Business

Late last month in “This Is Canada's Depression: Surging Crime, Soaring Suicides, Overwhelmed Food Banks ‘And The Worst Is Yet To Come,’” we took a sweeping look at what is truly pitiable situation in Alberta, the heart of the Canadian oil patch.

Roughly a third of provincial revenue is derived from “resources” which means that when oil prices collapsed, the territory plunged into recession. Oil and gas investment fell by more than a third in in 2015 and in its latest fiscal update, the government said it fully expects the weakness to carry into 2016.

Despite the biggest liquidity injection (CNY130bn) in 4 months, it appears Kyle Bass' top trade remains well on target as Offshore Yuan plunges, underperforming Onshore Yuan despite the largest Fix devaluation in two months. In a word - it's chaos in Chinese markets. The Shanghai Composite looks to be opening down 3% - extending yesterday's losses (beyond the US session's ADR's move). What a mess.

First: PBOC devalues the Yuan fix by the most in 2 months...

Monday proved to be the worst-ever start to a year for China as stock markets plunged, triggering a trading halt in more than $7 trillion worth of equities, futures and options.  Trading was halted at 1:34 p.m. local time after the CSI 300 index dropped to 7 percent. Bloomberg.com reports: An earlier 15-minute suspension at the 5 percent level failed to stop the retreat, with shares extending losses as soon as the market re-opened. Traders said the halts took effect as anticipated without any major technical problems.

Over the weekend, when citing from an excerpt of the latest Wall Street Week episode, we revealed what to Kyle Bass was the "best investment for the next 3-5 years": the energy space. Bass added he was agnostic as to what subsector of energy one should invest in: whether it is infrastructure, pipelines, producers, upstream, downstream, he believes that there are places in the cap structure of each of these where once can put new capital and generate substantial returns.

Submitted by Thad Beversdorf via FirstRebuttal.com,

Let me say it has been a couple months since I’ve felt compelled to post which may account for the length of this latest piece but I hope and believe most will find it worth the full read.  A coffee and 10 minutes (ok maybe 15…) are a perfect compliment to this piece.