To Tax Fraud http://implode-explode.com/viewnews/2018-04-15_PremierMiamiPimpDennisZarudnyPleadsGuiltyToTaxFraud.html iehi-feed-63868 Sun, 15 Apr 2018 17:34:06 GMT Lee Adler - This Uncanny Tool Has Been Right Since 1970;Here's What It's Telling You to Sell Now http://implode-explode.com/viewnews/2018-04-15_LeeAdlerThisUncannyToolHasBeenRightSince1970HeresWhatItsTellingY.html iehi-feed-63867 Sun, 15 Apr 2018 14:09:12 GMT Doctor Dad Of Actress Chloe Moretz Financially Ruined His Family http://implode-explode.com/viewnews/2018-04-15_DoctorDadOfActressChloeMoretzFinanciallyRuinedHisFamily.html iehi-feed-63865 Sun, 15 Apr 2018 13:37:27 GMT "Elon Knew": New Lawsuit Alleges Musk Knowingly Lied About Model 3 Production http://implode-explode.com/viewnews/2018-04-15_ElonKnewNewLawsuitAllegesMuskKnowinglyLiedAboutModel3Production.html ...after claiming in May 2017 that the company was "on track" to meet its mass production goal, it's alleged the company hadn't even finished building its production lines, clearly meaning it wasn't "on track". The lawsuit alleges that Musk knew the line was "way behind"

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The suit alleges that the company's former CFO, Jason Wheeler - who is one of more than 50 key executives and VPs to have left the company over the last half decade or so - told Elon Musk personally that they wouldn't be able to mass produce by the end of 2017. The entire lawsuit is available at this link and some of the most interesting content was first shared by critics of the company on Twitter.

The drumbeat of accountability for Elon Musk continues to pound louder and louder as each day progresses, with some analysts calling for the SEC to investigate him if the company doesn't meet its stated cash flow positive and "no capital raise" guidance for the back end of 2018.

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iehi-feed-63863 Sun, 15 Apr 2018 13:22:27 GMT Subprime mortgages morph into 'non-prime' loans--and demand soars http://implode-explode.com/viewnews/2018-04-15_Subprimemortgagesmorphintononprimeloansanddemandsoars.html Carrington is not alone in the space. Angel Oak began offering and securitizing nonprime mortgages two years ago and has done six nonprime securitizations so far. It recently finalized its biggest securitization yet -- $329 million, comprising 905 mortgages with an average amount of about $363,000. Just more than 80 percent of the loans are nonprime.

Investors in Angel Oak's nonprime securitizations are, "a who's who of Wall Street," according to company representatives, citing hedge funds and insurance companies. Angel Oak's securitizations now total $1.3 billion in mortgage debt.

Angel Oak, along with Caliber Home Loans, have been the main players in the space, securitizing relatively few loans. That is clearly about to change in a big way, as demand is rising.

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Big banks are also getting in the game, both investing in the securities and funding the lenders, according to Sharga.

"It's large financial institutions. A lot of people with private capital sitting on the sidelines, who are very interested in this market and believe that as long as the risks are managed well, and companies like ours are particularly good at managing credit risk, that it's a good investment opportunity," he said.

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Last summer, Fannie Mae announced it would relax its lending standards for prime loans, allowing borrowers with higher debt and lower credit scores to obtain loans without additional risk overlays, such as large down payments and a year's worth of cash reserves.

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As a result, demand from buyers with higher debt exceeded all expectations. The share of high DTI loans jumped from 6 percent in January 2017 to nearly 20 percent by the end of February 2018, according to a study by the Urban Institute.

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The mortgage industry expectation was that Fannie Mae would mitigate the additional risk with other factors, like a higher necessary credit score, but that was not added. The mortgage insurers balked, since they would be on the hook for the risk, so last month Fannie Mae "recalibrated" its risk assessment criteria again.

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iehi-feed-63862 Sat, 14 Apr 2018 22:40:07 GMT A Sidelined Wall Street Legend Bets on Bitcoin (NOVOGRATZ) http://implode-explode.com/viewnews/2018-04-14_ASidelinedWallStreetLegendBetsonBitcoinNOVOGRATZ.html Novogratz has certainly been making the most of the speculative bubble to rebuild his fortune, but he claims to be invested in the utopian aspects of blockchain as well. He doesn't think that cryptocurrencies will replace the dollar or the yen, but he believes that they will be a boon to countries in the developing world, where people don't have trust in their fiat currencies, and that blockchain can revolutionize the way information is logged and shared and, in our age of data breaches, protected. "I'm good at selling the dream," he said. "I can get onstage and get people to start saying ‘Hallelujah! Hallelujah!' "

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By the fall [of 2017], Novogratz was a billionaire once more. The price of a single bitcoin had been close to three thousand dollars during the summer; now it was clawing at five thousand. I visited him one Wednesday in October, at his office, walking in past a large statue of Evel Knievel in the lobby--the base reads "Bones heal, pain is temporary and chicks dig scars." Plush sofas were occupied by representatives of the Brown University endowment, a member of the board of Tesla, and the heads of a major publicity firm, among others.

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Two weeks earlier, Novogratz had announced his decision to rejoin the hedge-fund world and launch a cryptocurrency fund with a hundred and fifty million dollars of the money he had personally made on crypto and three hundred and fifty million from outside investors.

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After bitcoin and other currencies soared over the summer and fall, Novogratz presented this stage of crypto as a "speculative mania phase" that would crash like the dot-com bust but then reëmerge with more mature players. Out with AltaVista, in with Google. In Novogratz's estimation, individual cryptocurrencies would fail--although he is bullish on bitcoin and ether retaining their value in the long term. "I don't know if the speculative phase ends in March, ends in a year from now, eighteen months from now," Novogratz told me, "but it will end." He suggested that it will end when "too many people have bought in." (At a dinner during the fall of 2017, one of my favorite Oberlin professors, a Marxist, told me that he had just bought some ether.)

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Novogratz's cryptocurrency hedge fund never launched. In December, after the price of a single bitcoin rocketed to more than nineteen thousand dollars, Novogratz told me that "it would be a different proposition raising a crypto hedge fund today than it was three months ago." He said he was not comfortable running other people's money when the currency was at its peak, and predicted that bitcoin would consolidate at between eight and sixteen thousand dollars. "I'd rather look stupid than be stupid," he added. Right after he told me of his plans to shelve his hedge fund, bitcoin experienced one of its habitual micro-crashes, falling to under fourteen thousand dollars a coin.

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Novogratz had described another idea to me, one several magnitudes more audacious--certainly more institutional, and potentially more durable--than a mere half-a-billion-dollar hedge fund. He wanted to launch a publicly traded merchant bank solely for cryptocurrencies, which, with characteristic immodesty, he described as "the Goldman Sachs of crypto," and was calling Galaxy Digital. "I'm either going to look like a genius or an idiot," he said.

Novogratz announced the bank's launch in early January, the same week that Dimon, of JPMorgan Chase, who is one of the most vocal critics of cryptocurrency, publicly regretted calling bitcoin a fraud ("The blockchain is real," he told Fox Business). Shortly afterward, I sat down with Novogratz in his Tribeca apartment's far-flung kitchen to discuss Galaxy Digital.

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The new entity's launch was not so much an I.P.O. as a complex R.T.O., or reverse takeover, involving a Canadian shell company called Bradmer Pharmaceuticals. Galaxy Digital would still be based in New York, but because Canada offered easier and faster access to the public market Novogratz had decided to launch on the Canadian TSX venture exchange, with plans to eventually transfer to Canada's main exchange. He would contribute around three hundred and fifty million dollars, while raising another two hundred and fifty million dollars.

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iehi-feed-63861 Fri, 13 Apr 2018 17:29:04 GMT Pervert Landlords Beware! HUD Is Coming For You! http://implode-explode.com/viewnews/2018-04-13_PervertLandlordsBewareHUDIsComingForYou.html iehi-feed-63860 Fri, 13 Apr 2018 15:15:14 GMT Big Banks Start Off Earnings Season With A Bang, Surpassing Expectations http://implode-explode.com/viewnews/2018-04-13_BigBanksStartOffEarningsSeasonWithABangSurpassingExpectations.html Beneath the headline numbers there are some early takeaways: First, JP Morgan really had an excellent quarter overall, but keep in mind that the company's revenue did benefit from an accounting rule. Also, currency and commodity trading did great but the fixed income desk didn't do as well as some people thought it would. It's important to hear what Mr. Dimon has to say later today... These are mostly minor quibbles, and pre-market trading showed gains for all three of the banks.

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Bank earnings could possibly provide some stability for the market after months of jumpiness. Perhaps more important than the numbers is what bank CEOs say on their earnings calls. If they see smooth sailing ahead and aren't overly worried about tariffs, that could potentially give the market a tailwind.

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iehi-feed-63859 Fri, 13 Apr 2018 14:54:26 GMT Wells Fargo faces $1 billion fine to settle loan abuses http://implode-explode.com/viewnews/2018-04-13_WellsFargofaces1billionfinetosettleloanabuses.html Wells Fargo & Co (has been offered a penalty of $1 billion by regulators to resolve outstanding investigations related to auto insurance and mortgage lending abuses, the third-largest U.S. bank by assets said on Friday.

The bank said it may have to revise its quarterly results to reflect the final settlement.'

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Wells Fargo is reeling from heavy costs and penalties related to the sales practices scandal, which came to light in 2016 and led to the ouster of ex-CEO John Stumpf and other senior management. Executives were grilled in several appearances before the U.S. Congress.

The U.S. Federal Reserve has also imposed restrictions on the bank's growth, forbidding it to expand its balance sheet beyond 2017 levels until it makes internal changes that addressed its board and risk management.

The restrictions on balance sheet growth will cut its annual profit by $300 million to $400 million this year, Wells Fargo said.

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iehi-feed-63858 Thu, 12 Apr 2018 21:13:26 GMT Trump directs top economic advisers to look at re-entering TPP http://implode-explode.com/viewnews/2018-04-12_TrumpdirectstopeconomicadviserstolookatreenteringTPP.html President Trump has directed his top economic and trade advisers to look into re-entering the Trans-Pacific Partnership, nearly a year after he withdrew the U.S. from the multilateral trade agreement in of his first acts as president.

Trump told a group of Republican senators during a meeting Thursday that he had assigned National Economic Council Chairman Larry Kudlow and U.S. Trade Representative Robert Lighthizer "the task of taking another look at TPP," Sen. Pat Roberts, chairman of the Senate Committee on Agriculture, told reporters at the White House.

"We're very excited about seeing those trade opportunities reaffirmed," said Sen. Deb Fischer, R-Neb., who was also present for the meeting. Fischer said Trump also mentioned "the importance" of the North Atlantic Free Trade Agreement, which his administration is currently renegotiating with Canada and Mexico.

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iehi-feed-63857 Thu, 12 Apr 2018 21:06:46 GMT Federal judges indicate they could remove Mulvaney as acting CFPB chief http://implode-explode.com/viewnews/2018-04-12_FederaljudgesindicatetheycouldremoveMulvaneyasactingCFPBchief.html ... two of the three judges from the U.S. Court of Appeals for the D.C. Circuit indicated they had a problem with the person Trump selected to take the position, Mick Mulvaney, because he also heads the White House Office of Management and Budget. The 2010 law that created the bureau as an independent federal agency specifically said OMB should not have oversight or jurisdiction over it.

That raised the possibility that the legal battle over the future of the watchdog agency could end with Mulvaney's removal as acting director -- a move that would be cheered by Democrats and consumer advocates who have complained about his public opposition to the bureau's existence.

But Mulvaney would not be supplanted as they want by Deputy Director Leandra English, who brought the suit to remove him after his appointment by Trump last fall. Under such a ruling, English might be elevated to acting director for at best a day or so until Trump simply named another person to serve as acting director, pending appointment of a permanent director needing Senate confirmation. Or the administration might appeal such a ruling to the full appeals court.''

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