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-60323 Thu, 28 Jul 2016 15:09:36 GMT Can the World Deal With a New Bank Crisis? - Satyajit Das http://implode-explode.com/viewnews/2016-07-28_CantheWorldDealWithaNewBankCrisisSatyajitDas.html As Europe braces for the release of its bank stress tests on Friday, the world could be on the verge of another banking crisis. The signs are obvious to all. The World Bank estimates the ratio of non-performing loans to total gross loans in 2015 reached 4.3 percent. Before the 2009 global financial crisis, they stood at 4.2 percent.

If anything, the problem is starker now than then: There are more than $3 trillion in stressed loan assets worldwide, compared to the roughly $1 trillion of U.S. subprime loans that triggered the 2009 crisis. European banks are saddled with $1.3 trillion in non-performing loans, nearly $400 billion of them in Italy. The IMF estimates that risky loans in China also total $1.3 trillion, although private forecasts are higher. India's stressed loans top $150 billion.

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To make matters worse, the world's limp recovery since 2009 is intensifying loan stresses. In advanced economies, low growth and disinflation or deflation is making it harder for companies to pay off what they owe. Many European firms are suffering from a lack of global competitiveness, exacerbated by the effects of the single currency.

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Current monetary policy is partly to blame. Zero or negative rates drive down bank lending rates more than deposit rates, which can't be cut because of the need to maintain deposits and comply with regulatory requirements for stable funding.

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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-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-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-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-60224 Fri, 15 Jul 2016 14:04:56 GMT Ohio Attorneys... Loan Modification RESPA-TILA Litigation Primer - July 28th & 29th | Mandelman Matters http://implode-explode.com/viewnews/2016-07-15_OhioAttorneysLoanModificationRESPATILALitigationPrimerJuly28th29.html 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-60202 Wed, 13 Jul 2016 12:40:48 GMT The Austrian Government To Seize Of Adolf Hitler Birthplace http://implode-explode.com/viewnews/2016-07-13_TheAustrianGovernmentToSeizeOfAdolfHitlerBirthplace.html 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 iehi-feed-60145 Wed, 06 Jul 2016 13:31:54 GMT U.S. home refinancing hits highest in one-and-a-half years as rates drop http://implode-explode.com/viewnews/2016-07-06_UShomerefinancinghitshighestinoneandahalfyearsasratesdrop.html iehi-feed-60132 Sat, 02 Jul 2016 20:46:41 GMT Florida Pastor Convicted Of Mortgage Fraud http://implode-explode.com/viewnews/2016-07-02_FloridaPastorConvictedOfMortgageFraud.html