Implode-Explode Heavy Industries news feed http://implode-explode.com/ Tracking the many faces of the global credit implosion. en-us iehi-feed-65073 Tue, 12 Nov 2019 20:54:12 GMT Trump, In Foamy-Mouthed Rant, Calls For Negative Interest Rates To "Boost Stock Market Another 25%" http://implode-explode.com/viewnews/2019-11-12_TrumpInFoamyMouthedRantCallsForNegativeInterestRatesToBoostStock.html iehi-feed-65072 Mon, 11 Nov 2019 15:05:25 GMT Warren Would Take Billionaires Down a Few Billion Pegs http://implode-explode.com/viewnews/2019-11-11_WarrenWouldTakeBillionairesDownaFewBillionPegs.html Forbes counts 607 American billionaires. A handful have stated that they support a moderate wealth tax. George Soros, Liesel Pritzker Simmons, Ian Simmons, Chris Hughes, Nick Hanauer and 13 other wealthy individuals signed a letter over the summer in support of such a tax.

"I definitely understand how that would make lots and lots of extremely rich people uncomfortable," said Mr. Hanauer, co-founder of a Seattle-based venture capital firm and an early investor in Amazon. "But I'm more worried about our democracy."

"Don't get me wrong," he added. "I would prefer 3 percent." But even at 6 percent, he said, "we would all survive and continue to be rich and fly around in our planes."

He pointed out that most Americans had been living with meager income growth for decades, while the silk-thin layer at the top shoveled in enormous gains, cumulatively more than 400 percent since 1980.

"All you're doing is saying to the richest percent of Americans that the rate of growth of your assets and wealth will now match what has happened to other Americans over the last 40 years," Mr. Hanauer said.

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iehi-feed-65068 Thu, 07 Nov 2019 23:29:23 GMT Donald Trump to pay $2 million to settle Trump Foundation "personal piggybank" case http://implode-explode.com/viewnews/2019-11-07_DonaldTrumptopay2milliontosettleTrumpFoundationpersonalpiggybank.html iehi-feed-65065 Wed, 06 Nov 2019 23:47:20 GMT Founder of world's biggest hedge fund says ‘world has gone mad' with easy money and ‘system is broken' http://implode-explode.com/viewnews/2019-11-06_Founderofworldsbiggesthedgefundsaysworldhasgonemadwitheasymoneya.html iehi-feed-65063 Wed, 06 Nov 2019 01:53:02 GMT The Self-Defeating Effects of New York's Redoubled Rent Control http://implode-explode.com/viewnews/2019-11-05_TheSelfDefeatingEffectsofNewYorksRedoubledRentControl.html ``Rent regulation has insidious consequences. Unable to recoup their costs, landlords invest less. Conditions in buildings, especially those with lower-income tenants, worsen. Higher-income renters spend their own money on upkeep, and the additional costs wipe out much of the money they save from cheaper rent. "The benefits of rent control, from the tenant's standpoint, are likely to decline steadily over time," a 1997 study by the Department of Housing and Urban Development found.

What we're most concerned about is how rent regulation harms the very class of person it is designed to help -- the renter. (It's not so fundamentally bothersome that property values don't soar to endless heights -- after all, homes are ultimately places to live, first and foremost).

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iehi-feed-65061 Tue, 05 Nov 2019 19:00:06 GMT Worst May Be Over for Global Economy Amid Signs of Stabilization http://implode-explode.com/viewnews/2019-11-05_WorstMayBeOverforGlobalEconomyAmidSignsofStabilization.html One key reason for the potential turn is the wave of interest-rate cuts from global central banks. Of the 57 institutions monitored by Bloomberg, more than half cut borrowing costs this year with the Fed doing so three times and the European Central Bank pushing its deposit rate further into negative territory. Rate cuts also operate with a lag so the positive effects of easier monetary policy have yet to fully flow through, meaning a further impulse likely awaits.

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Also driving sentiment is that President Donald Trump and President Xi Jinping are on the cusp of signing "phase one" on a trade deal, which could be enough for global commerce to find a footing. China is reviewing locations in the U.S. where Xi would be willing to meet with Trump to sign a pact.

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"If the U.S.-Chinese trade escalates again, or if the U.S. starts a new trade war against the only other economy of almost equal size, the EU, it could all still go wrong," said Holger Schmieding, chief economist at Berenberg Bank. "But in the absence of such new political shocks, chances are that the global downturn could peter out in early 2020 and make way for a modest upturn thereafter."

Back on the "no recession ever" yellow brick road... all it takes is financial meltdown-level central bank intervention...

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iehi-feed-65041 Sun, 27 Oct 2019 20:37:08 GMT Lebanon Banks' Shutdown Is `Most Potent Case' for Crypto: Nassim Taleb http://implode-explode.com/viewnews/2019-10-27_LebanonBanksShutdownIsMostPotentCaseforCryptoNassimTaleb.html In an ongoing Twitter debate which began on Oct. 24, commentators vented anger on behalf of Lebanon's population, which has been without banking services for more than a week.

Following civil unrest, banks everywhere closed their doors. Six working days later, a senior banking executive said the status quo would continue until conditions improved.

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For well-known Lebanese statistician, former trader and author of "The Black Swan," Nassim Nicholas Taleb, the government's policy was enough to directly endorse cryptocurrencies such as Bitcoin. "The most potent case for cryptocurrencies: banks are never there when you need them," he summarized in a tweet.

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iehi-feed-65031 Thu, 24 Oct 2019 20:37:26 GMT Fed repos: Worries continue over the efforts to fix funding issues http://implode-explode.com/viewnews/2019-10-24_FedreposWorriescontinueovertheeffortstofixfundingissues.html "The repo market has been drugged into submission by the Fed," said Jim Bianco, head of Bianco Research. "That's fine for a while. But what I am getting concerned about is that they're not figuring a way to get it off the drug and get it back to normal, and that will be a problem longer term for them."

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Market pros worry that a confluence of factors will make the Fed's market balancing act difficult.

Bianco insists that the Fed is not being discerning enough about credit quality in providing cash in exchange for collateral; others are concerned with what happens as the year draws to a close and banks are more focused on shoring up their liquidity mandates than keeping cash flowing in the overnight markets.

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iehi-feed-65021 Sun, 20 Oct 2019 18:20:53 GMT Trump's (Now-Cancelled) Doral G7 Move, Even if Gratis, Would Have Likely Boosted Ailing Property http://implode-explode.com/viewnews/2019-10-20_TrumpsNowCancelledDoralG7MoveEvenifGratisWouldHaveLikelyBoostedA.html iehi-feed-65016 Sun, 20 Oct 2019 14:57:37 GMT Libor rigging inquiry shut down by Serious Fraud Office http://implode-explode.com/viewnews/2019-10-20_LiborrigginginquiryshutdownbySeriousFraudOffice.html The decision comes despite evidence that implicates the Bank of England. It means no one will now be prosecuted in the UK for so-called "low-balling", where banks understate interest rates they pay to borrow cash. The Serious Fraud Office (SFO) said its decision followed a detailed review of the evidence.

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A further 11 traders have been prosecuting for manipulating Euribor, the eurozone equivalent of Libor. The SFO said aspects of its Euribor investigation remain open.

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iehi-feed-65015 Fri, 18 Oct 2019 21:11:47 GMT Ray Dalio says the world is in a 'great sag' and echoes the 1930s http://implode-explode.com/viewnews/2019-10-18_RayDaliosaystheworldisinagreatsagandechoesthe1930s.html "This cycle is fading, we are now in the world in what I would call a ‘great sag'," said Dalio, adding that monetary policy, and especially interest rate reductions, were unlikely to offer much stimulus.

"Europe is at the limitation of that, Japan is (too) and the U.S. doesn't have much to go on for that," he told CNBC's Geoff Cutmore.

Dalio said the world was also experiencing the biggest wealth gap since the 1930s and that was creating political stress.

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iehi-feed-65014 Fri, 18 Oct 2019 21:03:43 GMT American Youth Impoverished and Disenfranchised: Solutions http://implode-explode.com/viewnews/2019-10-18_AmericanYouthImpoverishedandDisenfranchisedSolutions.html The geographically based idiosyncrasies of American democracy that the founders put in place compound the problem. On average, ballots cast by older people hold more weight and are less frequently "wasted" than those of the young. (Wasted votes are those garnered in excess of what a candidate needs to win; in our winner-take-all systems that means anything over 50 percent.) Clustered in sparsely populated states and counties, voters who are older, whiter and wealthier get a boost: Older Americans wield disproportionate sway over the Electoral College, the Senate and a gerrymandered Congress.

Migration patterns worsen these trends. A growing percentage of young people now dream of city life, but their preferences inadvertently reduce their political clout: "18 percent of rural residents are 65 or older versus 15 percent in suburban and small metro counties and 13 percent in cities," the Pew Research Center reported last year. Millennials, concentrated in metropolitan areas, are the predominant generation of potential voters in only 86 congressional districts, while boomer voters predominate in 341. By 2040, 70 percent of Americans are expected to live in the 15 most populous states; that would mean that 70 percent of America will be represented by only 30 senators.

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The other critical divide is the economy. The boomers who came of age in the 1950s and '60s benefited from boom times while millennials and Generation Z have been dogged by the aftermath of the mortgage meltdown, an underwhelming recovery and Gilded Age levels of inequality. One generation enjoyed a comparatively high minimum wage, affordable college tuition and reasonable costs of living; for everyone after, stagnating wages, ballooning student debt and unaffordable housing have become the norm.

"Millennials are less well off than members of earlier generations when they were young," a 2018 report by economists from the Federal Reserve Board bluntly states. Other economists have shown that a household headed by someone born in 1970 has a quarter less income and 40 percent less wealth than one headed by a comparable person born in 1940. In contrast, between 1989 and 2013, only the cohort of families headed by people at least 62 saw an increase in median wealth. Older people are more likely to own property, stocks and other assets -- and, consequently, to prefer policies that will keep the values of those assets high. No wonder so many young people have pivoted left, rejecting conventional wisdom about the virtues of unfettered capitalism.

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iehi-feed-65012 Thu, 17 Oct 2019 22:19:09 GMT Holding G-7 at Trump's Doral resort is shameless - The Washington Examiner http://implode-explode.com/viewnews/2019-10-17_HoldingG7atTrumpsDoralresortisshamelessTheWashingtonExaminer.html iehi-feed-65008 Wed, 16 Oct 2019 21:32:56 GMT Brookfield Reveals Pricey Makeover, Address Change For 666 Fifth Ave., Kushner's White Elephant http://implode-explode.com/viewnews/2019-10-16_BrookfieldRevealsPriceyMakeoverAddressChangeFor666FifthAveKushne.html iehi-feed-65002 Tue, 15 Oct 2019 17:45:56 GMT Articles on the Fed's Secret Trillions in Loans to Wall Street During '08 Crisis Have Fallen Into Bloomberg's "Memory Hole" http://implode-explode.com/viewnews/2019-10-15_ArticlesontheFedsSecretTrillionsinLoanstoWallStreetDuring08Crisi.html At the time of Pittman's death, the Fed was still refusing to release the details of its secret loans, despite losing its court battle at the Federal District Court. The appellate court decision against the Fed would not come until March 19, 2010, four months after Pittman's death. Even then, the Fed did not release the data. First it asked for a rehearing by the Second Circuit Court of Appeals. When that was rejected, a Wall Street consortium of banks, that were the recipients of the trillions of dollars in secret loans, appealed the case to the U.S. Supreme Court. That appeal failed as well and the Fed was forced to release its data in 2011. When all of its bailout programs were tallied up, the tab came to a staggering, cumulative $29 trillion -- all transacted without the involvement or awareness of anyone elected to office by the American people. Congress remained in the dark throughout this period as trillions of dollars were sluiced to Wall Street, foreign banks, insolvent banks, even hedge funds that were shorting (betting against) the market.

Now the Fed has turned on its unaccountable money spigot to Wall Street once again and is attempting to pass it off as part of its normal open market operations --  keeping Congress and the American people in the dark. To date, the Fed has refused to name which Wall Street firms are taking the hundreds of billions of dollars in revolving loans and how much each is receiving.

... To our shock and dismay, many of Pittman's articles that we found referenced in academic journals about the Fed have been purged from Bloomberg News. (We asked Bloomberg via email to explain its removal of these articles but have yet to hear back. We'll update this article should we receive a response.)

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iehi-feed-64992 Wed, 09 Oct 2019 14:33:35 GMT Did we betray the Kurds for Trump Towers? http://implode-explode.com/viewnews/2019-10-09_DidwebetraytheKurdsforTrumpTowers.html "I have a little conflict of interest 'cause I have a major, major building in Istanbul," Trump told Breitbart radio during his campaign. "It's a tremendously successful job. It's called Trump Towers--two towers, instead of one, not the usual one, it's two."

We withheld hundreds of millions of dollars in aid from Ukraine, potentially because Trump wanted the country to dig up some dirt on his 2020 rival. Are we now allowing Turkey to come in and massacre the Kurds, because of his business interests?

We don't know, and that's the point. We even can't trust our own president to put America's interests first. It's like Trump's telling take on Saudi Arabia: "They buy apartments from me," he said. "They spend $40 million, $50 million. Am I supposed to dislike them? I like them very much."

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this doesn't mean we're quitting Syria altogether, where we still have about 1,000 troops, and bringing Americans home, as Trump has suggested. Right now, we are simply getting out of the way of any Turkish attack.

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iehi-feed-64990 Tue, 08 Oct 2019 22:08:39 GMT Life on the frontline in Hong Kong http://implode-explode.com/viewnews/2019-10-08_LifeonthefrontlineinHongKong.html "We are a lot more determined because this time we are not pursuing something we don't have. We are stopping something we already have -- the rule of law -- from being taken away. This is very different. It's so much more concrete. It's so much more real when you're threatened with something you have being taken away."

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For more than 10 years after the handover, China lived up to its word and Hong Kong enjoyed a high degree of autonomy. But after President Xi Jinping came to power in 2012, the Communist Party increased its control of the city. Having promised to bring in universal suffrage by the 2017 elections, in 2014 Beijing revealed a significant caveat -- everyone would be given the vote but Beijing would first vet the candidates. This triggered the start of the Umbrella Movement.

A year later, five Hong Kong booksellers specialising in gossipy reads about China's political elite disappeared and emerged later in detention on the mainland. A billionaire businessman was also "escorted" back across the border to help Chinese authorities with a corruption case, compounding fears about the ability of mainland security agents to operate freely in the city.

In late 2016 and early 2017, six pro-democracy lawmakers were stripped of their seats for failing to take their oaths properly. Meanwhile, leaders of the Umbrella Movement were jailed for their involvement. And last year, the Hong Kong government declined to renew a journalist visa for Financial Times Asia news editor Victor Mallet, who was acting head of the Hong Kong Foreign Correspondents' Club when it hosted a talk by an independence advocate.

Chan says the extradition bill was the last straw. "That really raised alarm bells," she says. "Until then, people felt safe in their own beds in Hong Kong but if the extradition proposals were passed, you could be subjected to extradition probably on some trumped-up charge, sent across the border and then maybe you just disappear.

"All these issues, one on top of the other, impresses upon people here what is happening to ‘one country, two systems'. In their eyes, it has become ‘one country, one-and-a-half systems' and if this deterioration continues, very soon it will become ‘one country, one system'."

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iehi-feed-64989 Tue, 08 Oct 2019 21:52:45 GMT As Wealthy Flee Hong Kong, They Bypass U.S. to Find Other Havens http://implode-explode.com/viewnews/2019-10-08_AsWealthyFleeHongKongTheyBypassUStoFindOtherHavens.html Even before the protest movement began, the U.S. was losing luster. In a December survey by Chinese University of Hong Kong, one-third of the city's citizens said they'd consider leaving. Among them, the most popular destinations were Canada and Australia, with at least 18% of respondents each, followed by Taiwan, at 11%, and Singapore at 5%. The U.S. was the top choice for 2.9%.

Australia is a favorite for clients of John Hu, founder and principal consultant at John Hu Migration Consulting in Hong Kong. Advantages include a small time difference with China and mild climate. Canada is also popular, Hu said, especially for clients who want to follow family members who previously emigrated there.

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iehi-feed-64988 Tue, 08 Oct 2019 14:51:51 GMT Trump Taxes: President Ordered to Turn Over Returns to Manhattan D.A. (But Stayed Pending Appeal) http://implode-explode.com/viewnews/2019-10-08_TrumpTaxesPresidentOrderedtoTurnOverReturnstoManhattanDAButStaye.html A federal judge on Monday rejected President Trump's effort to shield his tax returns from Manhattan state prosecutors, calling the president's argument that he was immune from criminal investigation "repugnant to the nation's governmental structure and constitutional values."

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The judge dismissed a lawsuit that had been filed by Mr. Trump, who was seeking to block a subpoena for eight years of his personal and corporate tax returns. The Manhattan district attorney demanded the records in late August as part of an investigation into hush-money payments made in the run-up to the 2016 presidential election.

Mr. Trump's tax returns, however, remain protected for now. His lawyers quickly appealed to the Second Circuit Court of Appeals in Manhattan, which agreed to temporarily delay enforcement of the subpoena while it considers arguments in the case.

Trump's strategy is to simply run out the clock. He's using cynical strategic litigation tactics adopted from his business practices.

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iehi-feed-64987 Tue, 08 Oct 2019 14:33:28 GMT These Trade Claims Made by Trump? They're All Wrong http://implode-explode.com/viewnews/2019-10-08_TheseTradeClaimsMadebyTrumpTheyreAllWrong.html Claim 1: Let's start with an easy one. On March 2, 2018, when Fox Business Network's "Mornings With Maria" asked whether China would retaliate against the metal tariffs, Mr. Trump's economic adviser Peter Navarro replied, "I don't believe any country in the world is going to retaliate for the simple reason that we are the most lucrative and biggest market in the world."

He was wrong: Everyone has retaliated against us. A recent study by the economists Mary Amiti of the Federal Reserve, Stephen J. Redding of Princeton and David Weinstein of Columbia shows that our trading partners, "especially China, have retaliated with tariffs averaging 16 percent on approximately $121 billion of U.S. exports."

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The bottom line is that pretty much everything Mr. Trump has promised on the trade front by imposing tariffs hasn't panned out, even if the president persists in saying the opposite.

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