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"On The Cusp Of A Staggering Default Wave": Energy Intelligence Issues Apocalyptic Warning For The Energy Sector
The Energy Intelligence news and analysis creator and aggregator is not one to haphazradly throw around hyperbolic claims and forecasts. So when it gets downright apocalyptic, as it did this week in a report titled "Is Debt Bomb About to Blow Up US Shale?", people listen... and if they are still long energy junk bonds, they panic.
The summary:
"The US E&P sector could be on the cusp of massive defaults and bankruptcies so staggering they pose a serious threat to the US economy. Without higher oil and gas prices -- which few experts foresee in the near future -- an over-leveraged, under-hedged US E&P industry faces a truly grim 2016. How bad could things get?"
The full report by Paul Merolli, a senior editor and correspondent at Energy Intelligence:
Debt Bomb Ticking for US Shale
The US E&P sector could be on the cusp of massive defaults and bankruptcies so staggering they pose a serious threat to the US economy. Without higher oil and gas prices — which few experts foresee in the near future — an over-leveraged, under-hedged US E&P industry faces a truly grim 2016. How bad could things get and when? It increasingly looks like a number of the weakest companies will run out of financial stamina in the first half of next year, and with every dollar of income going to service debt at many heavily leveraged independents, there are waves of others that also face serious trouble if the lower-for-longer oil price scenario extends further.
"I could see a wave of defaults and bankruptcies on the scale of the telecoms, which triggered the 2001 recession," Timothy Smith, president of consultancy Petro Lucrum, told a Platts energy conference in Houston last week. Much has been made about the resiliency of US oil production in the face of low prices, but the truth is that many producers are maximizing their output — even unprofitable volumes — because they need the cash flow to service their debt (related). "As an industry, we're at the point where every dollar of free cash flow now goes to paying back debt," Angle Capital's Steve Ilkay told the same conference. Ilkay, who advises North American producers on asset management, said during the boom years of 2012-14 about 55% of the sector's free cash flow, which is calculated by subtracting capital expenditures from operating cash flow, was allocated toward debt repayment.
With West Texas Intermediate (WTI) stuck below $50 per barrel since August — and closer to $40 recently — the industry has responded with deeper cuts to capex and a greater focus on efficiency (EIF Nov.4'15). However, experts say this won't be enough to avoid a bloody reckoning with persistent low oil and gas prices, as the sector grapples with some $200 billion-plus in high-yield debt, which it absorbed to finance the shale oil boom. Credit quality has been steadily deteriorating since June 2014, when WTI peaked at $108/bbl. Standard and Poor's says there have been 19 defaults so far in 2015 across the US oil and gas industry, while another 15 companies have filed for bankruptcy. Besides those that have missed interest or principal payments, the default category also includes companies that have entered into "distressed exchanges" with their creditors, including Halcon, SandRidge, Midstates, Goodrich, Warren, Exco, Venoco and Energy XXI (EIF Jul.8'15).
Of the 153 oil and gas companies that S&P applies credit ratings to, roughly two-thirds are E&P firms. Among these E&Ps, 77% now have high-yield or "junk" ratings of BB+ or lower. 63% are rated B+ or worse, and 31% — or 51 companies — are rated below B-. What does this all mean in layman's terms? "Quite frankly it's a lot of gloom and doom," says Thomas Watters, managing director of S&P's oil and gas ratings. "I lose sleep over what could unfold." He says companies with ratings of B- or below are "on life support," while those further down the ratings scale at C+ or lower are "maybe looking at a year, year-and-a-half before they default or file for bankruptcy." While capital markets were still open to struggling E&P firms in the first half of the year, they are closing fast as investors accept a "lower-for-longer" oil price scenario. High-yield E&P firms raised $29 billion from 44 issuances of public debt in 2014. So far in 2015, $13 billion in junk-rated debt been raised from 23 issuances — but only two have come after June (EIF Jul.29'15).
After posting negative free cash flow of $24 billion in 2015, capex cuts and efficiency measures should help the industry post positive free cash flow of $8 billion in 2016, S&P reckons. However, the high-yield E&Ps are expected to see negative free cash flow of $10 billion, so the group that can least afford a cash crunch will get just that. Better hedging could have helped, but data from IHS Energy shows a woefully under-hedged E&P sector in 2016. Small producers have 27% of their oil production hedged at an average price of $77/bbl; midsized firms have 26% hedged at $69; and large producers have just 4% hedged at $63. That is much less protection than E&P firms had in place for 2015 (EIF Aug.19'15).
Small and midsized producers, which rely heavily on revolving lines of credit with banks, have not yet seen these liquidity lifelines cut off. Some analysts were shocked after banks reduced lines to credit to E&Ps by just 10% on average during October redetermination negotiations (EIF Oct.14'15). Banks appear to be putting off the inevitable in hopes of a price rebound. Many have been using price forecasts above the average 12-month forward strip — suggesting the pain could extend to energy lenders if markets don't recover as they expect. Heading into October redeterminations, Macquerie Tristone's energy lending survey showed banks using an average 2016 WTI price outlook of $54. That has since dropped to around $47 this quarter — closer to the $46 indicated by the Nymex strip.
Yet another source of concern for E&Ps and their lenders are price-related impairments and asset write-downs (EIF Nov.11'15). Year-to-date, there has been $70.1 billion in asset write-downs in 2015, approaching the $94.3 billion total for the previous 10-year period of 2005-14, according to Stuart Glickman, head of S&P Capital's oil equities research. And he expects even more write-downs and impairments to emerge at year-end. "Companies are putting this off for a long as they can. You don't want to be negotiating in capital markets with a weakened hand," says Glickman. This will be a problem up and down the E&P sector, not just for the little guys. Chesapeake Energy, one of the largest US independent producers, shocked earlier this month by indicating a $13 billion reduction in the so-called PV-10, or "present value," of its oil and gas reserves to $7 billion. Had Chesapeake used 12-month futures strip prices — instead of Securities and Exchange Commission-mandated trailing 12-month prices for PV values — the value would've fallen to $4 billion. "That's staggering, just alarming to me," said Watters, noting that E&P firms' borrowing capacity is contingent on such measures (EIF Jul.22'15).
Many believe all of these issues will come to a head in first-half 2016, as the effect of fewer hedges is felt and banks once again reassess credit lines in April. Pitifully low natural gas prices could also play a big factor, especially if the US experiences a mild winter. The confluence of these factors could be the catalyst that finally spurs a long-awaited tidal wave of mergers and acquisitions throughout the sector (EIF Oct.28'15). News of rampant defaults, bankruptcies and write-downs, combined with closed capital markets, might be enough to lower upstream asset valuations to the point where buyers and sellers can more easily agree to deals. Watters describes an "M&A playland" for strong companies with investment-grade credit ratings, noting that the six largest integrated majors together hold a war chest of some $500 billion. Smith says it could be a great opportunity for majors to improve their positions in US shale, where they were famously late in the game. "Some of the best shale acreage is held by companies with poor balance sheets. It seems like a natural fit," he says.
But there's also some $100 billion in private equity sitting on the sidelines, meaning majors and large independents may face stiff competition (EIF Oct.28'15). Anadarko has openly complained about being outbid for assets by management teams backed by private equity. "Does that mean we're overpaying? No," insists one private equity executive. "It means we're willing to pay a bit more because we think our guys can run the assets better than some larger outfits, who can struggle with cost structures."
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Fuck'em
Debt Bomb Ticking for US Shale
I made lots of posts over the last year saying just the same thing, especially about shale. Most of the true believers in shale, who spoke in support of it's future, had direct connections to employment or investment in this sector. Anyone outside the industry, who runs the numbers knows that they don't add up. The industry is still alive because of their hedges, which have now run out. Fracking needs at least 80$ a barrel, and $120 long term in order to return profits, pay down debts and invest to keep the fracking wells producing. Face it! The American and Saudi war to bankrupt the Russian Federation has BACKFIRED! Big time1
I never dared saying it, that it was a concerted effort by Saudi and the US to bankrupt the Russian Federation, but suspected it for a long time. It is just another example of doing one thing and not being able to assess the side effects or even if your main effect will actually happen. Just like in Libya and Iraq and Syria and Afghanistan - the headless chuck brigade was at it again.
Yes, the US neocons/CIA seem to have become quite expert at implementing poicies without any strategic vision or plans. The results have been a consitent fuck up, Syria being the most recent example
It depends on what the goal may be.
the message of the Georgia Guidestones
1. MAINTAIN HUMANITY UNDER 500,000,000 IN PERPETUAL BALANCE WITH NATURE
2. GUIDE REPRODUCTION WISELY - IMPROVING FITNESS AND DIVERSITY
3. UNITE HUMANITY WITH A LIVING NEW LANGUAGE
4. RULE PASSION - FAITH - TRADITION - AND ALL THINGS WITH TEMPERED REASON
5. PROTECT PEOPLE AND NATIONS WITH FAIR LAWS AND JUST COURTS
6. LET ALL NATIONS RULE INTERNALLY RESOLVING EXTERNAL DISPUTES IN A WORLD COURT
7. AVOID PETTY LAWS AND USELESS OFFICIALS
8. BALANCE PERSONAL RIGHTS WITH SOCIAL DUTIES
9. PRIZE TRUTH - BEAUTY - LOVE- SEEKING HARMONY WITH THE INFINITE
10. BE NOT A CANCER ON THE EARTH - LEAVE ROOM FOR NATURE - LEAVE ROOM FOR NATURE
Georgia Guidestones. Exactly what I was thinking.
We have some arrogant, sick puppies running the show. To them, we are a cancer on the earth. The words "climate change" could have been carved into those stones.
The end goal can only be the complete destruction of the United States. I am utterly convinced that this is the goal of the bankers who are funding the MIC.
London has never forgiven her colonies for the revolution, and though her full revenge has been a long time coming, it is all the sweeter for it.
London created the house of Saud. London created Israel. London conquered the United States in 1913, and has used her most cruelly ever since as global bully boy, expending the blood of her sons and daughters to keep all of London's conquests in line.
Saudi Arabia cut the oil price to hurt the United States, and the politicians in the States were fooled into accepting it as an "attack on Russia".
The enemy is not without. It has been within all along.
City of London Corporation (the Square Mile)
smh that someone would neg you w/o a comment. Too many pussies on ZH these days. To bolster your point, The City has its own mayor, unlike lower Manhattan. Maybe they were focusing more on Buckingham Palace?
I for one welcome our old British overlords.
"I welcome you to Crackerbox Palace, we've been expecting you..."
"The enemy is not without. It has been within all along."
Make up your mind, you just said it was the queen
The Queen is not London. The banks are - and the banks are most definitely within.
And why are they in Georgia ? They belong in one of those county sized states up north who think they can rule the world
Maybe Turner put up some of the cash...
yes, you have done your homework GOOD...
there is a lot more out there to give you a glimpse of what is to come, those assholes have to tell us what they are doing next, it's in their charter. They do it with impunity now, because they have dumbed down the population sufficiently, and sit with their brandy and fat cigars laughing at us every day.
face plant...
The original murals at Denver Airport were very specifically commissioned, what the artist or Snopes says now is irrelevent.
They beat the hell out of the Russian economy and as a happy bi-product killed big oil.
All this neocon talk is misguided. This is the left "WINNING"!
Big oil will be fine. It's the little guys that are getting killed
"I never dared saying it, that it was a concerted effort by Saudi and the US to bankrupt the Russian Federation"
All commodities have crashed, not just Oil. Since Russia does not export Copper, Steel, Iron Ore, Cement, etc its unlikely the collapse in Oil and Gas has anything to due with Russia. The Debt bubble in the Asia, and South America has popped and demand for all commodites has collapsed.
Remember when the horseface paid a visit to Saudi royals?
They want to bankrupt all the weak hands in shale so the wall st joos can own it.
DON'T BE STUPID!
You're a complete idiot if you think the oil price collapse doesn't have anything to do with Russia. Run the Ukraine, Syria, Saudi, Qatar, Turkey, pipelines, Al Nursra, ISIS, CIA timelines through your head. As soon as Russia annexed Crimea aka CIA fuckup and then the Syrian war aka CIA fuckup didn't happen as planned in September 2014, what happened to the price of oil? It mysteriously collapsed after Kerry met with the Saudi douchebags planning to over pump oil supply which is absolutely insane if you really think about it. Who runs a business with the intent of pushing prices and profits down by 50 % all while USD are being printed at record pace? No one does without the money printing shit let alone wwith it and that's why it's a scham to crush Russia which has also failed miserably. These are all last ditch panic efforts of the failing USD reserve currency and MIC. Come on man, wake up.
It's not one or the other - Asia has fueled the general commodity crash, while oil was a target against Russia.
I agree of course. But don't discount the Saudi/ US connection too much.
America's Washington Neo-Cons are incompetent at best. Their Monomaniacal imperial world view is so focused on the Russian Federation that they can't see anything else. It is this group who believe they can create ISIS and then run it as a CIA Asset to take down governments it want's changed, and to focus ISIS against Central Asian nations, followed by Russia and China.
How would it look different than today if the old USSR put a plan in place to take out the US? Elect a communist that pretends to be a christian and a muslim at the same time. Bribe and blackmail the 1,000 or so people in DC that wield real political power. The funny thing is Russia will suffer when the US falls. USSR couldn't anticipate their own fall.
Maybe inbreeding isnt so smaht.
Oh what a tangled web we weave......
The energy sector's creditors know the Saudi oil dumping isn't sustainable. It just has to be maintained long enough to drive the owners of the oil claims into bankruptcy and hand over the claims to the banksters.
Short-term, working-class whites will be cheated out of their best chance at living wages in decades. Long-term, Wall Street gets oil for a fraction of what it will fetch when the Sauds are driven from Riyadh and oil returns to fair value.
It's a hedge against Eurasia and its oil's slipping from their grasp completely. If they can't steal Russia's oil, they'll settle for Alberta's.
Yes, I remember your predictive ideas on this subject.
From some knowledge of Okla oil biz, fully expected terrible
economics. Oil busts come there after boom every couple decades or so, some
large, some less.
Coming Earthquakes did not take geologist to predict, either.
Ad I recall, wasn't it Porter Stansbury, who said that US shale would kick Saudi Ass, and predicted the impending doom for the USD three years ago?
Backfired?
why? if Exxon has $300 Billion + in cash and the majors end up with the domestic assets - whats bad about that? - what was unplanned? - the fallout is marginally Russia since they had little debt to begin with - and therefore are not going to firesale the national assets - in fact Exxon has left Russia over a year ago -
The Parties losing are "primarily" American investors, management, banks, bond holders, and the entire service cos. industry. More than any other group in the world of oil and gas.
In 86' the entire domestic industry went down with the Reagan destroy Russia Plan - but so did the Russians - this time Putin and Prudence saves Russia!
Before 86. Carter's sweaters and 55 destroyed the domestic industry. Carter's Oil Glut killed Russia but Reagan was able to take the credit because Carter is a communist and would deny he had anything to do with destroying his beloved USSR.
We all know that the global debt or default bubble will burst. It's like the lemmings, queuing up for the cliff.
This is how it goes down. One wave of defaults is not enough. But as the waves come faster and bigger, the economy has no time to recover.
Most erotic post of the day!
She looks even better nude.
Release the Kraken Mr Yellen! MWAAHAHAHAHAHAHAHAHA!
She is the Kraken, and is now in full action...
"She.."
I refute your hypothesis entirely.
And I, for one, don't want to see definitive proof one way or the other.
Barring that they are getting them for free why would the majors want to jump in on these shale assets? People have referred to these expensive to produce wells and decline rates as the equivalent to scraping a pot pipe. So why would they want to jump in and scrape the pipe again... second scraping has to really taste like shit.
Are they printing the money to buy this crap for them or what? In the article they said "Small and midsized producers, which rely heavily on revolving lines of credit with banks, have not yet seen these liquidity lifelines cut off."
Why the hell is that? Do they have to prop it up to keep the whole ponzi going or is this part of a national security issue/flooding the market and it was never meant to make money?
If the price is right, in Texas the majors (or any player with money) can buy units from distressed players, choke down production, and keep the leases active. They can leave most of the hydrocarbons in the ground and tap them later when the market is better. Some of the older leases still in force pay royalties at 1/8 and the mineral owners have to pay a portion of the gathering and transmission costs. That is very favorable for the producers.
I received a royalty check that was 2/3 of gross because of the gathering and transmission. Some of the wells in that field yielded negative returns for me.
SHIT....this is just foreplay for what these psychopaths are going to unleash
All those Mutts that are going broke in the energy business can thank Turkey for buying ISIS oil and flooding the energy market with 1/2 price off oil.
Drop in the bucket?.
You can thank Erdogan and Mini Erdogan for filling his own pockets and not giving a shit about the rest of humanity.
I think all the big brain thinking that involves killing the energy industry (which is the goose that keeps laying golden eggs) goes to the American political left.
There is no 'left' nor is there a 'right'...there are only bankers.
.
Oh shite? Who'd a thunk this would happen. And is only the beginning. Real problem is how to deflect the blame away from the sources of this nonsense. I posit it must be me. All my fault for working, getting out of debt, saving in PM's, joining a Credit Union, buying locally, stockpiling food,,,must be my fault.
Now the meme is going to go this way. IF WW3 cant be integrated into life. (whereby millions of innocent young people are murdered for lies). If it cannot be passed off that millions need to die for profits of few...OH WELL must be my fault that I did not shop enough.
I take the blame and say screw you.
I mean no disrespect to Veterans. NONE. But WW1 and the sequel WW2 were ad-men wars. A very few played both sides. made out like bandits, flooded propoganda, and KILLED MILLIONS UPON MILLIONS of misguided, patriotic individuals.
Unbeieveable that it is being tried again. Lies. But our children will die for these lies.
Veterans of all this garbage gave lives for the meme. Unjust, banker wars. Heaven help us all. All of us who actually work and produce. Who seek knowledge without lies. I will not be bought nor will I stand by as millions of young people are sent to die for profits of the few.]
Enough.
Actually, it IS your fault. In a banker-driven monetary system, the only way to get money into the system is via debt creation. You have removed your debt; therefore, the money supply has been reduced and jobs lost because of you. Get a few more credit cards and get out there and spend like crazy!
The the pail and start bailing
Hmmmmmm, sounds like someONE thinks everything isn't awesome. Always one party pooper in the crowd.
This just seems like it is taking too long. It would be interesting to see how the time frame compares to what went down in the 80s as far as defaults and bankruptcies. This whole scenario is very similar to the 80s. First some black swan or BS reason has oil prices going to the moon, then you have the Saudis opening the spigots, then you have oil price collapse follwed by war in ME oil countries. Last time it was Iraq and Iran battling around and then the Gulf war came along.
Maybe it's about war or maybe it's just typical insider/banker stuff where they keep booming and busting so that they can shake out assets and then screw us all over again. Then again war is about banks too.
War is indeed about banks - almost solely.
Yes - it does seem that way. As if the banks know that if they let this hole get deep enough their rich uncle will buy their bad debt at 100c on the dollar.
Nobody seems to think that 7 million ins salesman who are natorius for traveling,spending paying taxes etc are no more. Obumercare a flop and oil biz depleted even Chesapeak didnt light up oklahoma city with thier infamous led Christmas lights the State also not powering up thier lights either. We are at the cliff and Yellen gonna push us rite off. For me I am ready. Blame the Syrian refugees
I don't want to buy gas or oil anymore. If I don't, I'll have more money. Bike time.
I haven't started my truck for 2.5 months. Last week I had to get the trickle charger out and recharge my battery to keep the clock going and to make sure the electric locks still worked.
don't worry about the usa big banks, they got plenty.
I wonder what the energy consumption is, to produce the silicone basedglass outer coatings, for photovoltaic cells?
I was always the type of kid who wondered what bark was made out of.
What IS it made of?
Mostly pith...so stop pithing around and get back to work.
Ha Ha, just joking,,,
;-D
Hansel...don't make me break dance fight you.
There's nothing dirtier than a big bubble of oil...
You forgot the sarc tag " dipshit"
If you obviously understood it to be sarcasm then why the fuck would I need to put "sarc"? What are you, the ZH "sarc" Police? Go suck on a bucket of radioactive dicks...
sarc
because your cranium is made from depleted uranium < assclown basement baby>
You CLEARLY have ZERO understanding of how resources are used to produce energy.
I saw you at Best Bargain earlier, when I was fetching some 16 GIG sticks for $usd 3.99
You're a clueless child! You have ZERO understanding of MACRO finance!
geez Yen , chilllz ..... remember
stay flat
Especially if you're an intern from NYU.
Bankruptcies yes. Recession inducing no. Low oil and natural gas prices are good for the economy except for the economies that rely on higher oil and gas prices. And even those economies will be hurt less than one expects. Bankruptcies will not stop the flow of oil and nat gas. In fact it may make production increase. Convert the debt into equity with the corresponding elimination of interest expense, and many of these bankrupt E&P companies will have a new lease on life. I know you guys and gals love gloom and doom, but defaulting energy companies will not be the event that brings the armageddon you all seem to crave.
On the bright side, this crash should bring down our newest war monger. Putin is already in dire straights, and USA evidently can weather such crash. Around 1987 oil dropped to $10 bbl, brought down USSR, & USA survived ok.
Putin a war monger? Yeah, and I guess next you'll say Obama deserves a Nobel Peace Price?
Oh, wait...
In 1987 Government debt, Corporate debt and private debt were all one tenth of what they are now. Today the interest payments exceed the entire debt of 1987.
Here's an interesting factoid...
US Gross National Debt Jumps $340 Billion
Share that with Jr. Depleted Uranium.
You little "cry babies " ,are good at complaining, but you can't even describe the structure of your wallet.
/distributed You fucking children don't even know how currency is distributed. You kiddies are completely clueless.
What are federal reserve banks? How many of them are there?
What are " primary dealers"?
Putin fights and kills terrorists. Obama arms and supports terrorists while saying he is fighting them. Now who is the war monger? Have I missed something?
You can tell when posters depend on the MSM for news.
Like the avatar, what a rack..
Apocalyptic. Yeah, yeah, yeah.
Always the when.
200 billion?
That's hardly a concern.
Overrated.
While we're on the topic of energy.
http://investmentwatchblog.com/wtf-obamas-climate-negotiator-chinas-co2-...
The stupid criminal things politicians do never ceases to amaze me. These people are seriously fucked up.
Wrap your mind around this: When the President and First Lady look at the paintings in the White House; they do not see reflections of themselves. They see slave holders, imperialists, the very same people that oppressed their ancestors. When they look at the American ethos, they do not see a reflection of their core beliefs. What they see is what they have stood against their entire lives.
We will be lucky if and when the Obamas leave the White House they don’t pitch in a Molotov cocktail and burn the whole building down.
We will be lucky if and when the Obamas leave the White House they don’t pitch in a Molotov cocktail and burn the whole building down.
They're saving the WH for Hillary so she has a place to stay when she burns the country down.
...and do you think our next prez, the Cankle in Chief will love us more?
There's not a nanoparticle of love within a square kilometer of that woman.
If the Man Who Would be King does not take us down, surely the Woman Who Would be Queen will.
Corruption will explode if she gets elected. Oblama's dictatorial tendencies pale in comparison to hers.
Identity politics is a deadly disgrace,,,
;-D
I have posted about Lafayette La being a Oil town , have a inlaw who lives in Cypress, Texas who sells all types of valves to numerous outlets etc,.... his commission check last month was something in the neighborhood of $4.00
That's no typo....$4.00
He was smart and put money away ,paid off house ,2 kids done with school etc...said Houston is off really bad
I live in a small town and see welders buying $250,000 houses. I'm thinking you sure are brave, I hope you paid cash.There is no doubt QE was used to monkey hammer gold and support other commodity prices. When the underlying demand falls off the whole thing turns to shit, which is what happened. On the plus side there are cars fricking everywhere now that gas is cheaper. Proof that government has no idea what they're doing. The energy sector will be decimated, and thousands will pay with their jobs for government intervention.
the all the confusion of day to day" news" if you take a breath and step back and let the economic picture take focus..it is obvious obuma and co are working to destroy the economy of usa..neuter the military, kill the private sector (except international mega corps), NWO free trade bleeding of jobs, raise race hate, insult christain values, flood the nation with third world american hating welfare breeders, in other words Fundamental Change of America. Treason comes to mind.
"QE was used to monkey hammer gold and support other commodity prices" --- ZIRP and NIRP are essential more QE! Moreover, gold and commodity prices where highest in 2009!!! BEFORE QE began! Hammer paper gold, maybe, inflate commodity prices? FAIL. Russia is dependent on high oil prices, the goal was in fact to crush oil and gas prices and hurt Russia/Iran. Duh.
When you get used to living the good life ripping off the People the reality of the real price of gas and oil is a bummer. I <3 cheap gas.
apocolypse? the energy sector was never our savior, only a temporary blip in the economic radar. soon the progressives are going to tax you for farting and breathing, then they will try to take your guns with a big last push...they will do anything to further communism/fascism in this country, because redistribution is all they know!
silly little troglodites, it will end badly for your lot...a mass awakening is happening right now, the consequences will be LARGE.
Ok so 200 billion in defaults versus the size of the banks, hardly a concern.
On the upside the larger companies will use savings to purchase the little guys at basement prices, when oil picks up they will make a good return.
On the other side we might see housing drop so others who have saved get bargains.
Winners and losers in every scenario.
The losers however will be hard working employees with no where to go, and that is not good, perhaps some war torn country in Europe, Africa or the Middle East can use their services to rebuild blown up facilities.
No worries, energy and resources are only 15% of total market cap. As long as Facebook does well, there is no problem.
http://1.bp.blogspot.com/-ohDNja0yglU/VlmfcRmtJxI/AAAAAAAAN44/GleJKXvEHS...
LOL!!! Yeah, okay, who needs energy...
oh wait... ...crap.
The more major problems are the damage to the genomes from the ever-increasing radiation from the many failed nuclear projects and the polluted aquifers/ air/ crops that frack process water has caused.
Where will People be able to live when every place has been rendered uninhabitable?
The water and air are bad, the soil and the pollinators are dead. This is what has been accomplished.
so according to you we should all be dead by now, i am surprised you didnt say Va Beach was under 30 feet of water too, bwaaahahahahaharg
liberal progresives crack me up...
I don't understand.....why would anyone want to harm or do away with those cute genomes? I mean really, they are only cute yard art so what is wrong with them?
Are you saying we shouldn't just BTFD? I'm so confused.
If the Fed can keep the price of Money at ZERO for 8 years they can get the price of oiL up.... One of these days they will have to take that foot off Oil and Putin long enough to squeeze oil up just like they squeeze everthing else.
naw dog utopia ain' gon' happen dat way eehduh...ain' nobody ca' be trustahd to do all dat bruthah...