Implode-Explode Heavy Industries news feed http://implode-explode.com/ Tracking the many faces of the global credit implosion. en-us iehi-feed-61955 Sun, 26 Mar 2017 15:49:20 GMT Bridgewater Releases Report on Populism http://implode-explode.com/viewnews/2017-03-26_BridgewaterReleasesReportonPopulism.html iehi-feed-61954 Sun, 26 Mar 2017 15:38:05 GMT The Swamp Drains Trump - KUNSTLER http://implode-explode.com/viewnews/2017-03-26_TheSwampDrainsTrumpKUNSTLER.html iehi-feed-61953 Sun, 26 Mar 2017 15:36:52 GMT Trump's path forward only gets tougher after health-care fiasco http://implode-explode.com/viewnews/2017-03-26_Trumpspathforwardonlygetstougherafterhealthcarefiasco.html ... others in the party acknowledged the political damage sustained by pulling the House bill, particularly for a president who had touted his own dealmaking prowess... While Republicans broadly share the goal of Trump's promised "big tax cuts," the president will have to bridge many of the same divides within his own party that sank the attempted overhaul of the Affordable Care Act. And without savings anticipated from the health-care bill, paying for the "massive" cuts Trump has promised for corporations and middle-class families becomes considerably more complicated.

Meanwhile, other marquee agenda items, including a $1 trillion investment in roads and other infrastructure and proposed crackdowns on both legal and illegal immigration, will require the support of Democrats, many of whom have been alienated by the highly partisan start to Trump's tenure.''

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iehi-feed-61950 Sat, 25 Mar 2017 15:21:23 GMT Greece to Break Off Face-to-Face Talks as Issues Persist http://implode-explode.com/viewnews/2017-03-25_GreecetoBreakOffFacetoFaceTalksasIssuesPersist.html Greece and the institutions managing its bailout review will break off negotiations in Brussels without having cleared a path to conclude the deliberations that would release needed rescue funds.

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Greece is edging closer to a repeat of the 2015 drama that pushed Europe's most indebted state to the edge of economic collapse, as the government in Athens and its creditors disagree over reforms to the pension system and the labor and energy markets. Greece needs to complete the review in order to get the next portion of its aid payment before it has more than 7 billion euros ($7.6 billion) of bonds come due in July.

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iehi-feed-61948 Sat, 25 Mar 2017 15:16:50 GMT GOP health bill goes down, but Trump can still unleash HHS to bedevil Obamacare http://implode-explode.com/viewnews/2017-03-25_GOPhealthbillgoesdownbutTrumpcanstillunleashHHStobedevilObamacar.html "The biggest thing that needs to be done is figuring out some way to attract young, healthy people" to exchange plans, Perlman said. But HHS, under Price's leadership, seems unlikely to try to improve the law. And "purposefully sabotaging the exchanges and the ACA probably isn't difficult," said Perlman. And for that matter, HHS is "probably the only game in town right now" that can do it.

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Health insurers "need a stable market, stable rules and a broader pool -- none of which has been fixed yet, nor does it seem likely it will be in time," Sheryl Skolnick, Mizuho Securities' director of research and senior health-care analyst, told MarketWatch in early February.

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Then there are the ACA subsidies, which make exchange plans affordable to middle and low-income individuals. If HHS declined to appropriate them, it would "immediately destroy the exchanges," Perlman said. It's also possible, though unlikely, that tax reform -- Republicans' next project -- could reverse the subsidies, he said.

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iehi-feed-61947 Sat, 25 Mar 2017 15:10:42 GMT Death of the American Dream? Life In Post-Crisis America http://implode-explode.com/viewnews/2017-03-25_DeathoftheAmericanDreamLifeInPostCrisisAmerica.html iehi-feed-61945 Fri, 24 Mar 2017 03:00:52 GMT Sovereign Debt Crises Simmer At Opposite Ends of the Global Pecking Order: The U.S., and Greece http://implode-explode.com/viewnews/2017-03-23_SovereignDebtCrisesSimmerAtOppositeEndsoftheGlobalPeckingOrderTh.html On one side of the Atlantic, we have the United States of America, which triggered yet another debt ceiling disaster last Thursday when the US government's maximum allowable debt reset to just over $20 trillion. Of course, the US national debt is pretty much already at $20 trillion... It's a repeat of what happened in 2015. And 2013. And 2011. Pretty amazing to consider that the "richest" country in the world has to plunder retirement funds in order to keep the lights on.

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Greece has had nine different governments since 2009. At least thirteen austerity measures. Multiple bailouts. Severe capital controls. And a full-out debt restructuring in which creditors accepted a 50% loss. Yet despite all these measures GREECE IS STILL IN A DEBT CRISIS.

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iehi-feed-61944 Thu, 23 Mar 2017 21:17:34 GMT Not enough votes: House delays health care bill to Friday http://implode-explode.com/viewnews/2017-03-23_NotenoughvotesHousedelayshealthcarebilltoFriday.html iehi-feed-61943 Thu, 23 Mar 2017 21:09:28 GMT Lavish EU 60th Celebration Will Skirt Issues in Stumbling Italy, the Host Country http://implode-explode.com/viewnews/2017-03-23_LavishEU60thCelebrationWillSkirtIssuesinStumblingItalytheHostCou.html "Italy was until very recently at the forefront of the European integration process," Luigi Zingales, professor of finance at University of Chicago Booth School of Business, said in an interview. "Today it's undoubtedly Europe's weakest link."

The economy grew just 0.9 percent last year, below the euro area's 1.7 percent, and unemployment is at 11.9 percent. A recent EU poll put Italy as the monetary union's second-most euro-skeptic state after Cyprus with only 41 percent saying the single currency is "a good thing." The average in the 19-member euro area is 56 percent.

That widespread disenchantment may be felt at elections due in about one year. A poll published on Tuesday by Corriere della Sera put support for the Five Star Movement, which calls for a referendum to ditch the euro, at a record 32.3 percent, well ahead of the ruling Democratic Party. Summit host Prime Minister Paolo Gentiloni has only been in power since December, when Matteo Renzi resigned after losing a constitutional reform referendum.

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iehi-feed-61938 Thu, 23 Mar 2017 16:52:24 GMT Apparent Hacked Texts From Manafort's Daughters Refer to Ukraine "Blood Money" http://implode-explode.com/viewnews/2017-03-23_ApparentHackedTextsFromManafortsDaughtersRefertoUkraineBloodMone.html ``In a series of texts reviewed by Business Insider that appear to have been sent by Andrea to her sister, Jessica, in March 2015, Andrea said their father had "no moral or legal compass." "Don't fool yourself," Andrea wrote to her sister, according to the texts. "That money we have is blood money."

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In a later exchange with a man who appeared to be Andrea's cousin -- and one of her father's former employees -- Collin Bond, Andrea appears to have said her mother and father couldn't go through a "public divorce" because Manafort had "too many skeletons" and "his work and payment in Ukraine is legally questionable."

This is certainly not good for Paulie (and by somewhat-attenuated connection, Trump). Our suspicion around here is that the bribes and related corruption allegations are in fact true (it's certainly easy to deny one didn't ever receive nearly $1M in bribe money if it was all in cash) -- and this is just some of more evidence that keeps surfacing in recent weeks supporting that case.

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iehi-feed-61937 Thu, 23 Mar 2017 16:31:33 GMT Trump Faces Bitter Defeat [Today]- The Wall Street Examiner http://implode-explode.com/viewnews/2017-03-23_TrumpFacesBitterDefeatTodayTheWallStreetExaminer.html iehi-feed-61935 Thu, 23 Mar 2017 00:08:39 GMT Matt Taibbi: Trump the Destroyer http://implode-explode.com/viewnews/2017-03-22_MattTaibbiTrumptheDestroyer.html Just a month or so into Trump's administration, one of the central promises of his campaign -- the killing off of the Affordable Care Act -- is in trouble. Trump's inability to hold coalitions together, or really do much of anything beyond generate TV ratings, is already showing. But just as it was last year when the punditocracy told him he'd made himself unelectable, Trump's ace in the hole may be that he doesn't care. His history is that when the playing field doesn't work for him, he moves it. The Framers may have designed the government to withstand bouts of popular madness, but there are no checks and balances against the power of celebrity. A president who is both a tyrant and disinterested in governance would have blown their minds.

"At some point, he just stopped appointing people," says an incredulous Hauser, the capital watchdog, at the end of February. "He's only made 30 appointments. That means he's still got over 1,000 empty posts. Nearly 200 ambassador posts are in limbo. He named Neil Gorsuch to the Supreme Court, but not a single judge beyond that -- with over 100 empty federal seats to be filled. Nobody knows what the hell is going on."

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iehi-feed-61933 Wed, 22 Mar 2017 15:17:14 GMT Trump's Hard Sell on Health Care Hasn't Worked http://implode-explode.com/viewnews/2017-03-22_TrumpsHardSellonHealthCareHasntWorked.html iehi-feed-61931 Wed, 22 Mar 2017 14:42:18 GMT US "Too Big To Fail" Banks Top $1 Trillion - What Happens Next? http://implode-explode.com/viewnews/2017-03-22_USTooBigToFailBanksTop1TrillionWhatHappensNext.html iehi-feed-61930 Wed, 22 Mar 2017 14:40:25 GMT Trump Sought North Korea-Style Military Vehicle Parade for Inauguration http://implode-explode.com/viewnews/2017-03-22_TrumpSoughtNorthKoreaStyleMilitaryVehicleParadeforInauguration.html iehi-feed-61929 Wed, 22 Mar 2017 00:26:11 GMT How Long Can Stocks' P/E-Multiple Expansion Outlive Declining Earnings and Companies' Financial Engineering? http://implode-explode.com/viewnews/2017-03-21_HowLongCanStocksPEMultipleExpansionOutliveDecliningEarningsandCo.html ... stocks have soared despite these miserable growth fundamentals. So what gives in this no-earnings-growth environment? Turns out the only thing that has soared is the price-earnings multiple. Over the three-plus years, it expanded by 47% from a P/E ratio of 18.15 on January 1, 2014, to P/E ratio of 26.64 today

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This combination of flat earnings and soaring stock prices, and thus expanding P/E ratios, is not uncommon. It comes in cycles: periods of multiple expansion are followed by periods of multiple compression. The current cycle of year-over-year multiple expansion has lasted for 57 months, the longest on record. The prior three record cycles -- which ended in 1987, 2000, and 2009 -- turned into periods of multiple compression associated with blistering crashes.

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iehi-feed-61928 Tue, 21 Mar 2017 15:31:34 GMT H-1B Visa Reform Actually Needed... But Trump Looks Set To Punt It http://implode-explode.com/viewnews/2017-03-21_H1BVisaReformActuallyNeededButTrumpLooksSetToPuntIt.html As Bloomberg describes tonight, H-1B visa applications are due at the beginning of April, so if the Trump Administration fails to implement its fixes by then, it's at least a year before they'll have any effect. Moreover, the lack of apparent momentum on this front does not bode well for meaningful changes.

... the program has moved almost entirely away from its original goals. One aim was to import workers when employers couldn't find qualified Americans. The second was to cap the number of H-1B holders, since both the bill's drafters and industry lobbyists wanted companies to bring in "talent" via green cards and help them become citizens, rather than rent them.

The result instead has been the creation of a large industry of foreign workers who largely work abroad. Not only do they undercut US wages and eliminate entry-level jobs, meaning the US is no longer developing its own tech professionals, but the fact that much of the work is done overseas also results in reduced taxes to states and municipalities.

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In the U.S., outsourcers bring staffers into the country on work visas, train them in the tech departments of leading corporations and then rotate them back to India where pay and living costs are lower. Outsourcing companies now get far more visas than traditional technology companies, according to data collected by Howard University's Ron Hira through Freedom of Information Act requests.

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iehi-feed-61927 Tue, 21 Mar 2017 15:18:47 GMT Defeat in Victory (Netherlands) http://implode-explode.com/viewnews/2017-03-21_DefeatinVictoryNetherlands.html iehi-feed-61924 Tue, 21 Mar 2017 14:56:55 GMT While Nobody's Watching, Paul Ryan Is Taking A Sledgehammer To Medicaid's Promise To Seniors http://implode-explode.com/viewnews/2017-03-21_WhileNobodysWatchingPaulRyanIsTakingASledgehammerToMedicaidsProm.html iehi-feed-61923 Tue, 21 Mar 2017 00:12:49 GMT Chinese Home Prices Heat Up Again, As Government Gets Cold Feet http://implode-explode.com/viewnews/2017-03-20_ChineseHomePricesHeatUpAgainAsGovernmentGetsColdFeet.html On month-over-month basis, house price growth diverged among different city tiers. Home price inflation decelerated in tier-1 cities, but home price inflation in tier 2/3/4 cities was steady or accelerated, which goes back to the core issue discussed last Friday: for all the talk about moderating home prices, China is first and foremost focused on preserving the wealth effect, which a sharp drop in home prices would crush.

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In short, China evaluted the risk of a potential housing bubble burst, and deciding that - at least for the time being - it is not worth the threat of losing a third of Chinese GDP in "wealth effect", got cold feet.

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