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In Q1 the economy saw retail bankruptcies emerge, and now in Q2 it’s the restaurant’s turn

Following last year's dismal holiday shopping season numbers, several retail chains announced that they were cutting thousands of store locations and tens of thousands of jobs, with even a few like Payless Shoes, Eastern Outfitters, and Wet Seal all filing for bankruptcy protection in the first quarter of 2017. And in news out on May 13, the second leg of the consumer triumvirate appears to be ready to join ...

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More bad news for college students as Fed rate hikes leading to higher interest on student loans

In our current debt based financial system, the banks, as well as the Federal Reserve, continuously need borrowers to to keep the ponzi monetary system going.  And whether it was through the creation of a housing bubble from 2003-2007, or the current bubbles tied to student loans, automobiles, and equities, the moment debt borrowing begins to slow down is the moment the economy rushes full force into the ne ...

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The former haven for wealthy New York hedge fund managers on verge of collapse as Connecticut prepares for bankruptcy

For a long time now the state of Connecticut has acted as the 'suburbs' for wealthy New Yorkers who sought to live in the much friendlier tax haven just a few hours outside of Wall Street.  But as the state began to impose new sliding tax schemes on the rich, and the boom of the past decade has begun to recede for many of these hedge fund managers, Connecticut is no longer thriving as the safe haven it once ...

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Student loan default process looking eerily like 2008 housing foreclosures as DOE orders halt to collections

When the housing bubble burst in 2007-08, the courts were inundated with hundreds of thousands if not millions of mortgage defaults that were immensely convoluted due to the fact that wall street fraud had made determination of ownership nearly impossible.  And the heart of this was the process where mortgage lenders had sold their mortgages to investment banks who then split the deed from the title, and th ...

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The Fed’s dichotomy as interest on the debt now costs the government $500 billion per year from their budget

On May 4 it was determined that the U.S. taxpayer (government) now pays over $500 billion per year in interest on the nearly $20 trillion of national debt.  That equates to 13% of their annual budget which as of last year was $3.8 trillion before adding another $1 trillion or so in deficit spending. Thus both the government and the Federal Reserve are in a quandary, especially as the economy begins to slow ...

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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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