• The ‘You Want Fries With That?’ Jobs Report (CNBC) • Full-Time Jobs Down 150K, Participation Rate Stays At 35-Year Lows (Zero Hedge) • US Factory Orders Tumble, Miss By Most Since January (Zero Hedge) • The New Economics Of Oil (Economist) • More than $150 Billion of Oil Projects Face the Axe in 2015 (Reuters) • Energy Bond Crash Contagion Suggests Oil Will Stay Lower For Longer (Zero Hedge) • Natural Gas: The Fracking Fallacy (Nature) • Draghi’s Authority
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OK, I don’t see a whole lot of comprehension out there, so let’s try and link the obvious: employment to shale to plummeting oil prices to the debt the shale industry was built on (and which is vanishing). I know, people look at the US jobs report today, and at the stock exchanges (Europe up some 2% across the board), and think salvation has landed on their doorstep, but the true story really is very different. The EU markets are
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• This Is Oil’s ‘Minsky Moment’: Marc Chandler (CNBC) • Cheap Oil’s Economic Benefits May Be A Big Myth (MarketWatch) • Brent Drops From 4-Year Low as Saudi Discounts Deepen Price War (Bloomberg) • Oil Drop Gives U.S. Drillers Argument to End Export Ban (Bloomberg) • Canada-U.S. LNG Rivalry Draws Focus After Petronas Delay (Bloomberg) • ECB Paralyzed By Split As Irreversible Deflation Trap Draws Closer (AEP) • Greenspan Says He Would Pre-Empt Asset Bubbles Financed by Debt (Bloomberg) •
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So, Matthew Lynn, I’m sure you’re a fine young man and your mommy loves you to bits, but you’re obviously in the wrong line of work. Or maybe the right one, come to think of it, since if you can make enough people see the world your way, in the end you’ll be right. That’s how journalism is defined these days. Anything goes, provided you can make people believe what you write. The problem is, that process can only end
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News reports about developments in the oil markets are coming fast and furious, and none of them indicate any stabilization, let alone rise, in oil prices. Quite the contrary. There are very large amounts of extra barrels flowing into the market, which is just, as one analyst puts it “even more oil flooding the market that nobody needs.” Saudi Arabia looks set to battle for sheer market share, even if it sends strangely contradictory messages. While the US shale industry
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• Five Reasons Why Markets Are Heading For A Crash (Telegraph) • ‘The Minsky Moment Is The Crash’ (Zero Hedge) • Global Company Bond Sales Nearing $4 Trillion Set Annual Record (Bloomberg) • Collapse Of Oil Prices Leads World Economy Into Trouble (Guardian) • Sub-$50 Oil Surfaces in North Dakota As Regional Discounts Swell (Bloomberg) • First U.S. Gas Station Drops Below $2 a Gallon (Bloomberg) • There Are 550,000 Iraqi Barrels Signaling Oil Glut Will Deepen (Bloomberg) • Crushing
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• New US Oil And Gas Well November Permits Tumble Nearly 40% (Reuters) • Think Collapsing Oil Is Bullish? Think Again (MarketWatch) • Deficit Spending And Money Printing: A German Point Of View (Salzer) • OPEC Is Wrong To Think It Can Outlast US On Oil Prices (MarketWatch) • Oil War Slams Venezuela, Probability of Default Soars to 84% (Wolfstreet) • Why Oil Is Finally Declining, Which May Lead to Disaster (Lee Adler) • The Financialization of Oil (CH Smith)
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Oh man, I wanted to keep this short, what I wanted to say looked so straight-forward. But then, in this convoluted world of pretense, is anything ever anymore? Please allow me to start off with something I wrote yesterday in Oil, Gold And Now Stocks? concerning the nonsense spouted by New York Fed President Bill Dudley, who claimed that money not spent by Americans on gas would actually boost the economy if -and that’s still an if – they spent
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• Canadian Natural Resources Chairman Sees Oil Touching $30 A Barrel (NatPost) • Banks’ $650 Billion Bet On Oil Backfires As Brent Prices Slump (Telegraph) • Billionaire Shale Pioneer Sees Drilling Slowdown on Oil Price Drop (Bloomberg) • US Shale Crude Exports To Asia Grind To Halt On Flood Of Mideast Oil (Reuters) • October Oil Shale Permits Drop 15%: Is The Slowdown Here? (Reuters) • As Crude Tumbles, Oil Drillers Seek To Temporarily Idle More Rigs (Reuters) • For
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Is the Plunge Protection Team really buying oil now? That would be so funny. Out of the blue, up almost 5%? Or was it the Chinese doing some heavy lifting stockpiling for their fading industrial base? Let’s get to business. First, in the next episode of Kids Say The Darndest Things – oh wait, that was Cosby .. -, we have New York Fed head (rhymes with methhead) Bill Dudley. Dudley’s overall message is that the US economy is doing
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