Implode-Explode Heavy Industries news feed http://implode-explode.com/ Tracking the many faces of the global credit implosion. en-us iehi-feed-60288 Sat, 23 Jul 2016 17:09:36 GMT Munich, Turkey, Baton Rouge, Nice, Brexit, Trump: It's all connected http://implode-explode.com/viewnews/2016-07-23_MunichTurkeyBatonRougeNiceBrexitTrumpItsallconnected.html Those cheering Brexit in the U.K., and welcoming a state of emergency in Turkey, were the ships that were supposed to be lifted by the rising tide of globalization, a promise that proved cruelly incorrect. They are now finding satisfaction in defeating their ruling classes, the people who believed those countries, and the world, were theirs to rule.

It's the same live wire that connects an Islamic State-inspired attack in Europe to a racially motivated shooting rampage in the U.S. The perpetrators are -- almost always -- those who felt they have very little left to lose in their lives. The cause they choose is almost a footnote to their act of anarchy.

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iehi-feed-60286 Sat, 23 Jul 2016 14:51:29 GMT Mexico May Be On Verge of Backing Peso With Silver: "Would Unleash a Global Power Shift" http://implode-explode.com/viewnews/2016-07-23_MexicoMayBeOnVergeofBackingPesoWithSilverWouldUnleashaGlobalPowe.html iehi-feed-60285 Sat, 23 Jul 2016 14:48:35 GMT Are Wall Street Banks in Trouble? You'd Never Know from the Headlines http://implode-explode.com/viewnews/2016-07-23_AreWallStreetBanksinTroubleYoudNeverKnowfromtheHeadlines.html One would never know by these headlines that big bank earnings were actually down year over year -- and in some cases, down dramatically. JPMorgan Chase earned $6.2 billion in the second quarter of 2016 versus $6.29 billion in the second quarter of 2015.

The news was far worse at Citigroup, despite the rosy headline at CNBC. Citigroup's second quarter profit fell 17.5 percent year over year, to $4 billion from $4.85 billion in the second quarter of 2015. Its revenues were the lowest in 14 years according to S&P Capital IQ.

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Now news of jobs cuts is spilling out with the Wall Street Journal reporting that Bank of America will make "$5 billion in annual cost cuts by 2018 as part of its strategy to deal with persistently low interest rates that are eating away at lenders' profitability."

The New York Post is calling job cuts at Goldman Sachs the worst since the financial crisis in 2008. Fortune's Stephen Gandel reported two days ago that Goldman had slashed a whopping "1,700 positions in the past three months."

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iehi-feed-60284 Sat, 23 Jul 2016 14:46:52 GMT Once-expanding EU prepares to contract for the first time in its history http://implode-explode.com/viewnews/2016-07-23_OnceexpandingEUpreparestocontractforthefirsttimeinitshistory.html iehi-feed-60283 Sat, 23 Jul 2016 00:49:14 GMT Pension Funds Are Underwater And Taxpayers Along http://implode-explode.com/viewnews/2016-07-22_PensionFundsAreUnderwaterAndTaxpayersAlong.html iehi-feed-60282 Sat, 23 Jul 2016 00:47:51 GMT Lagarde Seen Likely to Avoid Jail Time, Keep IMF Job Amid Trial http://implode-explode.com/viewnews/2016-07-22_LagardeSeenLikelytoAvoidJailTimeKeepIMFJobAmidTrial.html iehi-feed-60281 Sat, 23 Jul 2016 00:46:42 GMT How Sub-Zero Government Bonds Turned the Hunt For Yield Upside Down http://implode-explode.com/viewnews/2016-07-22_HowSubZeroGovernmentBondsTurnedtheHuntForYieldUpsideDown.html iehi-feed-60280 Sat, 23 Jul 2016 00:37:35 GMT Japan joins China in opening a physical gold exchange, Amidst Japan Retail "Gold Rush" http://implode-explode.com/viewnews/2016-07-22_JapanjoinsChinainopeningaphysicalgoldexchangeAmidstJapanRetailGo.html The Tokyo Commodities Exchange (TOCOM) is joining with the Shanghai Gold Exchange (SGE) to become the second major physical gold market in Asia.  Beginning on July 25, the TOCOM will begin deliveries for spot contracts, and is the only gold exchange accepted for futures contracts in Japan.

Since Japanese bonds fell into negative yields, investors and consumers have been buying physical gold at incredible rates.  And now that their market will have an official gold exchange like the one that opened in Shanghai last year, the precious metal will become even more liquid and draw more customers into gold.

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iehi-feed-60279 Sat, 23 Jul 2016 00:32:15 GMT Denmark Faces ‘Out of Control' Housing Market http://implode-explode.com/viewnews/2016-07-22_DenmarkFacesOutofControlHousingMarket.html Denmark's biggest mortgage bank is warning there's a risk the housing market may get "out of control," especially around cities, as long-term negative interest rates make borrowers complacent.

"To be concrete, there is a danger that Danes go blind to the risk of rates ever rising again," Tore Stramer, chief analyst at Nykredit in Copenhagen, said in an e-mail. "That raises the risk of a major housing price decline, when rates at some point or other start to rise again."

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With no other country on the planet having experienced negative rates longer than Denmark, the distortions the policy is wreaking may provide a preview of what other economies face should they go down a similar path. Danes can get short-term mortgages at negative interest rates, and pay less to borrow for 30 years than the U.S. government.

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iehi-feed-60278 Sat, 23 Jul 2016 00:30:26 GMT U.S. sides with HSBC to block release of money laundering report http://implode-explode.com/viewnews/2016-07-22_USsideswithHSBCtoblockreleaseofmoneylaunderingreport.html iehi-feed-60276 Fri, 22 Jul 2016 00:08:17 GMT Toga! Toga! Toga! - Jared Dillon http://implode-explode.com/viewnews/2016-07-21_TogaTogaTogaJaredDillon.html Both candidates for [U.S.] president have increasingly grandiose visions for the sorts of things government should do, and I don't see any scenario in 2017 where the deficit doesn't widen sharply.

... the debt problem is most acute in Japan, obviously, where debt to GDP is now about 240%. Japan was insolvent at a debt-to-GDP ratio of 120%, so the rest is just gravy... What if the Ministry of Finance simply defaults to the BOJ?... This is in fact being seriously considered... Think about it: back when we started doing QE, people were freaking out about what would happen when the Fed sold bonds back into the market. That was never going to happen--that was never the intent at all.

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So if debt doesn't matter and we're going to build roads and trains and bridges to nowhere, it means that shorting this market is a huge waste of time. It will end badly someday, but keep in mind that people have been predicting disaster for the last 45 years, when Nixon took us off gold. We could have 15 more years of this crap... The obvious trade here is gold...''

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iehi-feed-60275 Thu, 21 Jul 2016 23:08:09 GMT The Entire Market is Being Driven by a "Once in History" Asset Bubble About to Burst http://implode-explode.com/viewnews/2016-07-21_TheEntireMarketisBeingDrivenbyaOnceinHistoryAssetBubbleAbouttoBu.html iehi-feed-60274 Thu, 21 Jul 2016 23:05:45 GMT PulteGroup soars on activist deal, buybacks http://implode-explode.com/viewnews/2016-07-21_PulteGroupsoarsonactivistdealbuybacks.html PulteGroup got a big boost from a strong quarterly report and saw shareholders drive the stock up after news that it struck a deal with activist investor Paul Singer's Elliott Management.

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As the housing sector was battered in the global financial crisis, Pulte stock suffered and never regained losses. The company's shares are down more than 30 percent from the beginning of 2007, after hitting an all time high of more than $40 a share in 2005 and after paring gains in 2008, never touched those highs again.

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iehi-feed-60273 Thu, 21 Jul 2016 22:27:34 GMT Chinese Company Midea Now Owns 85 Percent of German Robotics Company http://implode-explode.com/viewnews/2016-07-21_ChineseCompanyMideaNowOwns85PercentofGermanRoboticsCompany.html iehi-feed-60272 Thu, 21 Jul 2016 17:56:58 GMT Caribbean Dream: Cuba Legalizes Small and Medium Private Business http://implode-explode.com/viewnews/2016-07-21_CaribbeanDreamCubaLegalizesSmallandMediumPrivateBusiness.html iehi-feed-60271 Thu, 21 Jul 2016 14:01:25 GMT 'Crexit' warning as corporate debt seen ballooning to $75 trillion (ZIRP+NIRP NEEDED FOREVER!!) http://implode-explode.com/viewnews/2016-07-21_Crexitwarningascorporatedebtseenballooningto75trillionZIRPNIRPNE.html By 2020, business debt likely will climb to $75 trillion from its current $51 trillion level, according to S&P Global Ratings. Under normal conditions, that wouldn't be a major problem so long as credit quality stays high, interest rates and inflation remain low, and there are economic growth persists. However, the alternative is less pleasant should those conditions not persist. Should interest rates rise and economic conditions worsen, corporate America could be facing a major problem as it seeks to manage that debt...

Close to half of companies outside the financial sector are considered "highly leveraged," which is the lowest category for risk, and up to 5 percent of that group has negative earnings or cash flows. There already have been 100 debt defaults in 2016, the most since the financial crisis for the period.

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iehi-feed-60270 Thu, 21 Jul 2016 13:42:34 GMT U.S. Links Malaysian Prime Minister to Millions Stolen From Development Fund http://implode-explode.com/viewnews/2016-07-21_USLinksMalaysianPrimeMinistertoMillionsStolenFromDevelopmentFund.html The Justice Department filed lawsuits Wednesday to seize assets that it said were the result of $3.5 billion that was misappropriated from 1Malaysia Development Bhd., or 1MDB, a fund set up by Prime Minister Najib Razak in 2009 to boost the Malaysian economy.

The move sets up a rare confrontation between U.S. prosecutors and an important partner in the fight against terrorism. The moderate Muslim nation is also a counterpoint to China's rising ambitions in Asia.

Among the Justice Department's assertions: That some $1 billion originating with 1MDB was plowed into hotels; luxury real estate in Manhattan, Beverly Hills and London; fine art; a private jet and the 2013 film "The Wolf of Wall Street." Among those behind the spending, the lawsuit alleges, was Riza Aziz, stepson of Mr. Najib.

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The complaint reveals previously unknown allegations about the money that flowed into Mr. Najib's accounts, such as how prosecutors believe a Saudi prince acted as an intermediary for some of the money and the exact circuit funds followed between a handful of key offshore companies.

Mr. Najib has been at the center of the scandal surrounding 1MDB since The Wall Street Journal reported more than a year ago that hundreds of millions of dollars that originated with 1MDB flowed into his personal bank account. Mr. Najib has said he had done nothing wrong and that any suggestions of wrongdoing were political smears.

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iehi-feed-60269 Thu, 21 Jul 2016 00:44:00 GMT Investor cash levels highest in 15 years according: Survey http://implode-explode.com/viewnews/2016-07-20_Investorcashlevelshighestin15yearsaccordingSurvey.html iehi-feed-60268 Thu, 21 Jul 2016 00:35:12 GMT European Union: CETA trade deal with Canada in peril as German party to sue EU http://implode-explode.com/viewnews/2016-07-20_EuropeanUnionCETAtradedealwithCanadainperilasGermanpartytosueEU.html Centre-left Die Linke has launched legal action to block the controversial Comprehensive Economic and Trade Agreement (CETA) pact, saying it is unconstitutional under German law. 

The party's attempt to torpedo the hated deal is just the latest in a series of devastating trade blows for the EU, which is unravelling following the Brexit vote. 

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Earlier this month Canada's despairing Trade Minister Chrystia Freeland asked: "If the EU cannot do a deal with Canada, I think it is legitimate to say who the heck can it do a deal with?"

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Negotiations over the Transatlantic Trade and Investment Partnership (TTIP) have ground to a halt, with impatient American officials warning Brussels to stop dragging their heels.

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Britain will not be affected by either calamity after voting to leave the EU, and is now free to begin informal talks on sealing its own trade deals with Canada, the US and the rest of the world.

Theresa May has set up an independent trade department, headed by Dr Liam Fox, which has already been inundated requests for free trade agreements from the biggest economies across the globe.

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iehi-feed-60267 Wed, 20 Jul 2016 22:34:55 GMT The financial system is breaking down at an unimaginable pace http://implode-explode.com/viewnews/2016-07-20_Thefinancialsystemisbreakingdownatanunimaginablepace.html