Implode-Explode Heavy Industries news feed http://implode-explode.com/ Tracking the many faces of the global credit implosion. en-us 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 iehi-feed-60303 Tue, 26 Jul 2016 16:57:34 GMT Home Prices in 20 U.S. Cities Rose Less Than Forecast in May http://implode-explode.com/viewnews/2016-07-26_HomePricesin20USCitiesRoseLessThanForecastinMay.html iehi-feed-60295 Mon, 25 Jul 2016 17:21:38 GMT IceCap Asks What Happens When The Bond Bubble Finally Pops http://implode-explode.com/viewnews/2016-07-25_IceCapAsksWhatHappensWhenTheBondBubbleFinallyPops.html iehi-feed-60289 Mon, 25 Jul 2016 14:18:14 GMT Inequality: the nexus of wealth and debt | Coppola http://implode-explode.com/viewnews/2016-07-25_InequalitythenexusofwealthanddebtCoppola.html Debt jubilee seems an attractive idea. Why not just write off all the debts, wipe the slate clean and start again?... even if the very rich could be soaked, there is a bigger problem. The rise of the middle class means that a majority now own some wealth. And they will not easily give it up. Middle class wealth owners fear loss far more than the very rich. And with reason. For them, a fall of -- say -- 30% in the value of their house is a considerable hit to their net worth, as argued by Atif Mian & Amir Sufi in their book House of Debt. It can completely wreck their plans

If we are serious about reducing wealth inequality, we could think about very high taxes on top incomes, and perhaps wealth taxes. And if we are serious about reducing income inequality -- from which wealth inequality ultimately stems -- we could think about a universal basic income coupled with a land value tax and a progressive income tax system. If we want to break the cycle of wealth inequality down the generations, we could impose very high inheritance taxes, perhaps as much as 100%, on unproductive assets such as residential property. And if we really want to end the dominance of debt in our monetary system, perhaps we should be looking at forms of money that are not backed by debt.

Coppola ends up focusing on the reform of the monetary system mentioned at the end. We agree... and its funny how no one seems to take note of the fact that, during the best exemplar period of Western civilization -- the post-WWII period in the US -- incomes were much more equal. This is irrespective of total wealth (of course, the Gini coefficient was much lower), it's that pre-tax income was more equal. In other words, progressive taxation was never responsible for income equality -- it must have been something else. And that "something else" was a less biased monetary system: hard asset backing, and lack of Federal reserve craziness in intervening to tilt access to capital to the rich...

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iehi-feed-60279 Sat, 23 Jul 2016 00:32:15 GMT Denmark Faces ‘Out of Control' Housing Market http://implode-explode.com/viewnews/2016-07-22_DenmarkFacesOutofControlHousingMarket.html Denmark's biggest mortgage bank is warning there's a risk the housing market may get "out of control," especially around cities, as long-term negative interest rates make borrowers complacent.

"To be concrete, there is a danger that Danes go blind to the risk of rates ever rising again," Tore Stramer, chief analyst at Nykredit in Copenhagen, said in an e-mail. "That raises the risk of a major housing price decline, when rates at some point or other start to rise again."

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With no other country on the planet having experienced negative rates longer than Denmark, the distortions the policy is wreaking may provide a preview of what other economies face should they go down a similar path. Danes can get short-term mortgages at negative interest rates, and pay less to borrow for 30 years than the U.S. government.

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iehi-feed-60277 Fri, 22 Jul 2016 17:27:48 GMT What Is Straw Buyer Fraud And Occupancy Fraud? http://implode-explode.com/viewnews/2016-07-22_WhatIsStrawBuyerFraudAndOccupancyFraud.html iehi-feed-60274 Thu, 21 Jul 2016 23:05:45 GMT PulteGroup soars on activist deal, buybacks http://implode-explode.com/viewnews/2016-07-21_PulteGroupsoarsonactivistdealbuybacks.html PulteGroup got a big boost from a strong quarterly report and saw shareholders drive the stock up after news that it struck a deal with activist investor Paul Singer's Elliott Management.

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As the housing sector was battered in the global financial crisis, Pulte stock suffered and never regained losses. The company's shares are down more than 30 percent from the beginning of 2007, after hitting an all time high of more than $40 a share in 2005 and after paring gains in 2008, never touched those highs again.

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iehi-feed-60264 Wed, 20 Jul 2016 14:10:10 GMT These Sicilian Mortgages Show How Difficult It Is to Rescue Italian Banks http://implode-explode.com/viewnews/2016-07-20_TheseSicilianMortgagesShowHowDifficultItIstoRescueItalianBanks.html A court may auction the loan collateral and use the proceeds to pay the bonds, but that is a slow process. Italy is almost as well known these days for its sluggish and cumbersome insolvency procedures as it is for the Leaning Tower of Pisa or the AC Milan soccer club. Italian bankruptcy proceedings last an average of 7.8 years, compared to an average of just over two years for the rest of Europe... the thus-far glacial pace of cash collections from NPLs has resulted in multiple credit ratings downgrades for the Island Refinancing deal...

Last week [Fitch] affirmed its previous ratings and said it expects slow collections will result in the default of the 60 million-euro ($66.4 million) class C notes and the write-down of the 32 million-euro class D notes with zero recovery forecast.

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iehi-feed-60223 Fri, 15 Jul 2016 14:04:18 GMT Canada new home prices grow at fastest pace in nearly 9 years thanks to booming Toronto, Vancouver http://implode-explode.com/viewnews/2016-07-15_Canadanewhomepricesgrowatfastestpaceinnearly9yearsthankstoboomin.html iehi-feed-60214 Thu, 14 Jul 2016 16:22:10 GMT Australia Insolvencies +14%, Debt Agreements +25%, Bankruptcies +7% http://implode-explode.com/viewnews/2016-07-14_AustraliaInsolvencies14DebtAgreements25Bankruptcies7.html iehi-feed-60211 Thu, 14 Jul 2016 13:58:36 GMT ACLU And NAACP Accuse City Of Detroit Of Ripping Off Homeowners http://implode-explode.com/viewnews/2016-07-14_ACLUAndNAACPAccuseCityOfDetroitOfRippingOffHomeowners.html iehi-feed-60208 Wed, 13 Jul 2016 18:08:22 GMT Americans better able to pay their bills, but Millenials, minorities, struggle http://implode-explode.com/viewnews/2016-07-13_AmericansbetterabletopaytheirbillsbutMillenialsminoritiesstruggl.html Among Millennials, ages 18 to 34, 29% said they had been tardy paying their mortgage, vs. 16% of those ages 35 to 54. And 45% of all respondents who did not have an education beyond high school said that if they had an emergency requiring them to pull together $2,000 within a month, they wouldn't be able to do so.

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"Only about 40% of Americans are spending less than their income (meaning) they have something to set aside and save,'' Walsh says. "When you're not able to make ends meet, you probably do tend to focus more on the here and now.''

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iehi-feed-60199 Tue, 12 Jul 2016 20:08:48 GMT Bank of America Denies Existence of Alleged No Girls Club Or Bro's Club http://implode-explode.com/viewnews/2016-07-12_BankofAmericaDeniesExistenceofAllegedNoGirlsClubOrBrosClub.html iehi-feed-60192 Tue, 12 Jul 2016 02:37:19 GMT Miami Dolphins Owner Stephen Ross 90+ Days Delinquent On $150 Million Loan http://implode-explode.com/viewnews/2016-07-11_MiamiDolphinsOwnerStephenRoss90DaysDelinquentOn150MillionLoan.html iehi-feed-60183 Mon, 11 Jul 2016 14:52:21 GMT NZ Politicos Resist Housing Price Declines As Obvious Solution To Affordability Crisis http://implode-explode.com/viewnews/2016-07-11_NZPoliticosResistHousingPriceDeclinesAsObviousSolutionToAffordab.html Former Reserve Bank Chairman Arthur Grimes essentially undressed our politicians in front of us this week when he challenged them to embrace a 40 per cent fall in Auckland house prices. He exposed them as emperors without clothes.

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"And not one of them has been able to answer that very simple question," Grimes said this week. He was talking about the extraordinary response to his suggestion 150,000 houses be built in six years to push Auckland prices down.

Prime Minister John Key's response was immediate - and betrayed where he stands on the issue of using a supply shock to make housing affordable. It was "crazy", would leave people in the market with huge losses and put pressure on developers.''

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iehi-feed-60182 Mon, 11 Jul 2016 14:48:25 GMT First-home buyers hit lowest level in a decade, price falls ‘needed' (AU) http://implode-explode.com/viewnews/2016-07-11_FirsthomebuyershitlowestlevelinadecadepricefallsneededAU.html