Implode-Explode Heavy Industries news feed http://implode-explode.com/ Tracking the many faces of the global credit implosion. en-us iehi-feed-61957 Sun, 26 Mar 2017 16:07:58 GMT Condo Flippers in Miami-Dade Left Twisting in the Wind http://implode-explode.com/viewnews/2017-03-26_CondoFlippersinMiamiDadeLeftTwistingintheWind.html Miami-Dade's spectacular condo flipping mania is in turmoil, with sales plunging, inventory-for-sale soaring, and new supply flooding the market... In February, existing home sales of all types fell 10% year-over-year, to 1,835 homes. These sales "do not include Miami's multi-billion dollar new construction condo market," the Miami Association of Realtors clarified in its report on March 23.

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[The current high] inventory [which is 2x the level in 2013] understates the total number of condos for sale. It only includes units listed for sale on the Multiple Listing Service (MLS). But developers normally don't list their new units on the MLS, and thus they're not included in the above chart.

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iehi-feed-61955 Sun, 26 Mar 2017 15:49:20 GMT Bridgewater Releases Report on Populism http://implode-explode.com/viewnews/2017-03-26_BridgewaterReleasesReportonPopulism.html iehi-feed-61954 Sun, 26 Mar 2017 15:38:05 GMT The Swamp Drains Trump - KUNSTLER http://implode-explode.com/viewnews/2017-03-26_TheSwampDrainsTrumpKUNSTLER.html iehi-feed-61953 Sun, 26 Mar 2017 15:36:52 GMT Trump's path forward only gets tougher after health-care fiasco http://implode-explode.com/viewnews/2017-03-26_Trumpspathforwardonlygetstougherafterhealthcarefiasco.html ... others in the party acknowledged the political damage sustained by pulling the House bill, particularly for a president who had touted his own dealmaking prowess... While Republicans broadly share the goal of Trump's promised "big tax cuts," the president will have to bridge many of the same divides within his own party that sank the attempted overhaul of the Affordable Care Act. And without savings anticipated from the health-care bill, paying for the "massive" cuts Trump has promised for corporations and middle-class families becomes considerably more complicated.

Meanwhile, other marquee agenda items, including a $1 trillion investment in roads and other infrastructure and proposed crackdowns on both legal and illegal immigration, will require the support of Democrats, many of whom have been alienated by the highly partisan start to Trump's tenure.''

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iehi-feed-61952 Sun, 26 Mar 2017 15:28:48 GMT Week in Review: Stocks See Worst Week Since Election as Trump Dealt Setback With Health-Care Bill http://implode-explode.com/viewnews/2017-03-26_WeekinReviewStocksSeeWorstWeekSinceElectionasTrumpDealtSetbackWi.html iehi-feed-61951 Sat, 25 Mar 2017 15:25:26 GMT "It Was a Very Bad Earnings Season" (Again) http://implode-explode.com/viewnews/2017-03-25_ItWasaVeryBadEarningsSeasonAgain.html ``The recovery in earnings is as lackluster as the recovery in economy, a more constructed relationship where stocks are concerned. That leaves share prices, in general, operating on the far end of the probability spectrum; where everything has to go just right in the near future, including whatever may come out of Trump "stimulus" and economic policies. EPS, however, suggests, as the calculations for GDP potential, that that would be a very low probability outcome, including a high risk of "something" going wrong all over again just like it was in 2014.

For shareholders, that leaves them in a precarious position expecting something that just isn't very likely. Worse, any objective review of economic prospects for years before suggested the very same, meaning that nothing has really changed in terms of the long run except actual reported earnings which are supposed to matter more.''

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iehi-feed-61950 Sat, 25 Mar 2017 15:21:23 GMT Greece to Break Off Face-to-Face Talks as Issues Persist http://implode-explode.com/viewnews/2017-03-25_GreecetoBreakOffFacetoFaceTalksasIssuesPersist.html Greece and the institutions managing its bailout review will break off negotiations in Brussels without having cleared a path to conclude the deliberations that would release needed rescue funds.

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Greece is edging closer to a repeat of the 2015 drama that pushed Europe's most indebted state to the edge of economic collapse, as the government in Athens and its creditors disagree over reforms to the pension system and the labor and energy markets. Greece needs to complete the review in order to get the next portion of its aid payment before it has more than 7 billion euros ($7.6 billion) of bonds come due in July.

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iehi-feed-61949 Sat, 25 Mar 2017 15:19:22 GMT A ‘deaths of despair' crisis is gripping America http://implode-explode.com/viewnews/2017-03-25_AdeathsofdespaircrisisisgrippingAmerica.html The Americans we are talking about are white and middle class. They are aged 45-55. They are losing the battle against heart disease and cancer, and they are succumbing to drugs, alcohol and suicide at rates unseen in modern history or in other developed countries.

"The combined effect means that mortality rates of whites with no more than a high school degree, which were around 30 percent lower than mortality rates of blacks in 1999, grew to be 30 percent higher than blacks by 2015," Case and Deaton wrote.

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iehi-feed-61947 Sat, 25 Mar 2017 15:10:42 GMT Death of the American Dream? Life In Post-Crisis America http://implode-explode.com/viewnews/2017-03-25_DeathoftheAmericanDreamLifeInPostCrisisAmerica.html iehi-feed-61946 Sat, 25 Mar 2017 15:03:10 GMT Why the Retail Apocalypse Has Only Just Begun... http://implode-explode.com/viewnews/2017-03-25_WhytheRetailApocalypseHasOnlyJustBegun.html iehi-feed-61945 Fri, 24 Mar 2017 03:00:52 GMT Sovereign Debt Crises Simmer At Opposite Ends of the Global Pecking Order: The U.S., and Greece http://implode-explode.com/viewnews/2017-03-23_SovereignDebtCrisesSimmerAtOppositeEndsoftheGlobalPeckingOrderTh.html On one side of the Atlantic, we have the United States of America, which triggered yet another debt ceiling disaster last Thursday when the US government's maximum allowable debt reset to just over $20 trillion. Of course, the US national debt is pretty much already at $20 trillion... It's a repeat of what happened in 2015. And 2013. And 2011. Pretty amazing to consider that the "richest" country in the world has to plunder retirement funds in order to keep the lights on.

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Greece has had nine different governments since 2009. At least thirteen austerity measures. Multiple bailouts. Severe capital controls. And a full-out debt restructuring in which creditors accepted a 50% loss. Yet despite all these measures GREECE IS STILL IN A DEBT CRISIS.

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iehi-feed-61943 Thu, 23 Mar 2017 21:09:28 GMT Lavish EU 60th Celebration Will Skirt Issues in Stumbling Italy, the Host Country http://implode-explode.com/viewnews/2017-03-23_LavishEU60thCelebrationWillSkirtIssuesinStumblingItalytheHostCou.html "Italy was until very recently at the forefront of the European integration process," Luigi Zingales, professor of finance at University of Chicago Booth School of Business, said in an interview. "Today it's undoubtedly Europe's weakest link."

The economy grew just 0.9 percent last year, below the euro area's 1.7 percent, and unemployment is at 11.9 percent. A recent EU poll put Italy as the monetary union's second-most euro-skeptic state after Cyprus with only 41 percent saying the single currency is "a good thing." The average in the 19-member euro area is 56 percent.

That widespread disenchantment may be felt at elections due in about one year. A poll published on Tuesday by Corriere della Sera put support for the Five Star Movement, which calls for a referendum to ditch the euro, at a record 32.3 percent, well ahead of the ruling Democratic Party. Summit host Prime Minister Paolo Gentiloni has only been in power since December, when Matteo Renzi resigned after losing a constitutional reform referendum.

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iehi-feed-61941 Thu, 23 Mar 2017 20:53:03 GMT Renters Now Rule Over Half of U.S. Cities http://implode-explode.com/viewnews/2017-03-23_RentersNowRuleOverHalfofUSCities.html iehi-feed-61940 Thu, 23 Mar 2017 20:49:19 GMT Auto-loan quality to deteriorate further, forcing tighter underwriting http://implode-explode.com/viewnews/2017-03-23_Autoloanqualitytodeterioratefurtherforcingtighterunderwriting.html "Subprime credit losses are accelerating faster than the prime segment, and this trend is likely to continue as a result of looser underwriting standards by lenders in recent years," said Michael Taiano, a director at the credit-ratings agency.

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"The tightening of underwriting standards is likely a response to expected deterioration in used vehicle prices and the weaker credit performance experienced in the subprime segment," added Taiano.

Used-car price declines have accelerated more recently, which will likely pressure recovery values on defaulted loans and lease residuals, the analysts said.

One measure, NADA's Used-Vehicle Price Index, tracking wholesale prices of used vehicles up to eight years old, declined over 6% in 2016 and was down 8% year over year in February 2017, marking the eighth consecutive monthly decline.

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iehi-feed-61936 Thu, 23 Mar 2017 15:26:54 GMT Landmark Times Square Building Forecloses, As Latecomer Owners "Waste Away In Margaritavile" of RE Downturn http://implode-explode.com/viewnews/2017-03-23_LandmarkTimesSquareBuildingForeclosesAsLatecomerOwnersWasteAwayI.html A unit of Brookfield Asset Management foreclosed on a $60 million mezzanine loan after owners of the former music industry mecca [The Brill Building] failed to make a $5.6 million payment in November.

The owners -- including Allied Partners, Brickman & Associates, Israeli pension fund Halman-Aldubi and New York's Conway Capital -- got steamrolled by the weak retail leasing market. They'd hoped to cash in, or out, on the 180,000-square-foot landmark's 40,000 square feet of store space. But a possible deal with Jimmy Buffett's theme restaurant, Margaritaville, fell through.''

The below (courtesy of B.D.) is an excerpt of a July 2016 article, from when the new owners bought a $295 million stake in the building (it's not clear how large a share that represents). Regardless, this all sure looks "peaky" to us...

Brill Holdings, a partnership of real estate investment firm B+B Capital, Israel-based fashion chain Fox-Wizel and landlords Conway Capital and Schottenstein Realty, has bought into the landmarked Brill Building for $295 million, Commercial Observer has learned.

CO reported in August 2015 that the 175,000-square-foot building at 1619 Broadway between West 49th and West 50th Streets was in contract and as of today, Allied Partners and Brickman are co-owners of the 11-story building with Brill Holdings.

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iehi-feed-61935 Thu, 23 Mar 2017 00:08:39 GMT Matt Taibbi: Trump the Destroyer http://implode-explode.com/viewnews/2017-03-22_MattTaibbiTrumptheDestroyer.html Just a month or so into Trump's administration, one of the central promises of his campaign -- the killing off of the Affordable Care Act -- is in trouble. Trump's inability to hold coalitions together, or really do much of anything beyond generate TV ratings, is already showing. But just as it was last year when the punditocracy told him he'd made himself unelectable, Trump's ace in the hole may be that he doesn't care. His history is that when the playing field doesn't work for him, he moves it. The Framers may have designed the government to withstand bouts of popular madness, but there are no checks and balances against the power of celebrity. A president who is both a tyrant and disinterested in governance would have blown their minds.

"At some point, he just stopped appointing people," says an incredulous Hauser, the capital watchdog, at the end of February. "He's only made 30 appointments. That means he's still got over 1,000 empty posts. Nearly 200 ambassador posts are in limbo. He named Neil Gorsuch to the Supreme Court, but not a single judge beyond that -- with over 100 empty federal seats to be filled. Nobody knows what the hell is going on."

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iehi-feed-61934 Wed, 22 Mar 2017 15:19:26 GMT Sears Admits It Has 'Substantial Doubt' About Its Ability To Survive http://implode-explode.com/viewnews/2017-03-22_SearsAdmitsItHasSubstantialDoubtAboutItsAbilityToSurvive.html Sears warned investors that it can't be sure that it will secure the liquidity it needs to keep its doors open. If it continues to experience losses it may not be able to access additional funds under its credit agreement, according to the filing.

Sears lost $2.2 billion in its latest fiscal year and hasn't turned an annual profit since 2010. Meanwhile, its liabilities have mounted to $13.2 billon...

Billionaire hedge fund manager Eddie Lampert took control of Sears in 2004 and said he would turn the company around by closing under-performing stores and focusing on profitability. Instead, Lampert's hedge fund has found itself repeatedly lending the company money to keep it alive.

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iehi-feed-61933 Wed, 22 Mar 2017 15:17:14 GMT Trump's Hard Sell on Health Care Hasn't Worked http://implode-explode.com/viewnews/2017-03-22_TrumpsHardSellonHealthCareHasntWorked.html iehi-feed-61932 Wed, 22 Mar 2017 14:58:27 GMT Existing home sales fall from 10-year high http://implode-explode.com/viewnews/2017-03-22_Existinghomesalesfallfrom10yearhigh.html January's sales pace was unrevised at 5.69 million units, which was the highest level since February 2007. Economists polled by Reuters had forecast sales decreasing 2.0 percent to a pace of 5.57 million units last month.

"Realtors are reporting stronger foot traffic from a year ago, but low supply in the affordable price range continues to be the pest that's pushing up price growth and pressuring the budgets of prospective buyers," said Lawrence Yun, the NAR's chief economist.

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iehi-feed-61931 Wed, 22 Mar 2017 14:42:18 GMT US "Too Big To Fail" Banks Top $1 Trillion - What Happens Next? http://implode-explode.com/viewnews/2017-03-22_USTooBigToFailBanksTop1TrillionWhatHappensNext.html