Economic principles explain why the Saudis began, in late 2014, to pump crude as fast as they could – or close to as fast as possible. In fact, there is a good reason why the Saudi princes are panicked and pumping.
If one looks at the state of retail companies reporting same-store sales today, a troubling picture emerges about both the US economy and the US consumer emerges. As Bloomberg notes, each of six companies, among which L Brands, Zumiez, The Buckle, Costco, The Cato Corporation and Fred's - that reported April comparable sales missed estimates compiled by Retail Metrics.
Aeropostale's decline was swift. The brand was established in 1987, went public in 2002, and by 2010 it had a market cap of nearly $3 billion. However, by January 2015 the company of 21,000 employees had posted losses in its last three fiscal years, and with 2015 being the fourth consecutive year of losses, its market cap imploded to just $2.9 million.