IEHI Feed: The Bank Implode-o-Meter Tracking the many faces of the global credit implosion. en-us iehi-feed-63029 Mon, 25 Sep 2017 03:55:56 GMT German election results: Disappointing victory for Angela Merkel as CDU sinks, nationalist AfD hits 12.6% iehi-feed-63026 Sun, 24 Sep 2017 01:07:29 GMT The Great Corporate Cash Shell Game ... the amount of bonds issued by these companies has surged, rising 66 percent from mid-2009 to $5.24 trillion of bonds outstanding as of the end of June, Federal Reserve data show. .. That isn't necessarily a recipe for default because a large chunk of this is an exercise in financial engineering aimed at avoiding onerous taxes [by keeping earned profits offshore]. But it has consequences. First, it limits the benefit to the economy if and when those tax policies are changed because much of the money has already been released through the bond market.

And second, to the extent that companies have cash, they're not using enough of it for exciting projects. There hasn't been a tremendous wave of innovation or salary increases. Instead, companies have repurchased billions of dollars of their own shares, which is great for the stock market but doesn't do a whole lot to bolster economic growth.''

iehi-feed-63024 Sat, 23 Sep 2017 15:24:02 GMT Housing Affordability NEVER Worse...By a Long-Shot - M. Hanson iehi-feed-63023 Sat, 23 Sep 2017 15:20:56 GMT "Puerto Rico Back in the 18th Century" - Kunstler iehi-feed-63018 Fri, 22 Sep 2017 20:47:54 GMT Why didn't Equifax protect your data? Because corporations have all the power iehi-feed-63017 Fri, 22 Sep 2017 17:36:54 GMT Feierstein: Entire Global Economy Now a Ponzi; New Crisis On Horizon Stock markets today are at all time highs, housing markets globally have been artificially reflated and companies who have not ever made a penny of profit are being floated for eye-watering sums.

When everybody is thinking the same thing, it is likely that no one is really thinking at all. Co-founder and presenter, Ross Ashcroft interviews investor, hedge fund manager and author of Planet Ponzi, Mitch Feierstein.


Feierstein cited the Resolution Trust debacle as an example of what should have happened. The Trust was declared insolvent as a consequence of the 1980s Savings and Loans Crisis and up to 300 bankers were jailed.

"This is what should have happened this time around, instead of taking hundreds of trillions of dollars taxpayer's money and placing the taxpayer at incredible peril and just added liquidity to the markets," he said. "Giving more money to an insolvent institution is not the solution. You cannot pay your way out of debt with borrowed money. It's not going to cure the underlying problem of insolvency."

This is why Feierstein refers to the entire global economy as a Ponzi scheme.


Feierstein predicts another financial crisis is on the horizon and says China is due for another significant credit event, but this time, companies should be allowed to go under.

"Capitalism without bankruptcy is like Catholicism without hell," he said. "What happens when you bail out the insolvency is you still have an insolvent bridge that has more debt." ''

iehi-feed-63015 Thu, 21 Sep 2017 22:01:33 GMT Hack of SEC rattles investors, lawmakers (MAY HAVE ENABLED INSIDER TRADING) Wall Street's top regulator came under fire on Thursday about its cyber security and disclosure practices after admitting hackers had breached its database of corporate announcements in 2016 and may have used it for insider trading.

The breach involved Securities and Exchange Commission's EDGAR filing system, which houses market-moving information with millions of filings ranging from quarterly earnings to statements on acquisitions.

The SEC said on Wednesday evening it discovered last month that cyber criminals may have used a hack detected in 2016 to make illicit trades.

No doubt such ill-gotten information was fed to some "flash boys" at some point...

iehi-feed-63014 Thu, 21 Sep 2017 18:50:50 GMT A "Surprise" Bump in Bad Credit Card Loans ``Credit card lenders are seeing delinquencies creep up again after a brief respite in the spring. Investors need to be on guard for more negative surprises... ''

[image article excerpt]

Yeah, totally unexpected that people putting more of their necessities on credit cards out of obvious desperation would lead to more delinquencies ...

iehi-feed-63013 Thu, 21 Sep 2017 17:17:20 GMT China's Dangerous House Price Boom Is Spreading In general, it's debt that's the warning sign. As developers and households become more leveraged, the risk is that a price downturn doesn't remain contained within the property market.

"The high leverage will amplify the damage to the economy if a property bust happens," said Bloomberg Intelligence economist Fielding Chen. "The shock wave will be passed onto the entire financial system, and losses will be greater," he said.

Once home prices tumble, about 40 percent of Chinese banks will be hit hard, according to a recent research note from Ping An Securities.

iehi-feed-63011 Thu, 21 Sep 2017 15:44:58 GMT Federal Reserve Will Continue Cutting Economic Life Support iehi-feed-63010 Wed, 20 Sep 2017 23:19:34 GMT NYC's latest trophy apartment, in historic Woolworth bldg, priced at whopping $110M (WILL IT JUST SIT??) Meet the city's latest trophy apartment -- a penthouse at the iconic Woolworth Building that is back on the market for an eye-popping $110 million.

"This is as close to having a castle in New York City as you can get," developer Ken Horn tells the Post.


So far, only one condo -- at 157 W. 57th St., known as One57, the "billionaire's building" -- has sold for more than $100 million. Both the Woolworth Building and One57 were once the city's tallest building.

To date, the most expensive downtown purchase was a $50.9 million trade at Walker Tower in Chelsea. But that 2013 purchase was made with dirty money linked to the multibillion-dollar Malaysian money-laundering scandal and the feds are trying to seize it.

Billionaire Steve Cohen, who paid $1.8 billion in fines after pleading guilty to insider trading a few years ago, first tried to sell his apartment at 141 E. 58th St. for $115 million in 2013. This month, that penthouse duplex went back on the market for $57.5 million.

This all looks peak-ey to us....

iehi-feed-63008 Wed, 20 Sep 2017 19:54:35 GMT Unusually Large Loans Mask Decline In NYC Commercial Real Estate Lending iehi-feed-63007 Wed, 20 Sep 2017 19:53:44 GMT Fed to Shrink Assets Next Month, Boost Rates by Year-End Federal Reserve officials set an October start for shrinking their $4.5 trillion stockpile of assets, moving to unwind a pillar of their crisis-era support for the economy. They continued to forecast one more interest-rate hike later this year, saying storm damage will have only a temporary impact on the economy.


Minutes from the July meeting showed deepening worries about a prolonged period of low inflation. FOMC participants -- including Fed governors and regional bank presidents -- forecast that inflation will reach their 2 percent target in 2019, compared with an expectation of 2018 in June, based on median estimates. They have missed the target for most of the past five years.

iehi-feed-63006 Wed, 20 Sep 2017 17:41:56 GMT Freelancer CEO destroys "delusional, stuffed, basket case, bubble, Third World economy like no other" (AU) iehi-feed-63005 Wed, 20 Sep 2017 16:09:29 GMT Fed's QT will push this market into 'brick wall': Boockvar We're finally here. About nine years after quantitative easing (QE) began, quantitative tightening (QT) is about to start. On Wednesday, after the Federal Open Market Committee releases its statement, Janet Yellen will follow with a press conference that she will do her best to make as boring as possible... [but] I expect no different an outcome this time and I believe the market -- with the S&P at an all-time high - is headed for a brick wall the deeper QT gets.


After QE1 ended when we knew exactly the full size and expiration date (March 31st, 2010), the market topped out three weeks after and then fell 17 percent. After QE2 ended when we also knew the exact amount and deadline (June 30th, 2011), the market peaked one week later and then fell about 20 percent. Around the time QE3 ended with the lead up being a very methodical process of tapering, stocks had a hissy fit of about 10 percent only saved by James Bullard who hinted that maybe they won't end QE.

In the two months after the well telegraphed first rate hike in December 2015, stocks fell by 13 percent. The stock market of course therefore wasn't very good at discounting the end of major monetary stimulus actions even though they knew what was coming.

iehi-feed-63004 Wed, 20 Sep 2017 15:09:00 GMT Millennials spend three times more of income on housing than grandparents; Live worse (UK) Millennials are spending three times more of their income on housing than their grandparents yet are often living in worse accommodation, says a study launched by former Conservative minister David Willetts that warns of a "housing catastrophe".

The generation currently aged 18-36 are typically spending over a third of their post-tax income on rent or about 12% on mortgages, compared with 5%-10% of income spent by their grandparents in the 1960s and 1970s. Despite spending more, young people today are more likely to live in overcrowded and smaller spaces, and face longer journeys to work -- commuting for the equivalent of three days a year more than their parents.

The research by Willetts' intergenerational commission at the Resolution Foundation thinktank also reveals that today's 30-year-olds are only half as likely to own their own home as their baby boomer parents. They are four times as likely to rent privately than two generations ago, a sector which has the worst record for housing quality, the report claims.

1/3rd? Sad, but that sounds low to us! It's certainly worse in the usual bubble-icious places in the good 'ol 'States...

iehi-feed-63003 Wed, 20 Sep 2017 15:03:36 GMT Look Out Below: 83% of Bay Area renters (and its close in NY and LA) plan to leave the area before settling down iehi-feed-63002 Wed, 20 Sep 2017 03:32:31 GMT Fact-checking Donald Trump's United Nations speech: Modest on US Financing of UN; Baloney on Amazing Job Gains (AND MOST OTHER CLAIMS) iehi-feed-63000 Tue, 19 Sep 2017 19:56:15 GMT Donald Trump took bulk of $107 million for inauguration promised to charities ... and kept it President Donald Trump's inaugural committee raised an unprecedented $107 million for a ceremony that officials promised would be "workmanlike," and the committee pledged to give leftover funds to charity.


The $107 million is a massive amount for even the most lavish inauguration. It's almost twice what Barack Obama took in for a celebration that was much more widely attended and which included many more events... Somehow, Trump supposedly blew through $25 million for [an] abbreviated event that seemed more suitable for a county fair. In a small county. It's an amount that seems amazing even to the people on Trump's own campaign committee. "I couldn't tell you how we possibly could have spent $25 million on a concert," said Kerrigan.

... [After that questionable expense of $25 million,] it's been eight months. How much has been given out? None. None at all.

This is large-scale scammery, even for Trump. The funny thing is, we were initially resistant to the claims of Trump's detractors early on that he just wanted to use the presidency to line his pockets... overtly. But that seems to be panning out to a greater degree than we ever imagined... and it has been going on since the campaign (e.g., jacking up the rent on his own campaign for Trump Tower by 2-3x), to say nothing of the presidency.

iehi-feed-62999 Tue, 19 Sep 2017 17:35:29 GMT 'No evidence QE works' as balance sheet unwind starts There's little question that the program, known as quantitative easing or "money printing," boosted the stock market. The three iterations of QE between November 2008 and October 2014 each saw big boosts to the market, with a cumulative S&P 500 gain from beginning to end, including the various down periods between each leg, of about 140 percent.

The economic impacts, though, are less clear.

For most of the period, GDP struggled to gain more than 2 percent. Wealth disparity grew, income gains were hard to come by and the Fed continually came up short on its inflation goal.


In fact, one of the Fed's own economists recently penned a report indicating that QE has come up short of its goals.

"Evaluating the effects of monetary policy is difficult, even in the case of conventional interest rate policy," St. Louis Fed economist Stephen D. Williamson wrote. "With respect to QE, there are good reasons to be skeptical that it works as advertised, and some economists have made a good case that QE is actually detrimental."