Meet Emerge Energy Services: the poster boy for the “irrational exuberance” that has become institutionalized throughout the length and breadth of the Wall Street casino. Today’s Wall Street Journal story coming just five months after last summers potboiler is therefore not simply an update on a speculation gone horribly wrong. It’s actually a template for the deluge to come.
Martin Armstrong, Max Keiser and High-Level Economists Weigh In
Today we update where China stands on its path to a very hard landing. As the charts below show, what has been so far a controlled descent is rapidly sliding out of control.
Less drilling will not only lead to a loss of jobs for oil workers, but the services that pop up around drilling sites – restaurants, bars, construction, and more – are feeling the slowdown as well. States like Texas, North Dakota, Oklahoma, and Louisiana have seen their economies boom over the last few years as oil production surged. But the sector is now deflating, leaving gashes in employment rolls and state budgets. With such extensive dependence on oil for prosperity in these states, the pain will mount if oil prices stay low.
2014 is in the bag and there's something for everyone to celebrate. Here are the narratives that painted the past year - what’s real about them versus what we’re being told they are about.
Here is the third and final part of my retrospective with links to what I believe are the best posts of 2014 at Slope of Hope:
Dr Marc Faber, respected economic historian and author of the respected monthly newsletter, the ‘Gloom, Boom and Doom Report’, has warned that 2015 is set to be very volatile, urged international diversification and owning “physical precious metals stored outside the U.S.”
Just 3 short days ago, energy stocks were surging and oil was - according to the mainstream media - "stabilizing." Today, we plumb new cycle lows, with WTI back below $53 as every rally is to be sold for now... While no one can resist the temptation to call the bottom in oil, the recoupling of oil-dependent energy stocks from oil appears to the no-brainer trade of January... Here are 3 potential reasons for today's drop.
How did the investment ideas we discussed throughout the year play out
Greek bank shares collapsed by even more. Two of Greece’s largest banks, Piraeus bank and Alpha bank, shed more than 14% of their share value as concerns of bank solvency, bank runs and Cyprus style bail-ins reemerged. Fail to prepare ... prepare to fail ...
There could be some (nasty) side effects...
And just like that Grexit is back.
It appears that with a few short days left in the year, the Santa rally is finally over, if only in Greece where both bonds and stock are tumbling after the third vote for PM Samaras' appointed presidential appointee Stavros Dimas concluded as many had expected: in failure, with 168 Greek lawmakers voting in favor of Dimas, well short of the 180-vote threshold needed. 132 voted against Mr. Dimas. This means that the "worst case" scenario - at least as described by Goldman - is now on deck: a snap general election that could bring the anti-bailout Syriza party to power. And speaking of Syriza, and its triumphant leader Samaras, moments ago he announced that the now inevitable Greek elections will take place on January 25: pencil that date in for even more turmoil.
Sometimes you just have to smile (but mostly just scream). Volatilities across all asset classes have crashed back towards complacent levels in the last few days as, apparently driven by utter confusion by The Fed, stocks have soared, vol compressed, and risk vanquished. There is, however, one asset that is back at near-record-high vol...
An expected quite trading session is turning into an interesting mix of bad economic data, oil production concern in Libya, and disconnect on US retail sales
Iit was only this week that Bloomberg reported that "China Offers Russia Help With Currency Swap Suggestion." But in order to fully backstop Russia away from a SWIFT-world in which the dollar reigns supreme, one extra step was necessary: the launching of direct FX trade involving the Russian and Chinese currencies, either spot or forward - a move away from purely theoretical bilateral FX trade agreements - which would not only enable and make direct currency trading more efficient by sidestepping the dollar entirely, but also allow Russian companies to budget in Chinese Yuan terms. It is no surprise then that this is precisely the missing step that was announced overnight, and will be implemented starting Monday.