Implode-Explode Heavy Industries news feed http://implode-explode.com/ Tracking the many faces of the global credit implosion. en-us iehi-feed-63650 Tue, 20 Feb 2018 22:33:19 GMT U.S. top court rejects investor appeals over Fannie Mae, Freddie Mac bailouts http://implode-explode.com/viewnews/2018-02-20_UStopcourtrejectsinvestorappealsoverFannieMaeFreddieMacbailouts.html The U.S. Supreme Court on Tuesday declined to revive litigation in which shareholders accused the federal government of overstepping its authority when it restructured mortgage finance firms Fannie Mae and Freddie Mac following the 2008 housing crisis. The justices left in place a lower court's 2017 ruling that the investors, led by hedge fund Perry Capital, could not pursue legal claims accusing the government of unlawfully channeling profits from Fannie Mae and Freddie Mac to the U.S. Treasury Department.

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Other shareholders that sued included Fairholme Funds Incand individual investors. Another hedge fund, Pershing Square Capital Management LP, the biggest common shareholder in both companies, filed a brief asking the justices to take the case.

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The appeals court said the government had the authority under a 2008 law that laid the groundwork for its seizure of the two companies.

Both companies are now under the conservatorship of the Federal Housing Finance Agency. Treasury Secretary Steven Mnuchin had said before taking office last year that the companies should be returned to private control but has since said that they should not be privatized.

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iehi-feed-63642 Sun, 18 Feb 2018 20:51:01 GMT "The Home Builder Rationalization" http://implode-explode.com/viewnews/2018-02-18_TheHomeBuilderRationalization.html The multi-family segment has been a drag on the construction sector for several years now, despite the occasional spike up in either permits or starts, or both... [But] according the National Association of Home Builders (NAHB), they have been over the past few months rarely ever more confident than now. You have to go back to the late nineties for similar expressed levels of optimism; the NAHB's index suggests that its members are more positive now than at any time during the housing mania.

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The problem with that result is obvious; they aren't building at a rate anywhere close to either the nineties or the height of the bubble. On a population-adjusted basis, the disparity is even greater.

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[The lack of] growth in household formation may not threaten to reverse the low-growth in home construction, but it sure does explain why more homes aren't being built. There is no additional demand above what appears to be minimal growth in home stock (which also helps explain the pullback in apartment construction around the "rising dollar" downturn; that it confirmed there isn't likely to ever be more than minimal growth).

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There are any number of surveys particularly of young adults describing the restlessness of this situation, and therefore if those stuck in it had the means they would change their circumstances if possible. In droves. It can be construed as a social trend, but it's often done so because by and large in the mainstream there isn't an economic problem according to Economists.

Maybe that in the end is what builders are so happy about. They see only a very small probability of a substantial decrease in their business while at the same time noting that any day now young Americans in light of full employment will start to move out of their parents' basement all at once. Like other similar rationalizations, the longer it goes where that hasn't happened, the more certain they have become that it will -- tomorrow for sure.

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iehi-feed-63632 Wed, 14 Feb 2018 23:09:12 GMT Rumored-Struggling HNA Group of China sells Upper East Side NYC mansion for $90M http://implode-explode.com/viewnews/2018-02-14_RumoredStrugglingHNAGroupofChinasellsUpperEastSideNYCmansionfor9.html HNA bought the 18,860-square-foot mansion at 19 East 64th Street from art heir David Wildenstein in April 2017 for $79.5 million and planned to use it as an office. The company funded the deal with a $50 million mortgage from Ullico.

Bloomberg recently reported that HNA plans to sell $4 billion worth of U.S. properties to help pay off its mounting debt. That includes office tower 245 Park Avenue, which the company bought for $2.2 billion in May.

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iehi-feed-63621 Fri, 09 Feb 2018 04:02:18 GMT Foreclosure Tsunami Hits New York State http://implode-explode.com/viewnews/2018-02-08_ForeclosureTsunamiHitsNewYorkState.html iehi-feed-63594 Fri, 02 Feb 2018 21:46:59 GMT Fed's QE Unwind Accelerates Sharply http://implode-explode.com/viewnews/2018-02-02_FedsQEUnwindAcceleratesSharply.html iehi-feed-63590 Thu, 01 Feb 2018 22:14:45 GMT You'll Never Guess Who's Pushing Homeownership Higher http://implode-explode.com/viewnews/2018-02-01_YoullNeverGuessWhosPushingHomeownershipHigher.html iehi-feed-63578 Tue, 30 Jan 2018 15:25:17 GMT Home prices surge to new high, up 6.2% in November http://implode-explode.com/viewnews/2018-01-30_Homepricessurgetonewhighup62inNovember.html The supply crisis in the housing market is not letting up, and consequently neither are the gains in home values.

National home prices continued their run higher in November, rising 6.2 percent annually on S&P CoreLogic Case-Shiller's most broad survey, up from 6.1 percent in October. Another S&P index of the nation's 20 largest housing markets showed a 6.4 percent gain, higher than analysts had expected.

Prices nationally are now 6 percent higher than their 2006 peak, while those in the top 20 markets are still 1.1 percent lower.

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iehi-feed-63533 Thu, 18 Jan 2018 04:54:46 GMT Ataris Bassist Michael Davenport Accused Of Running $27M Fraud Scheme http://implode-explode.com/viewnews/2018-01-17_AtarisBassistMichaelDavenportAccusedOfRunning27MFraudScheme.html iehi-feed-63518 Sun, 14 Jan 2018 15:09:19 GMT Caliber Home Loans Busted Selling Client Information To Sex Predators http://implode-explode.com/viewnews/2018-01-14_CaliberHomeLoansBustedSellingClientInformationToSexPredators.html iehi-feed-63512 Fri, 12 Jan 2018 20:29:32 GMT SCAM ALERT Serenity Financial Services Sends Out Deceiving Solicitation http://implode-explode.com/viewnews/2018-01-12_SCAMALERTSerenityFinancialServicesSendsOutDeceivingSolicitation.html iehi-feed-63502 Thu, 11 Jan 2018 01:47:42 GMT Three Sinister Schemes Creditors Will Use To Screw You http://implode-explode.com/viewnews/2018-01-10_ThreeSinisterSchemesCreditorsWillUseToScrewYou.html iehi-feed-63489 Sun, 07 Jan 2018 19:00:26 GMT The CFPB Lists The Most Hated Banks http://implode-explode.com/viewnews/2018-01-07_TheCFPBListsTheMostHatedBanks.html iehi-feed-63474 Fri, 05 Jan 2018 00:36:38 GMT Federal Judge Finds PricewaterhouseCoopers Negligent in TBW Collapse http://implode-explode.com/viewnews/2018-01-04_FederalJudgeFindsPricewaterhouseCoopersNegligentinTBWCollapse.html iehi-feed-63469 Wed, 03 Jan 2018 16:42:24 GMT Canada's insane housing bubble is just starting to burst with home values dropping for the first time since Q1 2009 http://implode-explode.com/viewnews/2018-01-03_Canadasinsanehousingbubbleisjuststartingtoburstwithhomevaluesdro.html iehi-feed-63467 Tue, 02 Jan 2018 22:32:20 GMT Citimortgage Recruits Knuckles To Foreclosure On Retired Veteran http://implode-explode.com/viewnews/2018-01-02_CitimortgageRecruitsKnucklesToForeclosureOnRetiredVeteran.html iehi-feed-63465 Sat, 30 Dec 2017 22:33:51 GMT Kooky Mortgage Fraudster Cries For Release From Prison http://implode-explode.com/viewnews/2017-12-30_KookyMortgageFraudsterCriesForReleaseFromPrison.html iehi-feed-63463 Sat, 30 Dec 2017 17:17:50 GMT Zillow: As Rents Rise, More Renters Turn to Doubling Up http://implode-explode.com/viewnews/2017-12-30_ZillowAsRentsRiseMoreRentersTurntoDoublingUp.html iehi-feed-63460 Thu, 28 Dec 2017 21:42:05 GMT Zillow: U.S. homes gained $2 trillion in value this year http://implode-explode.com/viewnews/2017-12-28_ZillowUShomesgained2trillioninvaluethisyear.html iehi-feed-63456 Wed, 27 Dec 2017 02:58:12 GMT California renters will come out ahead with new tax plan while homeowners will see a higher tax bill http://implode-explode.com/viewnews/2017-12-26_Californiarenterswillcomeoutaheadwithnewtaxplanwhilehomeownerswi.html iehi-feed-63449 Mon, 25 Dec 2017 15:54:50 GMT New York's vanishing shops and storefronts: 'It's not Amazon, it's rent' http://implode-explode.com/viewnews/2017-12-25_NewYorksvanishingshopsandstorefrontsItsnotAmazonitsrent.html "It's not Amazon, it's rent," says Jeremiah Moss, author of the website and book Vanishing New York. "Over the decades, small businesses weathered the New York of the 70s with it near-bankruptcy and high crime. Businesses could survive the internet, but they need a reasonable rent to do that."

Part of the problem is the changing make-up of New York landlords. Many are no longer mom-and-pop operations, but institutional investors and hedge funds that are unwilling to drop rents to match retail conditions. "They are running small businesses out of the city and replacing them with chain stores and temporary luxury businesses," says Moss.

In addition, he says, banks will devalue a property if it's occupied by a small business, and increase it for a chain store. "There's benefit to waiting for chain stores. If you are a hedge fund manager running a portfolio you leave it empty and take a write-off."

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But there are glimmers of turn-around. Zendell has observed five deals in SoHo in the past month, indicating that landlords are becoming too nervous to sit around. "They helped to create the bubble, but now it's our market."

Renters insist landlords have an investment in the game, either through taking a performance-based interest in the tenant or some other mechanism. Retailers that signed 10-year leases at a high number per sq ft and then had to pay to get out of that lease are insisting on some participation.

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