Authored by 720Global's Michael Lebowitz via RealInvestmentAdvice.com,
“Are you kidding? Are you kidding? No one knows what you’re doing.”
– Economist John Taylor in response to William Dudley’s (President Federal Reserve Bank of New York, Vice Chairman of the Federal Open Market Committee) comment that the Federal Reserve (Fed) has been very clear in their discussions about monetary policy.
The Oil collapse is about to trigger a crisis in junk bonds.
Oil has been going straight down for weeks now. As we write this, black gold is below $43 a barrel, down 16% from its levels a month ago.
“So what?” you might ask, “Oil experiences similar drops all the time. Why is this important?”
This is important, because the high yield, or junk bond market is closely associated with Oil prices. And if Oil continues to collapse we’re going to start seeing some serious contagion risks in high yield credit.
High yield energy credit markets are in trouble again, with risk now at its highest level in 7 months.
Despite this morning's Iran-hyped OPEC bullshit and a small draw in Gasoline, it appears the reality of surging US shale production and lagging demand is weighing down oil (and gasoline) markets...
Since OPEC announced its production cut extension, the crude curve has crashed at the front-end...
Macquarie's head ofoil & gas research warns...
Authored by Michael Snyder via The Economic Collapse blog,
Do you have an emergency fund? If you even have one penny in emergency savings, you are already ahead of about one-fourth of the country.