IEHI Feed: The Hedge Fund Implode-o-Meter http://implode-explode.com/ Tracking the many faces of the global credit implosion. en-us iehi-feed-64116 Sun, 15 Jul 2018 11:18:07 GMT Hasidic Heavyweights Taking Over New York Get Unmasked http://hf-implode.com/viewnews/2018-07-15_HasidicHeavyweightsTakingOverNewYorkGetUnmasked.html iehi-feed-64115 Sat, 14 Jul 2018 17:41:52 GMT Are We Running Out of Gold? http://hf-implode.com/viewnews/2018-07-14_AreWeRunningOutofGold.html iehi-feed-64114 Sat, 14 Jul 2018 15:02:48 GMT The WSJ Sounds Bullish Here. But They're Ignoring Half the Equation - Lee Adler http://hf-implode.com/viewnews/2018-07-14_TheWSJSoundsBullishHereButTheyreIgnoringHalftheEquationLeeAdler.html while the bulls were snorting about the corporate buybacks being such a huge boost for the market, something else was going on that they're not talking about. The Fed tells us that despite a dip of $300 billion in the first quarter, there were $1.8 trillion more in nonfinancial corporate equities outstanding in the first quarter than in Q1 2017. All of those buybacks have barely made a dent in the trend of increasing supply of equities. And financial [corps], banks, shadow banks, insurers, and brokers issued a cool trillion in net new equities. There's more supply, not less!

... [So how has the market stayed levitated?] Speculative fever among institutional investors and hedge funds has heated up. They have increased their borrowings in an effort to chase an overheated market higher. The increased use of leverage has only increased risk.

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iehi-feed-64113 Fri, 13 Jul 2018 21:44:28 GMT Logarithmic Analysis: Bitcoin Looks Set to Carve Out $4k-5k Low, Then Do a 10-Bagger http://hf-implode.com/viewnews/2018-07-13_LogarithmicAnalysisBitcoinLooksSettoCarveOut4k5kLowThenDoa10Bagg.html iehi-feed-64111 Fri, 13 Jul 2018 17:21:09 GMT New Wells Fargo Public Relations Campaign Blows Up In Their Face http://hf-implode.com/viewnews/2018-07-13_NewWellsFargoPublicRelationsCampaignBlowsUpInTheirFace.html iehi-feed-64110 Fri, 13 Jul 2018 16:25:23 GMT Wells Fargo earnings bomb for Q2 as scandal taint lingers http://hf-implode.com/viewnews/2018-07-13_WellsFargoearningsbombforQ2asscandaltaintlingers.html Wells couldn't meet Wall Street's already low expectations for the second quarter, as revenue and net income in the bank's three business lines fell compared with the same period last year.

"The broad-based weakness of Wells Fargo's results is troubling, with many indicators such as deposits, commercial and consumer lending trending down. It appears that the slew of scandals that Wells Fargo has been involved in are taking their toll," said Octavio Marenzi, CEO of capital markets management consulting firm Opimas. "Compared to JPMorgan's excellent results earlier today, Wells Fargo is looking rather hapless, unable to get it right."

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Shares of Wells Fargo are down more than 10 percent this year.

Wells said it had state income tax charges of $481 million, related to a recent Supreme Court ruling regarding e-commerce sales (South Dakota v. Wayfair) that said states can charge taxes on purchases from out-of-state sellers even if the seller isn't located in that state.

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iehi-feed-64107 Thu, 12 Jul 2018 16:26:22 GMT Are NEW Chinese buildings really FALLING DOWN? (VIDEO) http://hf-implode.com/viewnews/2018-07-12_AreNEWChinesebuildingsreallyFALLINGDOWNVIDEO.html iehi-feed-64106 Wed, 11 Jul 2018 22:59:10 GMT Actor Brad Pitt Aka Joe Black Mold Decimates NOLA's Ninth Ward http://hf-implode.com/viewnews/2018-07-11_ActorBradPittAkaJoeBlackMoldDecimatesNOLAsNinthWard.html iehi-feed-64105 Wed, 11 Jul 2018 21:14:57 GMT Most of Today's Young Billionaires Were Born Privileged http://hf-implode.com/viewnews/2018-07-11_MostofTodaysYoungBillionairesWereBornPrivileged.html In some ways, it's great to live in the age of the nerd. And it's tough to mourn the decline of Wall Street-style corporate machismo. But a poor kid growing up today may find it much harder to emulate the life path of someone like Zuckerberg, who coded an instant messaging system before hitting puberty, than that of even Goldman Sachs CEO Lloyd Blankfein, who grew up in Brooklyn housing projects and at one point served concessions at Yankee Stadium to earn extra money.  

Statistically as well as anecdotally, true American rags-to-riches stories are getting rarer. Class mobility, as defined by the percentage of children who earn more than their parents, has been in a state of mostly uninterrupted decline since the 1940s. Economist Raj Chetty found that only about half of the children born in 1980 have surpassed their parents' income. In 1940, that number exceeded 90 percent.

Nary a mention of how the upper-crust has access to unprecedented power-money liquidity in recent decades (and especially in the post-2008 bailout era), which is likely massively increasing upward-mobility within the top 1% (to the top .00001%), as well as distancing the top 10% from the lower 90%.

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iehi-feed-64104 Wed, 11 Jul 2018 21:08:33 GMT Billionaires Have Already Written-Off The Rest of the Human Race http://hf-implode.com/viewnews/2018-07-11_BillionairesHaveAlreadyWrittenOffTheRestoftheHumanRace.html When the hedge funders asked me the best way to maintain authority over their security forces after "the event," I suggested that their best bet would be to treat those people really well, right now. They should be engaging with their security staffs as if they were members of their own family. And the more they can expand this ethos of inclusivity to the rest of their business practices, supply chain management, sustainability efforts, and wealth distribution, the less chance there will be of an "event" in the first place. All this technological wizardry could be applied toward less romantic but entirely more collective interests right now.

They were amused by my optimism, but they didn't really buy it. They were not interested in how to avoid a calamity; they're convinced we are too far gone. For all their wealth and power, they don't believe they can affect the future. They are simply accepting the darkest of all scenarios and then bringing whatever money and technology they can employ to insulate themselves -- especially if they can't get a seat on the rocket to Mars.

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iehi-feed-64103 Tue, 10 Jul 2018 19:39:13 GMT Brexit chaos: After resignations, what happens next for British PM Theresa May? http://hf-implode.com/viewnews/2018-07-10_BrexitchaosAfterresignationswhathappensnextforBritishPMTheresaMa.html British Prime Minister Theresa May was trying to save her government Tuesday after it was damaged by a series of resignations over the nation's Brexit crisis.

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The turmoil came on top of preparations for this week's controversial visit by President Donald Trump and a thorny NATO summit meeting.

At the heart of the problem is progress, or lack of it, toward Britain's departure from the European Union, which former Secretary of State Madeleine Albright on Sunday described as "an exercise in economic masochism that Britons will long regret."

Foreign Secretary Boris Johnson and Brexit Secretary David Davis quit within hours of each other, along with a handful of junior ministers and aides.

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The resignations blew apart May's claim to have finally secured backing for her vision of Britain's future relationship with the E.U. -- a plan that was only agreed on Friday.

Their departure also exposed the scale of Britain's disarray: With only 262 days left until it leaves the trading bloc, and more than two years since the process began, the U.K. government still hasn't agreed what it wants Brexit to look like -- never mind negotiate with the E.U. to make it happen... The resignations triggered open warfare among Conservative lawmakers, who demanded May change her plan or stand aside... [reflecting] a decades-old fault line running through the Conservative Party over Britain's role in Europe, and whether it should be in or out of the E.U. The 2016 Brexit referendum was supposed to have settled the argument once and for all; instead, it appears to have deepened it.

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May has yet to publish her blueprint in full, but some details have leaked since they were circulated to ministers at Friday's 12-hour Cabinet meeting at the prime minister's Chequers country residence.

A three-page summary posted on the government website says Britain wants "a common rulebook for all goods" with the E.U. after Brexit -- ensuring that foods and consumer products would have the same standards.

The Chequers plan also proposes a "combined customs territory" between the U.K. and the E.U. but says "different arrangements" will be made for services "where it is in our interests to have regulatory flexibility."

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The mechanism by which Britain leaves the E.U., which is known as Article 50, has already been triggered and is theoretically irreversible.

But many anti-Brexit lawmakers are clinging to hopes that the whole project could be abandoned as too complex or unworkable.

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Tusk has said in the past that Britain could still change its mind and stay in the E.U. -- but that would require all other 27 nations in the bloc to agree and waive the terms of Article 50, which seems politically inconceivable after two years of painful divorce talks.

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iehi-feed-64101 Mon, 09 Jul 2018 19:30:03 GMT Bank of America Sued For Involvement In 102 Million Dollar Ponzi Scheme http://hf-implode.com/viewnews/2018-07-09_BankofAmericaSuedForInvolvementIn102MillionDollarPonziScheme.html iehi-feed-64100 Mon, 09 Jul 2018 19:21:28 GMT Generation wealth: how the modern world fell in love with money http://hf-implode.com/viewnews/2018-07-09_Generationwealthhowthemodernworldfellinlovewithmoney.html Lauren Greenfield has spent years photographing the world's richest people. Now she's made a documentary on society's obsession with extreme wealth -- and its cost to us all

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Greenfield introduces us to characters all motivated by the accumulation of wealth. "No matter how much people had, they still wanted more," Greenfield says of her subjects. We meet Florian Homm, a hedge fund manager living in self-imposed exile in Germany to avoid extradition to the US where he has been sentenced to 225 years in jail. Smoking cigars and dripping in gold, Homm, who became known as "the antichrist of finance" for ripping off his investors for hundreds of millions of dollars, tells Greenfield that morality changed in the 80s. "The value system changed completely. It wasn't about who you are, but about what you are worth... Morals are completely non-productive in that value system."

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The stories Greenfield tells about rich families detached from the world around them, living in bubbles separated from reality by armies of nannies and household staff, chime with my own experiences covering the super-rich as wealth correspondent for the Observer and the Guardian. From Knightsbridge to Monaco, the Upper West Side and the Hamptons, the wealthiest people in society are richer than they've ever been before. More of them have five, six, seven or even a dozen homes in the world's most desirable locations and it is not unusual for them to fly their nannies, tutors and security details between them on private jets. Their houses may cost as much as the £135m a Ukrainian billionaire paid for a penthouse in One Hyde Park, but that doesn't mean they'll spend much time there.

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A growing number of academics warn that the widening gulf between the richest 1% and everyone else could lead to a backlash. The richest 0.1% of the world's population has increased their combined wealth by as much as the poorest 50% -- or 3.8 billion people -- since 1980, according to the The report, by the French economist Thomas Piketty and 100 other researchers, also found that the richest 1% of the global population "captured" 27% of the world's wealth growth between 1980 and 2016. Piketty warns that inequality has ballooned to "extreme levels" in many countries, and will only get worse unless governments take co-ordinated action to increase taxes and prevent tax avoidance.

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She says that while examining her photos it became clear to her that "We have left behind the American dream of my dad's generation where there was the possibility of social mobility and the belief that anyone could make it. The things that were valued then -- discipline, hard work and frugality -- are not so important now. We have a culture that prizes celebrity, bling and narcissism." Trump, she says, "is the apotheosis of generation wealth. With Trump you have wealth and celebrity achieving the ultimate goal. Trump is the natural evolution of the values of our culture."

Yes, let's be careful or a backlash "will" come...

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iehi-feed-64098 Mon, 09 Jul 2018 01:34:28 GMT Switzerland's Main Stock Exchange Dives Deep Into Crypto http://hf-implode.com/viewnews/2018-07-08_SwitzerlandsMainStockExchangeDivesDeepIntoCrypto.html ``SIX, the operator of Switzerland's principal stock exchange, SIX Swiss Exchange, announced Friday that it "is building a fully integrated trading, settlement and custody infrastructure for digital assets."

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SIX CEO Jos Dijsselhof commented, "this is the beginning of a new era for capital markets infrastructures. For us it is abundantly clear that much of what is going on in the digital space is here to stay and will define the future of our industry."

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While the official announcement by SIX does not mention whether the platform will support the direct trading of cryptocurrencies, a few publications indicated that it will trade bitcoin and other cryptocurrencies.

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First we will enable the tokenization of bankable assets like stocks or bonds and, potentially, at a later stage non-bankable assets. Whether we will also make cryptocurrencies such as bitcoin or existing ‘ICO tokens' available, is still open.

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iehi-feed-64096 Mon, 09 Jul 2018 00:59:38 GMT Charles Hugh Smith: We Are All Hostages of Corporate Profits http://hf-implode.com/viewnews/2018-07-08_CharlesHughSmithWeAreAllHostagesofCorporateProfits.html iehi-feed-64095 Sat, 07 Jul 2018 20:18:19 GMT Trump Loses New York State Tax Exemption On Trump Tower Condo http://hf-implode.com/viewnews/2018-07-07_TrumpLosesNewYorkStateTaxExemptionOnTrumpTowerCondo.html iehi-feed-64094 Fri, 06 Jul 2018 22:48:28 GMT Reuters and Bloomberg Have It Wrong. The Fed "Bloodletting" Is Still Right On Track... http://hf-implode.com/viewnews/2018-07-06_ReutersandBloombergHaveItWrongTheFedBloodlettingIsStillRightOnTr.html Some pundits are saying that the Fed will stop tightening in mid-2019. But by then the damage will be done. The markets are slowly being starved of liquidity right now. It has shown up in the relentless rise of Treasury bill rates, and the upward pressure on bond yields, particularly in the junk bond arena, but also in Treasuries, as the 10 year hangs around near 3%.

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Meanwhile, despite the bullish pronouncements of stock market pundits, the so called "bull market" hasn't made a new high in 5 months.

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the Treasury simultaneously issues an average of $100 billion per month in new supply, that will pull cash from the financial liquidity pool. So make no mistake. There will be pain for both stocks and bonds.

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The little bit of printing by the ECB and BoJ now doesn't offset the Fed pulling $40-$50 billion per month out of the financial system and extinguishing it. The BoJ and ECB are reducing their QE and the ECB has indicated it will stop buying altogether in December. The BoJ has been reducing its purchases without saying much about it other than to proclaim, "QE now! QE forever!" But their balance sheet growth has been materially slowing down in recent months. The BoJ is tapping the brakes, just like the ECB.

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iehi-feed-64092 Fri, 06 Jul 2018 17:21:15 GMT Mortgage Bankers Association In Panic Mode http://hf-implode.com/viewnews/2018-07-06_MortgageBankersAssociationInPanicMode.html iehi-feed-64087 Thu, 05 Jul 2018 16:08:12 GMT Sovereign Citizen Scam Draws Hundreds Of People Hoping For A Free House http://hf-implode.com/viewnews/2018-07-05_SovereignCitizenScamDrawsHundredsOfPeopleHopingForAFreeHouse.html iehi-feed-64086 Thu, 05 Jul 2018 15:52:15 GMT Tax Collections Remain Weak Except At the Top - Why That's Bad News | The Wall Street Examiner http://hf-implode.com/viewnews/2018-07-05_TaxCollectionsRemainWeakExceptAttheTopWhyThatsBadNewsTheWallStre.html Federal tax revenue has cratered thanks mostly to the big reduction in corporate taxes, but withholding taxes have also been weak. Meanwhile, strength in excise taxes and non withheld individual income taxes suggest that the economy is booming in some sectors, enough to keep the Fed on its tightening course.

But what you really need to know is the Treasury cash levels are foreshadowing stock market moves. And that's bad news for bulls starting in late July. This report shows and tells you why it's time to batten down the hatches.

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