Implode-Explode Heavy Industries news feed http://implode-explode.com/ Tracking the many faces of the global credit implosion. en-us iehi-feed-64693 Tue, 23 Apr 2019 15:02:01 GMT Notorious Miami Con Man Gets 9 Years Of Clutching Soap In Prison http://implode-explode.com/viewnews/2019-04-23_NotoriousMiamiConManGets9YearsOfClutchingSoapInPrison.html iehi-feed-64692 Sun, 21 Apr 2019 13:35:35 GMT Same-Sex Couples Face Systematic Lending Discrimination http://implode-explode.com/viewnews/2019-04-21_SameSexCouplesFaceSystematicLendingDiscrimination.html iehi-feed-64689 Thu, 18 Apr 2019 21:17:45 GMT Seth Meyers Rants At Elites and Political Dysfunction (4/17/19) http://implode-explode.com/viewnews/2019-04-18_SethMeyersRantsAtElitesandPoliticalDysfunction41719.html iehi-feed-64688 Thu, 18 Apr 2019 14:23:19 GMT Turkey's economy is spiraling as Erdogan's AKP requests new election http://implode-explode.com/viewnews/2019-04-18_TurkeyseconomyisspiralingasErdogansAKPrequestsnewelection.html Erdogan has espoused keeping interest rates down despite rising inflation, currently at more than 19 percent. Investors fear he will continue to pursue populist monetary policy after his party's unprecedented defeat in the local elections.

But more than the election results themselves, it is the substance of an economic reform package that is needed to calm markets, experts say. That effort has so far not gone well.

Of note, an investor discussion with Turkish Finance Minister Berat Albayrak during the IMF Spring Meetings in Washington DC last week received decidedly negative reviews.

Investors described Turkish officials as unprepared and lacking details, and a J.P. Morgan survey carried out during the event revealed that more than 80% of investors did not have confidence in Ankara's ability to turn things around.

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iehi-feed-64687 Wed, 17 Apr 2019 23:22:23 GMT Dow, S&P 500 and Nasdaq near records but stock-market volumes are the lowest in months -- Here's why http://implode-explode.com/viewnews/2019-04-17_DowSP500andNasdaqnearrecordsbutstockmarketvolumesarethelowestinm.html the recent resurgence for stocks after a more than six-month, corrective hiatus has many market participants questioning its durability, as trading volumes remain near the lowest levels of 2019.

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Some make the case that the dearth in trading activity reflects a lack of participation in the market by a broad swath of investors.

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iehi-feed-64686 Wed, 17 Apr 2019 15:06:14 GMT Donald Trump is 'Fighting us on Everything,' Will Resist Congressional Subpoenas for Financial Information: Report http://implode-explode.com/viewnews/2019-04-17_DonaldTrumpisFightingusonEverythingWillResistCongressionalSubpoe.html President Donald Trump is reportedly doing all he can to resist efforts by House Democrats to obtain documents and information relating to their multiple ongoing investigations into his administration and business dealings.

According to The Washington Post, both Trump's personal attorneys and White House counsel Pat Cipollone are preparing the ground for a legal fight to block any subpoenas from the various House committees running investigations and will not turn anything over to Congress.

Trump is already not complying with information requests related to security clearances, meeting with foreign leaders, and other topics his team says are covered by executive privilege, the Post reported, citing aides familiar with White House discussions.

"They are fighting us on everything now, Representative Jamie Raskin, a Maryland Democrat, told the publication. "It's an assault on the separation of powers and specifically the congressional oversight function."

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The House Financial Services Committee is exploring the Trump family finances and his relationship in particular with Deutsche Bank, which, despite his checkered history with debt continued to lend him and his company money over the years.

The House Ways and Means Committee is trying to draw out Trump's tax returns from the IRS amid suspicions of fraud, denied by the president. And the House Foreign Affairs Committee is looking into Trump's business relationships abroad to see if they have had any influence on his presidency.

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For example, the oversight committee has requested from Mazars, Trump's personal accountant, 10 years of his financial documents. The judiciary committee recently hit 81 people with information requests related to Trump.

It's obvious now (if it wasn't before) that Trump is hiding something big.

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iehi-feed-64684 Wed, 17 Apr 2019 12:04:01 GMT How New York Homeowners Are Scoring Free Houses During Foreclosure http://implode-explode.com/viewnews/2019-04-17_HowNewYorkHomeownersAreScoringFreeHousesDuringForeclosure.html iehi-feed-64682 Mon, 15 Apr 2019 19:26:35 GMT Goldman Sachs slashes compensation for employees as revenue drops http://implode-explode.com/viewnews/2019-04-15_GoldmanSachsslashescompensationforemployeesasrevenuedrops.html Goldman posted first-quarter revenue that missed analysts' expectations, dropping 13% to $8.81 billion amid a tougher market for trading and investing.

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The bank cut compensation and benefits set aside for employees in the first quarter by 20% to $3.26 billion, or about $90,780 for each of the bank's 35,900 workers. A year ago, that figure was $119,323 for each of the bank's 34,000 workers.

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Compensation has been sliding on Wall Street ever since post-financial crisis rules crimped risk taking and as automation and electronic trading take over more flows from clients. Under CEO David Solomon, who took over in October, the firm is reevaluating all of its businesses and has already started to pull back resources from parts of underperforming areas like commodities trading. ''

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iehi-feed-64679 Thu, 11 Apr 2019 22:18:31 GMT Fed minutes show re-starting QE purchases already on the table http://implode-explode.com/viewnews/2019-04-11_FedminutesshowrestartingQEpurchasesalreadyonthetable.html The minutes revealed a debate inside the Fed about when the bank should resume purchases of Treasurys after it ends it balance-sheet runoff... Several wanted to resume purchases "relatively soon," the minutes showed, but "some" preferred to let the average level of reserves decline naturally for awhile in the hopes that it would give the Fed a sense of underlying demand by banks.

The outcome of such a debate, though arcane, is important. Some outside critics contend the Fed balance-sheet process contributed to the stock-market meltdown in December. Senior Fed officials want to make sure whatever they do reduces instability in the U.S. financial system.

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iehi-feed-64673 Wed, 10 Apr 2019 22:20:49 GMT Vice President Mike Pence backs Trump's call to lower interest rates (DESPITE "BULLISH" ECONOMY) http://implode-explode.com/viewnews/2019-04-10_VicePresidentMikePencebacksTrumpscalltolowerinterestratesDESPITE.html iehi-feed-64672 Wed, 10 Apr 2019 19:25:56 GMT Quicken Loans Is Named The Junk Bond King Of Detroit http://implode-explode.com/viewnews/2019-04-10_QuickenLoansIsNamedTheJunkBondKingOfDetroit.html iehi-feed-64669 Mon, 08 Apr 2019 14:35:28 GMT Ray Dalio: Capitalism's Income Inequality Is (The Real) National Emergency http://implode-explode.com/viewnews/2019-04-08_RayDalioCapitalismsIncomeInequalityIsTheRealNationalEmergency.html While President Donald Trump is focused on the national emergency he's declared to secure the southern U.S. border, the billionaire founder of the world's biggest hedge fund is more worried about losing the American dream.

Capitalism must be reformed because it's not producing enough opportunities for most Americans, creating an income gap that threatens to spark conflict, Ray Dalio, the Bridgewater Associates co-chairman, said in an interview airing Sunday on CBS's "60 Minutes."

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Dalio, expressed similar sentiments in an essay posted April 4 on LinkedIn. He pointed to statistics including that the bottom 60 percent of income-earners in the U.S. keep falling further behind the top 40 percent -- and that the percentage of children who grow up to earn more than their parents has fallen to 50 percent today from 90 percent in 1970.

The income gap is about as high as ever, and the wealth gap is the highest since the late 1930s because the wealth of the top 1 percent of the population is more than that of the bottom 90 percent combined, Dalio said.

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iehi-feed-64668 Mon, 08 Apr 2019 04:55:43 GMT Pinterest Said to Price I.P.O. Below Last Private Valuation http://implode-explode.com/viewnews/2019-04-08_PinterestSaidtoPriceIPOBelowLastPrivateValuation.html Pinterest plans to set a price range for its initial public offering that will value it at below the $12 billion that private investors last pegged the company at, according to a person with knowledge of the situation.

The digital pin board company is preparing to put out a filing on Monday with the price range for its I.P.O., said the person, who declined to be identified because the details are confidential. Pinterest, which was valued at $12 billion in 2017 by venture capitalists and other private investors, is part of a horde of high-profile but unprofitable tech start-ups that are now moving toward the public market.

A stock market valuation of less than $12 billion for Pinterest raises questions about investor demand for these companies. Lyft, the ride-hailing company that is deeply unprofitable, went public last month amid a great deal of hype -- until its shares promptly fell below its offering price on its second day of trading. The stock has since recovered.

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iehi-feed-64667 Mon, 08 Apr 2019 04:53:11 GMT Gold Bullion Latest News: China Adds for 4th Month http://implode-explode.com/viewnews/2019-04-08_GoldBullionLatestNewsChinaAddsfor4thMonth.html China, the world's top gold producer and consumer, is facing signs of a slowing economy, even as progress is being made in trade negotiations with the U.S. The latest data from the PBOC indicate that the country has resumed adding gold to its reserves at a steady pace, much like the period from mid-2015 to October 2016, when the country boosted holdings almost every month. Should China continue to accumulate bullion at the current rate over 2019, it may end the year as the top buyer after Russia, which added 274 tons in 2018.

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Governments worldwide added 651.5 tons of bullion in 2018, the second-highest total on record, according to the World Gold Council. ... Spot gold fell for a second month in March even after the Federal Reserve signaled it would pause rate hikes, which led to a surge in equities instead.

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China has previously gone long periods without revealing increases in gold holdings. When the central bank announced a 57 percent jump in reserves to 53.3 million ounces in mid-2015, it was the first update in six years. The latest pause was from October 2016 until December last year.

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iehi-feed-64665 Sat, 06 Apr 2019 16:22:29 GMT Queens Foreclosures Skyrocket In First Quarter Of 2019 http://implode-explode.com/viewnews/2019-04-06_QueensForeclosuresSkyrocketInFirstQuarterOf2019.html iehi-feed-64660 Wed, 03 Apr 2019 00:28:48 GMT Why bitcoin is surging http://implode-explode.com/viewnews/2019-04-02_Whybitcoinissurging.html iehi-feed-64659 Wed, 03 Apr 2019 00:24:56 GMT Ken Griffin's $238 million condo purchase distorts picture of ailing NYC real estate market http://implode-explode.com/viewnews/2019-04-02_KenGriffins238millioncondopurchasedistortspictureofailingNYCreal.html iehi-feed-64657 Tue, 02 Apr 2019 21:02:12 GMT Brexit votes: MPs fail to back (EIGHT ALTERNATIVE(!)) proposals again http://implode-explode.com/viewnews/2019-04-02_BrexitvotesMPsfailtobackEIGHTALTERNATIVEproposalsagain.html Mrs May's plan for the UK's departure has been rejected by MPs three times. As a result of that failure, she was forced to ask the EU to agree to postpone Brexit from the original date of 29 March.

Meanwhile, Parliament took control of the process away from the government in order to hold a series of votes designed to find an alternative way forward.

Last week, eight options were put to MPs, but none was able to command a majority, and on Monday night, a whittled down four were rejected too.

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Those pushing for a customs union argued that their option was defeated by the narrowest margin, only three votes.

It would see the UK remain in the same system of tariffs - taxes - on goods as the rest of the EU - potentially simplifying the issue of the Northern Ireland border, but preventing the UK from striking independent trade deals with other countries.

Those in favour of another EU referendum pointed out that the motion calling for that option received the most votes in favour, totalling 280.

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iehi-feed-64655 Mon, 01 Apr 2019 20:49:42 GMT Crypto Is About To Look More Like Your Bank http://implode-explode.com/viewnews/2019-04-01_CryptoIsAboutToLookMoreLikeYourBank.html Last month, the Financial Action Task Force (FATF) proposed updated standards that would require virtual asset providers (VASPs), including cryptocurrency exchanges, not only to verify their customers' identities, but also to identify the recipients of their customers' transfers. FATF is an inter-governmental body that sets global standards relating to anti-money laundering and combatting the financing of terrorism (AML/CFT). Last year, it announced that member states would have to start regulating their virtual asset markets and signaled that more precise instructions would be coming in 2019.

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In most well-regulated jurisdictions, crypto exchanges already verify their customers' identities. This new FATF standard would mean that crypto exchanges would also need customers to name any person to whom they transfer funds. Assuming the recipient uses a digital wallet provided by another crypto exchange, the originating exchange will have to give the receiving exchange identifying information on the originating customer.

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As good as an approved wallet system might sound, it will likely push a significant amount of transactions out of the regulated, custodial service provider environment and into spaces where regulators and law enforcement have little reach. As I wrote last year, two crypto ecosystems are evolving; one above board and AML/CFT-compliant, and the other one underground and relatively anonymous. New decentralized exchanges, the experimental crypto trading platforms that usually do not verify customer identity, fall into the latter category, although it is possible to build compliance layers for them. Also, so-called "privacy coins" will likely proliferate more in the unregulated space.

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iehi-feed-64654 Mon, 01 Apr 2019 20:27:30 GMT Lyft's Stock Falling Is a Worrying Sign for Other Unicorns http://implode-explode.com/viewnews/2019-04-01_LyftsStockFallingIsaWorryingSignforOtherUnicorns.html [The underwriting bankers] will all be watching anxiously over the coming days to see whether the stock recovers, said Tom White, a senior analyst at D.A. Davidson. "At an emotional level I'm sure the company and the bankers don't want to see it break the price that it went out at," he said. "It will take a couple of days before we get a clear sense of where it stabilizes."

Lyft is a model of the unicorn class of companies that secured valuations in excess of $1 billion from private investors and will soon seek validation from the public. These are high-growth companies, with even higher propensities to burn through capital, and they're built around compelling narratives of world-altering potential.

Lyft has said it can fundamentally alter transportation and eventually usher in a world of self-driving cars. The same can be said of Uber, which is expected to publicly file paperwork for its own IPO this month. Slack makes similar promises of reinventing how workers communicate and Postmates of how people shop for food and other goods.

Such story-driven stocks tend to be volatile and polarizing among investors, said Jake Fuller, managing director of equities research at Guggenheim Securities LLC. "People kind of shake out on one side or the other on the debate."

At the center of the debate is how to value a company that lost almost $1 billion last year. Even after the declines, the market still values Lyft above its last private valuation. On a price-to-sales basis, Lyft's market cap far exceeds that of other internet companies, wrote Mandeep Singh, an analyst for Bloomberg Intelligence. "The reality is setting in," he wrote. "The valuation is too high for Lyft."

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