Implode-Explode Heavy Industries news feed http://implode-explode.com/ Tracking the many faces of the global credit implosion. en-us iehi-feed-56229 Thu, 05 Mar 2015 15:24:46 GMT Liquidity evaporates in China as 'fiscal cliff' nears http://implode-explode.com/viewnews/2015-03-05_LiquidityevaporatesinChinaasfiscalcliffnears.html A budget squeeze is already emerging as the property slump drags on. Zhiwei Zhang says land revenues fell 21pc in the fourth quarter of last year. "The decline of fiscal revenue is the top risk in China and will lead to a sharp slowdown," he said.

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New regulations came into force in January that prohibit local governments from raising money off-books. If enforced fully, this will tighten fiscal policy by 5.5pc of GDP this year, roughly five times the dose in austerity in the UK each year since the Lehman crisis. That is the sort of fiscal contraction imposed on Greece.

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China cannot easily crank up monetary stimulus to cushion the fiscal shock because the "efficiency" of credit has collapsed. The economy is saturated. Extra growth generated by each extra yuan of loans has dropped from a ratio of 0.8 to 0.2 since 2008.

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Global markets greeted the recent cuts in lending rates and the Reserve Requirement Ratio (RRR) as evidence that China is turning on the spigot once again. This is a misunderstanding. The RRR cut adds no net stimulus. It offsets monetary tightening that occurs automatically as the central bank dips into the country's €3.8 trillion foreign reserves to shore up the currency.

China is no longer buying US Treasuries and global bonds. It has become a net seller, stepping in to offset accelerating outflows of capital. The capital deficit reached a record $91bn in the fourth quarter.

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Asia is "tapering" at a pace of $25bn a month. You could argue that this neutralises half the quantitative easing soon to come from the European Central Bank.... A country in China's predicament normally needs a devaluation, yet China has fixed the yuan - through a "dirty float" - to a soaring US dollar. The yuan has risen 60pc against the Japanese yen and 90pc against Brazil's real since mid-2012.

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iehi-feed-56180 Fri, 27 Feb 2015 16:18:47 GMT China's Real Estate Bust Worse Than It Seems http://implode-explode.com/viewnews/2015-02-27_ChinasRealEstateBustWorseThanItSeems.html A record decline in new-home prices in January has, as my Bloomberg News colleagues reported this week, prompted Chinese officials to contemplate additional stimulus measures, including reducing the required down payments on second homes and eliminating sales tax after only two years of ownership instead of five.

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"This is a supply-side correction in property," Yao writes in a new report. "While housing sales will likely improve this year, construction and all the industrial activity that depends on it will not. Therefore an upturn in housing sales will not deliver as much of a boost to growth."

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iehi-feed-56169 Thu, 26 Feb 2015 02:26:09 GMT Morgan Stanley to pay $2.6 billion to settle mortgage-bond claims http://implode-explode.com/viewnews/2015-02-25_MorganStanleytopay26billiontosettlemortgagebondclaims.html iehi-feed-56147 Mon, 23 Feb 2015 20:36:44 GMT Sales of U.S. existing homes decrease to nine-month low http://implode-explode.com/viewnews/2015-02-23_SalesofUSexistinghomesdecreasetoninemonthlow.html Purchases slowed 4.9 percent to a 4.82 million annualized rate, the least since April, after a 5.07 million pace that was higher than previously estimated, figures from the National Association of Realtors showed Monday in Washington. The median forecast of 74 economists in a Bloomberg survey called for a fall to 4.95 million.

The number of houses on the market dropped in January for a second straight month compared with last year and price increases were broad-based, making it difficult for first-time and younger buyers to get into the market. Gains in employment and historically low mortgage rates will probably sustain demand, while rising household formation and a shortage in rental supply should also provide a boost this year over last.

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iehi-feed-56139 Mon, 23 Feb 2015 15:56:19 GMT The People Want Tiny Houses. Zoning Boards, Not So Much http://implode-explode.com/viewnews/2015-02-23_ThePeopleWantTinyHousesZoningBoardsNotSoMuch.html iehi-feed-56125 Fri, 20 Feb 2015 18:55:58 GMT As Goes California's Housing Market, So Will Go the Nation's | Mandelman Matters http://implode-explode.com/viewnews/2015-02-20_AsGoesCaliforniasHousingMarketSoWillGotheNationsMandelmanMatters.html iehi-feed-56104 Wed, 18 Feb 2015 19:32:27 GMT China new home prices drop at record pace http://implode-explode.com/viewnews/2015-02-18_Chinanewhomepricesdropatrecordpace.html iehi-feed-56052 Tue, 10 Feb 2015 14:12:02 GMT Renters Are Majority in Big U.S. Cities http://implode-explode.com/viewnews/2015-02-10_RentersAreMajorityinBigUSCities.html iehi-feed-56048 Tue, 10 Feb 2015 13:21:52 GMT The Canadian Housing Market In 6 Simple Charts http://implode-explode.com/viewnews/2015-02-10_TheCanadianHousingMarketIn6SimpleCharts.html iehi-feed-56014 Wed, 04 Feb 2015 22:38:33 GMT The Sad Chart of U.S. Home-Ownership http://implode-explode.com/viewnews/2015-02-04_TheSadChartofUSHomeOwnership.html iehi-feed-55967 Wed, 28 Jan 2015 15:54:25 GMT Seven Consecutive Downward Revisions To New Home Sales Data Place Serious Doubts On Report Accuracy http://implode-explode.com/viewnews/2015-01-28_SevenConsecutiveDownwardRevisionsToNewHomeSalesDataPlaceSeriousD.html iehi-feed-55957 Tue, 27 Jan 2015 15:16:17 GMT Gary Shilling: Nothing Is Going to Save the Housing Market http://implode-explode.com/viewnews/2015-01-27_GaryShillingNothingIsGoingtoSavetheHousingMarket.html iehi-feed-55904 Tue, 20 Jan 2015 13:51:30 GMT ‘Twas the Night Before Christmas -- 2014 (A Political & Social Year-in-Review) | Mandelman Matters http://implode-explode.com/viewnews/2015-01-20_TwastheNightBeforeChristmas2014APoliticalSocialYearinReviewMande.html iehi-feed-55860 Wed, 14 Jan 2015 15:56:53 GMT Homebuilders undergo Wall Street deconstruction http://implode-explode.com/viewnews/2015-01-14_HomebuildersundergoWallStreetdeconstruction.html iehi-feed-55836 Sat, 10 Jan 2015 03:25:51 GMT Chinese Real-Estate Default Rocks Junk Bonds http://implode-explode.com/viewnews/2015-01-09_ChineseRealEstateDefaultRocksJunkBonds.html iehi-feed-55824 Thu, 08 Jan 2015 18:39:07 GMT Bill Black: Mortgage Appraisal Fraud is Baaack... Because Bank Execs Profit From It http://implode-explode.com/viewnews/2015-01-08_BillBlackMortgageAppraisalFraudisBaaackBecauseBankExecsProfitFro.html iehi-feed-55821 Wed, 07 Jan 2015 16:23:19 GMT Obama Said to Announce Cut in FHA Mortgage Insurance Premiums http://implode-explode.com/viewnews/2015-01-07_ObamaSaidtoAnnounceCutinFHAMortgageInsurancePremiums.html iehi-feed-55820 Wed, 07 Jan 2015 16:21:41 GMT Apartment glut may tame rising rents http://implode-explode.com/viewnews/2015-01-07_Apartmentglutmaytamerisingrents.html iehi-feed-55776 Wed, 31 Dec 2014 17:34:36 GMT US Home Price Growth Slows for 11th Consecutive Month http://implode-explode.com/viewnews/2014-12-31_USHomePriceGrowthSlowsfor11thConsecutiveMonth.html iehi-feed-55736 Wed, 24 Dec 2014 16:03:24 GMT The Housing Recovery Remains Cancelled Due To 6 Months Of Downward Revisions http://implode-explode.com/viewnews/2014-12-24_TheHousingRecoveryRemainsCancelledDueTo6MonthsOfDownwardRevision.html