Oklahoma

Earlier today BOK financial admitted that as a result of a major loan impairment on just one energy producer it would have to take a dramatic $22.5 million in credit losses, but that things are slowly going from great to not so great when it also admitted that "we continued to see credit grade migration and increased impairment in our energy portfolio. The combination of factors necessitated a higher level of provision expense."

When Americans speak of “the big one,” they’re talking about the potential for a super-massive earthquake that could essentially destroy most of quake-prone California. Now some scientists believe something similar could happen in the once geologically placid Oklahoma.

The problem of reaching limits in a finite world manifests itself in an unexpected way: slowing wage growth for non-elite workers. Lower wages mean that these workers become less able to afford the output of the system. These problems first lead to commodity oversupply and very low commodity prices. Eventually these problems lead to falling asset prices and widespread debt defaults. These problems are the opposite of what many expect, namely oil shortages and high prices. This strange situation exists because the economy is a networked system. Feedback loops in a networked system don’t necessarily work in the way people expect.

Once China set the Yuan fixing some 0.5% lower, the biggest drop since the August devaluation, all hell broke loose and unleashed a global selling panic after China's stock market was promptly shut down less than 30 minutes into trading, then European shares dropped the most in more than 4 months as Asian equities plunges, as did US stock futures, the dollar weakened against the euro and the yen; crude plunged to fresh 12 year lows. Gold rose.

After the first deadly winter storm this season, now come the floods: the near record-water level across the U.S. Midwest has disrupted everything from oil to agriculture, forcing pipelines, terminals and grain elevators to close. Here is the stunning drone's-eye footage capturing the unprecedented water level across much of the US Midwest.

Elections, elections, and more elections is the 'regime change' meme for 2016 but, as Bloomberg details, the key events of the year ahead vary from a California marijuana referendum to Brazil's Olympics, and from Davos to SCOTUS. No matter what, 2016 holds a lot of opportunity for volatility, and without The Fed's safety net, who knows what that means for markets...

In the aftermath of the first deadly winter storm of the year, a dazed and confused nation suddenly finds itself in need of leadership. Unfortunately, it won't get it: "Obama offered condolences for those who lost their lives and for those who lost their homes in the tornadoes." He then spent the next 6 hours golfing and was "all smiles."

In a major blow for one of Syria's most powerful opposition forces, a Russian airstrike has killed Jaysh al Islam chief Zahran Alloush and several of his deputies. 

According to WSJ, "the Obama administration pursued secret communications with elements of Syria’s regime over several years in a failed attempt to limit violence and get President Bashar al-Assad to relinquish power, according to U.S. and Arab officials. Early on, the U.S. looked for cracks in the regime it could exploit to encourage a military coup, but found few.”

Yahoo’s annual Christmas party this year was a Roaring 20s / Great Gatsby theme, complete with champagne towers and a vintage Rolls Royce. The party itself, right down to the theme, was a symbol of waste, indulgence, and excess; it reported costly between $7 and $10 million to stage. The good old days are long gone. This is no longer a company that can afford such largess. And everyone seems to realize it... except Yahoo. Frankly, this seems like the perfect metaphor for the United States of America.

Just as we warned, since the US export ban 'lift' loomed, so WTI prices have shifted notably, having today converged to Brent's price for first time since January. It may have a lot further to fall as some analysts suggest the lifting of the export ban "is going to end up ultimately being bearish everything."

And the hits keep coming...

*CDC INVESTIGATING ANOTHER, MORE RECENT OUTBREAK OF E. COLI
*CDC: 53 INFECTED WITH E.COLI STEC 026 REPORTED FROM 9 STATES

And the stock is down over 5% now...

I would imagine any ancient Roman wise enough to make this same prediction back before the Empire collapsed as the great city fell from a population of one million down to 12,000, would have sounded like a real KOOK.

The evidence continues to pile up implicating NATO's own Turkey in Islamic State's lucrative oil trade but the UN doesn't seem to care despite bold rhetoric from the Security Council and empty promises to "cut off" terrorist funding and access to the international financial system.

“The deal to lift the crude ban is a significant change in U.S. policy, but in terms of the near-term impact on prices, we expect that to be blotchy and sentiment driven. All that you’re doing is transferring the glut from the U.S., where most of the storage capacity is, to elsewhere in the world.”