One month ago, as we pounded the table on the biggest threat to the fundamental case for oil, namely that even a modest rebound in oil prices could unleash another round of production by the "marginal", US shale oil producers, we warned that a rebound in the price of oil as modest as $40 per barrel, could be sufficient to get drillers to resume production.
Last June, China’s stock market miracle ended in tears.
The SHCOMP’s inexorable, parabolic ascent was to a large degree facilitated by an explosion of margin debt, the likes of which could not be found in any other major market across the globe. For instance, by the end of June, the outstanding balance of margin transactions as a percentage of the SHCOMP’s free float market cap was nearly 14% compared to just 5.5% for the S&P and less than 1% for the TOPIX.
The sarcastic highlight of the overnight session was the Chinese stock market, where just one month after injecting a record amount of new loans into the financial system, the PBOC lamented the danger posed by China's tremendous debt load: "Lending as a share of GDP, especially corporate lending as a share of GDP, is too high" People’s Bank of China Governor Zhou Xiaochuan told China Development Forum yesterday.
Democracy Struggles To Recover From Betrayal
Paul Craig Roberts
First announcements. Then content.
President Barack Obama arrived in Havana on Sunday ending over half a century of Cuba’s isolation as a pariah state by the US. The US president as met by Cuba’s foreign minister Bruno Rodriguez when landed at Havana’s Jose Marti International Airport aboard Air Force One on Sunday. ITV reports: The trip, which marks a new chapter in Washington’s engagement with the island’s Communist government, would have been all but unimaginable before a detente brokered in December 2014.