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Looks Like Credit Was Right...
Remember yesterday? When talking heads proclaimed the lows were in and due to the strength of energy stocks, this must mean the worst is over? And remember we - quietly - showed the massive divergence between crashing energy credit markets and the stocks on the day...? Well guess who was right?
Whocouldanode?
Credit vs Equity, crude collapse edition pic.twitter.com/qRGoaxQj2d
— zerohedge (@zerohedge) December 9, 2014
Energy stocks have given up all yesterday's gains and are catching down to credit...
As WTI trades briefly with a $61 handle and
Energy HY spreads break 900bps for the first time in history!!
Charts: Bloomberg
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Don't worry, the U.S. will carry this and the rest of the world's risk with it's sub 2% growth.
I am really excited about $35 oil.
I trust taxes in Germany will mitigate such a price drop for you.
Yeah, probably. Some Green fascist will get all pissed that people are driving more with cheaper gas, and in order to SAVE HUMANITY AND THE POLAR BEARS FROM IMPENDING ICE CAP MELTING (OMG OMG OMG WTF WTF) Germany needs to add an addition 0,75€ in taxes per liter to it -- of course to use it for green energy subsidies.
These Green energy subsidies go to buying solar panels, predominately. Said solar panel companies -- when they aren't too busy going bankrupt -- donate ungodly amounts of cash to a certain, fascist political party here in the Fatherland.
You forgot to mention government's mandate which created a world of "fuel-efficient vehicles."
They love to brag about that.
oh, interesting association there, solar panels are racist now ? Which party and company are you talking about ?
Yeah right. .gov will jump all over this "opportunity" to add moar taxes.
Gotta finance those $1.7 million 1 day trips to Brisbane somehow!
Already happened in California. Supposedly a bill was passed quite recently that lets California enact taxes in excess of $1.20 per gallon at the high end... So yeah, *.gov's are already deciding to turn price changes into stable prices with the miraculous addition of tax burdens.
it isn't a lock yet that credit was right. we have 6 more hours of vix slam and jpy pump to make sure credit was wrong.
and for that, we thank you ZH.
i wasn't ready for the bottom to be called this early today /s
got it from a good source - Bullard just went for the binaca and looking for a mic
...lol...binaca...now that's a blast from the past.
for a second i thought he said bianca..........
somebody needs to tap on the DAX's altimeter glass......
My thoughts exactly!
And just as clockwork (6 years and going), the markets are now reversing...
the short bus crowd will figure things out ... sooner or later
No they wont.
But, but,.... Santa Clause....
Are you implying the deer? Maybe reindeer?
No, look at his spelling. He's talking about the Santa Clause, which is a guarantee that no matter what kind of corner you paint yourself into through stupidity and obstinance, an imaginary magical being will come to bail you out at your moment of extremity and need.
It's the driving principle of Western Culture these days. And it comes with a great corollary as well. When Santa never shows up (Hurricane Katrina comes to mind), it's somebody else's fault. Also sometimes referred to as "Religion."
But...but...off the lows...no better time...if stawks go down then things may not be gooderbetter...but just btfd right?
Guess who was "right"?... Well there is only one name synonymous with "right", so it must be Jim Cramer?
WTI went < $62 briefly
Any one remembered ENRON?
Someone is going to get corzined.
in case anyone still cares about the real economy
MBA mortgage application index out this morning ... for week ending december 5th.
purchase portion of index +1.0% week over week ... but -4.0% year over year
and for those who think -4% "ain't so bad" ... the comparable week for 2013 was -10% year over year (2012)
http://www.mbaa.org/NewsandMedia/PressCenter/86528.htm
Education just costs too much these days. Having to take out a mortgage to get an MBA is crazy.
The day is still young ...
credit always knows...
When the price of everything is fictitious, and driven by abstract and completely derivative (I mean that term in a number of ways) needs, price alone tells us nothing. This isn't the price of gloopy-gloop that we can burn for energy. This is about the price of hope-coupons, Lotto tickets, shares in Unicorn Skittle-Farts. It's a vote of no-confidence in one part of the mythical abstract shared hallucination we call "The Market" for short. I'm using pretty much the same amount of energy as I always have. Was it worth $40/bbl? $120? Somewhere in between? I truly have no idea. I suspect the price fluctuations have a lot more to do with pricing collateral for finance shenanigans than my demand and their supply of the gloop-gloop stuff. So I expect the consequences will have a helluva lot more effect on the next financial deal I have to do than in the next month's heating bill or what I have to spend to use my machines.
An up vote for "...the mythical abstract shared hallucination we call "The Market"..."
Hey Tylers, Haven't heard much mention of the crude oil portion of the $3.9 tril commodity derivatives market. I assume this can be added to the sand castle of junk debt and leveraged loans in the same space. Any breakdown on who is most exposed here? Another post topic?
http://investmentwatchblog.com/plummeting-oil-prices-could-destroy-the-b...
The Energy Bubble is about to explode!
Can Yellen play Santa?
My sister makes $18 Trillion per year printing fiat in her basement.
Credit bubbles always burst. Some quite violently. This one is going to be the worst in history...
http://www.globaldeflationnews.com/anatomy-of-a-bubble-how-the-federal-r...
When it comes time to guillotine, do we line up TPTB (bankers, MSM, politicians) in alphabetical order, or what?