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Puerto Rico’s default and bankruptcy four times bigger than that of Detroit

When the City of Detroit defaulted on their debt and were forced to file for Chapter 9 bankruptcy back in 2013, it was the largest municipal bankruptcy in U.S. history. Until now. That is because the U.S. protectorate Puerto Rico on May 3 defaulted on their own debt, and are about to surpass Detroit by a measure of four in becoming the new largest municipal default. As per our report last night that followi ...

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Bank run on Canada’s largest alternative home lender could potentially lead to systematic run on all banks

One of the biggest warning signals that went primarily under the radar leading up to the 2008 banking collapse and financial crisis was the run on Northern Rock bank in the UK a year earlier.  And while the British exchequer was able to mollify the public through a series of emergency measures to stop the run, it was a foreshadowing of the bursting of the Western housing bubble, and was close to ground zero ...

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Consumer debt defaults accelerating shortly after overall credit card debt crosses $1 trillion

If the 2008 financial crisis was known for its millions of foreclosures, the next collapse will likely be remembered for the amount of defaulted debt that occurs for consumers, corporations, and perhaps even major sovereign governments. And part of these debt defaults are already beginning shortly after consumer credit card debt has escalated to over $1 trillion. Two weeks ago, when JPMorgan launched Q1 ear ...

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FDIC closes down fourth bank of 2017 in the state of Louisiana at a cost of nearly $1 billion

On April 28, the FDIC closed down their fourth bank for 2017 as First NBC Bank shuttered its doors.  This institution is the first bank failure for the month of April, and the first Louisiana bank closure since November of 2011. 4/28/2017 *** Louisiana *** New Orleans *** First NBC Bank *** $996.9 million dollar estimated FDIC DIF cost. The total DIF for failed banks this week is $996.9 million. If you were ...

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A rounding error may be only thing keeping U.S. economy from negative GDP in first quarter of 2017

As we wait upon the 'official' final number from the government regarding first quarter GDP, on April 27 both the Atlanta Fed and JP Morgan downgraded their forecasts to .02 and .03% respectively.  And in essence this equates to little more than a rounding error since government modeling adds in double 'seasonal adjustment' variables that tend to always skew the outcome positive. We now believe that real GD ...

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Did the U.S. experience a cyber attack to the grid today, or are Trump’s infrastructure projects now a necessity?

On April 21 three major cities experienced prolonged blackouts as rumors abound that the electrical grid may have been struck in a cyber attack on U.S. infrastructure. San Francisco, Los Angeles, and New York City all had varying degrees of blackouts today, with the Northern coast of California being hit the hardest. The U.S. power grid appears to have been hit with multiple power outages affecting San Fran ...

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Chaotic events that could shape geo-politics coming over next seven days

The last week of April could very well see some extremely shocking and perhaps chaotic events that could shape the geo-political future the world is rushing headlong towards right now. The first of these will come in just two days as the long awaited French elections could very easily determine the fate of the European Union, and the Euro currency. The first round of voting is set to be a closely-fought rac ...

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New minimum wage laws coupled with slowing economy is becoming death knell for restaurants

In a new study from Harvard University on April 18, consequences from the plethora of new minimum wage laws are showing concrete effects for restaurants in relation to the amount of higher wages these businesses must provide to employees. In fact according to data compiled in the San Francisco region, for every additional dollar restaurant owners had to pay each employee per hour resulted in a 4-10% increas ...

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Fed, ECB, and other central banks hiding global recession risk from the public

As the Atlanta Fed came out with another downgrade for Q1 GDP estimates earlier this week, the reality is that the U.S. economy is or has been in recession for at least the past two years.  And just as former Fed Chairman Ben Bernanke refused to admit that the country was in negative growth in 2009 despite the fact that during that period the downturn would become known as the Great Recession, central banks ...

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2007 Redux: American consumer credit card debt now over $1 trillion and to levels not seen since 2008 crash

The last time that Americans had a combined credit card debt of over $1 trillion was in 2007 and just prior to the financial crash of 2008.  That is until today where for the first time in a decade consumers have tapped into their revolving debt to where it is now equal to what it was just prior to the global banking crash. Yet this is not the only parallel to 2007 for the U.S. economy as home prices also n ...

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Heading into the final tallies of Q1, the Atlanta Fed downgrades its GDP estimate to .6%

As we have noted many times, the hundreds of 'Ivy League' economists under the umbrella of the Federal Reserve aren't worth a lick of salt when it comes to forecasting, or creating monetary policies based on real economic numbers.  This is because they are more ideological (Keynesian) and political than the supposed 'neutrality' stance they try to covey, and as such they follow in lockstep with the governme ...

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As Amazon pushes towards $1000 per share, 8 long time retailers get on bankruptcy watch list

In a previous article we spoke about how the entire equity market is simply one big bubble, as denoted by Tesla suddenly becoming America's most valuable car company despite the fact they never make a profit.  And then we followed up with a segment on Amazon.com and how it's share price is four times that of Apple despite earning 10 times less per year. Now we will look at the bottom end of the spectrum, an ...

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