Everyone knows that at $35/barrel oil, virtually every US shale company is cash flow negative and is therefore burning through cash and other forms of liquidity such as bank revolvers and term loans, just as everyone knows that should oil remain at these prices, the US shale sector is facing an avalanche of defaults.
What is less known is who will be the next round of companies to default.
Submitted by Simon Black via SovereignMan.com,
Well, it happened again.
China’s stock market plunged, sending more than half a trillion dollars to money heaven.
What a surprise, it turns out that a massive credit bubble is actually unsustainable and will eventually burst. Shocker.
And just like what happened last year when Chinese stocks tanked, the government is stepping in to centrally plan the stock market recovery.
President Obama has signed an executive order on gun control that requires private individuals to obtain a Federal Firearms License before selling their gun. The new gun control laws were rushed through by Obama who bypassed Congress in order to implement stricter rules following the recent San Bernardino shooting.
Authored by Nomi Prins, author of "All The Presidents' Bankers", via NomiPrins.com,
As described by Nanex LLC's Eric Scott Hunsader,
Retail stop orders await execution, typically at common price intervals (0.00, 0.25, 0.50) at the Wholesaler. Wholesalers know those price levels and can anticipate and exacerbate the downside movement to increase net profits.
How?
Wholesalers create a composite view of the Order Book (Bid/Offer at each Price Level) across all exchanges.