Implode-Explode Heavy Industries news feed http://implode-explode.com/ Tracking the many faces of the global credit implosion. en-us iehi-feed-57089 Mon, 29 Jun 2015 21:05:21 GMT Puerto Rico governor says island can't pay its public debt http://implode-explode.com/viewnews/2015-06-29_PuertoRicogovernorsaysislandcantpayitspublicdebt.html iehi-feed-57088 Mon, 29 Jun 2015 20:50:42 GMT China Secures Veto Power as Members Sign Up to New Bank - Bloomberg Business http://implode-explode.com/viewnews/2015-06-29_ChinaSecuresVetoPowerasMembersSignUptoNewBankBloombergBusiness.html The AIIB gives China another platform to expand regional influence and augment its "New Silk Road" trade initiative. China's companies will get fresh opportunities in countries from Indonesia to Kazakhstan to counter the impact of slowing growth at home and sluggish demand for exports in Europe.

Major decisions for which China can exercise veto power include electing AIIB's president, increasing or decreasing the authorized capital stock, determining reserves, amending the agreement, and approving major operational and financial policies. Other matters will be decided by a simple majority.

... "Xi Jinping would like to see an early harvest from his One Belt, One Road project," Zhu said. "The AIIB provides a conduit for that. His reputation is now tied with the project."

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iehi-feed-57087 Mon, 29 Jun 2015 19:02:33 GMT Biggest one-day loss since 2011 for European stocks as Greek crisis deepens http://implode-explode.com/viewnews/2015-06-29_Biggestonedaylosssince2011forEuropeanstocksasGreekcrisisdeepens.html iehi-feed-57086 Mon, 29 Jun 2015 19:01:08 GMT Panic Sets in Among Hardy Hedge Fund Investors Remaining in Greece http://implode-explode.com/viewnews/2015-06-29_PanicSetsinAmongHardyHedgeFundInvestorsRemaininginGreece.html ... the question of what happens when the markets do open is particularly acute for the hedge fund investors -- including luminaries like David Einhorn and John Paulson -- who have collectively poured more than 10 billion euros, or $11 billion, into Greek government bonds, bank stocks and a slew of other investments... "People are freaking out," said Mr. Papapolitis [a lawyer to hedge funds], 32, his eyes red and his voice hoarse. "They have made some really big bets on Greece.

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Most of the hedge fund money in Greece is invested in about 30 billion euros of freshly minted Greek government debt securities that emerged from the 2012 restructuring of private sector bonds.

The largest investors include Japonica Partners in Rhode Island, the French investment funds H20 and Carmignac, and an assortment of other hedge funds like Farallon, Fortress, York Capital, Baupost, Knighthead and Greylock Capital.

... Mr. Einhorn at Greenlight Capital and Mr. Paulson, both of whom have invested and lost considerable sums in Piraeus Bank. Fairfax Financial Holdings and the distressed investor Wilbur Ross own a large stake in Eurobank, one Greece's four main banks.

Big positions have also been taken in some of Greece's largest companies. Fortress Capital bought $100 million in discounted debt belonging to Attica Holdings, Greece's largest ferryboat holder. York Capital has taken a 10 percent stake in GEK Terna, a prominent Greek construction and energy firm.

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iehi-feed-57084 Mon, 29 Jun 2015 15:17:08 GMT Greece in shock as banks shut after snap referendum call http://implode-explode.com/viewnews/2015-06-29_Greeceinshockasbanksshutaftersnapreferendumcall.html iehi-feed-57083 Mon, 29 Jun 2015 15:11:34 GMT The Day The Euro Died http://implode-explode.com/viewnews/2015-06-29_TheDayTheEuroDied.html Freezing ELA means that Greece can now only regard itself as a "user" of the Euro rather than a full member of the currency union. There is no legal means for countries to leave the Euro, but it seems that they can be frozen out...The ECB's statement makes no mention of bank solvency: the liquidity freeze responds to the failure of the talks and the decision by the Greek government to call a referendum. The freeze is therefore an overtly political move. The independence of the ECB has been shattered.

The "irrevocability" of the Euro is no longer credible. Using liquidity restriction to force a country to introduce capital controls is tantamount to suspending its Euro membership. So the sovereign debt of other distressed Eurozone countries will now carry a risk premium because of the possibility of membership suspension...

The Euro can no longer be regarded as a "single currency". It has been revealed for what it really is, a system of hard currency pegs between 19 -- or perhaps now 18 -- sovereign countries. And a system of hard currency pegs is fragile. The risk that the Eurozone will unravel is substantially increased.

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iehi-feed-57082 Mon, 29 Jun 2015 14:56:42 GMT German, Dutch banks: We're prepared for Greek financial fallout because 'we've been anticipating this for a long time' http://implode-explode.com/viewnews/2015-06-29_GermanDutchbanksWerepreparedforGreekfinancialfalloutbecauseweveb.html iehi-feed-57081 Mon, 29 Jun 2015 14:54:53 GMT Fed Should Keep Rates at Zero Until Mid-2016 to Avoid ‘Dark Corners,' IMF Paper Says http://implode-explode.com/viewnews/2015-06-29_FedShouldKeepRatesatZeroUntilMid2016toAvoidDarkCornersIMFPaperSa.html iehi-feed-57080 Mon, 29 Jun 2015 14:47:47 GMT Fed won't hike rates because they're too scared: Economist http://implode-explode.com/viewnews/2015-06-29_FedwonthikeratesbecausetheyretooscaredEconomist.html iehi-feed-57079 Mon, 29 Jun 2015 14:37:42 GMT Grisis - Krugman Would Vote "No" http://implode-explode.com/viewnews/2015-06-29_GrisisKrugmanWouldVoteNo.html iehi-feed-57077 Sun, 28 Jun 2015 18:25:39 GMT Greece Will Close Banks to Stem Flood of Withdrawals http://implode-explode.com/viewnews/2015-06-28_GreeceWillCloseBankstoStemFloodofWithdrawals.html Greece will keep its banks and stock market closed on Monday and place restrictions on the withdrawal and transfer of money, banking executives said Sunday night, as Athens tries to keep its financial crisis from growing worse.

The government's decision to close banks temporarily and impose other so-called capital controls came hours after the European Central Bank said it would not expand an emergency loan program that has been propping up Greek banks in recent weeks while the government was trying to reach a new debt deal with international creditors.

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iehi-feed-57076 Sun, 28 Jun 2015 14:41:23 GMT Here's why any Greek debt deal will amount to nothing - Satyajit Das http://implode-explode.com/viewnews/2015-06-28_HereswhyanyGreekdebtdealwillamounttonothingSatyajitDas.html iehi-feed-57075 Sun, 28 Jun 2015 14:14:22 GMT Greece: Why There Can Be No Winners in the Grexit Game http://implode-explode.com/viewnews/2015-06-28_GreeceWhyThereCanBeNoWinnersintheGrexitGame.html iehi-feed-57074 Sun, 28 Jun 2015 14:03:20 GMT The migrant crisis, Islamist terrorism, Grexit and Brexit: a perfect storm of crises blows apart European unity http://implode-explode.com/viewnews/2015-06-28_ThemigrantcrisisIslamistterrorismGrexitandBrexitaperfectstormofc.html iehi-feed-57073 Sun, 28 Jun 2015 02:12:33 GMT Russia's Pivot to China Is Real http://implode-explode.com/viewnews/2015-06-27_RussiasPivottoChinaIsReal.html iehi-feed-57072 Sun, 28 Jun 2015 00:53:31 GMT China cuts interest rates again to support economy http://implode-explode.com/viewnews/2015-06-27_Chinacutsinterestratesagaintosupporteconomy.html China's central bank cut lending rates for the fourth time since November and trimmed the amount of cash that some banks must hold as reserves, stepping up efforts to support an economy that is headed for its poorest performance in a quarter century.

The People's Bank of China (PBOC) said on its website on Saturday that it was lowering the one-year benchmark bank lending rate by 25 basis points to 4.85 percent, and reducing the one-year benchmark deposit rate by 25 basis points to 2 percent. The bank lowered the reserve requirement ratio (RRR) for banks lending to the farm sector and small and medium-sized enterprises by 50 basis points.

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iehi-feed-57071 Sun, 28 Jun 2015 00:51:53 GMT Germany says surprise Greek referendum plan shuts door on negotiations http://implode-explode.com/viewnews/2015-06-27_GermanysayssurpriseGreekreferendumplanshutsdooronnegotiations.html iehi-feed-57070 Sat, 27 Jun 2015 15:05:30 GMT JPMorgan Chase Quits 5 1/2 Year Foreclosure Battle 90 Minutes Before Trial To Avoid Castration By The Court http://implode-explode.com/viewnews/2015-06-27_JPMorganChaseQuits512YearForeclosureBattle90MinutesBeforeTrialTo.html iehi-feed-57069 Sat, 27 Jun 2015 14:12:24 GMT Why It Won't Be a Default If Greece Misses IMF Payment Next Week http://implode-explode.com/viewnews/2015-06-27_WhyItWontBeaDefaultIfGreeceMissesIMFPaymentNextWeek.html iehi-feed-57068 Sat, 27 Jun 2015 14:09:43 GMT Tsipras Calls Referendum on Greek Debt Deal for July 5 http://implode-explode.com/viewnews/2015-06-27_TsiprasCallsReferendumonGreekDebtDealforJuly5.html Greek Prime Minister Alexis Tsipras called a referendum on the terms offered by creditors for the latest aid package, saying they're seeking to humiliate the Greek people who must provide a democratic response.

...

Later on Saturday, European finance ministers were due to discuss details of their latest proposal, which would unlock 15.5 billion euros ($17.3 billion) and extend Greece's program through November, in return for a commitment to pension cuts and higher taxes that Tsipras opposes.

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