Implode-Explode Heavy Industries news feed http://implode-explode.com/ Tracking the many faces of the global credit implosion. en-us iehi-feed-60513 Wed, 24 Aug 2016 00:58:22 GMT U.S. new-home sales climb to best level since late 2007 http://implode-explode.com/viewnews/2016-08-23_USnewhomesalesclimbtobestlevelsincelate2007.html New-home sales jumped 12.4 percent last month to a seasonally adjusted rate of 654,000 annual units, the strongest level since October 2007, the Commerce Department said Tuesday. The demand has eclipsed the pace of construction. Just 4.3 months' supply of new homes is available on the market, down from 5.2 months a year ago.

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The improved sales of both new and existing homes has supported the broader U.S. economy, which is still hampered by a global slowdown and weak worker productivity. Existing-home sales reached a seasonally adjusted annual rate of 5.57 million in June, the best performance since early 2007.

Happy times are hear again! Or, maybe, it's pretty much a peak...

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iehi-feed-60506 Tue, 23 Aug 2016 14:13:52 GMT Goldman Says It's Too Late to Chase the Booming Real Estate Sector http://implode-explode.com/viewnews/2016-08-23_GoldmanSaysItsTooLatetoChasetheBoomingRealEstateSector.html iehi-feed-60503 Tue, 23 Aug 2016 13:42:59 GMT Not The Best Time In History To Invest In Real Estate - Part 1 | The Wall Street Examiner http://implode-explode.com/viewnews/2016-08-23_NotTheBestTimeInHistoryToInvestInRealEstatePart1TheWallStreetExa.html iehi-feed-60492 Sun, 21 Aug 2016 13:38:32 GMT Canadian Debt Slaves Pile it on http://implode-explode.com/viewnews/2016-08-21_CanadianDebtSlavesPileiton.html iehi-feed-60475 Fri, 19 Aug 2016 14:07:06 GMT Vancouver Housing Market Implodes: Average Home Price Plunges 20% In 1 Month http://implode-explode.com/viewnews/2016-08-19_VancouverHousingMarketImplodesAverageHomePricePlunges20In1Month.html Global News obtained MLS sales data from several key Metro Vancouver markets and found the number of homes sold during the first two weeks of August in Greater Vancouver dropped by 85% on average. Richmond experienced a 96% drop in the number of sales and Burnaby North fell by 95%. Vancouver's West Side, West Vancouver, and Coquitlam also took major hits.

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Zolo, a Canadian real estate brokerage, keeps track of MLS home sales in real-time and reports prices as an average rather than the "benchmark price" used by the REBGV. It currently shows a major correction underway in most Metro Vancouver markets. According to the website, the City of Vancouver currently has an average home price of $1.1 million, down 20.7% over the last 28 days and down 24.5% over the last three months. The average detached home is $2.6 million, down 7% compared to three months ago.

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iehi-feed-60465 Wed, 17 Aug 2016 16:11:55 GMT Yes, We Do Have Inflation, We Do Have Inflation Today - The Wall Street Examiner http://implode-explode.com/viewnews/2016-08-17_YesWeDoHaveInflationWeDoHaveInflationTodayTheWallStreetExaminer.html The Fed first enunciated its 2% inflation target in 2012. It focuses on the core PCE, which clearly understates actual consumer inflation using mechanics which I have recently covered here and in numerous past posts. Using a less biased measure such as the Producer Price Index for Finished Consumer Goods, inflation has run at a compound growth rate of +2.1%. That slightly exceeds the Fed's target ever since it was first established.

... [But] The Fed focuses on Core PCE, which is an even more suppressed measure. The Fed has thus been able to pretend that inflation has been well below the target of 2%. Core PCE has a compound growth rate of 1.5% since 2012. That has been one of the Fed's main reasons for keeping interest rates near zero.

Not only is there no evidence that super low interest rates stimulate consumer inflation, there is plenty of evidence that ZIRP actually suppresses consumer prices... Money printing (QE) has stimulated inflation, just not the kind that economists define as inflation. They keep their focus strictly on the CPI and PCE, which are arbitrary baskets of consumption items designed to understate actual consumer inflation... The government, economists, and the Wall Street media make no pretense of measuring monetary inflation or asset inflation. Economists and policymakers completely ignore these kinds of inflation. In fact, asset inflation isn't even called "inflation." It's called "appreciation" or "gains" or "growth." It all sounds very benign.

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iehi-feed-60462 Wed, 17 Aug 2016 14:55:24 GMT The "Housing Crisis" in San Francisco Strangles Demand http://implode-explode.com/viewnews/2016-08-17_TheHousingCrisisinSanFranciscoStranglesDemand.html For teachers, the math doesn't work out. Average teacher pay for the 2014-15 school year was $65,000. And less after taxes. But the median annual rent was $42,000 for something close to a one-bedroom apartment. After taxes and utilities, there's hardly any money left for anything else.

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These are a scary numbers for the housing market! If only 13% can buy that median home -- when in a healthier housing market, over 50% should be able to buy a median home -- who the heck is going to buy the rest of the homes?

This puts a stranglehold on demand. To sustain these crazy home prices, San Francisco needs to bring in an endless flow of highly paid people, including absentee foreign investors, to replace the teachers and other middle-class households, the artists and shop keepers and office workers, and to push out city employees, nurses, and the like. That's how the process has worked.

But that endless influx of highly paid people and investors is grinding to a halt.

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iehi-feed-60446 Mon, 15 Aug 2016 16:46:00 GMT PwC Fights $5.6 Billion Fraud Trial Over Taylor Bean's Collapse http://implode-explode.com/viewnews/2016-08-15_PwCFights56BillionFraudTrialOverTaylorBeansCollapse.html At issue is PwC's work for Colonial Bank, which bought mortgages that Taylor Bean originated. Had PwC adequately vetted documents that Taylor Bean gave to the bank, it would have spotted a multiyear fraud by executives at both firms far earlier and put an end to it, the trustee claims. Instead, federal regulators uncovered it in 2009 and Taylor Bean and Colonial went bankrupt. The bankruptcy trustee sued in 2013 seeking $5.6 billion in damages.

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Taylor Bean's accountant, Deloitte & Touche, settled similar allegations by the trustee three years ago for an undisclosed amount.

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Beginning in 2002, Farkas sent mortgage data to Colonial Bank for loans that didn't exist or that Taylor Bean had already committed or sold to other investors. By the end of 2007, the scheme, which involved executives at Colonial Bank, consisted of about $1.5 billion in fake or severely impaired residential mortgage loans. 

PwC allegedly failed to spot the fraud when it audited the books of Colonial's parent, Colonial BancGroup Inc., even though Taylor Bean was the bank's largest client and a "stakeholder" in PwC's audits, according to court documents. PwC allegedly certified the fake mortgage assets as "true sales" to Colonial and tried to cover up its negligence when federal regulators questioned the accounting, according to the papers.

Colonial Bank, which became the sixth-largest bank failure in U.S. history, cost the Federal Deposit Insurance Corp.'s insurance fund about $4.2 billion.

Of course had Fannie/Freddie heeded our whistleblower tip in 2008, there would have been perhaps tens of millions (or more) less in damages.

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iehi-feed-60397 Mon, 08 Aug 2016 14:03:21 GMT How a Hairdresser's Lawsuit Could Spell Trouble for Brexit http://implode-explode.com/viewnews/2016-08-08_HowaHairdressersLawsuitCouldSpellTroubleforBrexit.html The lawsuits, filed on behalf of a hairdresser, a finance entrepreneur and others unwilling to be publicly identified, have been merged into a single claim that's likely to end up before the U.K. Supreme Court this year. The claimants want the nation's highest court to rule that it would be illegal to invoke Article 50, triggering the two-year countdown to Brexit, without first holding a vote in parliament.

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"The Mishcon and the Deir Dos Santos actions are at most tactical, and at worst nonsense,'' said Philip Young, a lawyer at London firm Cooke Young & Keidan. Parliament would respect the referendum result even if the matter came to a vote, he said.

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iehi-feed-60381 Fri, 05 Aug 2016 00:39:41 GMT "A Reverse Mortgage Ruined His Life"? - LOL | Mandelman Matters http://implode-explode.com/viewnews/2016-08-04_AReverseMortgageRuinedHisLifeLOLMandelmanMatters.html So, I'm to believe that this 67 year-old man, presumably of reasonably sound mind, waited until he received a foreclosure notice to find out how to pay his back property taxes, and when he couldn't find the amount listed in that foreclosure notice, that's what made it "tough for him to catch up" on his property taxes?

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The Post's article is a crap sandwich from the first bite to the last... the headline alone is so monumentally irresponsible that it should be a violation of the Truth in Advertising laws... if those even exist anymore.

However, in this case it's far worse than just getting a few facts wrong in an article... the Post's story is all but certain to scare some away from a HECM reverse mortgage for absolutely no good reason and in my mind that's just as bad as misleading someone into getting a reverse mortgage.

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iehi-feed-60377 Thu, 04 Aug 2016 22:35:34 GMT Reality of B.C.'s foreign buyers tax begins to bite as realtors report deals collapsing http://implode-explode.com/viewnews/2016-08-04_RealityofBCsforeignbuyerstaxbeginstobiteasrealtorsreportdealscol.html Now, as a new dawn breaks in Metro Vancouver's real estate market, realty companies and real estate boards are reporting the first anecdotes of deals falling through as foreign buyers forfeited deposits on binding deals rather than pay the new tax. And they report evidence of local buyers withdrawing offers in expectation that the market will soften.

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Not all of the cancelled transactions are directly due to a foreign buyer pulling out, but when they do, it could leave sellers in the lurch and force them to pull out of their own property purchases, creating a contagion effect, he said.

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iehi-feed-60366 Thu, 04 Aug 2016 00:18:59 GMT Vancouver slaps 15% tax on foreign house buyers in effort to cool market http://implode-explode.com/viewnews/2016-08-03_Vancouverslaps15taxonforeignhousebuyersinefforttocoolmarket.html iehi-feed-60359 Tue, 02 Aug 2016 23:25:09 GMT The Foreclosure Crisis is Dead.  Long Live the Foreclosure Crisis! | Mandelman Matters http://implode-explode.com/viewnews/2016-08-02_TheForeclosureCrisisisDeadLongLivetheForeclosureCrisisMandelmanM.html iehi-feed-60344 Mon, 01 Aug 2016 14:13:04 GMT End of an Era as China's Love Affair With U.S. Real Estate Fades (AMIDST CAPITAL CRACKDOWN) http://implode-explode.com/viewnews/2016-08-01_EndofanEraasChinasLoveAffairWithUSRealEstateFadesAMIDSTCAPITALCR.html ``The residential-property market here, especially for those priced between $2.5 million to $3 million, has been affected by China's measures to control capital flight," said the New York City-based Keller Williams Realty Landmark broker. "You need to cut the price, or it may take a real long time."... In terms of U.S. dollar value, the total share of Chinese buying of international sales dropped from 27.5% to 26.7%.

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The Chinese authorities have been compelled to increasingly tighten the noose on cross-border capital flows to defend the yuan and to slow down the burnout of the nation's foreign-exchange reserves since then. This includes increasing scrutiny of transfers overseas, to closely check whether individuals send money abroad by breaking up foreign-currency purchases into smaller transactions.

New measures were also introduced in December to crack down on illegal China UnionPay Co. card machines, which were suspected of being used to channel funds offshore via fake transactions. Meanwhile, illegal foreign-exchange transactions from underground banking were brought to regulators' attention, as China busted the nation's biggest underground bank, which handled $62 billion, according to a November report by the official People's Daily.

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iehi-feed-60342 Mon, 01 Aug 2016 14:02:35 GMT What is Credit Damage and What Can You Do About It? | Mandelman Matters http://implode-explode.com/viewnews/2016-08-01_WhatisCreditDamageandWhatCanYouDoAboutItMandelmanMatters.html iehi-feed-60326 Thu, 28 Jul 2016 21:06:44 GMT Millennials cause homeownership rate to drop to lowest level since 1965 http://implode-explode.com/viewnews/2016-07-28_Millennialscausehomeownershipratetodroptolowestlevelsince1965.html The drop in homeownership is largely due to a delay in homebuying by the millennials, who have the lowest ownership rate of their age group in history. Millennials are not only burdened by student loan debt, but they have also delayed life choices like marriage and parenthood, which are the primary drivers of homeownership.

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"Broadly speaking, the falling homeownership rate is a sign that renting isn't only for those just starting out or making a transition, but is becoming an increasingly viable longer-term option for many households," noted Svenja Gudell, chief economist at Zillow. "It also means incomes are not yet rising quickly enough to broadly support new homeownership, and that inventory remains too tight to allow for meaningful access to affordable housing."

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iehi-feed-60325 Thu, 28 Jul 2016 16:27:05 GMT Homeownership Rate in the U.S. Tumbles to the Lowest Since 1965 http://implode-explode.com/viewnews/2016-07-28_HomeownershipRateintheUSTumblestotheLowestSince1965.html The share of Americans who own their homes was 62.9 percent in the second quarter, the lowest since 1965, according to a Census Bureau report Thursday. It was the second straight quarterly decrease, down from 63.5 percent in the previous three months.

First-time buyers have been struggling to find affordable properties as low mortgage rates and an improving job market spur competition for a tight supply of listings. Home prices rose 5.2 percent in May from a year earlier, according to the S&P CoreLogic Case-Shiller index of values in 20 cities released this week.

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iehi-feed-60319 Thu, 28 Jul 2016 14:42:47 GMT San Fran's Lending Standards Put The Last Housing Bubble To Shame http://implode-explode.com/viewnews/2016-07-28_SanFransLendingStandardsPutTheLastHousingBubbleToShame.html iehi-feed-60314 Wed, 27 Jul 2016 18:19:34 GMT Behind The New Home Sales Data: A Darker Backdrop http://implode-explode.com/viewnews/2016-07-27_BehindTheNewHomeSalesDataADarkerBackdrop.html Sales have nearly doubled from the June 2010 and June 2011 lows of 28,000 to this June's 54,000. But this is still down sharply from the June 2005 peak of 115,000 units. At the same time, it barely exceeds the low of 47,000 reached in June 1991 and 53,000 in June 1992 during that recession...

From the 2002 recession until this year, nominal median household income has risen by approximately 32%, using estimated 2% increases for 2015 and this year, which is consistent with the BLS data on nominal wage growth. However, the rate of sales per million people has declined by almost 22% over that period

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iehi-feed-60304 Tue, 26 Jul 2016 17:44:29 GMT Miami Judge Throws Out Bitcoin Money Laundering Case http://implode-explode.com/viewnews/2016-07-26_MiamiJudgeThrowsOutBitcoinMoneyLaunderingCase.html