Implode-Explode Heavy Industries news feed http://implode-explode.com/ Tracking the many faces of the global credit implosion. en-us iehi-feed-60559 Tue, 30 Aug 2016 15:14:18 GMT European Banks are preparing for an ‘economic nuclear winter' http://implode-explode.com/viewnews/2016-08-30_EuropeanBanksarepreparingforaneconomicnuclearwinter.html European banks, in particular, have had a very tough six months as the shock and volatility around Brexit sent banking stocks south. Major European banks like Deutsche Bank and Credit Suisse saw their shares in free-fall after the referendum's results were announced. In the U.K., RBS was the worst-hit, with its shares plunging by more than 30 percent since June 24.

The current uncertainty over when the U.K. will start the process of quitting the EU has banks on tenterhooks. But a source told CNBC that banks are "preparing for an economic nuclear winter situation."

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"This could mean triggering Article 50, referendum in other European nations leading to a break-up of the euro or sterling hitting below $1.20 or lower. The banks are ready for anything now," the source said.''

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iehi-feed-60557 Tue, 30 Aug 2016 14:36:14 GMT Greek GDP contraction in H1 was worse than thought http://implode-explode.com/viewnews/2016-08-30_GreekGDPcontractioninH1wasworsethanthought.html iehi-feed-60556 Tue, 30 Aug 2016 14:33:49 GMT Fed's Fischer: Negative Rates Just Dandy http://implode-explode.com/viewnews/2016-08-30_FedsFischerNegativeRatesJustDandy.html Federal Reserve Vice Chairman Stanley Fischer said negative interest rates seem to be working in other countries, while reinforcing that they aren't on the table in the U.S.

While the Fed isn't "planning to do anything in that direction," the central banks using them "basically think they're quite successful," Fischer said Tuesday on Bloomberg Television with Tom Keene in Washington. He reiterated that Fed rate increases will be data dependent without giving a specific timeline.

As we recall, Japan's Kuroda was swearing that negative rates were "off the table" until the day before they were announced...

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iehi-feed-60555 Tue, 30 Aug 2016 14:08:36 GMT The 11 Bone-Chilling Things I Gleaned from Yellen's Chart http://implode-explode.com/viewnews/2016-08-30_The11BoneChillingThingsIGleanedfromYellensChart.html iehi-feed-60554 Tue, 30 Aug 2016 14:05:29 GMT Tim Cook Blasts $14.5B European Commission Tax Bill; Will Fight It & Predicts Overturn http://implode-explode.com/viewnews/2016-08-30_TimCookBlasts145BEuropeanCommissionTaxBillWillFightItPredictsOve.html "We now find ourselves in the unusual position of being ordered to retroactively pay additional taxes to a government that says we don't owe them any more than we've already paid."

Calling the move "unprecedented," Cook portrayed the Commission's decision as potentially dangerous, with "serious, wide-reaching implications." He argued that a company's profits should be taxed "in the country where value is created" -- a principle he said Ireland, the U.S. and Apple all agree on.

"In Apple's case, nearly all of our research and development takes place in California, so the vast majority of our profits are taxed in the United States," he wrote. "European companies doing business in the U.S. are taxed according to the same principle. But the Commission is now calling to retroactively change those rules."

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iehi-feed-60553 Tue, 30 Aug 2016 05:18:24 GMT "I've Never Seen Anything Like This Before" - The Housing Markets In The Hamptons, Aspen And Miami Are All Crashing http://implode-explode.com/viewnews/2016-08-30_IveNeverSeenAnythingLikeThisBeforeTheHousingMarketsInTheHamptons.html [Why the downturn?] Ask a dozen market watchers why, and you'll get a dozen answers. Uncertainty around the presidential election. Fear of Trump. Fear of Clinton. Growing trade imbalances with China. Brexit. Roller-coaster oil prices. Zika. Wobbling economies in South America. The list goes on.

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"People are worried about all kinds of stuff these days," says longtime Aspen broker Bob Ritchie. "I've never seen anything like this before."

The speed of the collapse has been stunning... This year ... "a slowdown in January turned into a free fall." Sales volume in Pitkin County is down 42%, according to data compiled by Land Title Guarantee Co.

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As noted here over the years, In the case of Miami, like in other most other coastal markets such as New York and Los Angeles, the housing boom was heavily boosted by foreign buyers, who used US luxury real estate as their new form of anonymous "offshore bank accounts" courtesy of the NAR's exemption from Anti-Money Laundering Provisions. However, after the recent drops in commodity prices and the spike in the USD, they have scaled back their purchases.

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iehi-feed-60552 Tue, 30 Aug 2016 05:14:34 GMT Kiyosaki On Negative-Rate World: "If you're investing for the long term, you're crazy" http://implode-explode.com/viewnews/2016-08-30_KiyosakiOnNegativeRateWorldIfyoureinvestingforthelongtermyourecr.html iehi-feed-60550 Mon, 29 Aug 2016 18:50:27 GMT Jack Lew Fails to Squelch European Commission Tax Ruling And "Multi Billions" EUR Fine Against Apple http://implode-explode.com/viewnews/2016-08-29_JackLewFailstoSquelchEuropeanCommissionTaxRulingAndMultiBillions.html iehi-feed-60548 Mon, 29 Aug 2016 15:05:07 GMT Was Brexit fear a giant hoax or is this the calm before the next storm? AEP http://implode-explode.com/viewnews/2016-08-29_WasBrexitfearagianthoaxoristhisthecalmbeforethenextstormAEP.html More worrying is what S&P also said: that debt coming due over the next 12 months is 755pc of Britain's external receipts and large sums have to be rolled over continuously. This is the highest for all 131 rated states, thanks to London's role as a global financial hub. We will not know whether there is any mismatch, either in currencies or maturities, until the repayment deadlines hit and the skeletons come out of the closet. The test lies ahead.

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Morgan Stanley says [Eurocrats] need to wake up. It warns that the eurozone will suffer almost as much damage as Britain in a 'high stress scenario', and so do others. Danske Bank says the UK and the eurozone will both crash into recession later this year.

If so - and that is not yet clear - it is hard to see how the eurozone could withstand such a shock, given the levels of unemployment and the debt-deflation dynamics of southern Europe, and given the intesity of political revolt in Italy and France.

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iehi-feed-60543 Mon, 29 Aug 2016 03:19:54 GMT Mishandled Brexit may send EU 'down the drain' - German vice chancellor http://implode-explode.com/viewnews/2016-08-28_MishandledBrexitmaysendEUdownthedrainGermanvicechancellor.html iehi-feed-60542 Sun, 28 Aug 2016 17:32:07 GMT German Economy Minister: "TTIP Talks Have Failed" http://implode-explode.com/viewnews/2016-08-28_GermanEconomyMinisterTTIPTalksHaveFailed.html He added that in 14 rounds of talks, the two sides haven't agreed on a single common item out of 27 chapters being discussed... But more than just disagreement on general principles, Gabriel singled out the US as the party making strong demands with no concessions: "We mustn't submit to the American proposals," said Gabriel, who is also the head of Germany's center-left Social Democratic Party.

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The European public has been unhappy with TTIP as the contents of the deal remain largely secret. However, recent leaks suggest that it will affect food safety laws, environmental legislation, banking regulations and open the EU for GM crops. Opponents of the deal have been staging protests in a number of European cities. The most recent one took place in Berlin last weekend, with activists calling for a nationwide demonstration on September 17.

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iehi-feed-60540 Sat, 27 Aug 2016 16:58:04 GMT Former Fed Governor Warsh Blasts Central Bank For "Manipulation"; Broken Policy http://implode-explode.com/viewnews/2016-08-27_FormerFedGovernorWarshBlastsCentralBankForManipulationBrokenPoli.html iehi-feed-60539 Sat, 27 Aug 2016 16:57:03 GMT Has the US Quietly Emptied the Denver Mint of Over 1,300 Tonnes of Gold? http://implode-explode.com/viewnews/2016-08-27_HastheUSQuietlyEmptiedtheDenverMintofOver1300TonnesofGold.html iehi-feed-60536 Fri, 26 Aug 2016 20:14:24 GMT Today's Federal Deficit Report Hints at Looming Financial Crisis in the U.S. http://implode-explode.com/viewnews/2016-08-26_TodaysFederalDeficitReportHintsatLoomingFinancialCrisisintheUS.html exiting what little "recovery" we had since the 2008 crash...]]> iehi-feed-60535 Fri, 26 Aug 2016 20:08:42 GMT U.S. Stocks Slip as Investors Ramp Bets for Rate Hike This Year http://implode-explode.com/viewnews/2016-08-26_USStocksSlipasInvestorsRampBetsforRateHikeThisYear.html U.S. stocks slipped in a volatile session, as remarks from Federal Reserve officials lifted optimism on the economy while also bolstering speculation interest rates could rise as soon as next month.

A speech by Fed Chair Janet Yellen sparked an early surge in equities amid a bullish economic assessment, which included a lack of clear guidance on when a rate boost may come. Equities then tumbled after Vice Chairman Stanley Fischer said Yellen's comments were consistent with a possible September increase, only to recover most of their losses in a final-hour rebound...

Expectations for a rate increase climbed after Fischer spoke, with traders pricing in a 42 percent probability of a move next month, from 32 percent after Yellen's remarks. Odds are now nearly 63 percent the central bank will act by December, up from 42 percent two weeks ago, based on fed fund futures data compiled by Bloomberg.

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iehi-feed-60534 Fri, 26 Aug 2016 20:03:49 GMT China Has Returned to Reform Mode; Next Up: State-Backed Dinosaurs http://implode-explode.com/viewnews/2016-08-26_ChinaHasReturnedtoReformModeNextUpStateBackedDinosaurs.html This week, plans have been unveiled to quicken the clean-up of excess capacity in state-backed companies, level the playing field for private and foreign investors with new access to previously off-limit sectors, and take the next step in a long-awaited fiscal shake up.

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Chinese leaders in 2013 charted an ambitious plan to add market forces in the economy, with reform measures aimed at doubling the size of the economy by 2020 from 2010's level. Progress has been made in some areas, such as the scrapping of the one-child policy and interest-rate liberalization, and slower in others, with bloated state-owned enterprises still having advantages over private players in many sectors.

Almost three years since the Third Plenum overhaul was laid out, the government has to quicken the pace of change or reforms won't be wrapped up in time, said Mizuho's Shen.

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iehi-feed-60533 Fri, 26 Aug 2016 18:13:38 GMT "QE-Infinity" Is Grinding the Global Economy to a Halt http://implode-explode.com/viewnews/2016-08-26_QEInfinityIsGrindingtheGlobalEconomytoaHalt.html Alberto Gallo, head of macro strategies and manager of the Algebris Macro Credit Fund, describes this paradox as "QE infinity," whereby low rates and seemingly endless rounds of bond-buying programs encourage cheap borrowing, and investment in financial markets -- but not in the real economy.'

"The problem is rising debt and monetary easing comes with many collateral effects. One is the distortion of asset prices, leading to asset bubbles," Gallo explained on his website.

"Asset price distortion also has a ripple effect on wealth distribution, increasing inequality by benefitting the already-wealthy who are more likely to hold financial assets. Over time, low rates and QE can also encourage misallocation of resources to leverage-sensitive sectors, including real estate and construction."

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iehi-feed-60532 Fri, 26 Aug 2016 15:04:35 GMT Broken Chessboard: Brzezinski Gives Up on Empire http://implode-explode.com/viewnews/2016-08-26_BrokenChessboardBrzezinskiGivesUponEmpire.html The main architect of Washington's plan to rule the world has abandoned the scheme and called for the forging of ties with Russia and China. While Zbigniew Brzezinski's article in The American Interest titled "Towards a Global Realignment" has largely been ignored by the media, it shows that powerful members of the policymaking establishment no longer believe that Washington will prevail in its quest to extent US hegemony across the Middle East and Asia. Brzezinski, who was the main proponent of this idea and who drew up the blueprint for imperial expansion in his 1997 book The Grand Chessboard: American Primacy and Its Geostrategic Imperatives, has done an about-face and called for a dramatic revising of the strategy.

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Naturally, in a short 1,500-word article, Brzezniski can't cover all the challenges (or threats) the US might face in the future. But it's clear that what he's most worried about is the strengthening of economic, political and military ties between Russia, China, Iran, Turkey and the other Central Asian states.

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iehi-feed-60527 Fri, 26 Aug 2016 14:41:06 GMT Japan July consumer prices post biggest annual fall in three yrs (TIME FOR A NIRP DOUBLE-DOWN?) http://implode-explode.com/viewnews/2016-08-26_JapanJulyconsumerpricespostbiggestannualfallinthreeyrsTIMEFORANI.html Japan's consumer prices fell in July by the most in more than three years as more firms delayed price hikes due to weak consumption, keeping the central bank under pressure to expand an already massive stimulus program.

The gloomy data reinforces a dominant market view that premier Shinzo Abe's stimulus program have failed to dislodge the deflationary mindset prevailing among businesses and consumers.

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"Given how prices are behaving and how the BOJ is asked to cooperate with Abe to beat deflation, it's very hard to think the BOJ will unwind stimulus any time soon," said Takeshi Minami, chief economist at Norinchukin Research Institute.

"Instead, the September analysis will probably lay the grounds for a deepening of negative interest rates."

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iehi-feed-60526 Thu, 25 Aug 2016 14:34:51 GMT Why Fintech Startups Are Flocking to a 124-Year-Old Bank in Kansas http://implode-explode.com/viewnews/2016-08-25_WhyFintechStartupsAreFlockingtoa124YearOldBankinKansas.html That's largely due to the efforts of Suresh Ramamurthi, an ex-Google engineer, and his wife Suchitra Padmanabhan, a former Wall Street banker turned fund manager in Topeka. Three years after moving to Kansas, the pair used their own savings to purchase the 124-year-old CBW Bank, Weir's sole financial institution. It was 2008, the height of the financial crisis, and CBW -- then called Citizens Bank of Weir -- was under orders from the Federal Deposit Insurance Corp. (FDIC) to cease operations due to inadequate capital reserves, ballooning levels of bad loans, and internal fraud.

Not only did the couple get the bank back in operation by the following year, they transformed it into a place of real innovation. Over the last few years, the bank has become a secret weapon for other fintech companies, which rely on both its technology and status as a state-chartered bank to build their own businesses.

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"What Suresh has done is taken a bank with legacy technology and systematically rebuilt the technology stack to something that elevates modern technology concepts," says Julie Conroy, research director for Aite Group, a bank technology consulting company. Those concepts include faster processing capabilities, machine learning, and other capabilities more typical of a Google than the traditional consumer banking world.

Omney is one of the first fintech payments companies that worked with CBW and Yantra to develop an instant payment solution in 2012. The companies collaborated to create a system that essentially reverses the debit card process, whereby money is typically deducted from consumer accounts in near-real time, to make real-time payments instead.

So basically, this guy is fixing banking -- actually making modern tech concepts and standards (like instant payments) work despite the old, crufty legacy systems and crippling make-work compliance regulations... we hope it succeeds and spreads like wildfire!

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