Implode-Explode Heavy Industries news feed http://implode-explode.com/ Tracking the many faces of the global credit implosion. en-us iehi-feed-64401 Sat, 17 Nov 2018 17:18:13 GMT After the Retail Apocalypse, Prepare for the Property Tax Meltdown http://implode-explode.com/viewnews/2018-11-17_AftertheRetailApocalypsePrepareforthePropertyTaxMeltdown.html iehi-feed-64400 Fri, 16 Nov 2018 14:59:54 GMT Mass Wells Fargo Firings Begin In Time For The Holidays http://implode-explode.com/viewnews/2018-11-16_MassWellsFargoFiringsBeginInTimeForTheHolidays.html iehi-feed-64399 Thu, 15 Nov 2018 21:00:15 GMT "Too Big to Fail" author says WeWork may now be "too big to fail" http://implode-explode.com/viewnews/2018-11-15_TooBigtoFailauthorsaysWeWorkmaynowbetoobigtofail.html Andrew Ross Sorkin -- author of "Too Big to Fail" -- argues in his latest DealBook column for the New York Times that WeWork now has so much space in so many cities, its landlords can't afford to let it go under.

The co-working giant now controls 15.5 million square feet across 335 locations in 24 countries and says it is the largest tenant in Manhattan, Washington D.C. and London. So, when the next economic downturn arrives, WeWork's landlords might not be able to evict it even if it can't pay its rent... a more likely outcome would be for landlords to "swallow hard and renegotiate the lease agreements on more favorable terms to keep WeWork from creating a full-on panic." They could also have the company start acting as a property manager in the vein of Marriott, which manages rather than owns or leases hotels.

]]>
iehi-feed-64398 Thu, 15 Nov 2018 14:43:17 GMT Sore Loser Dan Gilbert And His Lawyers Go Full Blown Joan Crawford http://implode-explode.com/viewnews/2018-11-15_SoreLoserDanGilbertAndHisLawyersGoFullBlownJoanCrawford.html iehi-feed-64395 Wed, 14 Nov 2018 16:10:58 GMT Seminole Hard Rock Casino Robber Faces Life In Prison Thanks To Family  http://implode-explode.com/viewnews/2018-11-14_SeminoleHardRockCasinoRobberFacesLifeInPrisonThanksToFamily.html iehi-feed-64390 Tue, 13 Nov 2018 17:49:39 GMT Ganja REIT Outperforming Other Real Estate Investment Trusts http://implode-explode.com/viewnews/2018-11-13_GanjaREITOutperformingOtherRealEstateInvestmentTrusts.html iehi-feed-64389 Tue, 13 Nov 2018 17:39:29 GMT Borrowers Flee Empty Malls, and Bond Investors Brace for Fallout http://implode-explode.com/viewnews/2018-11-13_BorrowersFleeEmptyMallsandBondInvestorsBraceforFallout.html Things are getting worse for malls across America. So much worse that their owners are walking away early from struggling properties, a trend that has mortgage bond investors bracing for losses.

...

"Experienced borrowers will act in their economic interest and will turn in the keys to malls that don't merit further investment. They don't want to service the loan anymore," Edward Reardon, head of CMBS research at Deutsche Bank, said in a phone interview. "We think the number of malls that don't merit investment will expand."

This is happening because malls are losing anchor stores and as a result would have to significantly cut rents for existing occupants, Reardon said, noting that mall owners fleeing their properties early is a "relatively new phenomenon."

That may mean trouble ahead for investors. While the delinquency rate in the CMBS market is now at post-crisis lows, the mall-related pain may not show up for a couple years, according to analysts. That's because the securities with the highest exposure have loans that won't mature until 2021 or later.

]]>
iehi-feed-64388 Tue, 13 Nov 2018 17:31:49 GMT Anatomy of the Housing Downturn in Vancouver http://implode-explode.com/viewnews/2018-11-13_AnatomyoftheHousingDownturninVancouver.html iehi-feed-64387 Mon, 12 Nov 2018 18:26:46 GMT Manhattan Rabbi Sued For $21 Million For Turning Temple Into Disco http://implode-explode.com/viewnews/2018-11-12_ManhattanRabbiSuedFor21MillionForTurningTempleIntoDisco.html iehi-feed-64385 Sun, 11 Nov 2018 21:08:50 GMT Doug Noland: Back to Fundamentals http://implode-explode.com/viewnews/2018-11-11_DougNolandBacktoFundamentals.html For me, Back to Fundamentals means a return of "Periphery to Core Crisis Dynamics" - rising yields, widening Credit spreads, de-risking/deleveraging, faltering global liquidity and, to be sure, China... Odds are mounting that de-risking/deleveraging dynamics attain destabilizing momentum. Many hedge funds now have losses for the year, which forces managers to take down both risk and leverage in anticipation of year-end outflows. I believe deleveraging is having a growing impact on marketplace liquidity around the world - and across asset classes. Yields are rising and spreads are widening throughout global fixed-income. Unstable equities markets around the globe are indicating a fragile liquidity backdrop. And this week's $2.68 (4.3%) drop in WTI has all the appearances of a major leveraged speculating community panic liquidation (portending challenges for the - to this point - resilient junk bond market).

...

At this point, I seriously doubt the Fed has a solid grasp of the (direct and indirect) sources of the Trillions of global liquidity that have flooded into U.S. securities and asset markets over the past decade. I take them at their word that they don't discern the degree of leverage that would typically indicate a Bubble. Yet this has been the most atypical of global Bubbles. I am not convinced the Fed knows where to look for the leverage most germane to today's global Bubble. And, I'm compelled to add, the whole world seems oblivious. Speculative deleveraging is not on the Fed's radar, and this is a problem for the markets.

''

]]>
iehi-feed-64383 Sun, 11 Nov 2018 20:18:46 GMT New York City Raids Condo Building in Crackdown on Airbnb Rentals http://implode-explode.com/viewnews/2018-11-11_NewYorkCityRaidsCondoBuildinginCrackdownonAirbnbRentals.html A team of New York City law-enforcement officers swarmed a Manhattan condominium last month, issuing 27 notices of violations for illegal hotel use in one of the largest crackdowns on short-term rentals such as those listed on Airbnb.

The raid at the Atelier, a 46-story Midtown luxury tower, may be a sign of what's to come. New York and other cities are seeking to limit short-term rentals that can run afoul of local laws designed to limit hotel-style stays in residential buildings.

]]>
iehi-feed-64382 Sun, 11 Nov 2018 20:02:41 GMT Ocwen Stock Plummets Faster Than Contestants On A Japanese Game Show. http://implode-explode.com/viewnews/2018-11-11_OcwenStockPlummetsFasterThanContestantsOnAJapaneseGameShow.html iehi-feed-64381 Sat, 10 Nov 2018 18:33:11 GMT Manafort's Former Son-In-Law Busted Again In RE Scam http://implode-explode.com/viewnews/2018-11-10_ManafortsFormerSonInLawBustedAgainInREScam.html iehi-feed-64380 Sat, 10 Nov 2018 14:22:55 GMT Federal Trade Commission Busts $100M Real Estate Scam In Belize http://implode-explode.com/viewnews/2018-11-10_FederalTradeCommissionBusts100MRealEstateScamInBelize.html iehi-feed-64376 Fri, 09 Nov 2018 15:20:42 GMT The tragedy of Amazon's HQ2 selections, explained http://implode-explode.com/viewnews/2018-11-09_ThetragedyofAmazonsHQ2selectionsexplained.html America needs to find a way to do better than this. Being the home to a very large share of the world's most dynamic high tech companies is an incredible source of national strength, but in practical terms it does not benefit most Americans. With better policy it could.

...

Over a decade ago, housing economists Janna Matlack and Jacob Vigdor investigated the economic impact of unequal economic development and found that "in tight housing markets, the poor do worse when the rich get richer."

A "tight" housing market, in this case, is a market like greater New York or greater Washington, where the cost of buying a house greatly exceeds the actual construction costs of new buildings. The problem in markets like this is that when the rich get richer -- say because a new office complex opens and hires 20,000 to 30,000 people for six-figure salaries -- the price of scarce housing rises.

If you actually get a job at Amazon or have the kind of job skills that you plausibly could get a job at Amazon, this will pay off for you because you'll end up with higher wages that more than equal the higher rent. But if you work in a restaurant or cut hair or clean houses or a drive cab, you'll probably end up worse off.

]]>
iehi-feed-64371 Thu, 08 Nov 2018 16:46:35 GMT Former WFAN Host Craig Carton Convicted Of Fraud http://implode-explode.com/viewnews/2018-11-08_FormerWFANHostCraigCartonConvictedOfFraud.html iehi-feed-64370 Thu, 08 Nov 2018 14:27:53 GMT Ditech Holdings Booted From The New York Stock Exchange http://implode-explode.com/viewnews/2018-11-08_DitechHoldingsBootedFromTheNewYorkStockExchange.html iehi-feed-64369 Thu, 08 Nov 2018 02:45:38 GMT California rejected rent control, but Sacramento may do it http://implode-explode.com/viewnews/2018-11-07_CaliforniarejectedrentcontrolbutSacramentomaydoit.html Prop. 10. would have overturned the state's Costa Hawkins Rental Housing Act, which bans local governments from imposing rent control on any apartment built since 1995. It also bans rent control as well on any single-family residence that is being used as a rental unit.

Had Prop. 10 passed, the Sacramento effort would have covered all renters throughout the city.

Instead, the Sacramento rent control initiative likely will affect about 72 percent of the city's 106,000 rental units, based on numbers from the city of Sacramento rental housing inspection program, Pariset said...

The proposal, called the "Sacramento Community Stabilization and Fair Rent Charter Amendment," stipulates that annual allowable rent increases could range from a maximum of 2 percent per year up to a maximum of 5 percent each year.

]]>
iehi-feed-64368 Thu, 08 Nov 2018 02:07:01 GMT Acting US Attorney General Was Involved In A South Florida Patent Scam http://implode-explode.com/viewnews/2018-11-07_ActingUSAttorneyGeneralWasInvolvedInASouthFloridaPatentScam.html iehi-feed-64366 Wed, 07 Nov 2018 21:56:06 GMT Rudy Giuliani Claims He's Flat Broke After Making $9.5 Million Last Year http://implode-explode.com/viewnews/2018-11-07_RudyGiulianiClaimsHesFlatBrokeAfterMaking95MillionLastYear.html